Awards

Honda Civic
- ICOTY 2007
- Car of the Year - CNBC TV 18 Autocar Auto Awards, '07
- Viewer's Choice of the year - CNBC TV 18 Autocar Auto Awards, '07
- Car of the Year - NDTV Profit Car India and Bike India Awards '07
- Executive Car of the year - NDTV Profit Car India and Bike India Awards '07
- Automotive Design of the year - NDTV Profit Car India and Bike India Awards '07
- CNB Viewers' Choice Best car of the Year - NDTV Profit Car India and Bike India Awards
'07
- Viewers Choice Award - Overdrive Awards, '07
- Design Award - Overdrive Awards, '07
- Jury Award 2007 - BS Motoring Awards, '07

Honda CR-V
- Best Driver's Car - CNBC TV 18 Autocar Auto Awards, '07
- SUV of the Year - NDTV Profit Car India and Bike India Awards '07
- SUV of the Year - Overdrive Awards, '07
- No 1 Premium SUV - TNS Total Customer Satisfaction Study, '06

Honda Accord
- No1 Entry Luxury Car - TNS Total Customer Satisfaction Study, '06

Honda City
- No 1 Mid Size Car - TNS Total Customer Satisfaction Study, '06

About Honda Siel Cars India Ltd. (HSCI)

The history of the Honda Motor Company began with the vision of
one man - Soichiro Honda. His dream was personal mobility for
everyone.

Soichiro Honda founded the Honda Motor Company in 1948. In the

same year, he designed and engineered the first product of this
company - a 50 cc motorised bike on a bicycle frame - in his small
shed at Hamamatsu.

Soichiro Honda
Founder, Honda Motor Co.

'Challenging the Limits' is a phrase commonly heard across the length and breadth of Honda.
It was made popular by its founder, Soichiro Honda, who knew that his fledgling company
had to out-think and out-perform its competitors every step of the way in order to survive.
After all, he started out at a time when his country was devastated by war.

Honda's Global Vision Soichiro's vision was international in character. His desire
was to lead the world in technology, and make a significant contribution to the creation of a
better society. As a result, most of the products that Honda developed started out by making a
difference. Whether it was the CVCC engine in the sixties or the solar powered car of the
nineties, they all sought to challenge and overcome conventional wisdom.

World's Toughest Training Tracks No story of Honda is complete without the

mention of motor sports. Honda started participating in racing at the highest level much
before it found international acclaim as a manufacturer. Once again, it was Soichiro Honda
who was the driving force. He considered the highly competitive world of motor sports as the
ideal training ground for his people. Through racing, Honda engineers learnt to accomplish
more than they ever dreamed possible within limited amounts of time. They become quicker
at responding to the technological challenges that arise in the commercial world.

Honda's belief in the benefits of racing is sincere and unwavering. The company has invested
millions of dollars in building two world-class racing circuits. The Suzuka opened its gates in
September 1962. Located in northern Japan, it has become an integral part of the Grand Prix
calendar. The Twin Ring Motegi, on the other hand, is a racing circuit for fans. Inaugurated
in August 1997, it offers an oval-shaped Super Speedway, an Active Safety Training Park
and the extremely popular Honda automobile museum.

Innovation Everywhere Honda is already, and literally, making big strides in the
development of the world's first humanoid robot. Christened ASIMO, it is designed on the
presumption that if a robot could walk like a human, it may be able to work like one. Honda
is also taking to the skies with its very own aircraft technology. It took a 30-man team only
six years to develop a prototype. Typical of Honda, the project leader was not quite 30 years
of age when the experimental aircraft was first unveiled in 1993. Together, these diverse
ideas prove the one central maxim that is dear to everyone at Honda - Challenging the Limits.

Honda In India

Honda Siel Cars India Ltd., (HSCI) was

incorporated in December 1995 as a joint
venture between Honda Motor Co. Ltd., Japan
and Siel Limited, a Siddharth Shriram Group
company, with a commitment to providing
Honda’s latest passenger car models and
technologies, to the Indian customers. The
Honda City, its first offering introduced in
1997, revolutionized the Indian passenger car
market and has ever since been recognized as an engineering marvel in the Indian automobile
industry. The success of City as well as all its other models has led HSCI to become the
leading premium car manufacturer in India. The total investment made by the company in
India till date is Rs. 1620 crores, further investment of RS. 1000 crore is planned and being
currently invested for the coming second plant in Rajasthan. The company has a capacity of
manufacturing 100,000 cars.

Showcase Manufacturing Facility

HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an
investment of Rs. 450 crore. The green-field project is spread across 150 acres of land (over
6,00,000 sq. m.).

The initial installed capacity of the plant was 30,000 cars per annum, which was thereafter
increased to 50,000 cars on a two-shift basis. The capacity has further been enhanced to
1,00,000 units annually in February 2008 . The capacity expansion was necessitated by the
excellent performance of all the Honda models, particularly the growing demand for City in
India. Several modifications were done by the company with the objective of offering higher
quality products to its customers, faster and quicker. The expansion process also included
expansion of the covered area in the plant, from 1,07,000 sq. m. to 1,31,794 sq. m.

HSCI currently produces the All New City, Civic and Accord models in India and the
premium SUV, CR-V is sold as a fully imported unit from Japan.

The company operates under the stringent standards of ISO 9001 for quality management and
ISO 14001 for environment management.

Sales and Distribution Network

Honda Siel Cars India has a strong sales and distribution network spread across the country.
The network includes 87 facilities in 53 cities. HSCI dealerships are based on the “3S
Facility” (Sales, Service, Spares) format, offering complete range of services to its
customers.

The City is manufactured with 79% indigenisation level and currently enjoys 25% market
share in its segment.
Honda Philosophy

Respect for the individual. The Three Joys (buying, selling and
Basic Principles
creating)
   
Maintaining a global viewpoint, we are dedicated to supplying
Company Principle
products of the highest quality, yet at a reasonable price for worldwide
(Mission Statement)
customer satisfaction.
   
Management Policies  Proceed always with ambition and youthfulness.
 Respect sound theory, develop fresh ideas, and make the most
effective use of time.
 Enjoy work and encourage open communication.
 Strive constantly for a harmonious flow of work.
 Be ever mindful of the value of research and endeavor.

   
Dreams inspire us to create innovative products that enhance mobility and benefit society. To
meet the particular needs of customers in different regions around the world, we base our
sales networks, research and development centers and manufacturing facilities in each region.
Furthermore, as a socially responsible corporate citizen, we strive to address important
environmental and safety issues.

Message

As society faces growing environmental concerns, demand for

global action transcends national and regional interests. Reduction
of CO2 emissions and other greenhouse gases is among the most
urgent issues facing our planet. It requires solutions that extend far
beyond countries and industries.

Honda has strongly supported environmental action since our

earliest days as a company. In 1992, we formulated our
philosophy in the Honda Environmental Statement, which
established our policy and implemented environmental initiatives.
In 2006, Honda led the way in publishing our environmental
targets and established a time frame to meet those global targets
for all products and production activities. Dedicating ourselves to
ﾒ producing the world ﾕ s cleanest, most efficient products at the
world ﾕ s cleanest, most efficient factories,ﾓ we have accelerated
company-wide initiatives ahead of schedule ﾑ becoming the
environmental front-runner.

