1.

INTRODUCTION

1.1 Introduction

Customer perception refers to customers’ awareness, their

impressions, and their opinions about the business, products, and brand.
Today, perception impacts buyer decision-making and is a “huge success
factor in the retail industry”. Brands that monitor and understand
customer perception and its contributing factors can better identify
opportunities to improve customer experiences. Customer perception is
what customers and potential customers think of the organization. This
perception directly impacts the attraction of new customers and the
capacity to maintain good relationships with current customers.

The concept of this study is very simple. It is mainly about the

customers view point about the brand Toyota. In the past producers took
their customers for granted, because at that time the customers were not
demanding nor had alternative source of supply or suppliers. But today
there is a radical transformation. The changing business environment is
characterized by economic liberalization, increasing competition, high
consumer choice, demanding customer, more emphasis on quality and
value of purchase etc. now the brand Toyota wins the heart of many
people. The goal of this study is to understand more about Toyota and
how it is useful to people.

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1.2 Scope of the study

The study is conducted to evaluate the customer’s perception towards

the Toyota brand. The focus is on creating value for the customers
and company over the long term. In The present study is conducted to
evaluate the effectiveness of Toyota towards the customers.

1.3 Objectives of the study

. To understand the customers perception towards Toyota cars.

. To measure the satisfaction level of customers.

.To find out the factors affecting the customer perception of Toyota
cars.

1.4 Research methodology

Research methodology is the method that can be used to solve the

research problems. It is the process of systematic and in-depth study
of research for any particular topic, subject or area of investigation
backed by collection and interpretation of relevant data.

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 ➢ Sources of data

The data for the study was gathered from primary and secondary
sources.

Primary data

Primary data are the original source from which the researcher
directly collects data that have not been collected previously. In this study
collection was made through questionnaire & personal discussions.

Secondary data

This mainly consist of data and information collected from records of

the company, automobile websites etc.

➢ Population and sampling

The customers of the Toyota are the population taken for the study. A
total of 50 samples were collected and questionnaires were issued to
them.

Questionnaire method

A questionnaire consists of 22 questions was issued to the customers

to collect data.

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 ➢ Tools and Techniques used

Data has been presented using tables and graphs. Percentage analysis
has been used for analysing the collected data.

1.5 Limitations of study

1. Due to COVID-19 many customers were refused for personal

interviews.

2. Some customers were reluctant to fill the questionnaire.

1.6 Scheme of study

The report study is divided into six chapters. The first chapter is about
the introduction, objectives, scope, limitations etc. The second chapter
Provides review of literature. The third chapter is about the industry, its
evolution and history. The fourth chapter gives the full details of Toyota.
The fifth chapter provides data analysis and interpretation. Sixth chapter
includes findings, suggestions and conclusion of the study.

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 2. REVIEW OF LITERATURE

E. Thangasamy & Dr Gautam Patikar (2018): The

consumers aim at attaining optimum Consumer surplus, be it durables or
non- durables, while making such purchases to satisfy their Wants. For
this reason, the marketers do continually rely on research studies about
the dynamic Consumer behaviour to position their product planning and
development strategies to meet the Requirements efficiently. This
complex consumer buying behaviour does, therefore, necessitate a
Critical investigation by the researchers in every nook and corner of the
world. In this paper researcher has study about buying behaviour of
consumer, the behaviour of Consumer not same for any locality. The
Behaviour of consumer are depend on their Income, standard of living,
size of family there are factors influence of consumer Buying behaviour.

Rakesh Kumar (December 2018): The term consumer

behaviour is defined as the behaviour that consumer display in searching
for, purchasing, using, evaluating and disposing of product, services and
ideas that they expect will satisfy their needs. Consumer behaviour is the
process whereby, individuals decide whether, what, when, where, how,
and from whom to purchase goods and services. Due to the increase in
income level and easy finance being provided by all the financial
institutes, the four wheelers sales have been significantly increased.
These paper us analysis the buying behaviour of consumer towards four
wheelers Industries. And how the consumer has preferences specific
brand, quality products, good services and so on.

5
 D. ARTHI & K. MALAR MATHI (Oct 2017): Customer playing
the three distinct roles of user, payer and buyer differ in their intention
towards buying a product, some purchase for need, while some purchase
for the want of status, status seeking consumers are those who give much
importance to the non functional attributes of the product such as beauty,
attractiveness, brand, social comparison, prestige etc than the functional
attribute. Car a common means of transport is bought by people not only
for the transportation purpose; it is also bought for comfort, convenience,
fun, prestige/status. The research paper has indicate consumer has buy
four wheelers for increasing the income and to show their status.

Ratan Binodini Amiya Priyadarsini (May 2016): As India’s

economy continues to grow at a rapid pace, the automobile industry will
be a key beneficiary. This is widely true across automotive markets—
from those serving customers with four-wheelers to those offering
commercial vehicles. The main factors behind such growth are the
increasing affluence of the average consumer, overall GDP growth, the
arrival of ultra-low-cost cars, and the increasing maturity of Indian
original equipment manufacturers (OEMs). However, India’s path to
mass motorization will be very different from that of developed countries;
it must first develop the new technologies, business models, and
government policies that will pave the way to increased automobile
penetration. The automotive sector is one of the core industries of the
Indian economy, whose prospect is reflective of the economic resilience
of the country. This research paper are give the information for how the
automobile sector has grown up in this city due to increasing the GDP
rate in the city.

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 Dr. H. S. Adithya (Jan 2016): Automobile Industry is one of the
fastest growing sectors in our country. Cars were once considered as a
luxury and now it has become a necessity. They have become a part and
parcel of today’s life and most of the car manufacturers target the middle
class segment to a great extent. The introduction of small cars is a classic
example for this. Today’s consumer has plenty of options available to
him. We are in a consumers market where the marketers do not merely
satisfy a need but try to achieve consumer delight. The decision to
purchase a car is not a one man decision. The purchase is normally
influenced by many including their own perceptions and behaviour.The
author has clearly define in this paper perception of consumer towards car
owner and their behavior of purchasing decision. Every consumer
decision different so they analysis then give the opinion.

