Introduction to the Industry 1.

1 Indian Automotive Industry

Indian automotive industry globally is among the top ten. With an annual production of over two million units and providing employment opportunities to more than 13 million people, the automobile industry in India achieved a turnover of US $34 billion (INR 165000 crores).

Currently, the installed production capacity of automobile industry in India is 9.54 million vehicles annually comprising around 7.95 million 2/3 wheelers and 1.59 million 4-wheelers. India at present is the largest manufacturer of tractors, second largest manufacturer of 2wheelers and fifth in manufacturing commercial vehicles. India ranks fourth in Asia in terms of passenger car market and is the head-quarter of the worlds largest 2-wheeler manufacturer. India now has:

9 manufacturers of commercial vehicles; 15 passenger and multi-utility car manufacturers; 14 manufacturers of 2/3 wheelers; 14 number of tractor manufacturers; 5 automobile engine manufacturers.

The growth of the automobile industry has encouraged world automotive giants in setting up operation in India. Presently there are eleven multi-national automobile manufacturing companies operating in India.

1.2 Major Indian automobile manufacturers

The major Indian automotive industries are: 1) Tata Motors Tata Motors previously called TELCO is a leading manufacturer of both commercial and passenger 4 wheelers and goods carriers. Indica, Indigo, Sumo, and Safari are few of its passenger car models. 2) Ashok Leyland Ashok Leyland, is an automobile major specialized in manufacturing commercial passenger and goods vehicles. Viking and Cheetah are notable commercial passenger vehicle models, while Comet Tractor is a widely acclaimed goods carrier model.

3) Mahindra and Mahindra Mahindra & Mahindra is a manufacturer of sports utility vehicles, light commercial vehicles, and tractors. Scorpio is a popular sports utility automobile, while Bhoomiputra is a renowned tractor model. 4)Maruti Suzuki This premier car manufacturer caters to all sectors of the Indian car market. Maruti 800 and Alto are economy models, D-Zire their up-market luxury car model, and Grand Vitara a sports utility vehicle model. 5)Hindustan Motors Limited This pioneering automobile industry in India manufactures Ambassador brand of passenger cars. It also sells Mitsubishi and Chevrolet vehicles in India. 6) Force Motors Force Motors manufactures 3 wheelers, tractors, light commercial and multi-utility vehicles. 7) Bajaj Auto Bajaj Auto is a leading manufacturer of motor cycles, scooters, and three wheelers. Bajaj Pulsar is a leading motorcycle model, and Kristal DTSi is a widely accepted model of scooter. 8) Hero Honda Hero group is synonymous with 2-wheelers in India. Splendor Plus and Ambition are popular motor cycle models manufactured by HeroHonda. Their range of bicycles is widely acclaimed throughout India

Fiat, BMW, Ford Motors, Hyundai, General Motors, and Honda are some of the international companies with operations in India.

1.3 Automobile (Car) industry in India

The automobile industry in Indiathe tenth largest in the world with an annual production of approximately 2 million unitsis expected to become one of the major global automotive industries in the coming years.[2] A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth.[3] Following the economic reforms of 1991 the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.[3] The monthly sales of passenger cars in India exceed 100,000 units.
[4]

1.3.1 History
In 1953, the government of India and the Indian private sector initiated manufacturing processes to help develop the automobile industry, which had emerged by the 1940s in a nascent form.[8] Between 1970 to the economic liberalization of 1991, the automobile industry continued to grow at a slow pace due to the many government restrictions.[8] A number of Indian manufactures appeared between1970-1980.[8] Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog.[8] A number of foreign firms initiated joint ventures with Indian companies.[8]

1.3.2 Snippets
The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

1.3.3 Timeline of Indian automobile industry:

1905 Fiat Motors 1911 First Taxi in India 1924 Formation of traffic police 1928 Chevrolet Motors 1942 Hindustan Motors 1944 Premier Auto Limited 1945 Tata Motors 1947 Mahindra Motors 1948 Ashok Motors 1948 Standard Motors 1974 Sipani Motors 1981 Maruti Suzuki 1994 Rover Motors 1994 Mercedes Benz 1994 Opel 1995 Ford Motors 1995 Honda SIEL 1995 Reva Electric Car Company 1995 Daewoo Motors 1996 Hyundai Motor Company 1997 Toyota Kirloskar Motors 1997 Fiat Motors (Re-Entry) 1998 San Motors 1998 Mitsubishi Motors 2001 koda Auto 2003 Chevrolet 2005 BMW 2007 Audi 2009 Land rover and jaguar

Following the economic reforms of 1991, the automobile section underwent delicensing and opened up for 100 percent foreign direct investment(FDI).[3] A surge in economic growth rate and purchasing power led to growth in the Indian automobile industry, which grew at a rate of 17% on an average since the economic reforms of 1991.[3] The industry provided

employment to a total of 13.1 million people as of 2006-07, which includes direct and indirect employment.[3] The export sector grew at a rate of 30% per year during early 21st century.[3] However, the overall contribution of automobile industry in India to the world remains low as of 2007.[3] Increased presence of multiple automobile manufacturers has led to market competitiveness and availability of options at competitive costs. [3] India was one of the largest manufacturers of tractors in the world in 2005-06, when it produced 2,93,000 units.[3] India is also largely self-sufficient in tyre production, which it also exports to over 60 other countries.[3] India produced 6.5 crore tyres in 2005-06.[3]

1.3.4 Overview
Indias car market has emerged as one of the fastest growing in the world. The number of cars sold domestically is projected to double by 2010, and domestic production is skyrocketing as foreign makers are setting up their own production plants in India. The governments 10-year plan aims to create a $145 billion auto industry by 2016. According to McKinsey & Company, the auto sectors drive to lower costs will push outsourcing. The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002. McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian suppliers, 80 percent have the ISO 9000 certificatethe international standard for quality management. The production of automobiles in India is largely aimed at local consumers. [10] Several Indian manufacturers also export a diverse variety of auto components. [11] Tiku (2008) predicts a sale of 42 lakhs four wheeler automobiles in India by 2015.[12] Indian passenger vehicle exports are also expected to rise from 1,70,000 in 2006 to 5,00,000 in 2010.[11]

The following links gives the complete picture of Indian Auto Industry
Automobile History The first auto vehicle rolled out in India at the end of 19th century. Today, India is the 2nd largest tractor and 5th largest commercial vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles a year is now the largest motorcycle manufacturer in the world.

Industry Investment

On the cost front, OEMs eyeing India in a big way to source products and components at significant discounts to home market. On the revenue side, OEMs are active in the booming passenger car market in

India. Industry Growth The passenger car and motorcycle segment in Indian auto market is growing by 8-9 per cent. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent.

Vehicle Production

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4wheelers manufacturer. Hero Honda is the leading 2-wheelers manufacturer.

Auto Export

Passenger vehicle exports have grown over five times and two-wheeler exports have reached more than double. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.

Auto Companies Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world. Vehicle Distribution Know about the number of vehicles registered as Transport or NonTransport in the Indian states and Union Territories.

Associations

Get all the contact details of Automobile Association of Upper India (AAUI), Automotive Research Association of India (ARAI), Automobile Association of Southern India (AASI), Automotive Component Manufacturers Association of India (ACMA) and more

1.3.5 Exports A number of car plants in India export some of their cars from there to generate greater volumes of production in order to achieve the economies of scale and be profitable. These are: Tata Motors - exports Tata Safari, Indigo Marina Mahindra & Mahindra Scorpio, Xylo Maruti Suzuki - exports Suzuki Alto, Maruti 800, Suzuki Omni, Wagon R and Zen Estilo Hyundai Motor Company - exports Hyundai Santro, Verna i10, Hyundai Getz, i20 and Hyundai Accent - 42% of its India production Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.

The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- ahalf times the export figure for 2001-02. The Indian automotive export industry presently is finding a good recognition globally. The auto industry along with the component industry is contributing to the export effort of the country. In 2002-03, the export of the automobile industry had registered a growth rate of 65.35%. In 2003-04, it was 55.98%. The following table briefs about the 2003-04 and 200405 (upto April-Dec. 2004) automobile export in numbers. Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Percentage Growth 1998-99 25468 2654 10108 100002 21138 -16.6 2004-05 (Apr-Dec) 121478 3892 19931 256765 51535 32.8

Export of Auto Components: Investments in the auto ancillary sector are rising rapidly. In 1997, the size of the auto component industry was US$ 2.4 billion and now in 2004-05 it has become US$ 8.7 billion industry. The export of auto components has grown at a compounded growth rate of 19 per cent over the past six years.

Analysis of Indian Exports:

Cost competitiveness in terms of labor and raw material. Established manufacturing base. Economics of scale due to domestic market.

Strengths

Potential to harness global brand image of the parent company.

Perception about quality. Infrastructure bottlenecks. Huge export markets such as Europe, America, Africa, and others for Indian cars.

Weakness

Opportunities

China, Malaysia, Thailand, etc. Many other countries also have strategies for export promotion.

Threats

Export Imperatives:

Internal Factors:

Attaining high quality for global standards. Continuous cost reduction for global competitiveness. Supply chain management (logistics). Attaining economies of scale & scope.

External Factors:

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

1.3.6 Indian automobile companies

The following are some of the notable Indian automobile manufacturers which has long fleet of cars:

Company

Description

Product

Ashok vehicle

Leyland

is

commercial company

manufacturing

based in Chennai, India. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's name changed Ashok Leyland soon with equity 18 seater to 82 seater double-decker buses, 7.5 tonne to 49 tonne in haulage vehicles, special application vehicles, and diesel engines for industrial, applications. marine and genset

participation by British Leyland and Ashok Leyland commenced

manufacture of commercial vehicles in 1955. Ashok Leyland has six manufacturing plants: a plant at

Ennore near Chennai, two plants at Hosur (called Hosur I and Hosur II, along with a press shop), and the assembly Bhandara. plants at Alwar and

Gas-cylinder carrier, copied from 3wheel Vidal & Sohn Tempo-Werke Force Motors, formerly Bajaj Tempo, (German) Hanseat; Matador, a Force Motors is a Pune-based manufacturer of a version of Hanomag van and lighttruck (1.5 tonne payload); Temponumber of commercial vehicles traveller, Indian version of DaimlerBenz T-1 transporter; Man-Force

Trucks, licensed version of MAN AG

trucks;

and

UV's

copied

from

Daimler-Benz.