We are determined to remain ahead of the competition, and be

valued for our activities by society and customers worldwide.
With a firm grasp of the challenges facing a changing world,
Honda confronts the key issues of our times with original
thinking, becoming a leader in providing solutions.

Honda wants our customers to always enjoy the essential pleasure

of mobility. So we are driving ahead to realize this goal, powered
by imagination that is second to none. We pledge to continue this
tireless quest.

Research and Development

Each and every Honda associate takes the customers point of view
as we strive tohelp everyone everywhere share the joy of mobility.
Thats why Honda always welcomes new challenges as we work to
benefit society and the environment, today and tomorrow.

New challenges for the future

Honda is constantly involved in technological research and
development to help people now and in the future. These
technologies range from new materials and new sources of
energy, to new powertrains for maximum performance and
minimum eco-impact, to new work in decoding the rice genome
for various applications. Currently, Honda is engaged in a project
to develop a next-generation clean diesel engine. Another project,
in cooperation with the Research Institute for Innovative
Technology for the Earth (RITE), aims to produce ethanol from
cellulosic biomass, a promising, secure supply of environmentally
responsible alternative fuel.

Honda also studies human anatomy and physiology so we can

make innovative products that enhance safety. The company
conducts original research into new forms of mobility that coexist
in harmony with people and serve society. The latest, most
advanced version of ASIMO, Honda’s bipedal humanoid robot,
now moves freely, shares tasks with humans, and even recharges
itself -- a significant achievement in independent action.

Since its establishment, Honda has always “dreamed skyward.”

This perspective recently led to development of the advanced light
jet HondaJet. With delivery scheduled to start in 2010, Honda has
begun construction of its production facility in the U.S. Thus,
Honda always aims higher -- creating value that meets each
country’s needs, bringing products speedily to market, and
constantly enhancing our safety and environmental performance.

Sales and Service

By creating products and services that highlight the core values

that make Honda unique, we would like to provide our customers
with joy and excitement beyond their expectations. Accordingly,
the Honda brand stays a step ahead of the diverse needs of our
customers, always offering new possibilities for richer, more
rewarding lifestyles. In this way, Honda products enhance
customers' enjoyment of life.

Expanding customer satisfaction activities

“Next time, too… a Honda.” The ultimate goal of our sales
activities worldwide is to satisfy our customers so that they will
continue to come back for more Honda quality products. To
ensure this, we have implemented a vigorous Customer
Satisfaction (CS) program covering all of our sales companies.
This program aims to enhance customer satisfaction by
strengthening our attention to detail in product and service
activities through all stages of sales, delivery, and after-sales
service.

In March 2006, all sales channels in Japan were merged under the
name of Honda Cars, providing all Honda automotive brands
through a single sales network that is easier for customers to
understand. We will continue to strengthen sales and services
targeted to regional needs and tailored to customers in each
region, with an extensive product lineup backed by IT support.
Thus, we can continue to enrich our customers’ lifestyles as only
Honda can.
Conduct Guideline

Guided by Honda Philosophy, Honda has expanded its business globally based on the pursuit of new
dreams and the determination to make them come true. Through these efforts, we have shared a “joy”
and established a trust with customers and society around the world. In order to further advance our
global business in each region, every Honda associate in various countries around the world needs to
share a common value at Honda and become even more self-reliant. The “Honda Conduct Guideline”
represents the important values that have guided our actions to date. With each one of us sharing these
values, we will be able to further gain the trust of our customers and society, helping Honda strengthen
our position as“a company that society will want to exist.”

Compliance

I) Respect for the Law

Proper understanding of the law

We will understand and abide by the letter as well as the spirit of applicable laws, stay
informed of any revisions to the law and take the necessary courses of action.

What to do in case of unclear interpretation

Whenever there is a doubt or unclear interpretation of the law, we will consult with the legal
department, government bodies and/or outside experts.

What to do if the law has been violated

Whenever a violation of the law or the risk of such an occurrence is noticed, we will
immediately report to or consult with the supervisor or the legal department, or make a
proposal to the Business Ethics Proposal Line.

Report/notification to government agencies

We will properly make reports/notifications to government agencies as required by law.

II) Respect for Company Rules

Proper understanding of company rules

 We will understand and abide by the letter as well as the spirit of related company rules, stay
informed of any revisions and take the necessary courses of action.

What to do in case of unclear interpretation

Whenever there is a doubt or unclear interpretation of a company rule, we will consult with
the department that created the rule to confirm proper understanding.

What to do if rules have been violated

Whenever a violation of a company rule or the risk of such an occurrence is noticed, we will
report to or consult with the supervisor or make a proposal to the Business Ethics Proposal
Line.

Report/notification
We will properly make reports/notifications as required by company rules.

III) Respect for Social Norms

As a member of society, we will behave ethically and in accordance with the common sense
of the community in which we operate.

Traffic Safety
In order for Honda to be a leader in traffic safety, we will abide by traffic rules and drive safely.

Environmental Protection
To help Honda actively promote environmental protection, we will proactively seek the means to
protect the environment.

Proper processing of waste and pollutants

We will strive to minimize and properly process waste and pollutants at each step of our
activities, in development, production, logistics, sales, service, and, ultimately, disposal.

Efficient use of natural resources and recycling

We will strive to make efficient use of energy and other natural resources, and continue to
advance our recycling efforts.

Legally required measurements, recording and reporting

We will conduct measurements, recording and reporting on the environment related to soil,
underground water, air, noise, smells, etc., as required by environmental laws or company
rules.

Contributions to Society
In order for Honda to be a good corporate citizen with strong roots in the community and society at
large, we will actively participate in activities that contribute to the well being of society.

Community Participation
We will become active members of the local community and participate in local activities.
 Social welfare
We will actively support people with mental and physical difficulties.

Disaster relief
We will actively support disaster relief activities.

Volunteer activities
We will actively encourage, support and participate in volunteer activities.

Management of Information
In order for Honda to properly manage customer- and business partner-related information, we will
pay the utmost attention to the appropriate handling of confidential information.

Management of Information Security

We will appropriately manage information security such as the locking of storage cabinets,
and carefully managing computers and security passwords.

Confidential Information Disclosure Prevention

We will not release confidential information or personal information regarding customers,
business partners, and associates.

Safety and Hygiene

We will strive to provide a safe, hygienic and comfortable work environment for every Honda
associate.

Providing for a comfortable working environment

We will provide a comfortable working environment by maintaining an orderly, well-
organized and clean workplace.

Respect for smoking rules

We will respect rules and etiquette regarding smoking.

Accident prevention
We will strive to manage potentially dangerous processes and areas to prevent injuries on the
job.

Action to be taken when an unsafe operation is discovered

Whenever an unsafe process or area is noticed, we will immediately report to the supervisor.

What to do in case of disaster

Whenever a disaster occurs, priority must be given to protecting human life and preventing
the disaster from worsening.

