ABSTRACT

Mahindra came up with its first compact SUV car named KUV100 in 2016. It
has huge expectation on the car as it was their first compact SUV car. But the
sales of the car are gradually decreasing. The purpose of doing this research is
to get to know the factors that are effecting the sales of Mahindra KUV100. In
order to know the factors, we just collected the primary data by preparing a
questionnaire and circulating it to different kind of people, so that we can be
able to know the people’s opinion on the KUV100 car. And we have used the
tools like SPSS and Google forms in the research process.
 CONTENTS
Sr.no INDEX Page No

01. INTRODUCTION
 About Industry 3-13
 About Sector
 About Company
 Past History
 Changes or Initiative

02. LITERATURE REVIEW 14-21

03. Research Problem & 22

Research Objective

04. Research Methodology 23-40

 Tools & Techniques
 Data Collection
05. Analysis & Interpretations 41-46

06. Summary & Conclusion 47-48

07. Annexure 49-52

 Bibliography
 Appendix

1
 Introduction

Evolution of Indian auto mobile industry

India is one of the fastest growing economies in the world. Industry segments
like automobile, textile, and agriculture have grown since the nation’s
independence. The support received from government and welfare schemes
have given a boost to these segments for steady and progressivegrowth.
Among these, the automobile industry has flourished like never before. The
Indian auto industry is one of the largest globally, both regarding production as
well as sales.
But, have you ever wondered about how this industry kick-started and evolved
to the giant it is today? On this Independence Day, let us look through the veil
of the automobile and insurance segment and know about its evolution over
time.

Motor Liberalization
We started from a phase where there were few options with automobiles. This
phase continued for an extended period until the phase of the liberalisation. It
encouraged many international players to foray into Indian markets. Many of
them collaborated with the local manufacturers to form companies to capture
markets as per the needs of local customers.

Automobile and Economic Growth

The evolution of the auto industry contributed much to the economic growth of
the country. It also helped the finance and insurance sectors. In time, vehicle
insurance was set up and governed by the Motor Vehicles Act, 1988. It ushered
in mandatory insurance for vehicles driven on Indian roads.

India Story
 The 2 wheeler contribute to 79.17% of the total automotive production of
the country
 Steady growth in demand due to ever rising income, middle class, and a
young population

2
  The Government of India takes Initiatives to set up manufacturing plants
through Make in India
 India has a large pool of skilled labour and a growing technology base
 It has the world’s 12th largest HNI population with a growth rate of 20.8%,
thus increasing demand for luxury cars
 By the year 2020, India’s share in the global passenger vehicle market is
expected to touch 8% from the present 2.4% recorded in 2015

Market Size
Domestic automobile production increased at 7.08 per cent CAGR between
FY13-18 with 29.07 million vehicles manufactured in the country in FY18.
During April-November 2018, automobile production increased 12.53 per cent
year-on-year to reach 21.95 million vehicle units.
Overall domestic automobiles sales increased at 7.01 per cent CAGR between
FY13-18 with 24.97 million vehicles getting sold in FY18. During April-
November 2018, highest year-on-year growth in domestic sales among all the
categories was recorded in commercial vehicles at 31.49 per cent followed by
25.16 per cent year-on-year growth in the sales of three-wheelers.
Premium motorbike sales in India crossed one million units in FY18. . During
January-September 2018, BMW registered a growth of 11 per cent year-on-year
in its sales in India at 7,915 units. Mercedes Benz ranked first in sales
satisfaction in the luxury vehicles segment according to J D Power 2018 India
sales satisfaction index (luxury).
Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in
2017-18.
Investments:
In order to keep up with the growing demand, several auto
makers have started investing heavily in various segments of the industry during
the last few months. The industry has attracted Foreign Direct Investment (FDI)
worth US$ 19.29 billion during the period April 2000 to June 2018, according
to data released by Department of Industrial Policy and Promotion (DIPP).
Some of the recent/planned investments and developments in the automobile
sector in India are as follows:

3
  Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$
155.20 million) to launch 20-25 new models across various commercial
vehicle categories in 2018-19.
 Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC
Motor has also announced to invest US$ 310 million in India.
 Mercedes Benz has increased the manufacturing capacity of its Chakan
Plant to 20,000 units per year, highest for any luxury car manufacturing
in India.
 As of October 2018, Honda Motors Company is planning to set up its
third factory in India for launching hybrid and electric vehicles with the
cost of Rs 9,200 crore (US$ 1.31 billion), its largest investment in India
so far.

Government Initiatives
The Government of India encourages foreign investment in the
automobile sector and allows 100 per cent FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -

 The government aims to develop India as a global manufacturing centre

and an R&D hub.
 Under NATRiP, the Government of India is planning to set up R&D
centres at a total cost of US$ 388.5 million to enable the industry to be on
par with global standards

The Ministry of Heavy Industries, Government of India has shortlisted 11

cities in the country for introduction of electric vehicles (EVs) in their
public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The
government will also set up incubation centre for start-ups working in
electric vehicles space

Achievements

Following are the achievements of the government in the past four

years:

 Number of vehicles supported under FAME scheme increased from 5,197

in June 2015 to 192,451 in March 2018. During 2017-18, 47,912 two-
4
 wheelers, 2,202 three-wheelers, 185 four-wheelers and 10 light
commercial vehicles were supported under FAME scheme.
 Under National Automotive Testing And R&D Infrastructure Project
(NATRIP), following testing and research centres have been established
in the country since 2015
o International Centre for Automotive Technology (ICAT), Manesar
o National Institute for Automotive Inspection, Maintenance &
Training (NIAIMT), Silchar
o National Automotive Testing Tracks (NATRAX), Indore
o Automotive Research Association of India (ARAI), Pune
o Global Automotive Research Centre (GARC), Chennai
 SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’
centres are being set up in the country for promoting smart and advanced
manufacturing helping SMEs to implement Industry 4.0 (automation and
data exchange in manufacturing technology).

Road Ahead
The automobile industry is supported by various factors such as availability of
skilled labour at low cost, robust R&D centres and low cost steel production.
The industry also provides great opportunities for investment and direct and
indirect employment to skilled and unskilled labour.Indian automotive industry
(including component manufacturing) is expected to reach Rs 16.16-18.18
trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow
9 per cent in 2018.
Automobile Industry In India :