Hindustan Motors is one of the oldest Indian car manufacturers in India. It is Trekker (discontinued), Landmaster perhaps Hindustan Motors best known for the (discontinued), Contessa generation and the Ambassador which has remained (discontinued)5th virtually unchanged for about 30 Vauxhall Victor,

years. It is still very popular as a taxi Ambassadora version of the 1950s and is widely used by Indian Morris Oxford.

politicians.

The automotive section of Mahindra started off when a first batch of Mahindra Mahindra Limited & seventy five Utility Vehicles (UVs) Armada (discontinued), Voyager

was imported in CKD condition from (discontinued), Bolero. Commander, Willys in 1947. Jeeps equipment It presently CL, MaXX, Scorpio, and Mahindra along and with and Mahindra Classic, Mahindra Xylo light

manufactures agricultural trucks.

Maruti Suzki (formerly Maruti Udyog) was formed as a partnership between the Government of India and Suzuki of Japan. It brought India its first "affordable" car, the Maruti 800. It is 800, O mni, Alto, Gypsy, Swift, SX4, Maruti Suzuki the biggest car manufacturer in India Wagon-R, Versa, Zen Estilo, Grand and especially dominant in the small Vitara, and Swift Dzire. car sector. Then it brought out the Maruti 1000, made by Maruti Udyog was the first ever contemporary

sedan-type car launched in India. The car (which Suzuki sold in other

countries as the

Cultus/Swift/Geo

Metro with a 1.3 L or 1.6 L engine) was introduced in October, 1990. Sold at Rs. 3.81 lakh, it was back then the costliest car released in the Indian market. Then the company replaced it with Esteem and from that days on a line of Suzuki cars rolled out in the Indian market.

Walchand Hirachand started Premier Automobiles Ltd. (PAL) in 1942. They Premier Automobiles Limited assembled DeSoto and Plymouth cars in 1946 in association with Padmini (discontinued), 118 NE

Chrysler from the United States. They (discontinued), and Premier Sigma. also manufactured the Premier

Padmini which was a version of the Fiat 1100.

REVA Electric Car Co. is the producer of the Reva (G-Wiz), an electric car intended for use as a City car. More REVA REVAs have been produced than any other currently selling electric car and sales are increasing. It is currently the world's leading electric car REVA (G-Wiz).

manufacturing company.

Tata Tata Motors

Motors, formerly known

as

TELCO, is the largest automobile Indica, Indigo, Indigo Marina, Safari, manufacturer in India and commands Sumo, TL, and Tata Nano. more than 70% of the commercial vehicle market in India and has also

increased its share of passenger vehicle market. It was responsible for developing India's first indigenous vehicle, the Indica. It has proved to be a success in the market after initial quality problems. The company also exports the car to many countries. Tata owns major stake in Jaguar and Range Rover.

In addition to Bangalore-based REVA, which currently is the only company actually selling EVs today, electric cars made in India includes:

Mahindra & Mahindra: Four-seat model by 2010.[13] Ajanta Group: clockmaker with plans for low-cost EV.[15] Tara: Low-cost EV less than a Tata Nano.[16] Hero Electric: 2013 Electric car.[17]

1.3.6 Multi-national companies in India Company Description Product

In Audi

January

2008,

Audi

started A4, A6, A8, R8, Q7, and TT.

production with the Audi A4 and A6 at its factory in Aurangabad in the state of Maharashtra.

BMW is a manufacturer of sport sedans. BMW enjoys good brand BMW recognition in India. It has set up a 3 Series, 5 Series, 6 Series, 7 Series, plant in Chennai, Tamil Nadu, to X3,X5and X6. manufacture cars locally exclusively for the local market with no plans for export. It set up the plant to circumvent

high import duties.

It roped in Sachin Tendulkar as one of its brand ambassadors. Even Michael Schumacher appeared in an ad for the Palio. It has entered now into an alliance with Tata Motors to jointly manufacture cars at its plant in

The Fiat Uno was one of the first products to be introduced. The Fiat Palio/Fiat Siena was later introduced and was initially a success with its style and ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency. Other models were introduced such as the Palio Weekend, Palio Stile and

Ranjangaon, near Pune. The facility will enable the two companies to make Fiat about 2,00,000 cars per annum, and also house an engine manufacturing unit with a capacity of 2,50,000 units per annum. The alliance will also see Tata Motors use Fiat's diesel technologythe 1.3 litre multijet diesel enginefor its own vehicles. The two companies also have a distribution and service partnership.

Adventure. Fiat tried re-branding of the Fiat Siena to Fiat Petra without much success. Fiat Bravosold in

collaboration with Tata Motors, Fiat 500sold in collaboration with Tata Motors, and Fiat Lineasold in

collaboration with Tata Motors.

Ford entered India in collaboration with Ford Motor Mahindra & Mahindra in 1995 with a Escort Company (discontinued), Ikon,

plant in Tamil Nadu. The first model Endeavour, Fusion, and Fiesta. was the Escort.

Chevrolet has been a recognized Taverarebadged brand in India for several decades. The Panther,[[First General Motors Generation

Isuzu Subaru

model lineup consists of vehicles from Forester, Aveosecond Generation cheaper sister brands like Daewoo. Daewoo Kalos sedan, Aveo UV-A General Motors initially entered India first Generation Daewoo Kalos with the Opel brand, but the Opel hatchback, Optrarebadged Daewoo brand was dropped in March 2006 Lacetti, because sales were at an all time low Lacetti, SRVrebadged Sparkformerly Daewoo Daewoo

due to high prices and General Motors Matiz in India, and Captivarecent wanted to focus more on their launch in India.

Chevrolet brand. Since the Chevrolet brand was introduced in India, there have been no new Opel products. GM's Indian operations were originally a JV between Hindustan Motors and GM, with most of GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM India is now wholly owned by GM.

Honda Siel Cars entered India in 1995. It sells 4 cars in Indiathe City, Civic, Accord, and CR-V. The manufacturing plant of Honda Siel is located in Honda Greater Noida. The model of Accord Accord, City, Civic, and CR-V. sold in India is the 2003 model. The most inexpensive car from Honda The City. The most expensiveThe Honda Accord V6.

Santrosecond generation Hyundai Atos, Accentsecond generation Hyundai Accent sedan, Sonatasold When Hyundai entered India, the as the Sonata Embera, Vernathird brand was virtually unknown in the generation Hyundai Accent sedan, Hyundai Indian market. But now Hyundai has Getzsold good market because of its models like Elantra3rd SANTRO, Accent etc.. Elantra (discontinued), as the Getz Prime, Hyundai Terracan i10brand

generation sedan, Tucson,

new small car, global launch in India in 2007, and i20.

RenaultNissan

Logan (in partnership with Mahindra & Mahindra Limited).

Mercedes-Benz has had to cater to the ever gowning luxury segment in India, especially after the arrival of the other luxury German manufacturers. Now, MercedesBenz Mercedes-Benz cars are launched in C-Class, E-Class, S-Class, ML-Class, India soon after the worldwide launch SL-Class, CL-Class, SLK-Class, CLKand homologation earlier, when as opposed to Class, GL-Class, and CLS-Class. had

Mercedes-Benz

monopolized the niche Indian market. In 2007 they launched the SLK-Class and CLS-Class.

Lancer - Sixth Generation Mitsubishi Lancer, Mitsubishi Motors Cediaseventh Lancer, generation Pajerosecond Pajero,

Mitsubishi generation

Mitsubishi

Monterothird generation Mitsubishi Pajero, and Outlander.

koda

Auto

is of

an

important It

car

manufacturer koda

India.

recently Fabia, Octavia/Laura, and Superb.

launched the Laura, the Octavia still continues to exist. koda also offers the Superb in India but it's not too popular.

Toyota Kirloskar sells 4 car models in Toyota Qualis, Camry7th generation Toyota India. It stopped producing the Toyota Toyota Camry (the latest generation Qualis to make way for the Toyota Camry), Corolla9th generation

Innova, which was launched in India in Toyota Corolla, Innova, and Land 2005. The most expensive car from Cruiser Prado VXlatest generation Toyota is the Land Cruiser Prado. Toyota Land Cruiser (PRADO). Toyota Kirloskar Motors Ltd. is a joint venture between Toyota and the

Kirloskar Group.

The list of foreign cars sold in India as CBU is given below:

Audi: Audi A4, Audi R8, Audi A6, Audi A8, Audi TT, and Audi Q7. BMW: BMW 7 Series, BMW X5, BMW X3, BMW M3, BMW M5, and BMW M6. Land Rover: Range Rover and Range Rover Sport. Nissan: Teana and X-Trail. Porsche: Porsche 911, Porsche Boxster, Porsche Cayenne, and Porsche Cayman. Rolls Royce: Rolls Royce Phantom. Toyota: Land Cruiser Prado VX. Volkswagen: Volkswagen Jetta, Volkswagen Passat, and Volkswagen Touareg. Volvo: Volvo XC90 and Volvo S80. Lamborghini: Lamborghini Gallardo and Lamborghini Murcilago

1.3.7 CARS BY PRICE Under Rs. 3 Lakhs Rs. 3-5 Lakhs Maruti 800 , Alto, Omni, Reva, Nano Ambassador Fiat Palio, Linea, Grand Punto Hyundai Santro , Getz, i-10,i-20 Chevrolet Opel Corsa Maruti Zen-estilo , Wagon R, Versa, Esteem, Gypsy, Swift, A-Star, Ritz Ford Icon & Fiesta Tata Indica , Indigo XL, Indigo Marina Mahindra- Renault Logan, Chevrolet Swing, Optra Magnum, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Innova Tata Safari Mitsubishi Lancer , Mitsubishi Cedia Honda City ZX Honda jazz

Rs. 5-10 Lakhs

Rs. 10-15 Lakhs

Rs. 15-30 Lakh

Above Rs. 1 Cr ore

Mahindra Bolero Maruti SX4, Dezire Toyota Corolla Altis Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia & Combi, Laura Honda Civic Hyundai Sonata Embera Honda CR-V Maruti Suzuki Grand Vitara Terracan Tucson Mitsubishi Pajero Mitsubishi Outlander Mitsubishi Cedia Audi A4 Opel Vectra Honda Accord Mercedes C Class Toyota Camry Toyota Prius Bentley Arnage, Bentley Continental GT & Flying Spur Rolls Royce Phantom Maybach Audi R8

1.3.8 Production facilities in India

Ashok Leyland: Ennore, Chennai, Tamil Nadu; Hosur, Tamil Nadu (3 plants) Audi: Aurangabad, Maharashtra BMW: Chennai, Tamil Nadu. Bajaj Auto Ltd: Akurdi, MIDC Pimpri-Chinchwad, Pune, Maharashtra Caparo: Chennai, Tamil Nadu. Chevrolet: Halol, Gujrat. Daimler : Chennai, Tamil Nadu. Fiat: Pune (Ranjangaon), Maharashtra. Ford: Chennai, Tamil Nadu. Force Motors: Pune, Maharashtra General Motors: Talegaon Dabhade (Pune), Maharashtra Hindustan motors: Chennai, Tamilnadu, and Kolkata, West Bengal. Honda: Greater Noida, Uttar Pradesh. Hyundai: Chennai, Tamil Nadu. Kinetic Motor Company Limited: M.I.D.C., Pimpri-Chinchwad Pune, Maharashtra Mahindra: Nashik, Maharashtra; Kandivali, Maharashtra; Igatpuri, Maharashtra; Zahirabad, Andhra Pradesh; and Haridwar, Uttarakhand.