Vikram Shende (February 2016): The automobile industry today is

the most lucrative industry. Due to increase in disposable income in both
rural and urban sector and availability of easy finance are the main
drivers of high volume car segments. Further competition is heating up
with host of new players coming in and global brands like Porsche,
Bentley, and Ferrari all set to venture in Indian market. All segments in
Indian Car industry were studied and found that buyer has different
priority of behaviours in each segment, where as main driver for car
purchase is disposable income. Now a days competition has to much
increasing due to this every company will try to capture the market and
develop their business, similarly four wheelers sectors are increasing due
to easy finance available, different-different attractive scheme has came
so consumer can easy affordable the four wheelers.

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 Minwir Al-Shammari (November 2014): In today's high competitive
global market, the importance of the service sector has sharply increased
in both the developing and already developed countries. Service providers
are primarily focused on delivering superior service quality to achieve
high levels of customer satisfaction and loyalty. This research paper has
the author has study or examine the quality providing by automobile
company and whether the consumer are really satisfy with this services.
To develop the reputation in the business market every company have to
do the good services and maintain the quality.

Dr. khaled ibn Abdul-raheman Al-jeraisy (2014) : As a consumer

behaviour defined as the activity of the consumer engages in when
looking for a goods and a services to satisfy his need or want and when
evaluating, obtaining, using. In addition to related decision making
processes. When any consumer has to take decision to buy the product he
should analysis or getting information for particulars product then he will
purchase to take decision. After the purchasing the product and using this
consumer are satisfy. For example when the consumer are take decision
to buy four wheelers they he will get information for other people about
this car and then he purchase. Some time company has giving the test
Drive also if customer likes than they buy otherwise they move to buy
other four wheelers.

K. J. Vinodini (Jan-Mar 2014): The Automobile Sector plays a

very important role in the economy, where they manufacture millions of
wheelers and sell it year by year. This sector is the fastest growing sector
where it holds the ‘n’ number of customers for buying their vehicles. The
wants are unlimited in nature; though a person belongs to a middle class
family his desire in buying a four wheeler can‘t be predicted. People may
belong to rural or urban area but they want to change their lifestyle at

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least by consuming a car. The four wheeler market is getting expanded
day by day with new innovations. As we all know due to increasing the
population, competition also increasing day by day, year by year. Every
new company has enter in the market specially in four wheelers sector.

Leon G. Schiffman, Leslie Lazar Kanuk (2014): It is important to

understand how consumer attitudes vary from situation to situation. For
instance, it is useful to know whether consumer preferences for various
brand of like Suzuki, Mahindra, Honda, Toyota, Hyundai etc. first
identify consumer needs and then develop product & services to satisfy
those needs. Consumer research also is used to better understanding
consumption behavior. Many of these applications of consumer research
are managerial in perspective, they are designed to helps a market make
specific marketing decision concerning product, price, promotion, and
distribution. It also able the marketer to build consumer meaning into the
product or services by discovering which attributes are most important to
the target market and integrating them into the product or services design.

Michael R. Solomon (2013) : Consumer satisfaction is determine by

the person’s overall feeling toward the product after purchase. There are
many factors influencing preference of product quality, including price,
brand name, and product performance. Satisfaction is often determining
by the degree to which a product’s performance is consistent with the
consumer’s prior expectations of how well it will function. Consumer
satisfaction is determining by overall feelings, or attitude, a person has
about a product after has been purchasing consumer engage in a constant
process of evaluating the things they buy as they integrate these products
into their daily consumption activity.

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 Jarvenpaa et al. (2013): Tested a model of consumer attitude
towards specific web base stores, in which perceptions of the store's
reputation and size were assumed to affect consumer trust of the retailer.
The level of trust was positively related to the attitude toward the store,
and inversely related to the perception of the risks involved in buying
from that store. His study concluded that the attitude and the risk
perception affected the consumer's intention to buy from the store.

Nikhil Monga (February 2012): The concept of “buying behavior”

is of prime importance in marketing and has evolved over the years. It is
important to understand consumer buying behavior as it plays a vital role
in crating an impact on purchase of products. The human wants are
unlimited and always expect more and more. Car Models are no
exception to this behavior. This lead to constant modifications of Car
Models & its features and today we see a new model coming into the
market practically every quarter. The market is a very important place to
study the behavior of consumers and also provide useful insights what a
consumer requires in a product. It is only through research that a
company will be able to study the buying behaviour of consumers.

Vanniarajan and Kubendran (2005): Describe that consumer

perception and usage of any product can be changed due to change in
food eating habits. If income and urbanization increases in among
consumers then the percentage of income spent on consumption
Increases. The urban consumer mostly like branded products as compared
to rural consumers.

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 3. INDUSTRY PROFILE

3.1. HISTORY OF AUTOMOBILE

In 1769, French inventor Nicholas-Joseph Cugnot built a three-

wheeled steamer to help the French army haul artillery pieces. Although
his contraption was considered to be too slow and impractical, Cugnot is
still regarded as the creator of the first motorized road vehicle. In 1805,
Oliver Evans, who built an incredibly slow machine designed to work on
both land and in water for the City of Philadelphia Department of Health,
is considered to be the first American to create a motorized road vehicle.

Commercial production of Automobiles began in 1896 in the United

States, ten years after Karl Benz received a German patent for his
invention of the first automobile powered by an internal combustion
engine. Along with his wife, Bertha, he founded the German automobile
manufacturer Mercedes-Benz.

The early 1900s boomed with various types of motorized vehicles

being developed around the world. In the United States Ransom E. Olds
and his Olds Motor Vehicle Company (later known as Oldsmobile)
dominated this era of automobile production. As a result of superior
promotional and marketing efforts, sales of the Oldsmobile approached
5,000 in 1904 which, at the time, was unheard of in the industry. The
Thomas B. Jeffrey Company developed the world's second mass-
produced automobile called the Rambler. In 1902, 1,500 Ramblers were
built and sold, and by 1904 production reached 2,342 units.