In 1897, the first car ran on an Indian road. Through the 1930s, cars were
imports only, and in small numbers.
An embryonic automotive industry emerged in India in the 1940s. Hindustan
Motors was launched in 1942, long-time competitor Premier in 1944,
building Chrysler, Dodge, and Fiat products respectively.[3] Mahindra &
Mahindra was established by two brothers in 1945, and began assembly of Jeep
CJ-3A utility vehicles. Following independence in 1947, the Government of
India and the private sector launched efforts to create an automotive-component
manufacturing industry to supply to the automobile industry. In 1953, an import
substitution programme was launched, and the import of fully built-up cars
began to be restricted.[3]
5
In 1952, the government appointed the first Tariff Commission, one of whose
purposes was to come out with a feasibility plan for the indigenization of the
Indian automobile industry. In 1953, the commission submitted their report,
which recommended categorizing existing Indian car companies according to
their manufacturing infrastructure, with licensed capacity to manufacture a
certain number of vehicles, with capacity increases allowable, as per demands,
in the future. The Tariff Commission recommendations were implemented with
new policies that would eventually exclude companies that only imported parts
for assembly, as well as those with no Indian partner. In 1954, following the
Tariff Commission implementation, General Motors, Ford, and Rootes Group,
which had assembly-only plants in Mumbai, decided to move out of India.
The Tariff commission policies, including similar restrictions that applied to
other industries, came to be known as the "license raj", which proved to be the
greatest undoing of the Indian automotive industry, where bureaucratic red tape
ended up causing demand to outstrip supply, with month-long waiting periods
for cars, scooters, and motorcycles.
The majority of India's car manufacturing industry is evenly divided into three
"clusters". Around Chennai is the southernmost and largest, with a 35% revenue
share, accounting for 60% of the country's automotive exports, and home of the
operations of Heavy Vehicles
Factory,EngineFactoryAvadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BM
W, Hindustan Motors, Daimler, Caparo, Mini, and Datsun.
Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the
western cluster, with a 33% share of the market. Audi, Volkswagen,
and Skoda are located in Aurangabad. Mahindra and Mahindra has an SUV and
engine assembly plant at Nashik. General Motors, Tata Motors, Mercedes
Benz, Land Rover, Jaguar, Fiat, and Force Motors have assembly plants in the
area.
The northern cluster is around the National Capital Region, and contributes
32%. Gurgaon and Manesar, in Haryana, are where the country's largest car
manufacturer, Maruti Suzuki, is based.
An emerging cluster is the state of Gujarat, with a manufacturing facility
of General Motors in Halol, and a facility for Tata Nano at their plant inSanand.
Ford, MarutiSuzuki, and Peugeot-Citroenplants are also planned for Gujarat.
Kolkata with HindustanMotors (inactive), Noida with Honda, and Bengaluru

6
with Toyota are other automotive manufacturing regions around the country.
India's automobile exports have grown consistently and reached $4.5 billion in
2009, with the United Kingdom being India's largest export market, followed by
Italy, Germany, Netherlands, and South Africa.
According to The New York Times, India's strong engineering base and expertise
in the manufacturing of low-cost, fuel-efficient cars has resulted in the
expansion of manufacturing facilities of several automobile companies
like Hyundai, Nissan, Toyota, Volkswagen, and Maruti Suzuki.
In 2008, South Korean multinational Hyundai Motors alone exported 240,000
cars made in India. Nissan Motors plans to export 250,000 vehicles
manufactured in its India plant by 2011. Similarly, US automobile
company, General Motors announced its plans to export about 50,000 cars
manufactured in India by 2011.
In September 2009, Ford Motors announced its plans to set up a plant in India
with an annual capacity of 250,000 cars, for US$500 million. The cars will be
manufactured both for the Indian market and for export. The company said that
the plant was a part of its plan to make India the hub for its global production
business. Fiat Motors announced that it would source more than US$1 billion
worth auto components from India.
In recent years, India has emerged as a leading center for the manufacture of
small cars. Hyundai, the biggest exporter from the country, now ships more than
250,000 cars annually from India. Apart from Maruti Exports' shipments
to Suzuki's other markets, Maruti Suzuki also manufactures small cars
for Nissan, which sells them in Europe. Nissan will also export small cars from
its new Indian assembly line. Tata Motors exports its passenger vehicles to
Asian and African markets, and is preparing to sell electric cars in Europe in
2010. The firm is planning to sell an electric version of its affordable car
the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is preparing to
introduce its pickup trucks and small SUV Models in the U.S. market. Bajaj
Auto is designing a low-cost car for Renault Nissan Automotive India, which
will market the product worldwide. Renault Nissan may also join domestic
commercial vehicle manufacturer Ashok Leyland in another small car
project. While the possibilities for the Indian automobile industry are
impressive, there are challenges that could thwart future growth. Since the
demand for automobiles in recent years is directly linked to overall economic

7
expansion and rising personal incomes, industry growth will slow if the
economy weakens.

MAHINDRA & MAHINDRA INTRODUCTION

Mahindra & Mahindra Limited is an Indian Multinational car manufacturing corporation
headquartered in Mumbai, Maharashtra. The company was established in 1945 as
Mohammad & Mahindra and later renamed as Mahindra & Mahindra. It is one of the largest
vehicle manufacturers by production in India. The company was set up as a steel trading
company by brothers K.C. Mahindra & J.C. Mahindra and Malik Ghulam Mohammed.
The company expands its business into manufacturing and selling larger MUVs, starting with
the assembly under the licence of the Willys Jeep in India.
The company later commenced manufacturing Light commercial vehicles (LCVs) tractors.
Over the past few years, the company has taken interest in new industries and in foreign
markets. The company entered the two-wheeler industry by taking over Kinetic Motors in
India. Mahindra & Mahindra also has a controlling stake in REVA Electric Car Company and
acquired South Korea’s SsangYong Motor Company in 2011.
The company operates in nine segments: automotive segment comprises of sales of
automobiles spare parts and related services; farm equipment segment comprises of sales of
tractors spare parts and related services; information technology (IT) services comprises of
services rendered for IT and telecom; financial services comprise of services relating to
financing leasing and hire purchase of automobiles and tractors; steel trading and processing
comprises of trading and processing of steel; infrastructure comprise of operating of
commercial complexes project management and development; hospitality segment comprises
of sale of timeshare; Systech segment comprises of automotive components and other related
products and services and its others segment comprise of logistics after-market two wheelers
and investment. Mahindra & Mahindra Ltd was incorporated on October 2 1945 with the
name Mahindra & Mohammed Ltd. The company was renamed as Mahindra & Mahindra Ltd
in the year 1948. The steel trading business was commenced in association with suppliers in
UK. In the year 1950 the company commenced the first business with Mitsubishi Corporation
and 5000 tons of wagon building plates from Yawata Iron & Steel were supplied.In the year
1953 Otis Elevator Company (India) was established. A joint venture was made with Rubery
Owen & Company Limited UK and established a company under the name of Mahindra
Owen. The company's Machine Tools Division was commenced its operations in the year
1958.

8
SUSTAINABILITY:
As a large global corporation, we see an incredible opportunity to drive positive
change for all our stakeholders. By making every aspect of our business
sustainable, we re-affirm our commitment to a better world. From our
employees, to the communities which we are a part of, we want to conduct our
business consciously and responsibly. In everything we do, we ensure that we
Rise to do good.

For us, sustainability means not only the conservation of the environment, but
also the well being of our stakeholders, communities, and the world-at-large. It
is an integral part of our business, and a defining driver on our road to long-term
profitability. Its entails financial growth and profit, and responsibility towards
communities and stakeholders, giving back, good governance, ethical practices,
and respecting the law of the land.

Three group companies - Mahindra & Mahindra, Mahindra Finance and Tech
Mahindra - have featured in the Dow Jones Sustainability Index 2015. While
Mahindra & Mahindra and Mahindra Finance feature in the "Emerging Markets
Index", Tech Mahindra features in both, the DJSI Emerging Market Index and
the World Index. This is proof, if any, of how we are performing on driving the
sustainability agenda.