Mercedes-Benz: Pune, Maharashtra. Mitsubishi: Thiruvallur, Chennai, Tamil Nadu. Renault-Nissan: Chennai, Tamil Nadu. koda: Aurangabad, Maharashtra Suzuki: Gurgaon, Haryana, and Manesar, Haryana. TAFE Tractors : Chennai, Tamil Nadu. Tata: Lucknow, Uttar Pradesh; Pimpri-Chinchwad (Pune) Maharashtra; Jamshedpur, Jharkhand; Haridwar, Uttarakhand and Sanand, Gujarat.

TVS_Motors, Chennai, Tamil Nadu. Toyota: Bangalore, Karnataka. Volkswagen: Talegaon Dabhade (Pune), Maharashtra Volvo Trucks: Bangalore, Karnataka

1.4 Midsize Cars industry

Midsize cars industry provides an affordable automobile option for a family. Over the year, sales performance of midsize cars in US and other countries has been quite impressive.

Many of the popular automobile manufacturers produce and sell midsized cars. Big names in this industry include Honda, Chevrolet, Subaru, Pontiac, and Toyota. Midsized cars manufactured by these automobile companies are some of the top sellers.

1.4.1 Midsize cars industry in US

High fuel prices have made car buyers to look towards fuel efficient cars in US. Popular car maker in US have observed a buying pattern changes. Sales figures for June 2008 indicate that demand for midsized cars in US has shot up significantly. But supply of midsized cars is a bit on the lower side.

Auto buyers are being driven towards fuel efficient vehicles that cost between $18,000 and $30,000. Low performance of US auto industry in 2008 has not affected midsize cars industry.

1.4.2 Popular midsize cars in US

Chevrolet Malibu sedan, Honda Accord sedan, Chevrolet Equinox crossover, Subaru Forester crossover, and Pontiac G6 sedan recorded improved sales for June 2008 over previous year figures. Sale of Chevrolet Malibu sedan went up by 73.4 percent. Honda Accord sedan recorded an improved sales performance of 54 percent. Chevrolet Equinox crossover sales figure saw an increase of 45.9 percent.

1.4.3 Midsize car industry in India

Midsize car market in India was considered to be the next big thing for automotive industry. But recent sales performance of midsize cars in India has been anything but great. Negative growth rate has been recorded by most midsize cars, excluding Suzuki Dzire and

Tata Indigo CS. Experts believe that rise in excise duty and fuel prices have caused a dip in sales of midsize cars in India.

During April-June 2008, 15,766 units of Suzuki Dzire have been sold off. But Tata Indigo CS emerged the winner with sale of 17,539 units. Chevy Optra, Skoda Octavia, and Hyundai Accent were other decent performers.

Wednesday, 6 May 2009 Luxury and Mid-Size Cars will be Cheaper All prospective car buyers can now think for luxury and mid-size cars as these segments is likely to see a price slash. It is said that popular sedans like the Maruti SX4, the Honda Civic and luxury car may become cheaper by up to Rs 50,000. Nothing is confirmed but the ministry of heavy industries and finance ministry is on discussion to waive off the specific excise duty charged on mid-size and top-end cars last year. Cars with engine sized between 1,500-2,000cc were forced to pay an additional tax of Rs 15,000, whereas it was Rs 20,000 on all vehicles above 2,000cc engine. But as the tax was forced on ex-factory price of vehicles, the car manufacturers transferred the burden to the consumers with sales tax and other taxes. Now it is realized that such kind of tax planning does not make any sense and is unfair for some car segments. Because of such tax structure even the sales were affected as it discouraged the consumers from buying cars like the Honda Civic and the Toyota Corolla. After the implication of the light tax structure, the price on these cars will come down by Rs 20,000 to Rs 50,000. If this rule is put into practice, it will be a great offering for the buyer as well as the car manufacturers. It will attract more buyers that will in turn help the car industry to revive.

Introduction to the Organization Maruti Suzuki

2.1 Maruti Suzuki India Ltd

Maruti Suzuki India Ltd Is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company's headquarters are in Gurgaon, Haryana (near Delhi).

Overview
Type Founded Headquarters Key people Industry Products Revenue Public (BSE MARUTI, NSE MARUTI) 1981 [1] Gurgaon, Haryana, India Mr. Shinzo Nakanishi, Managing Director and CEO Automotive Cars US$3.5 billion (2009)

Employees Parent Website

6,903 [2] Suzuki MarutiSuzuki.com

2.2 Marutis Board of Directors

Chairman Mr. R. C. Bhargava

Managing Director and Mr. Shinzo Nakanishi CEO Director Director Director Director Director Director Director Director Director and Managing Executive Officer (Production) Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has 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 has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but Mr. Manvinder Singh Banga Mr. Amal Ganguli Mr. D. S. Brar Mr. Keiichi Asai Mr. Osamu Suzuki Mr. Shuji Oishi Ms. Pallavi Shroff Mr. Kenichi Ayukawa Mr. Tsuneo Ohashi

not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgao n and Manesar south of New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 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 700,000 units annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983. Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti is clearly an employer of choice for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners. The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for nine years in a row in annual survey by J D Power Asia Pacific. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Marutis mission to motorize India.

2.2 Core value

Customer obsession Fast, Flexible & First Mover Innovation & creativity Networking & Partnership Openness & Learning

2.3 Partner for the joint venture

Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered negligible. In the initial rounds of discussion the giants had their bosses present and in the later rounds related to the technical discussions executives of these automobile giants were present. Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds of discussion. Osamu in an article writes that it subtly massaged their (Indian delegation) egos and also convinced them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to ensure the government about its sincerity on the project. Suzuki in return received a lot of help from the government in such matters as import clearances for manufacturing equipment (against the wishes of the Indian machine tool industry then and its own socialistic ideology), land purchase at government prices for setting up the factory Gurgaon and reduced or removal of excise tariffs. This helped Suzuki conscientiously nurse Maruti through its infancy to become one of its flagship ventures.[3]

2.5 Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's fifth global car model, was designed and is made only in India. [4] Besides being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is also Suzuki's leading research and development arm outside Japan 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 till 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 a tenure of five years[5] Initially R.C.Bhargava, was the managing director of the company since the inception of the joint venture. Till today he is regarded as instrumental for the success of Maruti Udyog. 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. [6] 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 August 27, 1997. Mr. Bhaskarudu had joined Maruti in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General Manager. Later in 1987 he was promoted as Chief General Manager, 1998 as Director, Productions and Projects, 1989 Director, Materials and in 1993 as Joint Managing Director.

The Suzuki Motor corporation didn't attend the Annual General Meeting of the Board with the reason of it being called on a short notice. [7] Later Suzuki Motor Corporation went on record to state that Mr. Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry of Industries, Government of India refuted the charges. Media stated from the Maruti 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.[8] If Maruti would have been able to indigenise gear boxes then Maruti 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. [9] The relation strained when Suzuki Motor Corporation moved to Delhi High Court to bring a stay order against the appointment of Mr. Bhaskarudu. The issue was resolved in an out-ofcourt settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to December 31, 1999, and from January 1, 2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited would assume charges as the Managing Director. [10] Many politicians believed, and had stated in parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing and reduce imports. This remains true, even today the gear boxes are still imported from Japan and are assembled at the Gurgaon facility.

2.6 Industrial relations

For most of its history, Maruti Udyog had relatively few problems with its labour force. Its emphasis of a Japanese work culture and the modern manufacturing process, first instituted in Japan in the 1970s, was accepted by the workforce of the company without any difficulty. But with the change in management in 1997, when it became predominantly government controlled for a while, and the conflict between the United Front Government and Suzuki may have been the cause of unrest among employees. A major row broke out in September 2000 when employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among other things, revision of the incentive scheme offered and implementation of a pension scheme. Employees struck work for six hours in October 2000, irked over the suspension of nine employees, going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of the incentive-linked pay and threatened to fast to death if the suspended employees were not reinstated. About this time, the NDA government, following a disinvestments policy, proposed to sell part of its stake in Maruti in

a public offering. The Staff union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government. The standoff with the management continued to December with a proposal by the management to end the two-month long agitation rejected with a demand for reinstatement of 92 dismissed workers, with four MUL employees going on a fast-unto-death. In December the company's shareholders met in New Delhi in an AGM that lasted 30 minutes. At the same time around 1500 plant workers from the MUL's Gurgaon facility were agitating outside the company's corporate office demanding commencement of production linked incentives, a better pension scheme and other benefits. The management has refused to pass on the benefits citing increased competition and lower margins. [11]

2.7 Launches of Maruti Suzukis various model

1. Maruti 800: Launched - 1983 2. Maruti Omni: Launched - 1984 3. Maruti Gypsy: Launched - 1985 4. Maruti Alto: Launched - 2000 5. Maruti Wagon-R: Launched - 2002 6. Maruti Versa: Launched - 2003 7. Maruti Grand Vitara Launched - 2004 8. Maruti Suzuki Swift: Launched - 2005 9. Maruti Zen Estilo: Launched - 2006 10. Maruti Suzuki SX4: Launched - 2007 11. Maruti Swift Dzire: Launched - 2008 12. Maruti A-Star: Launched - 2008 13. Maruti Suzuki Ritz: Launched - 2009

Authorized service stations

Maruti is one of the companies in India which has unparalleled service network. To ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized service stations and 30 Express Service Stations on 30 highways across India.

Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle.[12]

2.8 Maruti insurance

Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited[13] 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.[14] 2.9 Maruti Finance To promote its bottom line growth, Maruti launched Maruti Finance in January 2002. Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.[15] Maruti tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003[16] 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.[17] "Maruti Finance marks the coming together of the biggest players in the car finance business. They are the benchmarks in quality and efficiency. Combined with Maruti volumes and networked dealerships, this will enable Maruti Finance to offer superior service and competitive rates in the marketplace". Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference announcing the launch of Maruti Finance on January 7, 2002[19] 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 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 Udyog holds the remaining 26%.[20] GE Capital, HDFC and Maruti Udyog Limited came together in 1995 to form Maruti Countrywide.[21] 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 Udyog to its customers. It is a market place for used Maruti Vehicles. One can buy, sell or exchange used Maruti vehicles with the help of this service in India.[22]

N2N Fleet Management N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. Its impressive list of clients who have signed up of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet management service include end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing.[23]

2.10 Accessories
Many of the auto component companies other than Maruti Udyog started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti. Maruti started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India. [24]

2.11 Maruti Driving School

A Maruti Driving School in Chennai As part of its corporate social responsibility Maruti Udyog launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools." Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore Road safety is a key concern area for both the Government and the people on Indian roads. Safe driving today requires a higher level of confidence and competence, given the poor traffic planning, increasing number of vehicles, lack of professionalism in driving and untrained drivers on road. In a bid to address these issues, Maruti Suzuki India Ltd. has launched Maruti Driving School its initiative for promoting safe driving. MDS not just imparts better driving skills but also tries to inculcate safe driving culture through special theoretical sessions for behavioural training and road sense. The school was the first to introduce advanced driving training simulator for better judgment and concept of route maps for holistic on-road practice. Having started from Bangalore in March 2005, Maruti Driving School has now spread its network throughout the country. It is dedicated towards making Indian roads safer by

helping learners become smart and responsible motorists. The salient features of MDS include: 1. Training imparted by instructors who are trained at IDTR. The certification of Instructors comes after a tough evaluation process. MDS has specially appointed lady instructors for the benefit and comfort of women trainees.

2. A curriculum that comprises comprehensive theory and practical sessions. The theoretical component focuses extensively on attitudinal and behavioural training and deals with the problem of road rage. 3. Use of advanced passenger car simulators for imparting driving training. The simulator familiarizes the trainee with car controls, before the trainee actually takes the car on road. It also simulates a variety of conditions such as night driving, hill driving, road and light conditions. Practical training provided on new cars fitted with dual control for enhanced safety and airconditioning for comfortable learning.

2.12 Exports

Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in Asia. Shown here is Maruti Gypsy in Malta. Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti to earn foreign currency.

Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports

2.13 Some Key Areas:

Customer Delight
In these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold.

Over the last few years ,the company strengthened the existing Practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. The company has retained its competitive edge by offering high quality products. In the field, the products are supported by rapidly expanding networks. The company has diverse neworks for new cars, spares, service, pre owned cars and so on, and all of them were in expansion mode last year to enable the company get closer to the customer.

Servicing customers 24X7..... 365 days....

The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9thtime in a row.

The award mirrors the company's commitment towards "Customer Obsession".

Key Initiatives
Car pickup & delivery facility for women car owners

Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a Strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers who do not receive this service...."

Setting up "Express Service Bays" & "2 - Technician Bays"

As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays These are done for customers who are hard pressed for time. Both the initiatives undertaken in this direction, have helped improve customer interface and also helped increase the productivity and capacity of existing workshops.

Mega Camps
The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. Apart from mega camps workshop camps like A/C checkup camps, PUC and general check-up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives.

Service at your Door Step through Maruti Mobile Support

Another unique initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where Setting up of new workshop may not be viable.

Car Safety device: Immobilizer

The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars.

Complete car needs

The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction We were born as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, our product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is our mission to motorise India. Our parent company, Suzuki Motor Corporation, has been a global leader in mini and compact cars for three decades. Suzuki's technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. The same characteristics make our cars extremely relevant to Indian customers and Indian conditions. Product quality, safety and cost consciousness are embedded into our manufacturing process, which we have inherited from our parent company. Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy 'smaller,fewer, lighter, shorter and neater From the Japanese work culture we imbibed simple practices like an open office, a common uniform and common canteen for everyone from the Managing Director to the workman, daily morning exercise, and quality circle teams.

Maruti Suzuki Today

More than half the number of cars sold in India wear a Maruti Suzuki badge. It is a subsidiary of Suzuki Motor Corporation Japan. They offer full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Since inception, we have produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other countries. Our turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After Tax at Rs. 12,187

Million.

Sustainability

Sustainability at Maruti Suzuki refers to sum total of all the actions and initiatives undertaken by the company for its longterm survival and growth. To achieve long-term sustainability and prosperity the company has nurtured a socially responsible behaviour towards its various stakeholders. Since inception, the company has proactively taken care of the needs and sustainable growth of its stakeholders and they in turn, have supported the company in achieving its vision and business results year after year. As a result, sustainability has become an integral part of the company's approach to business and decision making

CSR
While working to enhance shareholder wealth, Maruti Suzuki will regularly engage with all stakeholders to assess their needs and through its products, services, conduct and management initiatives, promote their sustained growth and well being.

Policy Guidelines

Company will follow responsible business practices in all its functions and operations and will strive to implement them at its suppliers, dealers and other business partners.

Company will continue to remain ahead of law in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly.

Company will be deeply committed towards the welfare of its employees, their families and communities around its operations to improve quality of life as a whole.

Company will develop products and services that fulfills the aspirations of customers, build a strong and lasting bond with them, proactively support them during natural calamities, delight them with after sales services and availability of spares.

Company will continue to provide technological and managerial support to its suppliers and dealers to further their profitable and sustainable growth.

As an expression of thanks to the local community and the people of the country Company will undertake initiatives that might not be directly linked to its business.

Company will partner with government, NGOs, business partners to contribute positively towards economic and human development of the society especially underprivileged people.

Company will encourage and recognize its employees for volunteering in the community in the spirit of serving and sharing their expertise and skills.

Company will strive to constantly build organizational capabilities, like any other competency, position suitable people and have a proper organizational structure to ensure implementation of CSR policy, guidelines and programs. . Company will engage with reputed external agencies for audit of its CSR activities for the purpose of identifying areas of improvement, authenticity of data and reporting.

Company will monitor the progress on various CSR programs in a structured manner, document the performance against the set targets and publish a report every year on its CSR performance and share with its key stakeholders

2.14 Facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India.

The Gurgaon facility

Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities. The entire facility is equipped with more than 150 robots, out of which 71 have been developed inhouse. More than 50 per cent of our shop floor employees have been trained in Japan. Gurgaon facility also houses `K' Engine plant. The `K' family engine plant has an installed annual capacity of 240,000 engines and was commissioned in 2008. Spread over an area of 20,300 m2, the `K' family engine facility is part of the Rs 9,000 crore investment plan drawn by Maruti Suzuki and Suzuki Motor Corporation. The next generation `K 'engine like all Maruti Suzuki earlier technologies is highly fuel efficient, while offering the best in refinement and performance. It will take the engine technology to the next level in India. A-Star is the first car to be powered by `K' family engine. The forthcoming models will be powered by other `K' family engines. The in-line plant layout consisting of Casting, Machining and Assembly processes has high level of automation, effective material handling and inventory reduction techniques in place, aimed for high operational efficiency. The facility employs global manufacturing best practices like cold testing, 100% on line automated checks to ensure global quality.

The Manesar facility

Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. At present the plant rolls out World Strategic Models Swift , A-star &

SX4 and DZire.The plant has several in-built systems and mechanisms. There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality. The plant is designed to be flexible: diverse car models can be made here conveniently owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high quality. The plant at Manesar is the company's fourth car assembly plant and started with an initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October 2008.

Diesel Engine Plant- Suzuki Powertrain India Limited

Suzuki Powertrain India Limited the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to produce world class diesel engine and transmissions for cars. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL. This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010.

2.15 Current models of Maruti Suzuki

Model : 800 AC BS-III Model : 800 Duo AC

Model : 800 Duo Std

Model : 800 Std BS-III

Model : A-Star LXI

Model : A-Star VXI

Model : A-Star ZXI

Model : Alto BS-III

Model : Alto Lx BS-III

Model : Alto Lxi BS-III

Model : Grand Vitara AT

Model : Grand Vitara MT

Model: Gypsy King HT

Model : Gypsy King ST BS-III

Model : Omni (5-seater) BS-III

Model : Omni (8-seater) BS-III

Model : Omni Ambulance BS-III

Model : Omni Cargo BS-III

Model : Omni Cargo-LPG

Model : Omni LPG

Model : Ritz Ldi

Model : Ritz Lxi

Model : Ritz Vdi

Model : Ritz Vxi

Model : Ritz Zxi

Model : Swift Dzire Ldi Diesel

Model : Swift Dzire Lxi Petrol

Model : Swift Dzire Vdi Diesel

Model : Swift Dzire Vxi Petrol

Model : Swift Dzire Zdi Diesel

Model : Swift Dzire Zxi Petrol

Model : Swift LDi

Model : Swift Lxi

Model : Swift VDi

Model : Swift Vxi

Model : Swift Vxi (ABS)