Perhaps the most famous car of all time is Henry Ford's Model T. In
order to keep costs low, Ford focused efforts on improving production

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methods. His moving assembly line began operation in 1913-1914
making it possible to lower the cost of the Model T and, as a result,
increase sales and potential customers. In response to consumer demands
manufacturers have reinvented the automobile numerous times over.

From the development of anti-lock braking systems, to hybrid

vehicles, to the first highway-capable all electric vehicle, the automobile
industry continues to create, innovate and transform the way we live.

DEVELOPMENTS BEFORE WORLD WAR I

Most early automobile companies were small shops, hundreds of

which each produced a few handmade cars, and nearly all of which
abandoned the business soon after going into it. The handful that survived
into the era of large-scale production had certain characteristics in
common. First, they fell into one of three well-defined categories: they
were makers of bicycles, such as Opel in Germany and Morris in Great
Britain; builders of horse-drawn vehicles, such as Durant and Studebaker
in the United States; or, most frequently, machinery manufacturers. The
kinds of machinery included stationary gas engines (Daimler of Germany,
Lanchester of Britain, Olds of the United States), marine engines
(Vauxhall of Britain), machine tools (Leland of the United States), sheep-
shearing machinery (Wolseley of Britain), washing machines (Peerless of
the United States), sewing machines (White of the United States), and
woodworking and milling machinery (Panhard and Levassor of France).
One American company, Pierce, made birdcages, and another, Buick,
made plumbing fixtures, including the first enameled cast-iron bathtub.
Two notable exceptions to the general pattern were Rolls-Royce in
Britain and Ford in the United States, both of which were founded as

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carmakers by partners who combined engineering talent and business
skill.

In the United States almost all of the producers were assemblers who
put together components and parts that were manufactured by separate
firms. The assembly technique also lent itself to an advantageous method
of financing. It was possible to begin building motor vehicles with a
minimal investment of capital by buying parts on credit and selling the
finished cars for cash; the cash sale from manufacturer to dealer has
been integral in the marketing of motor vehicles in the United States ever
since. European automotive firms of this period tended to be more self-
sufficient.

The pioneer automobile manufacturer not only had to solve the

technical and financial problems of getting into production but also had to
make a basic decision about what to produce. After the first success of the
gasoline engine, there was widespread experimentation with steam and
electricity. For a brief period the electric automobile actually enjoyed the
greatest acceptance because it was quiet and easy to operate, but the
limitations imposed by battery capacity proved competitively fatal.
Especially popular with women, electric cars remained in limited
production well into the 1920s.

3.2. THE AUTOMOTIVE INDUSTRY IN WORLD WAR II

During World War I the productive capacity of the automotive

industry first demonstrated its military value. Motor vehicles were used
extensively for transport and supply. In addition, automotive plants could
readily be converted into facilities for manufacturing military equipment,
including tanks and aircraft. For all of the belligerents the conversion of
automotive facilities was an afterthought, improvised after the beginning

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of hostilities, and the American industry, involved only for a short time,
never fully utilized its capacity.

More preparation was made for using the resources of the various
automotive industries as World War II approached. The British
government built “shadow factories” adjacent to their automotive plants,
equipped to go into military production (principally aircraft) when war
came, with managerial and technical personnel drawn from the
automotive industry. France attempted conversion, but belatedly and
inefficiently. The German automotive industry, which built the military
vehicles needed for blitzkrieg, was not fully converted to military
production until 1943. In the United States the preparation for industrial
mobilization was negligible until 1940; in fact, there was no serious effort
even to restrict civilian automobile production until after the attack on
Pearl Harbour in December 1941. Still, the American automotive industry
represented such a concentration of productive capacity and skill that,
once its resources had been harnessed to war production, its contribution
was tremendous. Between 1940 and 1945 automotive firms made almost
$29 billion worth of military materials, a fifth of the country’s entire
output. The list included 2,600,000 military trucks and 660,000 jeeps, but
production extended well beyond motor vehicles. Automotive firms
provided one-half of the machine guns and carbines made in the United
States during the war, 60 per cent of the tanks, all the armoured cars, and
85 per cent of the military helmets and aerial bombs.

It had been assumed that automotive facilities could be readily

converted for aircraft production, but this proved more difficult than
anticipated. Automobile assembly plants did not readily accommodate
airframes, nor could an automobile engine factory be converted without

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substantial modification. These problems were eventually resolved, and
automobile companies contributed significantly to aircraft production.

3.3. THE AUTOMOTIVE INDUSTRY AFTER 1945

After World War II there was a striking expansion of motor vehicle

production. During a 35-year period the total world output increased
almost 10-fold. The most significant feature of this increase was that most
of it occurred outside the United States. Although American production
continued to grow, its share of world automotive production fell from
about 80 per cent of the total to 20 per cent. Among individual countries
the United States was the leading producer until the recession of the early
1980s. In 1980 Japan, which had had little automotive manufacturing
before the war, became the leading producer, with the European
Economic Community (EEC) ranking second. The United States regained
the lead in vehicle production in 1994, since by that time Japanese
manufacturers were building more of their products in factories in their
major overseas markets, such as the United States, in response to
economic and political pressures in those markets. However, in the early
21st century, China became the leading manufacturer of cars.

Declining sales and heavy financial losses pushed the Chrysler

Corporation close to bankruptcy in the late 1970s. Attempting to avert the
company’s collapse, the U.S. government granted Chrysler $1.5 billion in
loan guarantees. In return Chrysler surrendered supervisory control to the
government’s Chrysler Loan Guarantee Board. By exercising such
control, the U.S. government became a de facto partner of the country’s
third largest automaker. The government’s influence was short-lived as

15
Chrysler, under the leadership of Lee A. Iacocca, returned to profitability
and repaid its government loans in 1983, seven years early.