Social Responsibility:
As a large global corporation, we see an incredible opportunity to drive positive
change for all our stakeholders. By making every aspect of our business
sustainable, we re-affirm our commitment to a better world. From our
employees, to the communities which we are a part of, we want to conduct our
business consciously and responsibly. In everything we do, we ensure that we
Rise to do good.

Aligned to the “Rise for Good” mission, we focus our efforts on the
constituencies of girls, youth, and farmers, by supporting them in education,
health and livelihood enhancement, with innovative programmes that harness
the levelling power of technology. Rise for Good also entails running our

9
business with integrity, responsibility and transparency, caring for the well-
being of the planet and striving for the welfare of our employees, customers and
the community.

Cultural Outreach:
Culture brews deep in our veins. The arts spark a fire like no other. Together,
they give rise to an untameable movement. One that echoes across the world,
inspiring artists to create something magnificent. Our goal is to bring this
movement to our customers. To make an impact on their lives, beyond
corporate boundaries. To bond with them as we share in the Spirit of Rise.

History Of Mahindra & Mahindra:

K. C. Mahindra is the person who established Mahindra and Mahindra when he
visited United States of America as Chairman of the India Supply Mission.
When he met Barney Roost who invented general purpose vehicle or Jeep who
was the inspiration for K. C. Mahindra.

K. C. Mahindra Brothers joined with Ghulam Mohammed. And Mahindra &

Mohammed was set up as franchise for assembling jeeps from Willys, USA on
October 2nd, 1945.After Two years Mahindra & Mohammed changed its name
to Mahindra & Mahindra. Mahindra & Mahindra grown in size and stature and
it also occupied a premier position in all key sectors of economy. Mahindra &
Mahindra group is engaged in an ambitious and prolonged penetration into the
global arena.

Company Overview:
Mahindra & Mahindra Limited engages in the automotive and farm equipment
businesses worldwide. It offers aerospace components, airframe parts and
assemblies, and aircraft; personal and commercial vehicles, trucks, and electric
vehicles; recreational and commercial boats; and motorcycles, scooters, electric
scooters, and e-bikes, as well as engages in automotive servicing and pre-owned
cars business. It also provides crop care products; supplies hybrid seeds; grows
and distributes seed potatoes, pulses, and edible oils; exports fruits; and offers

10
dairy products, agricultural irrigation systems, pumps and pipes, and landscape
and turf irrigation products. In addition, it offers tractors, gyrovators, laser
levelers, rice transplanters, fertilizer spreaders, sickle swords, cane thumpers,
harvesters, mulchers, shredders, balers, and loaders; bulk handling systems;
unit-handling products; gensets and diesel generators; people transport and
supply chain management solutions; maternity and childcare products; steel
products for home appliances, automotive, and power industries; and hospitality
services. Further, it provides components; engineering consulting, information
security and business continuity management, physical security advisory, and
fraud risk and business process management services; defense vehicles; radar
and communication systems; border security solutions; and identification friend
or foe systems. Additionally, it engages in real estate development, project
management, commercial complexes operation, and end of life vehicles
recycling businesses. It also provides fixed deposits and mutual funds; SME and
rural housing finance; vehicle and personal loans; insurance brokerage;
reinsurance; information technology services; and energy and engineering
solutions. The company has a strategic alliance with Ford Motor Company; and
a strategic technology partnership with Renesas Electronics Corporation. The
company was founded in 1945 and is based in Mumbai, India.
Mahindra & Mahindra Ltd. key Products/Revenue Segments include
Automobile-Light, Medium & Heavy Commercial, Jeep, Passenger Car which
contributed Rs 48288.43 Crore to Sales Value (97.66 % of Total Sales), Sale of
services which contributed Rs 583.33 Crore to Sales Value (1.17 % of Total
Sales), Other Operating Revenue which contributed Rs 469.77 Crore to Sales
Value (0.95 % of Total Sales), Scrap which contributed Rs 103.46 Crore to
Sales Value (0.20 % of Total Sales)for the year ending 31-Mar-2018.
For the quarter ended 30-09-2018, the company has reported a Standalone sales
of Rs 12988.57 Crore, down -3.93 % from last quarter Sales of Rs 13519.91
Crore and up 6.62 % from last year same quarter Sales of Rs 12182.07 Crore
Company has reported net profit after tax of Rs 1649.46 Crore in latest quarter.
The company’s top management includes Dr.PawanGoenka, Dr.Vishakha N
Desai, Mr.Anand G Mahindra, Mr.AnupamPuri, Mr.Keshub Mahindra, Mr.M
M Murugappan, Mr.Nadir B Godrej, Mr.R K Kulkarni, Mr.T N Manoharan,
Mr.Vijay Kumar Sharma, Mr.Vikram Singh Mehta. Company has B S R & Co.
LLP as its auditoRsAs on 30-09-2018, the company has a total of 1,243,192,544
shares outstanding.

11
Product portfolio of Mahindra in car segment

12
Literature review
1. International Journal of Current Research and
Academic Review(N.Sekar&N.A.Krishnamurthi on Dec-
2015)
The Indian Scenario
The Indian automobile industry, the sixth largest automobile producer in the
world, is one of the potential future markets in the world. The Indian
automobile market has grown from a seller dominated market in the 1980’s to a
consumer dominated market today. The auto industry of the India has grown
substantially and further is expected to grow at a CAGR of more than 10% over
the period of next 7 years. Indian automobile industry is well positioned in
terms of demography and geography as it can service both domestic demands as
well as cater to the increasing demand in export markets. This rise of the
automotive industry can be attributed to various factors like growing economy,
rising prosperity, increasing disposable income among consumers, easily
accessible finance options, and an increase in the working population of the
country.The Indian automobile industry can be categorized under four different
categories namely, two-wheelers, three-wheelers,passenger cars & Utility
Vehicles (UVs), commercial vehicles and tractors. The two- wheeler segment

13
can be further sub divided into mopeds, scooters, motorcycles and electric two-
wheelers. Major share of the Indian automobile industry is taken by two-
wheelers followed by passenger cars and the share is almost equal between
commercial vehicles and three-wheelers. The major contribution to the vehicle
production comes from Southern India, accounting for 35% of the total
production.The Indian automotive industry based on vehicle type (two-
wheelers; three-wheelers;passenger cars & UV; commercial vehicles; tractors),
region (North; South; East; west). The passenger vehicles segment further
covers the market for passenger cars and utility vehicles and the commercial
vehicles segment covers light-duty and heavy-duty commercial vehicles. Apart
from quantitative analysis of these markets, the report also covers qualitative
aspects like market dynamics, porter’s five forces analysis, PESTLE
analysis( Political, Economical, Social, Technological, Legal and
Environmental.) and others.The report features profiles of the top players in the
Indian automotive market covering their market presence; financial health;
product offerings in the segment and further insights into their strategies and
recent market developments associated with individual players.