Model : Swift Zxi

Model : SX4 Vxi

Model : SX4 Zxi

Model : Versa BS-III

Model : Versa DX (5 Seater) BS-III

Model : Versa DX (8 Seater) BS-III

Model : Versa DX2 (5 Seater) BS-III

Model : Versa DX2 (8 Seater) BS-III

Model : WagonR Ax

Model : WagonR Lx

Model : WagonR Lx Duo

Model : WagonR Lxi

Model : WagonR Lxi Duo

Model : WagonR Vxi

Model : Zen Estilo LX

Model : Zen Estilo LXi

Discontinued MARUTI SUZUKI INDIA LTD Models 800 | Alto | Baleno | Esteem | Grand Vitara | Gypsy | Omni | Versa |

WagonR | Zen | scontinued MARUTI SUZUKI INDIA LTD Models and Variants Model : 800 AC BS-II Model : 800 Std BS-II

Model : Alto BS-II

Model : Alto Lx BS-II

Model : Alto Lxi BS-II

Model : Baleno Altura

Model : Baleno Lxi BS-II

Model : Baleno Lxi BS-III

Model : Baleno Vxi BS-II

Model : Baleno Vxi BS-III

Model : Esteem D

Model : Esteem Di

Model : Esteem Lx BS-II

Model : Esteem Lx BS-III

Model : Esteem Lxi BS-II

Model : Esteem Lxi BS-III

Model : Esteem Vxi BS-II

Model : Esteem Vxi BS-III

Model : Grand Vitara XL7

Model : Gypsy King HT BS-II

Model : Gypsy King ST BS-II

Model : Omni (5-seater) BS-II

Model : Omni (5-seater) CNG

Model : Omni (8-seater) BS-II

Model : Omni Ambulance BS-II

Model : Omni Cargo BS-II

Model : Versa DX (5-seater) BS-II

Model : Versa DX 2 BS-II

Model : Versa DX BS-II

Model : WagonR Ax BS-III

Model : WagonR Lx BS-II

Model : WagonR Lx BS-III

Model : WagonR Lxi BS-II

Model : WagonR Lxi BS-III

Model : WagonR Vxi BS-II

Model : WagonR Vxi BS-III

Model : Zen AT

Model : Zen D BS-II

MARUTI SUZUKI SX4

Men are Back

In an attempt to strengthen its position in the of Sedan cars market, Maruti Udyog Ltd. has launched its premium model bearing name SX4. After Maruti Suzuki Swift, SX4 is the second international model being launched in India. Suzuki SX4, is an A3 segment sedan car, with a perfect combination of style, performance, safety and comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from latest and efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power.

Maruti Suzuki SX4 is packed with strong features like independent suspension system, Anti Lock Braking System (ABS), matching color bumpers, electrically adjustable outside mirrors, fine quality fabric seats, power windows, rear seat center armrest and adjustable head rests in the front and rear seats are few to name for a smooth, comfortable and safe ride.

Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.

Company Name Maruti Udyog Ltd.

Segment A3 Sedan

USP Value for Money.

Key Features of Maruti Suzuki Sx4

Powered with 16 valve, 4 cylinder engine delivering impressive 143 horsepower, 136 ft lbs of torque.

15" large wheels and the arched bumpers adds grace to its athletic and robust presence.

Power assisted rack and pinion steering.

All wheel drive system to have better riding comfort. Standard MP3 ready stereo with 04 speakers and available iPod integration. With 4,490 mm length and 1,735 mm width, the SX4 looks very grand. Dashboard composed Music System with controls on Steering Wheel. An illuminated key insert switch is the unique features of this car. The turning radius of 5.3 meters makes the SX4 easily driven car on narrow roads. The SX4 comes with a unique anti theft device called The immobilizer.

Colors Available In Maruti Suzuki Sx4

Maruti Suzuki SX4 is available in 07 sparkling colors

Midnight Black Azure Gray Silky Silver Clear Beige Sunlight Copper Pearl Arctic White Supreme Red

Price & Competition From Rivals

Maruti Suzuki SX4 has been priced between Rs. 6-6.5 Lacs, is in a tough competition from its Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.

(Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer)

Safety Features of Maruti Suzuki Sx4

Rear doors Child-lock. Intelligent Computerised Anti-Theft System (iCATS) which prevents its engine from running unless the correct key is present.

ABS, and Emergency Brake-force Distribution (EBD). Enhanced safety through seat belt pre-tensioners and force limiters . Accented seating position provides wider & better visibility.

Quote - Unquote

"SX4 sedan is just the right car with which Maruti Udyog can reinforce its presence in the A3 segment and enhance its leadership".

Speaking at the launch Mr. Jagdish Khattar, Managing Director & CEO, Maruti Suzuki India Ltd.

Technical Specifications of Maruti Suzuki Sx4

Dimensions & Weight Length (mm) Width (mm) Height (mm) Wheelbase (mm) Kerb Weight (kgs) Seating Capacity Engine Model Designation No. Of Cylinders Configuration Displacement (cc) Transmission 1.6 L 16 V 04 Inline DOHC 1586 5 Manual 4490 1735 1560 2500 1170 05

Top Speed (kmph) Suspension Front Rear Brakes Type Front / Rear Brakes Tyres Type Wheels Fuel Tank Performance Max. (ps/rpm) Horsepower

175

Independent suspension with gas-filled McPherson strut & antiroll bar Semi independent torsion beam with gas filled shock absorbers

Disc Ventilated Discs/ Drums

195/65 R15 15" Steel 50 Litres

103 PS @ 5500 rpm

Max. Torque (kg m/rpm) 145 Nm @ 4200 rpm Steering Steering Type Rack & Pinion with Electronic Power Steering

Maruti Suzuki wins CNBC Auto Car India Awards

Maruti Suzuki India Limited received the following awards yesterday at the award ceremony in New Delhi on 9th January, 2008 TNS Voice of Customer Award : Maruti Suzuki Alto CNBC-Autocar India Best Value For Money Car Award: Maruti Suzuki SX4 CNBC-Autocar India Best Mid Size Car Award : Maruti Suzuki SX4 CNBC-Autocar India Car of the Viewers' Choice Award : Maruti Suzuki SX4 CNBC-Autocar India Manufacturer of the Year Award : Maruti Suzuki India Limited

Product detail

NEWS Published: May 20th, 2009 The new Maruti Suzuki has impressed everyone with its masculinity and attractive features. The Maruti Suzuki SX4 is an A3 premium segment sedan that blends style, comfort, performance, and safety. Launch of the Maruti Suzuki SX4 coincides with the phasing-out of the Maruti Suzuki Baleno, which was launched in 1999 and could not see great success. The SX4 is the second international offering from the house of Maruti Suzuki, the first being the Swift. India is the first country to see the launch of the SX4, which proves Indias worth as one of the hottest car-markets in the world. Both, the Vxi and the Zxi variants are available in a host of Metallic colours such as Silky Silver, Clear Beige, Midnight Black, Sunlight Copper, Pearl Arctic White, Supreme Red, and Azure Grey. Maruti Suzuki SX4 is an A3 segment sedan car. Launched in India by Maruti Udyog Ltd., the sedan comes across as a perfect blend of style, performance, safety, and comfort. The combined efforts of Suzuki and Maruti that have gone into its manufacture have made SX4 popular amongst the car connoisseurs of India. Available in dazzling colors and two variants, Maruti SX4 has almost bowled over the Indian buyers, who dream of owning a luxurious car. The SX4 is being touted as the tallest, widest, and broadest sedan in its class. It is available in two variants, the Vxi and the Zxi. The SX4 boasts of various features which are available only in cars that cost about a lakh more as compared to it. That is why the SX4 is expected to give a tough competition to the Chevrolet Aveo, Ford Fiesta, Honda City, and Hyundai Verna. Maruti SX4 is powered by 1.6 L 16-valve M-series engine that generates maximum power of 87bhp @ 6000rpm and maximum torque of 145 Nm @ 4200 rpm. The 1298 cc engine is equipped with MPFI ignition system. The suspensions, brakes, and transmissions were regulated in Europe, with further fine-tuning done to suit the Indian roads.

Experts View about SX4

Autocar, Writes "Suzuki's SX4 sedan made its world debut at Geneva. Like its five-door sibling, the new model combines responsive dynamics, 4x4 capability and high levels of practicality with a

comfortable and cosseting interior, Suzuki has used the talents of Italian designer Giugiaro, who also helped design the SX4 crossover. The interiors are also very fresh and modern with large and airy cabin." Maruti SX4 - A Sedan that can surprise says S. Muralidhar (The Hindu Business Line) Three world strategic models, as Suzuki calls them - the Swift, the new Grand Vitara and the new SX4 - have all contributed to the resurgence of Suzuki image as a competitive global manufacturer of attractive looking, quality cars in more segments than its traditional stronghold of small hatches. The SX4 sedan, like the Fiat and Suzuki hatchback counterparts, clearly attempts at offering the sedan buyer the feel of premium ness and the performance of a bigger sedan even as its is sharply focused at practicality. Similarly, the overall dimensions of the SX4 have again been chosen to offer more to the customer in this segment compared to the competition in this price class. So, the SX4's wheelbase and width will actually compare favorably to cars prices in the Rs. 10 lakh plus price segment. Accentuating the look and feel of the SX4's size is the strong raised shoulder line and the high ground clearance of 190mm. Flared wheel arches attempt to distract the onlooker's attention from the large gaps between body panels and tyres.

At the rear, the tail-lamps dominate the stubby, nearly notch-back style boot lid. Reflectors integrated into the rear bumper and a third stop lamp offer additional safety. High-end safety features such as anti-lock brakes with electronic brake force distribution, seat belt pre-tensioners and load limiters, and dual front airbags will be available as standard only in the top-end ZXi variant. But other features such as adjustable tilt steering, variable instrument cluster illumination, tubeless tyres, in-dash digital time and temperature display, and rear glass-integrated antenna are standard features in both the trim levels...

Bijoy Kumar from Business Standard writes Step into the SX4 and you are greeted by a very functional interior that has been deliberately meddled with to grab your attention. Two plasto-chrome strips line the centre console and there is a good sprinkling of the stuff elsewhere too, adding to the "expensive and sporty" look. Dark dials and orange displays according to me belonged to Audis of the nineties but do not look all that out of place in a Suzuki sedan.

Look at the kit! The top-end City doesn't have any of the gizmo bits thrown into the SX4 ZXi, and the latter costs way less. But the new age construction of the Honda with tis petrol tank situated under the front seat means rear passengers can fold their legs under the seat something you cannot do with the SX4.