Emergency contacts
To ensure quick action, everyone will be informed in advance of what to do and who to
contact in the event of an emergency situation.
Discrimination
In order to make sure Honda is a fair, discrimination-free company, we will affirmatively accept the
uniqueness and differences of people around the world and act in adherence to the principle that all
people are created equal.

Prevention of discrimination
We will not discriminate according to place of birth, nationality, beliefs, religion, sex, race,
ethnic origin, age, physical or mental disability, legally protected medical condition, hobbies,
education, or status within society.

Prohibition of Use of Discriminatory Language

We will not use words/expressions considered discriminatory or that may be interpreted as
discriminatory.

Protection of Privacy
To make sure Honda emphasizes the privacy of individuals, we will do our utmost to respect and
protect privacy.

Respect for Privacy Protection Laws

We will abide by the letter as well as the spirit of laws protecting individual privacy.

Prevention of Unauthorized Revelation of Private Information

Before providing private information to a third party, we must first obtain the approval of the
person(s) concerned.

Business Transactions
To make sure Honda maintains a fair and sound relationship with our business partners, we will
conduct fair, sound transactions.

Selection of business partners

When we need to purchase products or services, we will select a business partner by
comparing and evaluating in an impartial manner the terms and conditions offered by various
business partners

Prohibition on excessive gifts and benefits

In our dealings with business partners, we will neither offer nor accept gifts or benefits
beyond that normally considered appropriate.

Prohibition on improper exercise of positions and authorities

We shall not exercise positions or authorities inappropriately to exact improper benefits from
business partners; nor will we give business partners improper benefits.

Relationships with Governmental Agencies

As representatives of an independent corporation, we will keep our relationships with government
officials in a straightforward and sincere manner.

Abiding laws and regulations for ethics

We will act in a manner that recognizes government officials’ ethics and what are considered
conflicts of interest under the relevant laws and regulations.

Prohibition on excessive gifts and benefits

We will not offer government officials any gift or benefit exceeding the social custom or
socially accepted limits.

Communication
As a highly accountable company, we will value communications with society.

Organization Structure (as of April 1, 2006)

Honda Diversity Vision Statement
 
Honda's philosophy is based on "Respect for the Individual." We are committed to bringing together
a diverse group of Associates, dealers and suppliers to foster the kind of innovation and vitality that
enables us to achieve our dream of creating products and technologies that make people's lives
better. In this spirit, every Honda Associate and business partner is expected to embrace and actively
support diversity and the cultural richness and advantages it provides.

Indian Automobile Industry

Over a period of more than two decades the Indian Automobile industry has been driving its
own growth through phases. The entry of Suzuki Corporation in Indian passenger car
manufacturing is often pointed as the first sign of India turning to a market economy. Since
then the automobile sector witnessed rapid growth year after year. By late-90's the industry
reached self reliance in engine and component manufacturing from the status of large scale
importer.

With comparatively higher rate of economic growth rate index against that of great global
powers, India has become a hub of domestic and exports business. The automobile sector has
been contributing its share to the shining economic performance of India in the recent years.
With the Indian middle class earning higher per capita income, more people are ready to own
private vehicles including cars and two-wheelers. Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for passenger and goods
transport. Side by side with fresh vehicle sales growth, the automotive components sector has
witnessed big growth. The domestic auto components consumption has crossed rupees 9000
crores and an export of one half size of this figure.

The overview
As per Society of Indian Automobile Manufacturers (SIAM) the market share of each segment of the
industry is as follows:.

The market shares of the segments of the automobile industry

The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual
growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the
growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the second- largest
tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle
manufacturer in the world. The Indian automobile market is among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj
Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle
industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd.,
Honda Siel Cars India Ltd. have also entered the market and have catered to the customers’ needs to
a large extent.

Not only the Indian companies but also the international car manufacturing companies are focusing
on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the
automobile companies are coming up with financial schemes such as easy EMI repayment systems
to boost sales.

There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological
advancements. Besides, there are many new projects coming up in the automobile industry leading
to the growth of the sector.

The Government of India has liberalized the foreign exchange and equity regulations and has also
reduced the tariff on imports, contributing significantly to the growth of the sector. Having firmly
established its presence in the domestic markets, the Indian automobile sector is now penetrating
the international arena. Vehicle exports from India are at their highest levels. The leaders of the
Indian automobile sector, such as Tata Motors, Maruti and Mahindra and Mahindra are leading the
exports to Europe, Middle East and African and Asian markets.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of
making India the most popular manufacturing hub for automobiles and its components in Asia. The
plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as
well as international arena.

OVERVIEW
India’s 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 government’s 10-year plan aims to
create a $145 billion auto industry by 2016.

According to McKinsey, the auto sector’s 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 certificate—the international standard for quality management.[4]

OVERVIEW OF PERFORMANCE OF THE INDIAN AUTOMOBILE INDUSTRY

IN 2007- 08

Domestic Sales

The cumulative growth of the Passenger Vehicles segment during April 2007 – March 2008
was 12.17 percent. Passenger Cars grew by 11.79 percent, Utility Vehicles by 10.57 percent
and Multi Purpose Vehicles by 21.39 percent in this period.

The Commercial Vehicles segment grew marginally at 4.07 percent. While Medium & Heavy
Commercial Vehicles declined by 1.66 percent, Light Commercial Vehicles recorded a
growth of 12.29 percent.

Three Wheelers sales fell by 9.71 percent with sales of Goods Carriers declining drastically
by 20.49 percent and Passenger Carriers declined by 2.13 percent during April- March 2008
compared to the last year.

Two Wheelers registered a negative growth rate of 7.92 percent during this period, with
motorcycles and electric two wheelers segments declining by 11.90 percent and 44.93 percent
respectively. However, Scooters and Mopeds segment grew by 11.64 percent and 16.63
percent respectively.

Exports

Automobile Exports registered a growth of 22.30 percent during the current financial year.

The growth was led by two wheelers segment which grew at 32.31 percent. Commercial
vehicles and Passenger Vehicles exports grew by 19.10 percent and 9.37 percent respectively.
Exports of Three Wheelers segment declined by 1.85 percent.

  
Scope of Indian Automobile Sector
The Indian automobile industry is going through a phase of rapid change and high growth.
With new projects coming up on a regular basis, the industry is undergoing technological
change. The major players are expanding their plants and focusing on mass customization,
mass production, etc.

INVESTMENT IN AUTO SECTOR

Nearly every automobile company is investing at a higher rate than ever before to achieve a
high growth trajectory. The overall investment in the sector has been increasing quite rapidly.
It is expected that by the end of 2010 Indian automobile sector will be investing a huge
amount as Rs. 30,000 crores.
For example, Maruti Udyog has plans of investing Rs. 6,500 crores; the Tata Motors is
coming up with more investment of Rs. 2,000 crores in its compact car project. Not only the
Indian companies but also foreign players like Hyundai are coming up with the investment of
more than Rs. 3,800 crores in India.

GROWTH IN THE SECTOR

At present the industry is enjoying a growth rate of 14-17% per annum, with domestic sales
growth at 12.8%. The growth rate is predicted to double by 2015.