2. MAHINDRA TO HIT BRAKES ON KUV100(PUBLISHED

IN LIVEMINT EPAPER ON FRI,SEP 21ST 2018)
Sales of the Mahindra TUV 300 grew 10.5% in FY18 to 29,018 units, while the
Mahindra KUV 100 recorded a 28% drop to 25,542 units. It sold only 254 units
of Quanto last year. Photo: PTI
Mahindra and Mahindra Ltd is renewing its focus on introducing bigger sport-
utility vehicles (SUVs) and multi-purpose vehicles as it seeks to avoid a deeper
foothold in the increasingly crowded market for compact SUVs, said four
people aware of the plans. Three of four new products of Mahindra would be
bigger SUVs or MPVs, the people said on condition of anonymity. The shift in
strategy follows subdued demand for compact SUVs introduced by Mahindra in
the past few years, the people said.
Mahindra lost the crown of India’s top SUV maker last year to Maruti Suzuki
India Ltd, whose compact SUV model VitaraBrezza has been a runaway
success.
Mahindra, in comparison, has largely struggled to find enough buyers for the
four compact SUV models it has introduced since 2014—TUV 300, KUV 100,
Quanto and Nuvo Sport. Such SUVs measure up to four metres in length and

14
have petrol and diesel engine capacities of up to 1200cc and 1500cc
respectively.

The first person cited above said Mahindra has realized that bigger SUVs are
still very much relevant in India since vehicles such as Toyota InnovaCrysta and
Fortuner, and the Jeep Compass have been doing well.

“If you look at the products Mahindra will launch in the next two years,
including the recently-launched Marazzo, most of the offerings except one will
be above four metres. This strategy makes sense since Mahindra still leads the
space when it comes to bigger SUVs,” said the person mentioned above
requesting anonymity.
Earlier in September, Mahindra began selling the Marazzo multi-purpose
vehicle. It is expected to shortly introduce a full-size SUV code-named Y400,
which is based on the Rexton model of its South Korean unit, SsangYong Motor
Co. Mahindra is also developing another SUV that will compete with Hyundai
Creta , said the second person cited above.

The person said Mahindra is also developing a seven-seater version of the TUV
300 for a potential launch in 2019.

“It has always been our endeavour to be present in all segments of the UV
category,” said a spokesperson for Mahindra in response to an emailed query.

“We will launch products that meet regulatory standards and match customer
requirements, at regular intervals”, the spokesperson said, adding that the SUV
segment is “evolving and growing”.

Faced with an onslaught of compact SUVs from Maruti Suzuki, Ford Motor
Co., and Tata Motors Ltd., among others, Mahindra’s market share in the utility
vehicle segment more than halved to 25.38% in FY18 from a peak of 55.59% in
FY12.

Hyundai Motor India Ltd. and Kia Motors India are also expected to enter this
segment in the next few years.

Sales of the TUV 300 grew 10.5% in FY18 to 29,018 units, while the KUV 100
recorded a 28% drop to 25,542 units. It sold only 254 units of Quanto last year.

15
To be sure, Mahindra won’t completely shun the compact SUV segment and is
developing a model code-named S201, based on SsangYong’s compact SUV
Tivoli, said the third person cited above.

“The thinking within the company is that we should stick to our strengths and
rely on the partnership with Ford to experiment in the weaker segments,” the
person said, referring to the September 2017 initial agreement between the two
companies to develop a compact SUV, among other initiatives.

Another factor which led to the realignment of the compact SUV strategy is an
impending price hike post 2020. “Post the implementation of the safety and
emission norms in 2020, prices are sure to rise. We think we will be able to
hedge ourselves against this risk by playing in a segment where buyers are less
price sensitive,” said the fourth person cited above.

Sales of large and mid-sized SUVs in India is forecast to grow at a compounded

annual rate of 14.37% from 2018 to 2021, according to research firm IHS
Market. It forecast compact SUV sales to grow at a slower 11.17%.

“The compact SUV segment is where the action is in today’s market. No OEM,
including Mahindra, should take their eyes off it. Being strongly present in a
fast-growing segment will immensely help them and even arrest market share
decline,” said DeepeshRathore, co-founder and director at London-based
Emerging Markets Automotive Advisors.

3. Mahindra plans KUVelectric , diesel amt(published in TOI

on 24sep 2018 by Nakra)

16
 Utility vehicles major Mahindra & Mahindra (M&M) plans to drive in
multiple versions of its entry-level models
KUV100
And TUV300, catering to different sets of customers, a senior company
official said.
Looking at the two brands as "long term and strategic", the company is
investing in new technologies, including making the products confirm to
Emission norms.
Besides an updated version of TUV300 next year, M&M is gearing upto
introduce an electric version of KUV100 as well.
The company also plans to launch a diesel version of KUV100, mated with an
automated manual transmission (AMT), in the current fiscal.
We always said that we want to be full range SUV player and both these
products (TUV300 and KUV100) are very important for us," M&M Chief of
Sales and Marketing (Automotive Division) Veejay Ram Nakratold .
Elaborating on the importance of the two products, he said that besides making
them BS-VI compliant, the company is also investing to make them meet all
safety regulations which come into force from October 2019.

17
Commenting on TUV300 range, Nakra said a facelift of the model would be
introduced next year.
"We are investing substantially not only on the styling part but there would also
be change in terms of technology and engineering to make it a better product,"
Nakra added.
The company sells around 3,000 units of the model per month and with seven-
seater TUV300 Plus coming in, the Mumbai-based company is now eyeing
monthly sales of around 4,000, he added.
Commenting on KUV100, Nakra said the company has long-term plans for the
model.
"It is just not going to be an entry-level model from us but also going to have an
electric version going ahead," Nakra said.
When asked if the company is planning to bring in electric variants for all its
SUVs going ahead, he added: "There has to be an economics to the platform for
the electric version in terms of range, price for customer."
The moment you look at larger heavier SUVs it becomes difficult from
economics point of view...but for now KUV isthe first SUV on electric that we
will offer to the market," Nakra said.
With BS-VI norms coming in, the company is also looking at entire strategy for
drivetrains for all its products in terms of fuel options, he added.

4. Will Mahindra &Mahindra rise again to occupy its lost space in the
passenger vehicles market? (Published in eco times by Lijee Phillip
&Ketan Thakkar on April 12, 2018)

Over the last five years, while automotive business revenues have grown 12%,
Mahindra profits have almost halved to Rs1,412 crore in FY17, as against as Rs
2,596 crore at end of FY13. Operating margins too have been under pressure —

18
down to 4.41% at end of FY17, from 9.14% for FY13. Five years ago, 60% of
the company’s profits camefrom the flagship automotive business; last year
(FY17), it’s almost halved to 36% as demand for tractors gains ground.
What’s most worrying is falling market share and the company’s inability to
grow with a maturing SUV segment. From its peak market share of 55% in
FY12, it has crashed to 25% at end of FY18.
Key reasons for M&M losing market share in UVs in recent years are failure to
cash in on the strong demand for compact SUVs and crossovers and subdued
volume performance of recent launches (TUV3OO and KUV1OO),” feels
Chirag Shah of Edelweiss Securities.
In retrospect, M&A wagers in two-wheelers and electric vehicles (EVs) proved
to be fancy or premature distractions. After a decade of misfired launches, the
Kinetic experiment has been aborted with a focus only on premium segment.
The erstwhile Mahindra Reva remains a small operation, with annual sales of
just 1,000 units five years after it changed hands.
Even in the medium and heavy commercial vehicle joint venture with Navistar,
M&M misread the market. A higher power product over a more fuel-efficient
one led Navistar to eventually exit and M&M to write off losses. With course
correction, M&M has finally broken even. But has Mahindra lost its mojo?