Settle in the comfortable seat, adjust the mirrors, fire the motor and you are in for an audible surprise. Unlike the previous Suzuki engines, this one makes its presence felt. You can pick up the valve gear and other mechanical noises. The new 16-valve M-series motor displaces 1586cc and it generates 102 bhp at 5500 rpm and 14.5 kgm torque at 4200 rpm. Hardly any revs? Well, this is a typical Euro-spec motor from Suzuki and on that does not need to be revved to the moon for good results.

The ride quality is sublime for a Suzuki (I drive one on a daily basis, I should know) and the car has enough ground clearance for you to quit worrying about speed breakers. The heartbreaking thumps normally associated with fragile cars and potholes are missing in action.

The SX4 looks, feels and drives like a car that is better put together than any other Suzuki that is made in India. Exceptional fit and finish (including the interior bit) takes it to the same league as the Honda.

Competitors
Midsize car market in India was considered to be the next big thing for automotive industry. But recent sales performance of midsize cars in India has been anything but great. There are many player in this industry i.e. Honda, Mitsubishi , Tata indigo, Indigo Marina, Ford Fiesta, Fiat Linea , Chevrolet Aveo, Optra, Maruti-Suzukis SX4, DZire, Hyundai Verna, Accent, Skoda Octavia, Laura and many others. All these cars create a very fierce competitive market. All these are highly competitive for Maruti SX4. There are some following key competitors of SX4 1. Honda city 2. TATA Indigo 3. Fiat Linea 4. Chevrolet Aveo 5. Chevrolet Optra 6. Swift DZire 7. Hyundai Verna 8. Ford Ikon 9. Ford Fiesta 10. Skoda Laura Tata Indigo The Tata Indigo is a subcompact car manufactured by Indian automaker Tata Motors. Indigo Sedan In 2002, Tata introduced India's most competitive indigenous sedan: the Indigo. Designed in-house, it is best thought of as a sedan version of the Tata Indica, with which it shares a large number of parts. It is sometimes referred as the working man's luxury car. Indigo SX In 2005, Tata Motors released the Indigo SX, an upmarket version of the Indigo sedan with a leather-trimmed steering wheel and leather seats, among other features like electrically

operated outside rear view mirrors (ORVM), VCD player with LCD screens behind headrests, apart from the standard features like power steering, power windows and central locking. It competes with Honda City, Hyundai Accent and Maruti Suzuki SX4 / Maruti Swift DZire. Indigo XL The Tata Indigo XL went on sale in January 2007.[1]. It is the long wheel base version of the Indigo sedean. It features a 200 mm (7.9 in) stretched wheelbase and a 101 hp engine.The Petrol model has MPFI 16 valve twin cam engine,whereas the diesel variant features a DICOR engine. Indigo CS Tata launched the Tata Indigo CS at the 2008 Auto Expo in New Delhi. CS stands for compact sedan and is the world's shortest sedan. The Indigo CS falls within the norms which allows it to be subjected to lower excise duty which brings the cost of the car down. Indigo Marina Tata Indigo Marina The station wagon version called the Indigo Marina (called the Indigo SW in export markets) was unveiled at the New Delhi Auto Expo 2004. Indigo Marina Advent In 2004 Tata Motors unveiled the Tata Indigo Marina Advent which is a softroader similar to the Fiat Adventure. It is said to be a crossover vehicle exhibiting certain SUV like characteristics.[2] Engines

1.4 L petrol MPFI 85 PS (84 hp/63 kW) at 5500 rpm, 12 kg-m (117 Nm) at 3500 rpm 1.4 L turbodiesel 70 PS (69 hp/51 kW) at 4500 rpm, 13.5 kg-m (132 Nm) at 2500 rpm

1.4 L DICOR (only available in Europe & India)

Honda City

(2005 Face-lifted version)

The Honda City is a subcompact car manufactured by the Japanese manufacturer Honda since 1981 for the Asian market. Since 2002, the City is also known as the Honda Fit Aria. It is a subcompact sedan that uses Honda's Global Small Car platform, which is also used by the Fit/Jazz (a five-door hatchback), the Airwave (a wagon version of the Fit Aria/City), the Mobilio, and the Mobilio Spike. One of the characteristics shared by the Fit/Jazz, City/Fit Aria, and Airwave, is the location of the fuel tank. Rather than placing it under the rear seats, it is located under the front seats, thereby freeing up valuable room in the back. Fourth generation (2002-2008)

Philippine Market Honda City. In November 2002, the fourth generation City was released and included a four-wheel drive version. Like the contemporary Honda Jazz, the City is actually a rebadged Honda Fit, in the City's case a rebadged Fit Aria. In September 2005, a face-lifted version of the City was launched in Thailand, Malaysia in October 2005, and Indonesia in November 2005; it is known as the City ZX in Thailand, India, the New City in Indonesia and Malaysia, and City in Singapore and Pakistan. The most significant changes are a new exterior (new front grille, new headlamps, new fog lights, new taillights and bumpers). The front end has been extended forward by 65 mm (2.6 in) while the rear has been extended by 15 mm (0.6 in). The side mirror is electronically foldable. Both the i-DSI and VTEC trim levels have 14-inch (360 mm) alloy wheels as

standard equipment. Interior changes are minor but it does include an armrest for the driver and additional map lights. The engine remains the same but the intake manifold has been modified, resulting a 10% temperature drop in the intake air temperature (IAT)[1], the suspension has been upgraded as well. Honda City in Thailand, Indonesia, Philippines, Pakistan, Singapore and Malaysia are using CVT gearbox for both i-DSI and VTEC variants. The CVT gearbox simulates a 7-Speed automatic transmission with Tiptronic style override using paddle shift buttons. This is very rare for a subcompact of its class.

Fifth generation (2008present) The new Honda City was unveiled in Malaysia on the 10th of September 2008[3] followed by New Delhi, India on 25 September 2008[4]. and January 2009 in Pakistan and Indonesia. Honda also announced that the City will be offered in selected European countries with a 1.4 liter i-VTEC engine mated to either a 5-speed manual or a 6-speed iSHIFT automated manual transmission.[5] Guangzhou Honda will be developing a Honda Civic-sized sedan based on the Honda City chassis for the Chinese market. It will have a new name and a new shape but will use the City's underpinings and a 1.8 liter engine. This new car will compete against Dongfeng Honda's Civic and FAW Toyota's Corolla.[6] The Thai market Honda City comes in three variants - S model, V Model and SV model. The Indonesian market was offered with two trims, the lower-spec S and the higher-spec E with reclining seats. Both are powered by a 1.5 engine putting out 120 bhp, and both are available in manual and automatic transmissions. Honda launched the new City in the Philippines on the 7th of January 2009 with four variants; the 1.3 A with manual transmission, 1.3 S with manual and automatic transmissions and the 1.5 E, whose automatic gearbox is equipped with paddle shifts that promote more sporty driving enjoyment. All variants are now equipped with a SOHC, 16-

valve i-VTEC engines, creating an all-i-VTEC roster for Honda Cars this year. As a result, drivers need not to worry about the lack of horsepower[7]. It will be launched in Malaysia on the 18th of December 2008. [8] It is scheduled to arrive in Singapore by the end of September. For the first time, the car will be built and sold outside Asia, being assembled in Argentina from 2009 on. Honda launched the new city in Pakistan on 31 January 2009. It being produced at Honda plant at Lahore and is available in two variants, 5 speed automatic transmission and 5 speed manual transmission. Both models have a 1.3 liter i-VTEC engine. Guangzhou Honda will be selling the Honda City in China from the 12th of December 2008 onwards. Unlike other markets where the largest engine option is a 1.5 liter, the Chinese market Honda City will have an R18A 1.8 liter engine option.[9] In February 2009, Honda Australia have released the Thai made City into the Australian market in two 1.5 litre variants (VTi and VTi-L). According to Honda Australia boss, Yasuhide Mizuno, the City will compete with other light sedans such as the Japanese made Toyota Yaris sedan, Korean made Holden Barina and the Japanese made Nissan Tiida.[10] This will be the first City released in Australia since the 1980s. It will replace the market position used to be occupied by a former generation smaller-sized Civic. This Honda City is also present in India with the engine of the 1.5 i-VTEC. This car is in three variants : namely E MT which is manual, S MT which is also manual gear and the S AT which is the automatic version.

Advertising
The music group Madness appeared in a Japanese TV ad campaign for the Honda City. The jingle was written by the entire band, which also appeared in the TV ad, doing its famous "nutty walk". The band apparently liked the jingle so much that they expanded it into a three minute pop song and released it as a b-side (B/W "Cardiac Arrest") that reached #14 in the UK charts. It was also included on Complete Madness, the band's best-selling greatest hits compilation from 1982. The track version of "In The City" replaced the repeated brand name "Honda Honda Honda..." with the more generic "doomba doomba doomba". The TV advertisements were included (though not listed) on the Divine Madness VHS video in 1992.

Fiat Linea
The Fiat Linea is a medium sized family car released in 2007 by the Italian automaker Fiat as a world car in Eastern Europe, Latin America and Middle East. In India, the Fiat Linea was launched in January 2009 after it was postponed due to the Mumbai terror attacks, in November 2008.
[1]

It replaced the aging

Marea as the largest saloon in the Fiat range. It is based on the current Fiat Grande Punto platform. The Linea was designed by Fiat Style Centre and co-developed by Fiat do Brasil and Tofa from Turkey. Linea's size is similar to saloon versions of other small family cars, like the Ford Focus, Renault Mgane and Opel Astra. Its wheelbase is 2,603 mm (102.5 in), i.e. 100 mm (3.9 in) longer than its sister models, and its total length is 4,560 mm (179.5 in) or 500 mm (19.7 in) longer. Launched in September 2008 in Brazil, the Linea is available with a 1.9 L 16v "Torque" engine with 132 PS (97 kW; 130 hp), flexible for the Brazilian market (capable of using petrol or ethanol). Also in Brazil the Linea is available with a 1.4 L 16v T-Jet engine with 152 PS (112 kW; 150 hp), the same engine used in Fiat Grande Punto Abarth in Europe, capable of using only petrol, as this engine is imported.