As it is seen, the total sales of passenger vehicles - cars, utility vehicles and multi-utility
vehicles - in the year 2005 reached the mark of 1.06 million. The current growth rate
indicates that by 2012 India will overtake Germany and Japan in sales volumes.

Financing schemes have become an important factor in the growth of automobile sales. More
and more financial schemes are coming up with easy installment plans to lure the customers.

Apart from domestic production, the industry is consistently focusing on the automobile
exports. The auto component segment is contributing a lot in the export arena. The liberalized
policies of the government are now making the companies go for more and more exports.

The automobile exports are increasing year by year. According to the Society of Indian
Automobile Manufactures (SIAM) automobile exports in the last five years are as follows:
Export trend over the last five years

NEW LAUNCHES
The Indian automobile sector is experiencing changes in every arena. Changes in the looks of
the vehicles are taking place; the vehicles are being made more user-friendly. Each and every
firm is competing to give the customers more customized vehicles with respect to speed,
mileage, and maintenance. At present there are many new models entering the Indian market.
To name a few, Suzuki Heat 125 and Suzuki Zeus 125X are the two bikes in the motorcycle
segment; Kinetic Blaze and Honda DIO in the scooter segment; Maruti's Zen Estillo in the
car segment, so on and so forth.

EMPLOYMENT IN THE SECTOR

Investment is leading to the employment growth in the sector. With the emergence of new
projects and introduction of technological advancements, the focus is more on the skilled and
experienced human resource. The companies are looking for skilled and hard working people
who can give their best to the organization.

The engineers in the automotive or electrical or mechanical field are in demand. Some of the
firms going for automation, i.e. planning for CAD (Computer Aided Designs) systems, are
also recruiting people with IT specializations.
Indian Car Market

Indian Car Market attained a huge volume over the years with the increase in the opportunity for
new investments in the manufacturing of cars in India. The increasing GDP rate, the rising per capita
income, growing population and high ownership capacity led to the boom in the Indian Car Market.

Causes for the boom-

From the last 15 years due to the liberalization of the Indian economy the entire market scenario
have undergone a change with the rich growing richer with time. Moreover, the rise in the income
level, change in the general lifestyle, increase in foreign traveling and the easy accessibility of car
finance on the basis of affordable installments and interest rates have been the main driving forces
behind the flourishing Indian Car Market.

Car Manufacturers In India-

Once the most popular car dominating the Indian Car Market was the Ambassador, till the Indian car
maker Maruti in the collaboration with the Japanese car giant Suzuki brought a change in the Indian
Car Market. However, today, there are numerous car companies with new models coming up
everyday in the car market of India. Some of the leading brands are like, Hindustan Motors, Reva
Electric Car Co., Daimler Chrysler India Private Ltd, Fiat India Private Ltd., Ford India Ltd., General
Motors India, Honda Siel Cars India Ltd., Hyundai Motors India Ltd.,Toyota Kirloskar Motor Ltd. and
Skoda Auto India Private Ltd.

Luxury and super luxury car market-

In the Indian Car Market demand for luxury and super luxury cars are increasing continuously. Their
attractive designs and brand names are the main reasons for the growing need among many Indians
who can afford these cars. Several luxury models are to be launched in India in the coming years. As
a result Indian Car Market is no longer alien to the luxury car companies like Mercedes Benz, Ferrari,
Aston Martin and Rolls-Royce.

Small car market-

However, it is the small car segment which still rules the Indian Car Market. During 2006-07, over 7.5
lakh compact cars were sold, with total sales record being around 1.2 million. Taking into account
the bustling business in the small car sector in the car market of India, Honda Siel Cars has planned
to introduce an entry level compact car, in competition with the small cars like Hyundai Santro,
Maruti Wagon R, Zen Estilo and Chevrolet Spark. Another company, Skoda Auto India Private Ltd.,
announced the launching of their first new small car model Skodafabia, in the car market of India
this year.

Governmental strategies:
The Government of India have taken some initiatives like the liberalizing the foreign exchange and
equity regulations, relaxing the tariffs on imports and redesigning the banking policies which have
boosted the Indian Car Market to a great extent. Thus, the demand for all types of cars from
luxurious models, SUVs to mini-cars have reached a height in the Indian Car Market.
Future prospects-
The attractive prospects of the Indian Car Market have prepared the ground for a large number of
multi-national automobile companies from Japan, U. S. A., and Europe to come here and work in
collaboration with the Indian firms. It is expected that with this growth rate of the Indian Car
Market, it will be the third largest automobile market of the world by 2030 after China and the US.

Car Manufacturers In India

The reason behind the immense growth of the India Car Industry can be attributed to the availability of car
loans, affordable rates of interest, smooth repayment facilities and the deductions offered to the customers by the
retailers.

The constant changes in the existing car models with regard to design, innovation, technology, and colors, have
led to a fiercely competitive market. Now that technology and innovation are not alien concepts for Indian car
makers, Indian cars are becoming increasingly sleek, stylish, and luxurious.

Major players in the Indian Car Industry:

Fierce competition among the major car players can be witnessed in the Indian Car industry. The India car industry
is being dominated by the following major players:

Car Manufacturers In India

 Hindustan Motors
 Maruti Udyog
 Reva Electric Car Co
 Daimler Chrysler India Private Ltd
 Fiat India Private Ltd
 Ford India Ltd
 General Motors India
 Honda Siel Cars India Ltd
 Hyundai Motors India Ltd
 Toyota Kirloskar Motor Ltd
 Skoda Auto India Private Ltd
 AUDI AG
 BMW
 CHEVROLET
 FORCE MOTORS
 NISSAN MOTOR CO. LTD
 PORSCHE
 ROLLS-ROYCE MOTOR
 San Motors
 TATA MOTORS
 Daewoo Motors

The latest developments in the car market in India:

In Nashik, a car manufacture plant has been established as a result of a joint venture of Renault and Mahindra &
Mahindra to manufacture a comparatively cheap cars (at US$ 9,700), mainly targeting the Indian middle classes,
the youth, and the affluent classes in rural India. Tata Motors has plans to launch a luxury car with an engine of 33
horsepower. The recent reduction in the excise duty of the small cars from 24% to 16% will definitely prove to be
a boon for the India car industry.

Technical advancements in the Indian Car Industry:

The latest technical advancements in the car market in India include the following features

 Power Steering
  Radial Tires
 Anti-lock Breaking Systems
 Tip-tronic Transmission

The varied car markets in India:

The market for small cars now occupies a substantial share of 70% out of the annual production of 1 million cars in
India. Maruti Udyog, with its legendary Maruti -800 is the leader in the small car market. A number of
manufacturing plants are coming up for advancements in the field of small cars. The recent launches in the small
car market in India are:

 Getz Prime by Hyundai Motor Co.

 Tata Magic by Tata Motors Tata Magic
 Palio Stile byFiat India Pvt. Ltd

Mid-sized cars are normally cars ranging from Rs. 3-8 lakh and generally meant to be 4 seaters. The mid-sized car
section has recently moved beyond the 1 lakh target. The recent launches in the mid-size car market in India are:

 1.4 SXI Duratorq by Ford Motor Co.

 Indigo XL by Tata Motors

Luxury cars and premium cars are quite expensive and they are purchased for their design, innovation, and
technology. They are usually priced over Rs. 20 lakh and have many takers in India. The recent launches in the
premium car market in India and the luxury car market in India are:

 Sonata Embera H-Matic by Hyundai Motor Co.