REVVING UP
Managing director PawanGoenka is not even breaking a sweat as he believes
this fiscal will be a breakout year as Mahindra proactively tries to steer away
from its diesel-heavy UV portfolio.
The company is planning to launch four new gasoline and CNG engines across
capacities. A locally suited BS 6-compliant diesel engine is also under works.
Additionally, the new S201 compact UV, U321 MPV, new Rexton and
XUVfacelift should help pull back market share. Two of the four will be in
completely new segments, with potential for high volumes.
Goenka is confident Mahindra will have a UV in each price segment, without
any cannibalisation, after these rollouts. “If the three products are hits, the
whole situation changes for us,” he says. “We are still making good margins but
if it succeeds, then we will clearly be in a much stronger position than where we
are today.” This calendar year has, in fact, been better.

19
M&M sales are higher than Maruti Suzuki in January-March. Scorpio and
Bolero are going strong while TUV and KUV sales are improving. “Success in
UVs will address concerns of falling market share and positively impact
earnings as auto EBIT margin has been under pressure due to high
depreciation,” agrees Shah.

The Big skid

Trio of shifts hurt Mahindra badly over the last five years. — The market
veered towards soft-roaders or urban UVs, ant diesel sentiment and entry of
storied rivals Maruti Suzuki and Hyundai Motor India in the UV space. First,
Mahindra stuck to its core of ladder-on-frame or off road rugged vehicles and
was late to read the preference for soft-roaders, a fact even Goenka reportedly
admitted in retrospect. “Mahindra is synonymous with rugged vehicles, whereas
the vehicles in demand are soft roaders, which also may have gone against the
company,” says VG Ramakrishna, managing director at consultancy firm
Avanteum Advisors. “As a leader M&M was in the sweet spot, buyers were
veering towards SUVs. But the company failed to capitalise on this shift.” The
second blow came with the petrol diesel price gap narrowing. The green courts
clamped down on diesel consumption and Mahindra& Mahindra failed to come
up with petrol engine alternatives.
Then came competition. The first blow to Scorpio came from the Renault
Duster. Though it bounced back, the entry of Ford EcoSport, Hyundai Creta
and Maruti Suzuki Brezza ate into M&M’s market share. Experts feel Mahindra
failed to read the market correctly. KUV and TUV were seen as overpriced by
Rs 50,000-70,000, especially after rivals undercut prices.

Mahindra also had to face product teething issues, say people in the know. The
KUV’s fuel efficiency was an initial issue while customers felt the TUV was
underpowered. Mahindra reacted quickly and brought out a powerful engine
that refuelled demand. But “the KUV or the TUV did not achieve the expected
growth,” admits Rakesh Batra, partner, EY.
5. MAHINDRA & MAHINDRA all charged up for a hatchback drive
(published in eco times by Ketan Thakkar &AshuthoshShyam on
September 17th 2018)

20
Mahindra & Mahindra, India’s leading SUV specialist, is considering its first
ground-up hatchback as part of its plan to have a range of cars to hold its
own in the fiercely competitive Indian passenger vehicles market.
Mahindra may tap into the development expertise of Italian design house
Pininfarina to plan a hatchback with electric power train, and Ford for a
midsized sedan, or it may even plan amid-sized sedan on its own.
Having lost out to Maruti Suzuki in the utility vehicle space, the company
doesn’t want to surrender its first-mover advantage in the electric vehicle
(EV) space, with Maruti, Hyundai and Toyota eyeing this emerging space.
PawanGoenka, MD of Mahindra & Mahindra, told ET that the company may
develop a product, which will be fired by electric and will be a hatchback.
“For shared mobilityproviders Ola and Uber, a small hatchback makes good
economic sense; it will have more pull in the segment,” said Goenka.
Maruti Suzuki and Toyota are likely to roll out their EVs from 2020;
Hyundai Motor India too has announced Smart EVs for emerging markets
from India in the next few years. Mahindra, as a leader in this space, does
not want to lose any territory.
Mahindra will have to invest $110-$120 million on the project if it decides
to go ahead with the hatchback plans.
The company is also deliberating whether to go for an electric Verito sedan
on its own which will call for an additional investment of `250-`300 crore, or
to settle for a joint electric car with Ford on the US carmaker’s Figo or
Aspire architecture.
This would take Mahindra’s cumulative investment in EV to beyond $250-
300 million which will go into electrifying the SUVs, threewheelers, cars
and buses, including investment in battery manufacturing facility and
localisation of parts.
The company will have a portfolio of half a dozen vehicles to choose from:
first off the block will be the electric version of KUV, the small SUV- S110,
which will be followed by another compact electric SUV based on
SsangYong platform called S210

21
 On the commercial vehicle front, it has launched the new three-wheelers at
the recent Global Automobile Summit — Move in the national capital which
runs on electric; Supro, a mini load carrier; and a range of electric buses.

Research problem
Whether the Price and Design are effecting the sales of KUV100.

Research objective
Whether decrease in sales is due to
 Lack of advertisement
 High price
 Post purchase service when compared to other brands are not good
 Features and design
 To find out customer perception towards the car

Research Methodology
Research in a common parlance refers to search for knowledge. Red man and
Mory define research as “Systematized effort to gain new knowledge “.
Research is academic activity and such the term should be used in technical

22
sense. According to Clifford woody “research comprises defining and
redefining problem, formulating hypothesis or suggested solutions ; collecting
organising and evaluating data ; making deductions and research conclusions
;and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
Research is thus an original contribution to the existing stock of
knowledge, making for its advertisement. It is pursuit of truth with the help of
study, observation, comparison and experiment. In short the search for
knowledge through objective and systematic method of finding solution to
problem in research.

Data collection
For the research of KUV100 we have chosen the primary data as the source of
our research. We got that primary data by doing a survey with the help of
questionnaire in which we got 366 responses, but for the factor and cluster
analysis we have used 99 responses that helped us in making our survey good
and effective.
In questionnaire we have covered the following questions like on the basis of
price, design, safety, performance, interest towards driving, model preference,
expectations, after sale service.

Tools and techniques:

1. Factor analysis: It is a process in which the values of observed data are
expressed as functions of a number of possible causes in order to find
which are the most important one or we can say that it is a process which
helps us to convert large number of variables into few variables which
effects the study
2. Bartlets test of spehricity: It test the hypothesis that your correlation
matrix is an identity matrix, which would indicate that your variables are
unrelated and therefore unsuitable for structure detection. Here we look
for significance less than 0.05 we want the variables to be correlated if
they are not correlated with other items then they can’t be part of same
factors

23
 3. Kaiser-Meyer-olkin(KMO): It is a test and a measure of how suited your
data is for factor analysis the test measures sampling adequacy for each
variable in the model and for the complete model.If KMO is below 0.5
then we don’t do a factor analysis.Large KMO values are good because
correlation between pairs of variables can be explained by other variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .629
Bartlett's Test of Sphericity Approx. Chi-Square 463.151
df
153

Sig.
.000

4. Communalities: IT Indicates the common variance shared by factors with

given variables. Higher communalities indicates that lager amount of the
variance in the variable has been extracted by the factor solution. For
better measurement of factor analysis communalities should be 0.4 or
greater

Communalities
Initial Extraction
Gender 1.000 .518
Age( in Years) 1.000 .750
Are you interesting in
1.000 .651
Driving car ?
Do you own a car 1.000 .728
Which model of these do
1.000 .548
you like ?