Car systems
Linea is equipped with Blue&Me hands-free system, a Microsoft Windows Mobile based system with multi-language voice recognition and speech functions. Allows to browse mobile phone's book, reads aloud SMS and controls the audio system - using built-in USB port, one can connect PenDrive with music in MP3 and WMA formats. In Brazil the Linea can be equipped optionally with a Blue&Me Nav system, an enhanced Blue&Me system that has a GPS system integrated. This GPS system doesn't show maps in a touch screen, but it has a regular display that shows some arrows and directions and you are also guided by voice instructions. You can either enter addresses that you want to go and other instructions by voice instructions just like the regular Blue&Me system or using the controls on the steering whell. The Linea is the first car in Brazil that has an integrated GPS system.

Engines 0-100 km/h,s

Model[2]

Engine Displacement Power

Torque

Top speed

1.4 - 8v

I4

1368 cc

77 PS (57 kW) @ 6000 rpm

115 Nm (85 lbft) @3000 14.6 rpm

165 km/h (103 mph)

1.4 16v TJet

I4

1368 cc

120 PS (88 kW) @ 5000 rpm

206 Nm (152 lbft) @1750 rpm 9.2

195 km/h (121 mph)

1.3 Multijet 16v I4 1248 cc

90 PS (66 kW) @ 4000 rpm

200 Nm (148 lbft) @1750 rpm 13.8

170 km/h (106 mph)

1.9 Flex

16v

I4

1839 cc

132 PS (97 kW) @ 5750 rpm

183 Nm (135 lbft) @4500 rpm 10.5

188 km/h (117 mph)

1.4 16v TJet

152 PS I4 1368 cc (112 kW) 5500 rpm

207 Nm @ (153 lbft) @2250 rpm 8.5

203 km/h (126 mph)

L'Unico Club
In Brazil, Fiat is aiming the Linea towards the Japanese cars, such as Honda Civic and Toyota Corolla, the market leaders for its class. As such, Fiat has launched the L'Unico Club, that offers VIP services for Linea owners, such as special exclusive lines and exclusive attendants for Linea owners, get and deliver service for maintenance and 3 years warranty, the biggest warranty for Fiat cars in Brazil.

Ford Ikon
manufactured and sold in South Africa, Mexico and China where production ended in December 2006, September 2007 and 2007 respectively. The Mexican and South African Ikon was closely based on the European Mark IV and V Fiesta, delivering vehicle attributes that would have been acceptable to European customers. The India Ikon has a cheaper suspension, interior and front end structure. The China Ikon was somewhere in between. In Mexico, Brazil and China, the Ikon was marketed as a Fiesta sedan. In Brazil, this model has been replaced by a new 4 door model based on the South American Fiesta. In South Africa, the Ikon has been replaced by a different 4 door model based on the European Fiesta Mark VI (but different exterior sheetmetal) and manufactured in India. (This vehicle is badged Fiesta in India and has not replaced the Ikon in the Indian market.)

Comparison with competitors Car Comparison: comparison between SX4 & AVEO
Maruti Suzuki SX4 ZXi Features Chevrolet Aveo 2009 1.4 LS

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 6,26,595

Air Conditioner Power Windows Power Steering Anti-Lock Braking System x Air-Bags (Driver | Passenger) Leather Seats CD Player X | x|x X X

Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres

4490 1735 1570 1200

4310 1710 1505 1095

5 4 1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

5 4 1399 94@6200 127@3400 Manual 5 5 185/60 R 14

Car Comparison: comparison between SX4 & OPTRA

Maruti Suzuki SX4 ZXi Chevrolet Optra SRV 1.6 Option Pack

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 7,83,479

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres

Maruti Suzuki SX4 ZXi

Chevrolet Optra SRV 1.6 Option Pack

| |

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Chevrolet Optra SRV 1.6 Option Pack 4295 1725 1445 1230 10.8

5 4 1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

5 5 1598 101@5800 140@4500 Manual 5 5.2 195/60 R15

Car Comparison: comparison between SX4 & LINEA

Maruti Suzuki SX4 ZXi Fiat Linea Dynamic 1.4

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 6,49,846

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres

Maruti Suzuki SX4 ZXi

Fiat Linea Dynamic 1.4

| |

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Fiat Linea Dynamic 1.4 4560 1730 1487 1240

5 4 1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

5 4 1368 90@4000 115@4500 Manual 5 5.5 195/60 R15

Car Comparison: comparison between SX4 & FIESTA

Maruti Suzuki SX4 ZXi Ford Fiesta 1.6 S

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 7,47,477

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres 5 4 |

Maruti Suzuki SX4 ZXi

Ford Fiesta 1.6 S

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Ford Fiesta 1.6 S 4282 1686 1468 1130 10 5 4 1596 101@6500 146@3400 Manual 5 4.9 195/55R15

1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

Car Comparison: comparison between SX4 & Honda City

Maruti Suzuki SX4 ZXi Honda City 2008 1.5 E MT

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 8,25,100

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres

Maruti Suzuki SX4 ZXi Honda City 2008 1.5 E MT

X Maruti Suzuki SX4 ZXi Honda City 2008 1.5 E MT 4490 1735 1570 1200 4420 1695 1480 1100

5 4 1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

5 4 1497 118@6600 146@4600 Manual 5 5.3 175 / 65 R15

Car Comparison: comparison between SX4 & VERNA

Maruti Suzuki SX4 ZXi Hyundai Verna VTVT SX 1.6

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 7,47,700

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres 5 4

Maruti Suzuki SX4 ZXi

Hyundai Verna VTVT SX 1.6

| |

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Hyundai Verna VTVT SX 1.6 4310 1695 1490

5 4 1599 103@5500 147@3000 Manual 5

1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

185/65 R14

Car Comparison: comparison between SX4 & LOGAN

Maruti Suzuki SX4 ZXi Mahindra-Renault Logan GLX 1.4

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 5,23,351

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres

Maruti Suzuki SX4 ZXi

Mahindra-Renault Logan GLX 1.4

| |

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Mahindra-Renault Logan GLX 1.4 4247 1740 1534 1040 12.2

5 4 1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

5 4 1390 75@5500 110@3000 Manual 5 5.3 185/70 R14

Car Comparison: comparison between SX4 & AVEO

Maruti Suzuki SX4 ZXi Maruti Suzuki Swift Dzire ZDi

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 6,94,075

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres 5 4

Maruti Suzuki SX4 ZXi

Maruti Suzuki Swift Dzire ZDi

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Maruti Suzuki Swift Dzire ZDi 4160 1690 1530 1115

5 5 1248 75@4000 190@2000 Manual 5 4.7 185/70 R 14 (tubeless)

1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

Car Comparison: comparison between SX4 & INDIGO

Maruti Suzuki SX4 ZXi Tata Indigo LS TDI - BS III

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 5,10,472

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres 5 4

Maruti Suzuki SX4 ZXi

Tata Indigo LS TDI - BS III

| |

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Tata Indigo LS TDI - BS III 4150 1620 1540 1155 12.5 5 4 1405 70@4500 125@2500 Manual 5 5 175/65 R14 Radial

1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

Car Comparison: between SX4 & INDIGO XL

Maruti Suzuki SX4 ZXi Tata Indigo XL Grand Petrol

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 6,83,107

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears Minimum Turning Radius (meter) Tyres 5 4

Maruti Suzuki SX4 ZXi

Tata Indigo XL Grand Petrol

| |

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Tata Indigo XL Grand Petrol 4377 1620 1540 1150 12 5 4 1396 101@6100 124@3500 Manual 5 5.5 175/65 R14 (tubeless)

1586 102@5500 145@4200 Manual 5 5.3 205/60 R16

Car Comparison: comparison between SX4 & Ford Ikon

Maruti Suzuki SX4 ZXi Ford Ikon 1.3 Rocam

Price (Ex-Showroom Mumbai)

Rs. 7,49,094

Rs. 4,90,907

Features Air Conditioner Power Windows Power Steering Anti-Lock Braking System Air-Bags (Driver | Passenger) Leather Seats CD Player Specs Overall Length (mm) Overall Width (mm) Overall Height (mm) Kerb Weight (kg) Mileage Overall (km/liter) Seating Capacity (person) No of Doors Displacement (cc) Power (PS@rpm) Torque ( Nm@rpm) Transmission Type Gears 5 4 |

Maruti Suzuki SX4 ZXi

Ford Ikon 1.3 Rocam

Maruti Suzuki SX4 ZXi 4490 1735 1570 1200

Ford Ikon 1.3 Rocam 4145 1632 1439 995

5 4 1297 70@5500 105@2500 Manual 5 5 175 / 70 R13

1586 102@5500 145@4200 Manual 5

Minimum Turning Radius (meter) 5.3 Tyres 205/60 R16

Competitors analysis
Target Audience Positioning Performance Price range Market share Weaknesses Early 30s to Late 40s Driving Comfort, Fuel Efficiency VTEC Engine Rs. 716,200 to Rs. 845,200 Highest in mid-size car segment Highly priced with less features

PERSONAL SELLING: CONSUMER BUYING BEHAVIOR

CONSUMER BUYING vs. ORGANIZATIONAL BUYING

Final (or ultimate) consumers purchase for:

Personal, Family,

or use

Household

Organizational consumers purchase for:

Further Usage Resale

production,

in operating the organization, and/or to other consumers

Consumer Buying Behavior

The decision processes and acts of final household consumers associated with evaluating, buying, consuming, and discarding products for personal consumption

Consider the purchase an automobile. You generally will not consider different options until some event triggers a need, such as a problem needing potentially expensive repair. Once this need has put you "on the market", you begin to ask your friends for recommendations regarding dealerships and car models. After visiting several dealerships, you test drive several models and finally decide on a particular model. After picking up your new car, you have doubts on the way home, wondering if you can afford the monthly payments, but then begin to wonder if instead you should have purchased a more expensive but potentially more reliable model. Over the next five years, the car has several unexpected breakdowns that lead you to want to purchase a different brand, but you have been very happy with the services of the local dealership and decide to again purchase your next car there.