 Nissan Teana by Nissan Motor Co. Ltd

Sports Utility Vehicles (SUVs) have also become very popular in India as they are considered advantageous due to
their ability to accommodate more passengers. They are ideal for trips with the whole family. The Sport Utility
Vehicle market in India is the most booming market in India presently and SUVs have become the fastest selling
cars of India.

For more information on the India Car Industry, please search through the following links:

Car Reviews
Car reviews are the comments or remarks generated with an ultimate aim to educate the
prospective customers about the car types, prices, availability, performance and many other
aspects of different cars. Car reviews act as a complete package of information for a buyer to
decide on the car to be purchased.

You can choose from the following segments to find reviews of the car of your choice inorder
to take a better idea of which car to go for.

SMALL CARS

Maruti 800 Maruti Omni Maruti Alto

Reva    

MID-SIZE CARS
Fiat Palio Fiat Petra Fiat Siena
Fiat Uno Fiat Jubilee Uno Siena Station Wagon
Ford Ikon Ford Fiesta Ford Escort
Chevrolet Aveo Opel Corsa Opel Astra
Ambassador Avigo Grand
Contessa Hyundai Santro Hyundai Getz
Hyundai Accent Hyundai Elantra Hyundai Verna
Maruti Zen Maruti WagonR Maruti Versa
Maruti Esteem Maruti Baleno Maruti Swift
Maruti Zen Classic San Storm 1.2 Tata Indica
Tata Indigo Tata Indigo XL Fiat-500
Mahindra Renault Logan Tata Indigo CS Maruti A-Star

PREMIUM CARS
Audi A4 Audi A6 Saloon Audi A8
Audi TT Ford Mondeo Chevrolet Optra
Honda Accord Honda City Honda Civic
Hyundai Sonata Mitsubishi Lancer Mitsubishi Lancer Cedia
Skoda Octavia Classic Skoda Octavia Combi Skoda Superb
Skoda Laura Toyota Corolla Toyota Camry
Honda Civic Hybrid Volkswagen Jetta Mitsubishi Pajero

LUXURY CARS
BMW Mercedes Benz Lamborghini
Porsche Rolls Royce Phantom  

SPORT UTILITY CARS

Fiat Adventure Ford Endeavor Ford Fusion
Force Chevrolet Tavera Chevrolet Tavera Neo
Pajero Pushpak Trekker
Honda CRV Hyundai Terracan Hyundai Tucson
Mahindra Bolero Mahindra Scorpio Mahindra CL Range
Mahindra MM Range Mahindra Hard Top Range Mahindra CNG-3 Door
Mahindra Voyager Maruti Gypsy Grand Vitara
Nissan X-Trail Porsche Cayenne Tata Safari Dicor
Tata Sumo Tata Indigo Marina Toyota Innova
Toyota Prado Toyota Qualis Mitsubishi Outlander

MODELS OF HONDA MOTORS CARS

MODEL TYPE
Accord Premium

 Accord VTi – L M/T

 Accord VTi – L A/T
 Accord V6

City Zx Premium

 City ZX EXI
 City ZX GXI (CVT)
 City ZX VTEC

Honda Civic Premium

 Civic 1.8V MT
 Civic 1.8V AT
 Civic 1.8S MT
 Civic 1.8S AT
 Civic Hybrid

Honda CRV SUV

 Honda City CRV - Manual

 Honda City CRV - Automatic
Honda Accord
Accord with its leather interior in a dual tone is
becoming popular day by day for its looks and other
features. Its features like dual zone automatic
climate control system, in dash 6 CD changers with
advanced acoustics, unique progressive self
illumination LED gauges, multi functional keys
with integrated remote etc give the experience of
safety, security and comfort of driving.

This car has three models :-

 Accord VTi – L M/T

 Accord VTi – L A/T
 Accord V6

Accord VTi – L

It has special features like 15 inches aluminum

wheels, body colored door mirrors with side
protectors and side sill garnish, body colored side
protection molding with chrome, driver's seat
adjustment equipped with 8-way full power /
lumbar support, rear center armrest with cup
holders and lockable trunk through access ,
whiplash protection for front seat etc.

It is found in different models according to its

transmission :-

 Accord Vti-L- A/T

 Accord Vti-L -M/T

Accord VTi-L A/T

It has new 5- speed automatic transmission with

'Grade Logic Control' for minimum shift shocks
and enhanced performance, ultra-thin torque
converter, second generation active lockup torque
etc.

Accord Vti-L M/T

It has new 5-speed manual transmission, optimized

gear ratio, low-effort clutch with short pedal stroke,
multi-cone synchronizers on first through fourth
gears etc.

View Technical Specification of Accord VTi – L

Accord V6

This model of Accord include few exclusive

features like body colored door mirrors-side turn
plus indicator, dual exhaust, chrome rear license
garnish, driver's seat adjustment, cruise control,
leather and woody gear shift knob, leather and
woody steering wheel, door co-operated map light,
remote control power windows, front center
armrest, head lamp beam height adjustment,
traction control system (TCS), vanity mirrors on
sun visors with illumination,dual stage smart
airbag system, key less entry with anti theft alarm,
engine check alarm etc.

View Technical Specification of Accord V6

TECHNICAL SPECIFICATIONS OF HONDA

ACCORD
ENGINE
Water-Cooled 4-Stroke
  ·  Type DOHC i-VTEC 16-Valve
In-Line
  ·  Displacement (cc) 2,354
  ·  Max. Horsepower
142/ 5500
(bhp/ rpm)
  ·  Max. Torque (kgm/
20.0/ 4700
rpm)
  ·  Fuel Supply System PGM-FI (Programmed
Fuel Injection)
TRANSMISSION
Syncromesh, 5 Forward
  ·  Manual
Speeds, One Reverse
5-Speed Electronically
Controlled Automatic,
  ·  Automatic
One Reverse

STEERING SYSTEM
  ·  Gear Type Rack & Pinion, Hydraulic
 Power Assisted

BRAKE SYSTEM
  ·  Front Brakes Ventilated Disc Type
  ·  Rear Brakes Disc Type

SUSPENSION SYSTEM
Independent Double
  ·  Front Suspension Wishbone with Coil
Spring & Stabilizer
Independent 5-link Double
Wishbone with Coil
  ·  Rear Suspension
Spring and Stabilizer

DIMENSIONS & WEIGHT

  ·  Overall Length
4,830
(mm)
  ·  Overall Width (mm) 1,820
  ·  Overall Height
1,465
(mm)
  ·  Wheelbase (mm) 2,740
  ·  Tread (Front/ Rear)
1,555/ 1,555
(mm)
  ·  Ground Clearance
155
(mm)
  ·  Gross Vehicle
Weight (kg) 1,870

TYRES
  ·  Size 205/ 65 R15

WHEELS
  ·  Size 15 x 6 1/2 JJ

OTHERS
  ·  Turning Radius
5.9m/ 5.5m
(Body/ Wheel)
  ·  Fuel Tank Capacity
(ltr) 64.8
Honda City
Price : Rs 7.7 lacs onwards
Honda City is engineered at its best to satisfy the requirements of next generation quality. It
offers an entirely dynamic style which is truly path-breaking. Its 1.5 L i-VTEC engine is fully
fuel efficient and delivers 118PS. You will enjoy each and every moment with its advanced
and sporty styling. Apart of its exclusive look, this car is gives a decent mileage of around
14-15 kmpl.