Increasing competition from imported cars and from new

manufacturing operations established by European and Japanese firms
continued to reduce the share of the American market controlled by the
four domestic manufacturers through the remainder of the 20th century.
Germany’s Volkswagen opened an assembly operation in the United
States in the late 1970s but closed it a decade later. Japan’s Nissan Motor
Corporation established a plant in the early 1980s to build its popular
small pickups and later added car production. Another Japanese
automaker, Honda Motor Company, followed with a car manufacturing
operation adjacent to its motorcycle plant; it later added a second car
facility in the United States and a car plant in Canada. Japan’s Toyota
Motor Corporation formed a joint venture with GM called New United
Motor Manufacturing Incorporated, which built small cars for both
Toyota and GM. Toyota also opened two plants of its own in the United
States one for cars and small vans and the other for pickup trucks and
sport utility vehicles and a car-making facility in Canada. A number of
other Japanese manufacturers opened plants in the United States as joint-
venture operations.

Many of the Japanese-owned American plants were built in response

to limitations imposed on exports of cars to the United States by Japan’s
Ministry of International Trade and Industry. The restrictions followed
threats of sanctions by the United States in the wake of Chrysler’s near
collapse and heavy losses by Ford and GM. Called the Voluntary
Restraint Agreement (VRA), it spelled out how many cars each Japanese
producer could ship to the United States in a single year. The VRA took

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effect in 1981 and was renewed annually through the early 1990s. A
similar agreement was in effect in Canada during the 1980s.

In 1979 Renault of France acquired a 46 per cent interest in AMC to

increase its small presence in the United States and gain access to AMC’s
line of popular Jeep vehicles. Mounting financial pressures, however,
prompted Renault to sell its AMC stake to a reinvigorated Chrysler in
1987. Chrysler quickly acquired all outstanding AMC stock and made the
company a division. In 1998 Chrysler was merged with
Germany’s Daimler-Benz AG, which then became DaimlerChrysler AG;
the joint venture ended in 2007.

In 2008 the U.S. auto industry seemed close to collapse amid

the global financial crisis. Through the Troubled Assets Relief Program
(TARP), billions in loans were made available to GM, Chrysler, and
Ford; only the last automaker did not accept the government relief.
Despite the assistance, GM filed for Chapter 11 bankruptcy protection in
June 2009. It emerged from bankruptcy reorganization the following
month and went through a period of downsizing that helped it rebound.
Chrysler also filed for bankruptcy in 2009, and shortly thereafter the
Italian automaker Fiat bought a share of the automaker, eventually
becoming a majority shareholder in 2011.

Technically, the initial decades after World War II were marked by

improvement and refinement rather than by important innovation. Diesel
engines were increasingly used on trucks and buses. Automatic
transmissions became virtually standard equipment for passenger cars,
and power brakes and power steering found widespread acceptance, as
did luxury features such as air-conditioning. In the early 1960s Chrysler
experimented with a gas turbine engine for passenger automobiles, but it

17
had too many technical problems for general use. By the early 21st
century, automakers were facing new design issues, as growing concerns
about climate change had resulted in a push for more fuel-efficient cars,
including electric vehicles.

3.4. AUTOMOBILE INDUSTRY IN INDIA

Soon after independence 1947, Government of India tried to create

an automotive component manufacturing industry in order to supplement
the automobile fraternity. From 1960 to 1980s, the Indian market was
dominated by Hindustan Motors, which gathered a large amount of share
due to its Ambassador model. However, during 1950s till 1960s, the
overall industry moved at a slow pace due to trade restrictions set on
imports. Soon after this repressive phase, demand surged but to a smaller
extent, which was mainly seen in the tractor and commercial vehicles
segment.

It was in 1980s that the two firms, Hindustan Motors and Premier,
were challenged by a new entrant, Maruti Udyog Limited. Soon after
liberalisation period, car makers that were previously not allowed to
invest in Indian market due to stringent policies arrived in the country.
Post liberalisation, the alliance between Maruti and Suzuki was the first
joint venture between an Indian company and foreign one. Slowly and
steadily, the economic reforms brought in the led to the entry of major
foreign companies like Hyundai and Honda, which expanded their bases
to the country. From 2000 to 2010, almost every major car company
expanded its presence to India by establishing manufacturing facilities
across different parts of the country.

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 As the manufacturing process during early 2000 decade gained
traction, exports of cars was quite slow in that period. Maruti Suzuki was
among the first car brands that started shipping vehicles to major
European markets. During the same decade, the Government of India
introduced mandatory emission norms in order to reduce pollution arising
out from vehicles. The updated guidelines were known as 'Bharat Stage'
came into effect in major cities as these standards were based on stringent
European norms. At present, Bharat Stage IV is implemented in 13 cities
that include Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore,
Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and
Agra while the rest of the nation is still under Bharat Stage III.

Over the years, the car market in India has evolved by leaps and
bounds as almost all major companies are present in the country. India
has now become a hub for auto makers to set up their plants for
manufacturing vehicles intended for domestic and international markets.
The three prominent regions in which the majority of Indian car industry
is concentrated lies in south, west and north. In the southern region,
Chennai is the hub for manufacturing vehicles while Mumbai and Pune
belt comes in second place. For the north, the NCR holds a fair share as
far as concentration of production facilities is concerned.

To list a few commendable feats of the Indian car industry, it

emerged as the fourth largest exporter of passenger cars behind Japan,
South Korea, and Thailand in 2009. While in 2010, India emulated its
previous year's performance to become the third largest exporter of cars
in Asia. The biggest reward came for the Indian car market in 2011 as it
became the sixth largest country in the world in terms of production.

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 The automobile industry is one of the most important drivers of
economic growth of India and one with high participation in global value
chains. The growth of this sector has been on the back of strong
government support which has helped it carve a unique path among the
manufacturing sectors of India. The automobiles produced in the country
uniquely cater to the demands of low- and middle-income groups of
population which makes this sector stand out among the other
automobile-producing countries. This chapter analyzes the roles of
government policy, infrastructure, and other enabling factors in the
expansion of the automobile and automotive component sectors of India.
In 2017, India became the world’s fourth largest automobile market, and
the demand for Indian vehicles continues to grow in the domestic and
international markets. To meet the future needs of customers (including
the electrical vehicles) and stay ahead of competition, manufacturers are
now catching up on upgradation, digitization, and automation. The
chapter also analyzes India’s national policy in light of these
developments.

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 4. COMPANY PROFILE

4.1 WEAVING HISTORY

Towards the end of the nineteenth century, Sakichi Toyoda invented

Japan's first power loom, revolutionising the country's textile industry.
January 1918 saw him create the Toyoda Spinning and Weaving
Company, and with the help of his son, Kiichiro Toyoda, Sakichi fulfilled
his lifelong dream of building an automatic loom in 1924. The
establishment of Toyoda Automatic Loom Works followed in 1926.
Kiichiro was also an innovator, and visits he made to Europe and the
USA in the 1920s introduced him to the automotive industry. With the
£100,000 that Sakichi Toyoda received for selling the patent rights of his
automatic loom, Kiichiro laid the foundations of Toyota Motor
Corporation, which was established in 1937. One of the greatest legacies
left by Kiichiro Toyoda, apart from TMC itself, is the Toyota Production
System. Kiichiro's "just- in-time" philosophy - producing only precise
quantities of already ordered items with the absolute minimum of waste -
was a key factor in the system's development. Progressively, the Toyota
Production System began to be adopted by the automotive industry across
the world.

Weaving HistoryRising from the ashes of industrial upheaval in post-

war Japan, Toyota has become the largest vehicle manufacturer in Japan
with over 40% market share. Toyota began to make inroads into foreign
markets in the late 1950s. The first Crown models arrived in the USA in
1957, and by 1965, with models such as the Corolla, Toyota began to
build its reputation and sales to rival those of domestic producers. The
first Toyota imported into Europe was via Denmark in 1963. Toyota has

21
continued to grow in Europe's sophisticated and complex market, and in
2000 the company delivered its ten millionth car to a customer in
Germany. In fact, growth is currently one of the main words in Toyota's
European vocabulary, and the company plans to reach annual sales of
800,000 in Europe by 2005. Toyota is number one for customer
satisfaction in the majority of European countries and has built an
excellent reputation across Europe for reliability and customer service.
This enviable reputation, along with the support of a network of more
than 25 distributors and 3,500 sales outlets, are important factors in
supporting Toyota's European sales growth in the coming years.

1980s

By the 1980s Toyota Corolla was one of the most popular and best
selling cars in the world

Toyota received its first Japanese Quality Control Award at the start
of the 1980s and began participating in a wide variety of motorsports.
Due to the 1973 oil crisis, consumers in the lucrative US market began
turning to making small cars with better fuel economy. American car
manufacturers had considered small economy cars to be an entry-level
product, and their small vehicles employed a low level of quality to keep
the price low. Conservative Toyota held on to rear-wheel-drive designs
for longer than most; while a clear first in overall production they were
only third in production of front-wheel-drive cars in 1983, behind Nissan
and Honda. In part due to this, Nissan's Sunny managed to squeeze by the
Corolla in numbers built that year.

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 In 1982, the Toyota Motor Company and Toyota Motor Sales merged
into one company, the Toyota Motor Corporation. Two years later,
Toyota entered into a joint venture with General Motors called the New
United Motor Manufacturing, Inc, NUMMI, operating an automobile-
manufacturing plant in Fremont, California. The factory was the old
General Motors Fremont Assembly plant that had been closed for two
years. It is currently the site of Tesla, Inc.'s assembly plant. Toyota then
started to establish new brands at the end of the 1980s, with the launch of
their luxury division Lexus in 1989.

4.2 TOYOTA IN INDIA

Toyota Motor Corporation was established in Japan in 1937 and in

the post-war era of industrial upheaval, it became the largest vehicle
manufacturer in the country. It began operating in India since the late
1990s as the entity official known as Toyota Kirloskar Motors. It has two
manufacturing plants, both in Bidadi, with a total production capacity of
upto 3.1 lakh units a year. A certain volume of units are manufactured for
export purposes too while models like the Prius, Prado and Land Cruiser
are imported as CBUs.

It’s been 20 years since Toyota introduced its maiden product in the
Indian market i.e. the Qualis. And since then, the company has expanded
multiple folds, be it in terms of its product line-up or its reach to the
Indian masses. Products like the Innova and Fortuner have become
household names as well as segment benchmarks. Toyota Kirloskar
Motors was incorporated back in 1997 and in 2019, the car manufacturer
completes its 20 years since the production began at its Bidadi plant
which is located on the outskirts of the city of Bangalore in the state of

23
Karnataka. It was in the year 2000 that Toyota launched the Qualis in
India, followed by the Corolla in 2003 and the first generation Innova, the
successor to Qualis in the year 2005.

In the year 2009 came the Fortuner, with the Etios twins making
their way to our shores in 2010. Innova and Fortuner, till date, continue to
remain the highest sellers for the brand in India, with their respective
second-generation iterations being introduced during the year 2016. In
2017, Toyota introduced its premium brand Lexus in the Indian market.
And in 2018, we saw the arrival of the Yaris C-segment sedan. Apart
from this, other important milestones in the brand’s history in India
include the establishment of TTTI (Toyota Technical Training Institute)
in 2007, the commencement of Camry production in 2013, beginning the
exports of the Etios vehicles in 2014 along with the reaching a total of
100,000 production mark during the same year. Toyota Kirloskar Motors
currently boasts of a dealership network which stands at a total of 359
units. The interesting thing to note here is that these facilities are run by
just 77 dealer principals.