In this particular case, the following generic model of consumer decision making appears to hold:

=====>need recognition =====>information search =====>evaluation of alternatives =====>purchase decision =====>post purchase behavior

Now consider the purchase of a quart of orange juice. You purchase this product when you do your grocery shopping once per week. You have a favorite brand of orange juice and usually do your grocery shopping at the same store. When you buy orange juice, you always go to the same place in the store to pick it up, and never notice what other brands are on the shelf or what the prices of other brands are. How is it that the generic model above works differently in this second scenario? Why does it work differently? Why would we generally need the ministrations of a sales person in the sale of a car, but we generally do not need the help of a salesperson in the purchase of orange juice? How can the marketer of orange juice get a consumer like you to exert more effort into information search or to consider alternative products? How is it that the marketer of your brand got you to ignore alternative competing brands? What is the involvement of salespeople in sales promotions that might be associated with products such as orange juice?

Consumer behavior researchers are not so interested in studying the validity of the above generic model, but are more interested in various factors that influence how such a model might work.

INFLUENCES ON THE GENERIC MODEL

External Group -e.g., cultural, family, reference group influence Environmental/situational -e.g., time of day, temperature and humidity, etc. Inernal lifestyle, personality, decision making process, motivation, etc.

GROUP INFLUENCES ON CONSUMER BEHAVIOR Culture

The set of basic values, beliefs, norms, and associated behaviors that are learned by a member of society. Note that culture is something that is learned and that it has a relatively long lasting effect on the behaviors of an individual. As an example of cultural influences, consider how the salesperson in an appliance store in the U.S. must react to different couples who are considering the purchase of a refrigerator. In some subcultures, the husband will play a dominant role in the purchase decision; in others, the wife will play a more dominant role.

Social Class
A group of individuals with similar social rank, based on such factors as occupation, education, and wealth.

Reference Groups
Groups, often temporary, that affect a person's values, attitude, or behaviors E.g., your behaviors around colleagues at work or friends at school are probably different from your behaviors around your parents, no matter your age or stage in the family life cycle. If you

were a used car salesperson, how might you respond differently to a nineteen year old prospect accompanied by her boyfriend from one accompanied by two girlfriends?

Opinion leader
A person within a reference group who exerts influence on others because of special skills, knowledge, personality, etc. You might ask the webmaster at work for an opinion about a particular software application. Software manufacturers often give away free beta copies of software to potential opinion leaders with the hope that they will in turn influence many others to purchase the product.

Family
A group of people related by blood, marriage, or other socially approved relationship.

Environmental / situational influences on consumer Behavior

Circumstances, time, location, etc Do you like grapes? Do you like peas?

You might like grapes as a snack after lunch, but probably not as a dessert after a fancy meal in a restaurant. You might like peas, but probably not as a topping on your pancakes. Everyday situations cause an interaction between various factors which influence our behaviors. If you work for tips (a form of incentive related to commission) as a waiter or waitress, you must certainly be aware of such interactions which can increase or decrease your sales. If you are doing your Saturday grocery shopping and are looking for orange juice, you are probably much more sensitive to price than if you stop at the quick store late at night, when you are tired and cranky, after a late meeting at the office. A prospect shopping for a new automobile while debating the wisdom of a necessary expensive repair to his car might be more interested in what cars are on the lot than in shopping for the best deal that might involve a special order.

Internal influences on consumer behavior

Personality
A person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to stimuli in the environment We are each unique as individuals, and we each respond differently as consumers. For example, some people are "optimizers" who will keep shopping until they are certain that they have found.

The best price for a particular item, while other people are "satisfiers" who will stop shopping when they believe that they have found something that is "good enough. If you are a salesperson in a retail shoe store, how might you work differently with these two personalities?

Lifestyle and Psychographics

Lifestyle is a pattern of living expressed through a person's activities, interests, and opinions. Psychographics is a technique for measuring personality and lifestyles to developing lifestyle classifications.

Motivation: Multiple motives

Consumers usually have multiple motives for particular behaviors. These can be a combination of: Manifest Known to the person and freely admitted latent Unknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same behavior; observing behavior is not sufficient to determine motives.

What are the thoughts of John's friend? What is John's manifest motive? What might be his latent motive? How might a salesperson discover these motives? What features should a salesperson emphasize?

Involvement
Has to do with an individual's

intensity of interest in a product and the importance of the product for that person

The purchase of a car is much more risky than the purchase of a quart of orange juice, and therefore presents a higher involvement situation. This modifies the way that the generic model works. As involvement increases, consumers have greater motivation to comprehend and elaborate on information salient to the purchase. A life insurance agent, for example, would typically be more interested in contacting a young couple who just had a baby than an eighteen year old college student - even though the new parents might be struggling to make ends meet while the student is living more comfortably. Although the annual

investment into a policy is much lower if started at a younger age, most young college students are not open to thinking about long term estate planning. A young couple with a new child, however, is much more open to thinking about issues associated with planning for the child's future education, saving to buy a house, or even saving to take an extended vacation upon retirement.

TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES

Routinized
used when buying frequently purchased, low cost items used when little search/decision effort is needed e.g., buying a quart of orange juice once per week

Limited Problem Solving

Used when products are occasionally purchased. Used when information is needed about an unfamiliar product in a familiar product category.

Extended problem solving

Used when product is unfamiliar, expensive, or infrequently purchased. e.g., buying a new car once every five years.

Under what sorts of conditions the assistance of a salesperson would be needed? Not needed?

POST-PURCHASE CONSUMER BEHAVIOR Satisfaction

After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer believes that s/he received more in the exchange than what was paid, s/he might feel satisfied. If s/he believes that s/he received less in the exchange than what was paid, then s/he might feel dissatisfied. Dissatisfied buyers are not likely to return as customers and are not likely to send friends, relatives, and acquaintances. They are also more likely to be unhappy or even abusive

when the product requires post-sale servicing, as when an automobile needs warranty maintenance. The above idea can be modeled as Homans' basic exchange equation: Profit = Rewards - Costs Unfortunately, even a buyer who "got a good deal" with respect to price and other terms of the sale might feel dissatisfied under the perception that the salesperson made out even better .

This idea is called equity theory, where we are concerned with: Outcomes of A Inputs of A vs. Outcomes of B Inputs of B

Consider, for example, that you have purchased a used car for $14,000 after finding that the "e:blue book" value is listed at $16,000. You are probably delighted with the purchase until you accidentally meet the prior owner who had received a trade-in of $10,000 on the car just a few days before. That the dealer appears to have received substantially greater benefit than you could lead to extreme dissatisfaction, even though you received good value for the money spent. (Note that the selling dealer might actually have paid $12,000 for the car at a statewide dealer's auction, and then might have incurred another $1,000 in expenses associated with transporting the car and preparing it for sale. Management of buyer perceptions is very important!) An issue related to this is attribution theory. According to attribution theory, people tend to assign cause to the behavior of others. Mary's life insurance agent advises her to purchase a whole life policy, while her accountant advises her, "buy term insurance and invest the difference. The reason, explains the accountant, "is that insurance agents receive substantially higher commission payments on sales of whole life policies." If Mary believes that the insurance agent is recommending a product merely because he receives a higher commission, she will likely be displeased with the relationship and will not take his recommendation. If the agent is able to show Mary that the recommended product is the best solution for her situation, then she will likely attribute his recommendation to

having her best interests in mind and will not be concerned about how it is that he is compensated for his services.

Cognitive dissonance
It has to do with the doubt that a person has about the wisdom of a recent purchase It is very common for people to experience some anxiety after the purchase of a product that is very expensive or that will require a long term commitment. Jane and Fred, for example, signed a one year lease on an apartment, committing themselves to payments of $1500 per month. A week later, they are wondering if they should have instead leased a smaller $900 apartment in a more rough part of town; they are not sure if they really can afford this much of a monthly obligation. Dick and Sally, on the other hand, ultimately rented the $900 apartment, and now are wondering if the savings in rent will be offset by noisy and sometimes unsafe conditions in this neighborhood. Perhaps neither couple would be experiencing this anxiety if their landlords had given them just the smallest of assurances that they had made a good decision. After a close on products that are expensive or that require a long term commitment, the salesperson should provide the prospect with some reasons to be happy with the decision. Allow the car buyer to reinforce her own positive feelings by calling her a week after the purchase to ask how things are going. Call the new life insurance policy holder after two months to see if there are any questions; a lack of questions can only help the buyer to convince himself that he did the right thing.

Appendix
Questionnaire
Section 1 1. Name: . 2. Date: ...

3. Sex: Male Female

4. Age: 18-30years 30-50years Above 50 years

5. Profession: Government Employee Businessmen Private sector employee Professional Student Any Other

6. Monthly Income: Rs. 10,000 Rs. 20,000 Rs. 30,000 Rs. 40,000 Rs. 20,000 Rs. 30,000 Above Rs. 40,000

Section 2

7. Which passenger vehicle do you have?

SUV MUV

Car any other specify

8. Which Mid-size luxury car would you prefer to buy?

Ford Ikon Hyundai Verna

SX4 TATA Indigo

Fiat Linea Ford Fiesta

Swift Dezire

Chevrolet Aveo

9. Which feature of SX4 attracts you most, that inspires you to go for SX4?

Price Design All Above

Interior Engine power Cant Say

10. Which color of SX4 would you prefer?

Metallic clear beige Metallic azure grey

Pearl metallic arctic white Metallic silky silver

Metallic sunlight copper Metallic midnight Black

11. Do you think SX4 is premium car? Yes No Cant Say

12. Will you recommend SX4 to your friends and relatives? Yes No Cant Say

13. How will you feel if SX4 is used as taxi? Embarrass Dont care Cant say

14. Can you trust SX4 for safety? Yes No Cant say

15. From which source you get the information about SX4 Television News Paper Magazine Friends Relatives

Others 16. Rank following attributes of SX4 in order to preference given by you, while buying SX4? Brand Name Shape/Design Safety Affordability Comfort/ interior Bulbous rear

17. Do you think that purchase decision of SX4 enhance your status? Yes No

18. For what purpose would you like to use SX4? Will offer to you use for business purpose Will use as family car Will prefer as taxi Would like to offer as gift For any other reason

19. Do you think that SX4 is a dream car of yours? Yes No Cant say

20. On what occasion would you like to buy SX4?

Dewali Dhanteras Marriage

Eid New Year Navratra

21. Which car you are using now?

Small car Multi utility vehicle Super luxury car

sedan car sports utility vehicle any other

Place: .. Date:

Signature