24
Do you know the below
1.000 .497
car ?
Have you watched the
1.000 .713
KUV100 TV ad?
How do you get to know
1.000 .676
about KUV100 ?
Rate the KUV100 for the
following components (on
1.000 .733
the scale of 1-5) [Price
affordable]
Rate the KUV100 for the
following components (on 1.000 .733
the scale of 1-5) [Design]
Rate the KUV100 for the
following components (on
1.000 .737
the scale of 1-5)
[Mileage]
Rate the KUV100 for the
following components (on
1.000 .724
the scale of 1-5)
[Perfomance]
Rate the KUV100 for the
following components (on 1.000 .772
the scale of 1-5) [Safety]
How would you Rate
1.000 .516
Services of Mahindra?
What is the change you
would prefer in Mahindra 1.000 .790
KUV100
Choose the car you would
1.000 .627
like to prefer ?
Why you are preferring
1.000 .684
the above car ?
Do you think the
competitors of Mahindra 1.000 .720
have better designs?
Extraction Method: Principal Component Analysis.

25
 Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
% of Cumula % of Cumulat
Component Total Variance tive % Total Variance ive % Total % of Variance
1 3.680 20.443 20.443 3.680 20.443 20.443 3.229 17.938
2 1.886 10.477 30.920 1.886 10.477 30.920 2.030 11.279
3 1.586 8.809 39.729 1.586 8.809 39.729 1.496 8.313
4 1.368 7.600 47.330 1.368 7.600 47.330 1.389 7.717
5 1.319 7.325 54.655 1.319 7.325 54.655 1.369 7.607
6 1.158 6.435 61.090 1.158 6.435 61.090 1.345 7.474
7 1.121 6.229 67.319 1.121 6.229 67.319 1.258 6.990
8 .958 5.322 72.641
9 .883 4.905 77.546
10 .795 4.418 81.964
11 .703 3.905 85.869
12 .554 3.080 88.949
13 .520 2.887 91.836
14 .415 2.306 94.142
15 .332 1.846 95.988
16 .311 1.725 97.713
17 .263 1.461 99.174
18 .149 .826 100.000
Extraction Method: Principal Component Analysis.

26
5. Scree plot: It is an analysis that shows you how many factors or
components you have to retain in your factor or principle component
analysis it is a graphical representation to decide how many factors you
have retain but always in combination with eigenvalues.

6. Extraction: It allows you to specify the method of factor

extraction. Available methods are :
 Principle component Analysis: It is a factor analysis method used
to form uncorrelated linear combinations of observed variables.
First component has maximum variance and successive
components explain progressively smaller portions of the variance
and are all uncorrelated with each other.

27
 Component Matrixa
Component
1 2 3 4 5 6 7
Gender -.055 .313 -.424 .232 .241 -.057 .350
Age( in Years) -.254 -.204 .271 -.158 -.457 -.118 .568
Are you interesting
-.139 -.112 .416 -.174 .201 .488 .370
in Driving car ?
Do you own a car -.070 .049 .784 -.053 -.273 -.032 -.169
Which model of
.061 .470 .183 -.151 .036 .454 -.244
these do you like ?
Do you know the
-.348 .065 .215 .237 .447 .226 .135
below car ?
Have you watched
the KUV100 TV -.380 .681 .062 -.200 .098 -.227 -.019
ad?
How do you get to
know about -.382 .687 .158 -.102 .015 -.151 -.027
KUV100 ?
Rate the KUV100
for the following
components (on the .695 .204 -.309 -.321 .012 -.001 .095
scale of 1-5) [Price
affordable]
Rate the KUV100
for the following
components (on the .685 .301 .372 .118 .042 -.092 .102
scale of 1-5)
[Design]
Rate the KUV100
for the following
components (on the .732 .226 -.079 -.245 -.010 -.030 .287
scale of 1-5)
[Mileage]

28
Rate the KUV100
for the following
components (on the .820 .109 .146 -.052 .116 -.020 .044
scale of 1-5)
[Perfomance]
Rate the KUV100
for the following
components (on the .859 -.044 .174 -.015 .023 .007 .020
scale of 1-5)
[Safety]
How would you
Rate Services of .452 -.306 .051 .410 -.137 .128 -.108
Mahindra?
What is the change
you would prefer in .029 .266 .168 .659 -.207 -.381 .261
Mahindra KUV100
Choose the car you
would like to prefer -.217 -.331 .049 -.532 .133 -.309 .268
?
Why you are
preferring the above .010 -.192 .228 .186 .720 -.103 .178
car ?
Do you think the
competitors of
-.142 .252 -.247 .163 -.334 .542 .380
Mahindra have
better designs?
Extraction Method: Principal Component Analysis.
a. 7 components extracted.

29
  Rotation component matrix : 7 components are extracted
here

Rotated Component Matrixa

Component
1 2 3 4 5 6 7
Gender .034 .197 -.625 .131 -.035 .220 .145
Age( in Years) -.113 .000 .248 -.037 .741 .179 .305
Are you interesting
.027 -.017 .252 .590 .213 -.255 .357
in Driving car ?
Do you own a car .008 .139 .822 .066 .054 .158 -.025
Which model of
.170 .323 .249 .080 -.449 -.244 .292
these do you like ?
Do you know the
-.250 .126 -.033 .629 -.116 .057 .068
below car ?
Have you watched
the KUV100 TV -.085 .836 -.026 -.005 -.043 .071 -.023
ad?
How do you get to
know about -.105 .789 .083 .015 -.092 .151 .066
KUV100 ?
Rate the KUV100
for the following
components (on the .725 -.015 -.281 -.275 -.041 -.223 .028
scale of 1-5) [Price
affordable]
Rate the KUV100
for the following
components (on the .750 .009 .207 .100 -.146 .306 -.045
scale of 1-5)
[Design]

30
Rate the KUV100
for the following
components (on the .824 -.006 -.155 -.125 .086 -.048 .091
scale of 1-5)
[Mileage]
Rate the KUV100
for the following
components (on the .813 -.171 .051 .018 -.136 .027 -.109
scale of 1-5)
[Perfomance]
Rate the KUV100
for the following
components (on the .787 -.337 .128 -.028 -.106 .033 -.101
scale of 1-5)
[Safety]
How would you
Rate Services of .194 -.605 .104 -.043 -.224 .221 .012
Mahindra?
What is the change
you would prefer in .038 .061 -.019 .008 .009 .885 .038
Mahindra KUV100
Choose the car you
would like to prefer -.075 .098 -.021 .073 .658 -.312 -.276
?
Why you are
preferring the above .057 -.090 -.147 .711 .035 .063 -.376
car ?
Do you think the
competitors of
-.088 .018 -.192 -.030 -.038 .066 .818
Mahindra have
better designs?
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 8 iterations.