In a recent visit to Toyota’s Bidadi plant, we were given a detailed

glimpse of what goes on ‘Behind the Scenes’ in the company’s day to day
working. Right from how it manages its stocks and parts to how Toyota
dealerships ensure the timely delivery of a customer’s vehicle. We were
also introduced with the various CSR initiates that the company has
undertaken in order to ‘give back’ to the community amongst which it
currently operates. One such initiative is the Toyota Technical Training
Institute which is located inside the automaker’s plant. Here, students are
given free training on the basis of a curriculum that is in sync with the
latest trends and practices followed in the Industry. To put things in
perspective, graduates of this institute, we were told, will be capable

24
enough to completely dismantle a vehicle and put it back again while
ensuring speed, accuracy and quality.

Toyota is currently also working on a number of pilot projects. One of

these is the setting up of an in-house vehicle recycling system. In here,
trained personnel can fully dismantle a car, part by part, and send the
same to government-run facilities for further recycling. In addition to this,
the car manufacturer is also doing trial runs of a remote servicing van.
Working on the Japanese Kaizen philosophy, Toyota has recently
introduced EM60 or Express Maintenance within 60 minutes for periodic
maintenance across a number of its dealerships in India.

The principle behind the same is to declutch the servicing process and
ensures the timely delivery of customer’s vehicle. Under EM60, it takes a
total of 60 minutes right from the time a customer reaches a dealership
when his/her vehicle is taken for the service which includes maintenance,
as well as washing and thereafter given back. There are a number of
different Express Maintenance packages which and can opt for. In
addition to the EM60, there is EM90 and EM120 which offer a number of
different packages for periodic maintenance to the customers.

Going forward, Toyota plans to leverage the maximum possible from

its partnership with Suzuki in India. Under this, the company is going to
launch the rebadged version of a total of four Suzuki cars in India. The
first one based on the Maruti Suzuki Baleno i.e. the Glanza premium
hatchback will make its debut on the 6th of June this year. The
introduction of the same will be followed by the debut of rebadged
iterations of the Vitara Brezza, Ertiga as well as the C-Segment sedan
Ciaz. With stringent emission and crash test regulations coming in play,
Toyota is going to upgrade its line-up to meet the same. At a time when

25
the future of diesel engine is uncertain, Toyota stands firm on its
commitment to continue selling oil-burners and at the same time modify
its strategies according to the customer demands.

Toyota cars are known for their reliability and durability even in
India. Their most popular models here include the Corolla Altis sedan,
the Innova Crysta premium MPV and the Fortuner premium SUV.
Toyota currently has a network of nearly 300 dealers across the country
for sales and service for the convenience of new and existing customers.

4.3 TOYOTA GLOBAL VISION

Toyota will lead the future mobility society, enriching lives around
the world with the safest and most responsible ways of moving people.

Through our commitment to quality, ceaseless innovation, and respect

for the planet, we strive to exceed expectations and be rewarded with a
smile.

We will meet challenging goals by engaging the talent and passion of

people who believe there is always a better way.

26
 TOYOTA MODELS AVAILABLE IN INDIA

HATCHBACKS SEDAN MPV SUV

Glanza Yaris Innova Fortuner
Liva Prius Crysta Prado

Camry Vellfire Land cruiser

27
 5. DATA ANALYSIS AND INTERPRETATION

5.1 Gender

Table 5.1 Showing the gender of respondents

Gender No of respondents Percentage (%)

Male 36 72
Female 14 28
Total 50 100

Figure 5.1 showing the gender of respondents

80%
72%
70%

60%

50%

40%

30% 28%

20%

10%

0%
male Female

Interpretation: It could be seen from the above respondents that 72% of

the respondents are males and 28% are females.

28
5.2 OCCUPATION

Table 5.2. Showing the Occupation of respondents

Particulars No of respondents Percentage (%)

Business owner 26 52

Office worker 8 16

Specialist 5 10

Other 11 22

Total 50 100

Figure 5.2. Showing the Occupation of respondents

60%
52%
50%

40%

30%
22%
20% 16%

10%
10%

0%
Business owner Office worker Specialist Other

Interpretation: 52% are business owners, 16% are office workers and
28% are specialists and other 22%

29
5.3 Period of Being a Customer in Toyota

Table 5.3. Period of being a customer

Particulars No of respondents Percentage (%)

Below 1 year 6 12
1-3 year 15 30
3-5 year 13 26
5 & more 16 32
Total 50 100

Figure 5.3. Period of being a customer

35%
32%
30%
30%
26%
25%

20%

15%
12%

10%

5%

0%
Below 1 Year 1-3 Year 3-5 Year 5 & more

Interpretation: 32% of respondents are customers for more than 5

years. 30% of respondents are customers of Toyota for 1-3 years. 26% of
respondents are customers of Toyota for 3-5 years. And 12% of
respondents are customers of Toyota for below 1 year.

30
5.4 Operating time of showroom is convenient

Table 5.4. Operating time of showroom is convenient

Particulars No of respondents Percentage (%)

Strongly agree 23 46
Agree 8 16
Neutral 10 20
Disagree 7 14
Strongly disagree 2 4
Total 50 100

Figure 5.4. Operating time of showroom is convenient

50%
46%
45%

40%

35%

30%

25%
20%
20%
16%
14%
15%

10%
4%
5%

0%
Strongly Agree Agree Neutral Disagree Strognly Disagree

Interpretation: 46% of customers strongly agree that operating time of

show room is convenient and 16% of customers agree. 20% of customers
are neutral. 14% of customers disagree and 4% of customers strongly
disagree.

31
5.5 Employees at the showroom have knowledge to answer
customer’s problem

Table 5.5. Employees at the showroom have knowledge to answer

customer’s problem

Particulars No of respondents Percentage (%)

Strongly agree 18 36
Agree 10 20
Neutral 14 28
Disagree 5 10
Strongly disagree 3 6
Total 50 100
Figure 5.5 Employees at the showroom have knowledge to answer
customer’s problem
40%
36%
35%

30% 28%

25%
20%
20%

15%
10%
10%
6%
5%

0%
Strongly agree Agree Neutral Disagree strongly Disagree

Interpretation: 36% of customers strongly agree and 20% of customers

agree that employees at the showroom have knowledge to answer
customers’ problem. 28% are neutral. 10% of customers disagree and 6%
customers strongly disagree.