Honda City is equipped with a powerful and very effective air conditioning system with
heater to instantly transform the cabin into your comfort zone. The interior of this car is
extremely attractive and relaxing that gives an embracing feeling. Its rich and spacious
interior features advanced looking meter design, soothing color contrasts and aerodynamic
appeal promises its users with a spacious, comfortable and stylish lounge.

Special Features :

 Electronic brake force distribution (EBD)

 driver seatbelt reminder
 childproof rear door locks
 Day/night mirror
 Door lock protector
 Front and rear Speakers
 Fuel Consumption display with warning

Available Colors :

 Habanero Red Pearl

 Polished Metal Metallic
 Bold Beige Metallic
 Crystal Black Pearl
 Alabaster Silver Metallic
 Toleta White

Variants
This all new Honda City is available in two different models which are :

 Honda City E
 Honda City S

Honda City E
In addition with the above mentioned features, this variant is available with driver side
pinch-guard, Rear window de-fogger, Headlight Height Adjuster, Center Console High
Armrest, rear seat armrest, average fuel consumption, halogen headlights, green tinted glass,
body colored bumpers, tilt steering column, Fuel consumption display with warning and
ECU immobilizer system.

View Technical Specification of Honda City E

Honda City S

This variant is available in both manual transmission (S M/T) as well as automatic

transmission (S A/T). Its special features, along with the above mentioned, are body colored
door handles and mirrors, height adjustable driver seat (Lever type), seat back pocket
(Passenger side), front and rear speakers, steering mounted audio control, rear seat armrest
with cup holder, chrome plated hand brake knob, silver finish steering panel, Center Console
High Armrest, Passenger vanity mirror, Keyless entry with answer back,

View Technical Specification of Honda City S

TECHNICAL SPECIFICATIONS OF HONDA CITY

DIMENSIONS & WEIGHTS E MT / S MT S AT
  ·  Overall Length (mm) 4420
  ·  Overall Width (mm) 1695 1695
  ·  Overall Height (mm) 1480
  ·  Wheelbase (mm) 2550
  ·  Ground Clearance (mm) 160
  ·  Fuel Tank Capacity (L) 42
  ·  Kerb Weight (kg) 1100 1155
ENGINE
  ·  Engine 1.5L (SOHC) 4 cylinder, 16 valve i-VTEC
  ·  Displacement cc 1,497
  ·  Fuel System Electronic Fuel Injection
TRANSMISSION
Synchronized, 5-
5AT with Paddle Shift
  ·  Type Speed Forward & 1
& 1 Reserve
Reverse
PERFORMANCE
  ·  Max. Power (PS/rpm) 118 / 6600
  ·  Max. Torque, Nm @ rpm 146 @ 4800
SUSPENSION
  ·  Front Suspension Mc pherson Strut with Stabilizer, Coil Spring
Torsion Beam Axle with Stabilizer, Coil
  ·  Rear Suspension
Spring
STEERING
  ·  Steering System Rack & Pinion
  ·  Power Assisted Power Steering (EPS)
  ·  Minimum Turing Radius(m) 5.3
BRAKES
  ·  Front Brakes Disc
  ·  Rear Brakes Drum
TYRES & WHEELS
  ·  Wheel Type Steel
  ·  Wheel Size 15 X 5. 5 J
  ·  Tyre 175/65 R15 (Tubeless)
Honda Civic
Every dream of many car lovers have come true with the launch of Honda Civic ,
ceremonially on 9 th July 2006 in India. All the best possible features have been loaded in
this car to make it one of the most marketable premium category car for finicky Indian car
buyers.

Various features in this car is definitely upgraded and market suited. Interior of Honda Civic
includes beige and black interior color combination, multiplex meter with illumination
control, tilt and telescopic power steering, silver power window with switch panel, 3-spoke
leather wrapped steering wheel, integrated 2 DIN AM/FM, 6 CD Changer, MP3/WMA, rear
glass printed antenna, 6 speakers (2 rear and 2 front, 2 tweeters) etc.

Its body colored exterior is available with body colored- door mirrors,bumpers, outside door
handles with chrome along with body colored door protector etc. Other exterior features
include green tint door glass and windshield glass, opposed flat type and 3 speed intermittent
windshield wiper, 15 inch 5 spoke alloy wheels, dual exhaust pipe with pipe finisher etc.

For passenger's comfort this car is equipped with electrically retractable power outer mirrors,
day and night rear view mirror, automatic air conditioner with silver finish AC vents, driver
seat with height adjuster device, sunvisor vanity mirror with lid (both driver and passenger
side), rear arm rest with audio controls and cup holders with lid, low fuel warning lamp, door
and trunk ajar warning etc.

Safety of the passengers ensure by some of the very striking features like Anti-lock Brake
System (ABS) with Electronic Brake-Force Distribution ( EBD), Brake Assist (BA), dual
SRS airbags, front pretensioner seatbelts, keyless entry with security answerback, child proof
rear door locks, rear window defroster, dual horn, wave key, immobilizer system, security
alarm system etc.

Honda Motors has launched new Civic 1.8V range, which is equipped with enhanced leather
interiors. It also features turn lamps on outside rear view mirror and fog lamps which
complement the premium look of the car.

It comes with four different variants:

 Civic 1.8V MT
 Civic 1.8V AT
 Civic 1.8S MT
 Civic 1.8S AT
 Honda Civic Hybrid

Honda Civic 1.8V MT

The Honda Civic 1.8V MT is a manual transmission sedan with a kerb weight of 1,210 kg.
The transmission type is of synchromesh 5 forward & 1 reverse.

View Technical Specification of Honda Civic 1.8V MT

Honda Civic 1.8V AT

While Honda Civic 1.8V AT is an automatic transmission four wheeler with 1,240 kg kerb
weight. It features 5-speed automatic transmission incorporating paddle shift, grade logic
control & shift lock.

View Technical Specification of Honda Civic 1.8V AT

Honda Civic 1.8S MT

It is available with manual transmission. Its transmission type is of synchromesh 5 forward

and 1 reverse.

View Technical Specification of Honda Civic 1.8S MT

Honda Civic 1.8S AT

It comes with automatic transmission. It is equipped with 5 speed automatic transmission

with paddle shift along with grade logic control and shift lock.

View Technical Specification of Honda Civic 1.8S AT

Honda Civic Hybrid

Price :- Ranges from 21- 21.5 lacs

Completely designed with an aggressive sporty look, Honda motors introduces Honda Civic
Hybrid - a symbol of luxury, power, value and style. Incorporated with all the best
possible features, it is a car for every application. Style takes up a new definition with Civic
Hybrid.