31
 7. Cluster analysis : It is the task of grouping a set of objects in such a
way that objects in the same group are more similar to each other than to
those in other groups.

Case Processing Summarya,b

Cases
Valid Missing Total
N Percent N Percent N Percent
98 99.0 1 1.0 99 100.0
a. Squared Euclidean Distance used
b. Average Linkage (Between Groups)

Agglomeration Schedule

Cluster Stage Cluster First

Combined Appears
Stag Cluster Cluster Coefficie Next
e 1 2 nts Cluster 1 Cluster 2 Stage
1 4 6 .000 0 0 11
2 10 98 2.000 0 0 22
3 19 57 2.000 0 0 8
4 18 90 3.000 0 0 16
5 80 81 3.000 0 0 15
6 17 26 3.000 0 0 35
7 67 74 4.000 0 0 29
8 19 70 4.000 3 0 21
9 21 69 4.000 0 0 41
10 41 55 4.000 0 0 23
11 4 47 4.000 1 0 26
12 42 45 4.000 0 0 45
13 9 43 4.000 0 0 70
14 35 40 4.000 0 0 27
15 44 80 4.500 0 5 73
16 18 54 4.500 4 0 55

32
17 68 96 5.000 0 0 43
18 71 84 5.000 0 0 37
19 29 64 5.000 0 0 44
20 31 36 5.000 0 0 45
21 19 34 5.000 8 0 36
22 3 10 5.000 0 2 52
23 41 99 6.000 10 0 37
24 66 93 6.000 0 0 59
25 25 91 6.000 0 0 60
26 4 86 6.000 11 0 51
27 35 76 6.000 14 0 58
28 60 72 6.000 0 0 49
29 15 67 6.000 0 7 42
30 38 56 6.000 0 0 56
31 30 50 6.000 0 0 33
32 20 32 6.000 0 0 54
33 7 30 6.000 0 31 57
34 5 11 6.000 0 0 62
35 17 63 6.500 6 0 50
36 19 87 6.750 21 0 41
37 41 71 6.833 23 18 63
38 24 95 7.000 0 0 74
39 61 65 7.000 0 0 44
40 33 58 7.000 0 0 46
41 19 21 7.000 36 9 56
42 13 15 7.333 0 29 64
43 49 68 7.500 0 17 64
44 29 61 7.500 19 39 75
45 31 42 7.500 20 12 53
46 22 33 7.500 0 40 81
47 23 88 8.000 0 0 62
48 27 82 8.000 0 0 61
49 52 60 8.000 0 28 52
50 17 59 8.000 35 0 61
51 1 4 8.000 0 26 57
52 3 52 8.556 22 49 63
53 2 31 8.750 0 45 69

33
54 20 85 9.000 32 0 70
55 18 46 9.000 16 0 58
56 19 38 9.143 41 30 67
57 1 7 9.200 51 33 66
58 18 35 9.417 55 27 68
59 66 94 10.000 24 0 65
60 25 75 10.000 25 0 82
61 17 27 10.000 50 48 74
62 5 23 10.500 34 47 73
63 3 41 10.833 52 37 66
64 13 49 11.500 42 43 76
65 53 66 11.667 0 59 80
66 1 3 11.682 57 63 76
67 19 83 12.000 56 0 72
68 18 51 12.000 58 0 72
69 2 8 12.200 53 0 75
70 9 20 12.667 13 54 78
71 12 28 13.000 0 0 84
72 18 19 13.350 68 67 77
73 5 44 13.500 62 15 79
74 17 24 13.500 61 38 82
75 2 29 13.917 69 44 78
76 1 13 13.940 66 64 77
77 1 18 15.603 76 72 84
78 2 9 15.620 75 70 88
79 5 14 16.000 73 0 87
80 53 77 17.250 65 0 95
81 22 73 17.333 46 0 85
82 17 25 17.375 74 60 86
83 39 89 18.000 0 0 92
84 1 12 19.000 77 71 88
85 22 79 19.500 81 0 93
86 16 17 20.091 0 82 87
87 5 16 20.958 79 86 91
88 1 2 21.187 84 78 89
89 1 62 22.377 88 0 90
90 1 48 23.919 89 0 91

34
91 1 5 25.385 90 87 93
92 39 78 26.000 83 0 94
93 1 22 28.125 91 85 95
94 39 97 31.667 92 0 96
95 1 53 31.741 93 80 96
96 1 39 37.013 95 94 97
97 1 92 61.598 96 0 0

Regression
Variables Entered/Removeda
Mod Variables Variables Metho
el Entered Removed d

35
1 Do you
think the
competitors
of
Mahindra
have better
designs?,
Which
model of
these do
you like ?,
Have you
watched
the
KUV100
TV ad?,
Are you
interesting
in Driving
car ?, Do
you own a
car, Choose
the car you
would like
to prefer ?,
Do you
know the
below car
?, Rate the
KUV100
for the
following
component
s (on the
scale of 1-
5)
[Perfomanc
e], What is
the change
you would
prefer in
Mahindra
KUV100, . Enter
Gender,
Age( in 36
Years),
Why you
a. Dependent Variable: Rate the
KUV100 for the following components
(on the scale of 1-5) [Price affordable]
b. All requested variables entered.

Model Summaryb
Std. Error
Mod R Adjusted R of the
el R Square Square Estimate
1 .760a .577 .486 .592
a. Predictors: (Constant), Do you think the
competitors of Mahindra have better designs?,
Which model of these do you like ?, Have you
watched the KUV100 TV ad?, Are you interesting
in Driving car ?, Do you own a car, Choose the car
you would like to prefer ?, Do you know the
below car ?, Rate the KUV100 for the following
components (on the scale of 1-5) [Perfomance],
What is the change you would prefer in Mahindra
KUV100, Gender, Age( in Years), Why you are
preferring the above car ?, How would you Rate
Services of Mahindra? , Rate the KUV100 for the
following components (on the scale of 1-5)
[Mileage], How do you get to know about
KUV100 ?, Rate the KUV100 for the following
components (on the scale of 1-5) [Design], Rate
the KUV100 for the following components (on the
scale of 1-5) [Safety]
b. Dependent Variable: Rate the KUV100 for the
following components (on the scale of 1-5) [Price
affordable]

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regressio
37.816 17 2.224 6.337 .000b
n
Residual 27.731 79 .351
Total 65.546 96
a. Dependent Variable: Rate the KUV100 for the following
components (on the scale of 1-5) [Price affordable]
37
b. Predictors: (Constant), Do you think the competitors of Mahindra
have better designs?, Which model of these do you like ?, Have you
watched the KUV100 TV ad?, Are you interesting in Driving car ?,
Do you own a car, Choose the car you would like to prefer ?, Do you
know the below car ?, Rate the KUV100 for the following
components (on the scale of 1-5) [Perfomance], What is the change
you would prefer in Mahindra KUV100, Gender, Age( in Years),
Why you are preferring the above car ?, How would you Rate
Services of Mahindra? , Rate the KUV100 for the following
components (on the scale of 1-5) [Mileage], How do you get to know
about KUV100 ?, Rate the KUV100 for the following components
(on the scale of 1-5) [Design], Rate the KUV100 for the following
components (on the scale of 1-5) [Safety]

Interpretation
Factor analysis:
 KMO: It should be greater than 0.5 in order to continue with factor
analysis. In this study KMO is 0.629 indicating that we can further
proceed with it.
 Bartlett test of sphercity: In this study the value of P is .00 less
than 0.05 indicating that factor analysis is valid
 The approximate value of chi square is 463.151 and degree of
freedom is 3 and level of significance is .05
 Scree plot: It plots the total variance associated with each factor.
Here we have seven eigenvalues as these values are above 1 in the
graph.
 Total variance: All the above seven variables are able to study
nearly (67.319%) of the research.
 Communalities: For a better factor analysis communalities should
be 0.4 or greater. Here in the case we got all values above 0.4

38
Cluster analysis:
 In it total valid result we got is 98 and total missing value is 1 and the
total combined result is 99.
 In the Agglomeration you can observe that the difference between
coefficients are limited from 97-95. So we can say that two clusters are
obtained.
 Agglomeration: Under it each two clusters which are similar are
combined together and this process is proceeded until one single cluster is
obtained.

39
 Data Analysis & Interpretation

Interpretation:
From the above data we can see that nearly 74% of the people are aware of this
particular car. So we can say that the advertisement of this particular car is good
and effective in its own way.

40
Interpretation:
From the above data we can see that people came to know more about KUV100
through means of TV Advertisement as compared to that of Internet and on road

41
.

Interpretation:
 price affordability: By the above data we can conclude that the price of
KUV100 not a matter of concern for the people to buy, because out of
363 nearly 170 has been chosen for neutral
 Design: By the above data we can conclude that the design of the
Mahindra KUV100 is neutral out of 363 nearly 150 has been chosen for
neutral and it is not a problem for the people to purchase.
 Mileage: from the above data we can conclude that the mileage of the
Mahindra kuv100 is Good and the factor is not affecting the sales of it.
 Performance: From the above data we can conclude that the performance
of KUV100 is doing good.

42
Interpretation:
By the above data we can conclude that the Services provided by Mahindra &
Mahindra ltd. is Good.

43
Interpretation:
From the above data we can see that out of four factors i.e. Design ,
Performance, Features & Mileage . 28.6% of the people are preferring to change
the features of Mahindra KUV100.

44
Interpretation:
From the above data we can conclude that that the competitors of Mahindra
have better design and features as compared to that of Mahindra. 63% of the
people chosen that the competitors of Mahindra have better designs and
features.

45
SUMMARY AND CONCLUSION:
Findings:
1. Majority (75%) of respondents are male.
2. Most of the respondents (66%) belong to the age group of 20-30.
3. Majority (76%) of respondents are interested in cars.
4. Most of the respondents (62%) have car.
5. Most of the respondents choose the Maruthi swift car in the set of cars
(Grandi10, Celerio, Maruthi swift, Etios, Ford figo)
6. They have chosen the above car (32%) because of the performance.
7. Most of the respondents (62%) believe that the competitors of Mahindra
have better designs.
8. Most of the respondents (50%) preferred to buy the SUV model car.

Conclusion:
As the Mahindra launched the product KUV100 as its first compact –Mini SUV
in 2016 Mahindra has many expectations for this car, initially it has good sales
but later it started decreasing gradually.
The basic objective of this research is to find the factors that are effecting the
sales of Mahindra KUV100. After collecting the data with the help of
questionnaires we get know that one of major factor was that effecting the sales
of KUV100 is
First- Price: From the respondents we get know that Mahindra is charging high
prices for KUV100 car for what they were providing. And in annova also by
taking hypothesis as price effecting the sales of KUV100 and the F value lies
within the table and it really is effecting the sales of KUV100.
Second-Design: And the second factor is the design of the car is also effecting
the people to purchase the car. Even many of the customer’s review in the
websites saying that the design of the KUV100 car is not so good.

46
Suggestions:
1. Mahindra has to concentrate on the designs of their products because
now a days one the factor people are looking at is, the design of the car
for the purpose of purchasing it.
2. The competitors of Mahindra like Hyundai, Maruthi they already had
successful SUV models cars (Mini Suv- MaruthiBrezza, Hyundai-Creta)
so the Mahindra has to come up with different strategy along with
different design and features.
3. The Mahindra should also concentrate on the advertising part of their
products many of them are not even aware of the products they are
providing.

Limitations:
1. One of the major limitation is the data we collected is majorly from the
age group of 20-30 who might not have much experience of the cars.

2. One of the other important limitations is that on Mahindra official

website the sales figure of KUV100 is showing a negative response but
when checked on our responses collected from the Questionnaire it is
found that people have actually liked the performance of KUV100 which
is drastically different from the records of official Mahindra site.

3. Though we got 363 responses, but the responses were not relevant that’s
why we have only considered 99 responses.

47
ANNEXURE

Bibliography
1.Wikipedia
2.Mahindra & Mahindra official website
3.https://www.livemint.com/Auto/KckCHEJaq63BXHIeXwA0KN/Mahindra-
to-hit-the-brakes-on-TUV-300-KUV-300-Quanto.html
4.https://timesofindia.indiatimes.com/auto/cars/mahindra-to-launch-kuv100-
electric-diesel-amt-tuv300-facelift-soon/articleshow/65921876.cms
5.https://economictimes.indiatimes.com/industry/auto/cars-uvs/will-mahindra-
mahindra-rise-again-to-occupy-its-lost-space-in-the-passenger-vehicles-
market/articleshow/63724114.cms
6.https://economictimes.indiatimes.com/Mahindra-&-mahindra-
ltd/infocompanyhistory/companyid-11898.cms
7.https://www.business-standard.com/company/m-m-
365/information/company-history

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 Appendix-:
Questionnaire
Mahindra KUV100
A survey on Mahindra KUV100

1. Name *

2. Gender *
Mark only one oval.

Male
Female

Prefer not to say

3.Age( in Years)

15 to 20

20 to 30
30 and above

4.Are you interesting in Driving car ?

Yes

No

5. Do you own a car * .

Yes

No

KUV 100

6.Which model of these do you like ?

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 XUV

SUV
KUV
MUV

12/26/2018
7. Do you know the below car? *

Yes
No

8.Have you watched the KUV100 TV ad? .

Yes
No

9. How do you get to know about KUV100 ?

TV Advertisement

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 Internet
On Road

10.Rate the KUV100 for the following components (on the scale of 1-5)

Very bad, bad, Neutral, Good, Excellent

Price affordable
Design
Mileage
Performance
Safety
12/26/2018
11. How would you Rate Services of Mahindra?

1 2 3 4 5

Very bad Excellent

12. What is the change you would prefer in Mahindra KUV100

Design

Performance
Features

Mileage

Competitive Challenges?
13. Choose the car you would like to prefer?

Mahindra - KUV100
Hyundai - i10 Grand

Maruti Suzuki - Swift

Ford - Figo

Toyota - Etios

14. Why you are preferring the above car?

Price
Performance

Safety
Mileage
Design

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15. Do you think the competitors of Mahindra have be?

Yes NO

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