32
5.6 Services and other facilities provided by Toyota

Table 5.6. Services and other facilities provided by Toyota

Particulars No of respondents Percentage (%)

Excellent 18 36
Very good 14 28
Good 10 20
Poor 7 14
Very poor 1 2
Total 50 100

Figure 5.6 Services and other facilities provided by Toyota

40%
36%
35%

30% 28%

25%
20%
20%

15% 14%

10%

5%
2%

0%
Excellent Very Good Good Poor Very Poor

Interpretation: 36% of customers agrees that its excellent maintained

and 28% of customers good service. 20% of customers in good position
and 14% are in poor and 2% are very poor.

33
5.7 Main preference towards Toyota

Table 5.7. Main preference towards Toyota

Particulars No of respondents Percentage (%)

Engine performance 23 46
Build quality 15 30
Technical 8 16
specifications
Brand name 4 8
other 0 0
Total 50 100

Figure 5.7. Main preference towards Toyota

50%
46%
45%
40%
35%
30%
30%
25%
20%
16%
15%
10% 8%

5%
0
0%
Engine Build Quality Technical Brand Name Other
Perfomance Specifications

Interpretation: regarding this statement 46% of customers gave

preference to Toyota by engine performance. 30% by build quality 16%
by technical specifications and 8% by brand name.

34
5.8 Advertisements are attractive & effective

Table 5.8. Advertisements are attractive & effective

Particulars No of respondents Percentage (%)

Strongly Agree 5 10
Agree 7 14
Neutral 15 30
Disagree 17 34
Strongly Disagree 6 12
Total 50 100

Figures 5.8. Advertisements are attractive & effective

40%

35% 34%

30%
30%

25%

20%

15% 14%
12%
10%
10%

5%

0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: regarding this statement 34% of respondents disagree

and 12% strongly disagree 30% are in neutral option. 14% agrees and
10% strongly agrees on advertisements attracts in buying cars

35
5.9 Satisfied with current vehicle

Table 5.9. Satisfied with current vehicle

Particulars No of respondents Percentage (%)

Yes 27 54
Neutral 16 32
No 7 14
Total 50 100

Figure 5.9. Satisfied with current vehicle

60%
54%

50%

40%
32%
30%

20%
14%

10%

0%
yes Neutral No

Interpretation: regarding this statement 54% are yes satisfied with

current vehicle and 32% are in neutral position 14% are not satisfied.

36
5.10 Toyota cars are useful for the Indian roads

Table 5.10. Toyota cars are useful for the Indian roads

particulars No of respondents Percentage (%)

Strongly Agree 25 50
Agree 10 20
Neutral 5 10
Disagree 7 14
Strongly Disagree 3 6
Total 50 100

Figure 5.10. Toyota cars are useful for the Indian roads

60%

50%
50%

40%

30%

20%
20%
14%
10%
10% 6%

0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: Regarding this statement 50% of customers strongly

agree and 20% agree that Toyota cars are useful for Indian road. 10% of
respondents are neutral and 14% disagrees and 6% strongly disagrees.

37
5.11 About Toyota provide good customer service

Table 5.11. About Toyota provide good customer service

Particulars No of respondents Percentage (%)

Strongly agree 28 56
Agree 11 22
Neutral 5 10
Disagree 6 12
Strongly disagree 0 0
Total 50 100

Figure 5.11. About Toyota provide good customer service

60% 56%

50%

40%

30%
22%
20%
12%
10%
10%

0
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: 56% of customers show excellent customer service 22%

tells good 10% shows its average and 12% shows that customer service of
Toyota is satisfactory.

38
5.12 Satisfaction on loan facility and discount provided by
Toyota

Table 5.12. Satisfaction on loan facility and discount provided by

Toyota

Particulars No of respondents Percentage (%)

Highly Satisfied 24 48
Satisfied 21 42
Dissatisfied 5 10
Total 50 100

Figures 5.12. Satisfaction on loan facility and discount provided by

Toyota

60%

50% 48%

42%
40%

30%

20%

10%
10%

0%
Highly satisfied Satisfied Dissatisfied

Interpretation: regarding this statement 48% of customers says yes

satisfied and 42% neutral and 10% says not satisfied.

39
5.13 Toyota Cars Pricing Is Fair

Table 5.13. Toyota Cars Pricing Is Fair

particulars No of respondents Percentage (%)

Agree 18 36
Neutral 22 44
Disagree 10 20
Total 50 100

Figures 5.13. Toyota Cars Pricing Is Fair

50%
44%
45%

40%
36%
35%

30%

25%
20%
20%

15%

10%

5%

0%
Agree Neutral Disagree

Interpretation: Regarding this statement 36% respondents shows yes

44% shows neutral and 20% of customers shows no that Toyota cars
pricing is not fair.

40
5.14 Toyota Cars Have Good Reliability

5.14. Toyota Cars Have Good Reliability

particulars No of respondents Percentage (%)

Strongly Agree 22 44
Agree 15 30
Neutral 10 20
Disagree 3 6
Strongly Disagree 0 0
Total 50 100

Figures 5.14. Toyota Cars Have Good Reliability

50%
44%
45%

40%

35%
30%
30%

25%
20%
20%

15%

10%
6%
5%
0
0%
Stongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: regarding this statement 44% customers strongly agree

30% agrees and 20% are neutral respondents. 6% disagrees the Toyota
cars have good reliability

41
5.15 Toyota offers any 24 * 7 road side assistance to you

Table 5.15. Toyota offers any 24 * 7 road side assistance to you? For
e.g. if your car is breakdown or met any accident

Particulars No of respondents Percentage (%)

Mostly 29 58
Often 5 10
Sometimes 11 22
Rarely 3 6
Never 2 4
Total 50 100

Figures 5.15. Toyota offers any 24 * 7 road side assistance to you

70%

60% 58%

50%

40%

30%
22%
20%
10%
10% 6%
4%

0%
Mostly Often Sometimes Rarely Never

Interpretation: regarding this statement 58% mostly 22% sometimes and

10% often and 6% rarely receives this road assistance 4% of respondents
not received.

42
5.16 Special Considerations Provided To Senior Citizens

Table 5.16. Special Considerations Provided To Senior Citizens

Particulars No of respondents Percentage (%)

Strongly agree 22 44
Agree 15 30
Neutral 10 20
Disagree 3 6
Strongly disagree 0 0
Total 50 100

Figures 5.16. Special Considerations Provided To Senior Citizens

50%
44%
45%

40%

35%
30%
30%

25%
20%
20%

15%

10%
6%
5%
0
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: regarding this statement 44% of customers strongly

agree 30% agree and 20% of customers neutral and 6% of customers
disagree.

43
5.17 Build Quality Is the Important Factor While Choosing the
Product

Tables 5.17. Build Quality Is the Important Factor While Choosing the
Product

Particulars No of respondents Percentage (%)

Strongly agree 26 52
Agree 17 34
Neutral 5 10
Disagree 2 4
Strongly disagree 0 0
Total 50 100

Figures 5.17. Build Quality Is the Important Factor While Choosing the
Product

60%
52%
50%

40%
34%

30%

20%

10%
10%
4%
0
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation: under this statement 52% of customers strongly agree

34% agree and 10% respondents in neutral and 4% respondents disagree
build quality is important

44
5.18 Preference to Toyota with consideration to India’s best seller.

Tables 5.18. Preference to Toyota with consideration to India’s best

seller

Particulars No of respondents Percentage (%)

Pricing 10 20
Mileage 8 16
Performance 21 42
Build quality 9 18
Other 2 4
Total 50 100

Figures 5.18. Preference to Toyota with consideration to India’s best

seller

45% 42%
40%

35%

30%

25%
20%
20% 18%
16%
15%

10%
4%
5%

0%
Pricing Mileage perfomance build Quality other

Interpretation: 42% of respondents preferred to Toyota by performance

20% of customers by pricing 16% of customers preferred by mileage
18% on build quality and 4% on other factors

45
5.19 Faced any problems which cannot been recovered by
Toyota

Table 5.19. Faced any problems which cannot been recovered by

Toyota

Particulars No of respondents Percentage (%)

Yes 12 24

Neutral 17 34

No 21 42

Total 50 100

Figures 5.19. Faced any problems which cannot been recovered by

Toyota
45% 42%
40%
34%
35%

30%
24%
25%

20%

15%

10%

5%

0%
Yes Neutral No

Interpretation: regarding this statement 24% of respondents shows yeas

and 34% are neutral and 42% of customers shows there are no problems
which cannot recovered by Toyota.

46
5.20 Give rating on overall experience with Toyota

Table 5.20. Give rating on overall experience with Toyota

Particulars No of respondents Percentage (%)

1 5 10
2 8 16
3 12 24
4 10 20
5 15 30
Total 50 100

Figures 5.20. Give rating on overall experience with Toyota

35%
30%
30%

25% 24%

20%
20%
16%
15%
10%
10%

5%

0%
1 2 3 4 5

Interpretation: regarding this statement respondents 30% of customers

gave 5* 24% of customers give 3* and 20* of customers gave 4* and
10% of respondent give 1*

47
 6. FINDINGS, SUGGESTIONS AND CONCLUSION

6.1 Findings

1. There are customers of Toyota for more than 5 years.

2. The customers strongly agree that operating time of showroom is

convenient.

3. The customer highest priority is for the safety.

4. Employees at the showroom have knowledge to answer customer’s

problem.

5. Toyota provides a special preference to senior citizens.

6. Toyota provides loan facility and other discount facilities which attract
the customer.

7. Toyota maintains its quality services.

8. Customers mainly prefer on engine and build quality of Toyota.

9. It is observed that the advertisements play a great role in attracting the

customers.

10. 50 % of customers strongly agree that Toyota cars are useful for
Indian roads.

11. Toyota informs customers about latest and upcoming offers.

12. Company has created goodwill among the customers which will help
them to recommend car to friends and relatives.

48
13. Toyota offers an excellent customer facility.

14. Customers have low satisfaction regarding the pricing policy of

Toyota.

15. Customers strongly agree about the reliability of Toyota cars.

16. Customers have moderate satisfaction regarding the problems or

complaints which can be recovered by Toyota.

17. Performance of the Toyota cars is the main preference which

considers as India’s best seller.

18. Toyota services are mainly satisfied with customers.

19. Product differentiation is one of the good highlight of Toyota.

20. In comparison to Indian best seller maruthi Suzuki Toyota made a

great penetration to Indian market in just 10 years and keeps a head to
head competition.

49
6.2 Suggestions

After conducting the study I realized that:

1. Customer care is the important factor in automobile industry.

2. Company promotion strategies can be improved by
innovative ideas or advertisements as it attracts the
customers.
3. Toyota can increase more sales, if they concentrate on pricing
policy.
4. By understanding customers demand and other factors can
improve the sale and market of Toyota.

50
6.3 Conclusion

The term Customer perception refers to customers awareness, their

impressions, about your business, product, or brand. Customer perception
is shaped by multiple variables, including direct and indirect interactions
with your offerings. It’s observed that most of the customers are satisfied
with services and similarly most of the customers are dissatisfied with
pricing of Toyota and offers provided by Toyota. This study has helped to
find out important factors which influence customer perception towards
Toyota cars. Most of the customers are satisfied with regarding the
quality, performance, mileage and driving comfort.

Customer perception helps to make improvements or understand

the demand of Toyota cars in the Indian market. Toyota has successfully
created a brand name and goodwill. And also creates a good bondage
with customers by providing services, build quality & technology.

51