Exteriors and Interiors:

 Hybrid-specific aluminium wheels

 Aerodynamic Trunk Spoiler
 Micro-antenna
 A powerful engine
 Remote power door locks
 state-of-art integrated audio system
  Best quality Leather seats
 Sporty Cockpits

Technology:

Available in Premium Pearl White color, Civic Hybrid is configured to make driving an
invigorating and gratifying experience. The 3-spoke steering wheel with a tilt and telescopic
steering-column adjustment and a new age instrument panel will definitely add to interior of
this style symbol. It is also equipped with a smooth Continuously Variable Transmission
(CVT), which harmonize the ease with the efficiency of a manual transmission.

The engine of Civic Hybrid is featured with a 3-stage i-VTEC + IMA that employs Honda’s
1.3L i-VTEC (Variable Valve Timing and Lift Electronic Control) to render three stages
of valve timing (low-speed, high-speed, and valve deactivated mode), combined with a
compact and efficient electronic motor.

Safety and Protection:

Uniquely designed airbags are there for safety purpose. The Civic Hybrid is equipped with
G-CON Technology that offers the occupant a survival zone in case of any collision. Its
Anti-lock braking system (ABS) prevents wheel lock-up and the Electronic Brake
Distribution system (EBD) balances the braking forces at every wheel according to how the
car is dynamically filled.

View Technical Specification of Honda Civic HYBRID

TECHNICAL SPECIFICATIONS OF HONDA CIVIC

DIMENSIONS & Honda Civic
Manual (MT) Automatic (AT)
WEIGHTS HYBRID
Overall Length 4,545 mm
Overall Width 1,750 mm
Overall Height 1,450 mm
Wheelbase 2,700 mm
Min. Ground
170 mm
Clearance
Tread (Front/ Rear) 1495/1520 mm
Ground Clearance 165 mm
Kerb Weight 1,210 kg 1,240 kg 1290 kg
Turning Radius 5.4 m
195/65 R 15 Radial
Tyre Size
& Tubeless
Wheel Size 15 Inch
Fuel Tank Capacity 50 L 50 lts
ENGINE
SOHC iVTEC +
Engine Type i-VTEC, 1.8L
IMA
Configuration /
4-Cylinder, In-line
Cylinder
Valves / Fuel 16 Valves, Petrol
Fuel System PGM-Fi
Displacement 1799 cc 1,339 cc
PERFORMANCE
Max. Power 132 PS @ 6,300 rpm 95ps@ 6,000rpm
121.5 Nm@
Max. Torque 17.5 Kg-m @ 4,300 rpm
4600rpm
Max. 30min. Power
12 kw
Electric motor
TRANSMISSION
5-speed AT with
Paddle Shift,
Synchromesh 5 forward,1
Type Grade Logic (Automatic) CVT
reverse
Control & Shift
Lock
SUSPENSION
McPherson, Coil Spring McPherson coil
Front Suspension
with Torsion Bar spring
Double- wishbone, Coil
Rear Suspension Double wishbone
spring with Torsion Bar
STEERING
Steering Type Collapsible, Power Assisted
Min. Turning Radius 5.4 m
BRAKES
Front Brakes Ventilated Discs
Rear Brakes Discs
TYRES & WHEELS
Wheel Type Alloy
Wheel Rim Size 15 x 6J
Tyres 195/65 R15 (Tubeless)
Brake System
Front Ventilated Disc
Rear Disc

Honda City CRV

Honda City CRV with its powerful engine carrying
fuel capacity of 2.4 litre and exclusive beige interior
is spreading its name as Honda's Brainchild.

It has two variants :

 Honda City CRV - Manual

 Honda City CRV - Automatic

Honda City CRV - Manual

It is equipped with various standard equipments

like multi-reflector integrated headlights, heat
blocking green glass, soft type spare tyre cover, tilt-
adjustable power steering, digital odometer and
techometer, ignition key reminder, tilt-up tailgate
window opener, power windows, power door locks,
power retractable door mirrors, AM/FM stereo
radio CD player with 6 speakers-2 DIN, Anti-lock
Braking System (ABS) & Electronic Brake force
Distribution(EBD), seatbelt reminder etc.

View Technical Specification of Honda City

CRV - Manual

Honda City CRV - Automatic

Along with the features present in manual model of

this car, there are also more added features
available in this model like hard type spare tyre
cover, shift lever with over drive, driver & front
passenger vanity mirrors, skid plate, sport grill etc.

View Technical Specification of Honda City

CRV - Automatic
TECHNICAL SPECIFICATIONS OF HONDA
CRV
GRADE Manual Automatic

Water - cooled 4-stroke

DOHC i-VTEC 16 - valve
· Engine Type
in-line 4-cylinder
transversely mounted
PGM-FI ( Programmed Fuel
· Fuel supply system
Injection )

5 - speed
5 speed electronically
· Transmission Type Manual one controlled
reverse automatic,
one reverse
· Displacement (cc) 2,354
· Maximum horsepower
152 @6000
(BHP/rpm)
· Maximum Torque
215.3/3600
(NM/rpm)
· Kerb weight (kg) 1500 1550
Dual pump REALTIME
· Drive System
4WD
· Front brake Ventilated disc
· Rear brake Disc & Drum Combination
Independent McPherson
· Front suspension strut, toe- control-link with
stabilizer
Independent double
· Rear suspension wishbone, reactive-link
with stabiliser
Rack and pinion, power
· Gear Type
assisted
[4,610 (L), [4,630 (L),
· Dimensions (mm) 1,780(W), 1,780(W),
1,710(H)] 1,710(H)]
· Wheelbase (mm) 2,620
· Treads Front/Rear
1,535 / 1,545
(mm)
· Ground clearance
205 (unloaded)
(mm)
· Turning circle 11.3 / 10.4
diameter at body /
wheel (m)
· Tyre size 215 / 65 R16
· Wheel size 16x6 1/2 JJ
· Fuel Tank Capacity
58
(Lts.)
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Today, customer is at the centre of every business strategy. Successful

companies around the world are focusing on the customers. They are
investing in understanding customer needs better and on giving them most
appropriate services and products.
Problems related to customer commitments

There are two main factors in customer commitments those are:

1. Internal factors
2. External factors

Internal factors causes are:

 Wrong commitments for Test drives

Sometimes the SE agrees to carry out test drive for the vehicle
without checking the Test Drive vehicle schedule. In this case the SE is
unable to realise the test drive time committed to the customer.

 Salesperson phony/ insincere

The SE in some cases behaves in an insincere manner or do

mischievous things like to achieve his targets mislead the customers and
commits things which later he is not in a position to fulfil them.

 Inconvenient delivery time and place

Sometimes the delivery time committed to the customer is not

convenient for the company like the customer asking delivery at mid
nights or at particular place/area. Hence the company may not be able to
carry out the customers’ demand.

 Didn't provide promised options

 In many a situations the company promises the customers to provide
them with better options and things they required. But once the contract is
entered, the company look out for excuses and are unable to provide what
the customer really wants. Hence the customer has to switch off things
they really wanted and are forced to look for alternatives.

 Improper knowledge to salesmen

 No proper co-ordination

This is a problem amongst the employees in the organization.

Many a times the employees are not properly coordinating among
themselves. This may be due to lack of communication between them.
This causes delay in fulfilling customer commitments.

 No proper PDI

The workers at the workshop, sometimes due to work overload or

due to some mental stress are unable to carry out proper PDI i.e. Pre-
Delivery Inspection of the vehicle due to which some points are missed
out or are not properly checked. At the time of delivering the car to the
customer these missed points/faults are visible and the customer thinks
that they have been mislead.

 Technical defaults/manufacturing defects

Even after the PDI is done the car breakdown because of various
technical reasons. Hence this is a problem which the company is not
directly responsible. But the company as much as possible should try to
take care of such situations as it hampers the reputation of the dealer. This
can also be a manufacturing defect.
 Technical defaults may be major with head lights breakdown or music
system may not work and such other related problems.

 Ignorance of the Person in charge towards his responsibility.

Sometimes the person in- charge of a particular work may be

ignorant towards his responsibility given to him. For instance, a car to be
delivered tomorrow is in the workshop from last 4 days. A day before the
delivery, the person in- charge identifies a problem in the car which if he
wouldn’t have ignored his responsibility; the problem would have been
identified earlier. This causes delay in delivery.

 Shuffled from SC to SC

In this, the sales consultant who previously had a meeting with a

customer and had given him a future date of meeting was not available
that day. On such a situation another SC who is handling the customer is
unable to address the customer properly because he is unaware of the
details given by the previous SC to the customer.

No one point contact

External factors causes are:

 Transit damages in transport

This is one of the common problems relating to customer
commitment. While transporting the goods (vehicles) from the place of
production to the stockyard the goods are exposed to damages due to
incorrect loading of the goods or due to bad condition of roads or
sometimes due to bad driving. All this reasons leads to damage to the
goods transported. These goods are to be rectified before the delivery and
 hence this takes time for identifying and correcting the damage. This
leads to delay in delivery.
 Accidents
While transporting the goods, the mode of transport through which
the goods are arriving meets with accidents due to bad driving, bad
conditions of road, etc. Hence, it leads to delayed delivery to the
customers and hence customer commitment is not fulfilled.
 Natural calamities
Natural factors like heavy rains, floods, earthquakes, etc leads to
non- fulfilment of customer commitment.
 Uncertainties/riots
Riots, strikes, road blocks, wars etc are an uncertain condition
which leads to delayed delivery. Because of these reasons the company is
unable to deliver the customers the promised good on time.
 Miscellaneous
 JDP Scores
This plays an important role. JDP Scoring system provides ranking to all
Honda Auto Dealers in India based on their performance and relation
maintained with the customers.
HONDA JAZZ
Honda, which made Japan known as world leader in small car making, is also
ready to enter the Indian small car market with the launch of Jazz next year.
Recently, the Jazz Concept was adjudged the Japanese Car of the Year 2007-08.

Honda's second generation Jazz's has all:

 Appealing packaging
 Stylish exteriors
 Excellent fuel efficiency
 Space with good head and leg room
 Great performance
 Price: Rs 5-7 lakh

Known as The Fit in Japan, the first generation Jazz had also received this
award. In fact, Honda has won the award five times in the past ten years.

There are just three trim levels in Jazz -- the S, SE and Sport SE. In S models,
you will get power steering, electric front windows and twin airbags. Move one
level up, you'll get alloys, CD player, ABS and air-conditioning in the SE
model. The top SE Sport model has nothing more than others but it offers front
fog lights and subtly racier looks.

Honda would position the small car to fit into the lower excise duty bracket.
Small cars with a certain specification of engine capacity and length attract
lower tax, which is 16%, than bigger cars, which attract 24% tax.

You may fall in love with Jazz at first sight. Get inside, it can comfortably seat
five adults with their luggage.An intelligent dual and sequential ignition system
(I-DSI) has been used. This puts two spark plugs in every cylinder, which
betters fuel combustion and decreases emission.

So, get ready to go a on long drive on Honda Jazz.

Depending upon the brand and type of cars, dealer location ensures that the potential customers get
the best of strategic advantages.The ambiance and the customer service are equally important. The
customer should feel welcome at the car dealers place and the more a car dealer is able to generate
that sort of feelings among his potential customers, the likelihood of car sales is to increase.

Customer Requirements

Sales associate at the new car dealer's place should be able to understand the exact requirements of
the customer and accordingly explain the traits of the car that matches his needs. In addition, s/he
should understand the customer preferences and likings and the auto dealer should ensure that all
such feedback is reported back to the concerned company that will help them to make the changes
in the car, if and where necessary.
Impact of Global Recession on Indian Car Industry
Indian car industry is one of the most promising car industries across the globe. It has gradually strengthened its
foothold in the international arena as well. The country is dealing with many car manufacturers, dealers, and
associations in various different countries including U.S. From some countries, India imports cars and car
components and to some India exports. With this, the global recession is obvious to have its impact on the Indian car
industry. 

Though India has witnessed a growing customer base, it has not inoculated them from the global
crisis. The crippling liquidity and high interest rates have slowed down the vehicle demand.
However, the falldown started in July with a decline of 1.9% and thereafter the industry saw a major
slowdown in October 2008.

Business Analysts reported that Indian car market had recorded a continuous growth of about 17.2%
over the last few years but this year the recession has brought the growth to about 7-8%. Be it Tata
Motors or Maruti Suzuki or even Mercedes-Benz, the car market has gone down to a tremendously
negative terrain.

Tata has reported that its profit fell from 34.1 percent to 3.47 billion rupees because of the slower
growth in the industrial production. Further, the company has also recorded a 20% decline in the
sales as compared to last year.

Maruti Suzuki reported a 7% decline in sales due to rising cost of the materials and a falling rupee
value. Even Mahindra & Mahindra, the India's largest SUV and tractor manufacturer, is not
immunized, showing profit fall of 20.6%.
In the recent months, banks and car financers have disbursed the approved loan because of the cash
crunch. Payments from the OEMs (Original Equipment Manufacturer) have also been delayed and in
most cases banks have deferred or disbursed the approved loan. OEMs take this loan from banks
and financers for establishments, capacity expansions, or even for the requirement of high-end
equipments for car designing and production.

In addition, the uncertain exchange rate and a sudden increase in dollar value against Indian Rupee
have contributed to the slowdown. Increasing dollar value has raised the landed cost of imported
machine tools and even raw materials required for production by about 14%. Alloy and steel prices
have also not shown any reduction in their prices and this high price has actually forced the car
manufacturers to hike the car prices. To make the matter worse, it is believed that steel
manufacturers across the country are looking for re-imposition of custom duty on steel. Increased
cost of raw materials directly affects the cost of the car rolled out, eventually tagging a particular car
model with a higher price tag.

In short, the present global recession has bang the Indian car industry with a heavy storm.
Suggestions to improve customer commitment

The problems related to customer commitment can be solved in any of the

following ways: