A Comprehensive Project On
“A Study On Consumer Buying Behavior In Automobile Industry ”
A Comprehensive Project-2
Submitted in Partial Fulfillment aware of MBA Degree
Project Guide: Prof. Parnika jha
Submitted by:
Solanki Jayeshkumar
Nijanandi Premprasad
Kushagra Patel
Submitted to:
S.K. PATEL INSTITUTE OF MANAGEMENT &COMPUTER STUDIES
Gandhinagar ,India
April 2022
Introduction
• Today buying a vehicle for any Indian family unit is one of the most
significant and significant choices attempted, thus for any auto mobile
organization to advertise their items needs to handle the different
factor that will influence the purchasing conduct of the client.
• The demand for cars is expanding day by day, and it also includes the
automobile market opportunities in India. Moreover, the current
oligopoly market results in imperfect competition, where competition
is based on other aspects that price.
• The following assignment features and highlights the various factors
that influence and impact the buying decision of a consumer in the
automobile industry.
• Price
• Income of the customer
• Safety standard provided by the company for the vehicle
• Features of the car
• Warranty scheme
• Finance facility
Research Methodology
Objectives of Study:
• To study product profile of Automobile Industry
• To understand what consumer behavior is
• Factors affecting Consumers buying behavior
Information needs:
• No of players in india
• The product list
Instruments to be used:
• SWOT Analysis
Study of World Market
World’s Top 5 Automobile Industry:
1.Tesla:
• Market Cap: $ 582.93 billion
• In the year 2020, Tesla produced 509,737 automobiles, 3,022 MWh
batteries, and 205 MW solar.By 2020, the world’s leader had captured 16
percent and 23 percent of the plug-in and battery-electric markets.
2.Toyota:
• Market Cap : $ 246.61 billion
• Toyota Motor Corporation is the largest automobile company in the world.
• Toyota has joined the EV industry and plans to debut an SUV vehicle based
on the e-TNGA platform next year.
3.Volkswagen:
• Market Cap: $ 172.70 billion
• Volkswagen has 100 manufacturing plants in 27 countries. Its
production output in 2020 was 8,900,000 cars.
• Volkswagen has outperformed competitor companies while the
majority of them are recovering from the global havoc wreaked by
Covid-19.
4.Daimler:
• Market Cap: $ 103.05 billion
• In terms of output, the second-largest German automaker is the sixth-
largest in the world. It produced 2,840,402 automobiles in the
calendar year 2020.
• Mercedes-Benz is Daimler’s most well-known brand.
5.General Motors:
• Market Cap: $ 86.53 billion
• With a manufacturing output of 6,829,000 cars on December 31,
2020, General Motorsis one of the most renowned automotive
brands in the business.
Study of Indian Market
Introduction:
• India’s annual production of automobiles in FY21 was 22.65 million
vehicles, and 13 million vehicles were produced between April-
October 2021.
Market Size:
• In CY21, passenger vehicles sales increased by 26.6% to 3.08 million
units, up from 2.43 million units in CY20. The total number of
commercial cars sold was 677,119, up 34% from 505,102 in the
previous year.
• In FY21, the total passenger vehicles production reached 22.65 million
vehicles.
India’s top 5 Automobile Industry:
1.Maruti Suzuki:
• Maruti Suzuki has always been the market leader in terms of sales.
• Maruti Suzuki sold 1,21,995 cars in April 2022, recording a Year-On-
Year sales decline of 10.22 per cent.
• The company is planning to introduce a wide range of new SUVs in
the Indian market.
2.Hyundai Motors:
• Hyundai Motor India Limited (HMIL) is the largest passenger vehicle
exporter and second-biggest automobile manufacturer in India.
• The company reports a sales decline of 10 per cent in April 2022.
Hyundai sold 44,001 cars in April 2022 as against 49,002 cars in the
same month last year.
3. Tata Motors:
• Best automobile companies in India –
• Tata Motors recorded a massive YOY sales growth of 66 per cent. The
homegrown automaker sold 41,587 passenger cars in April 2022 as
against 25,095 units in the same month last year.
4. Kia Motors:
• A global network of over 3,000 distributors and dealers sells and
services these cars in 172 countries.
• Kia also sold 5,404 units of the Sonet in the month of April 2022.The
company sold 7,506 and 5,754 units of Seltos and the Carens
respectively.
5. Toyota Motors:
• Toyota Motors is India’s fourth-largest automobile manufacturer, and
its sedan models are often considered among the best.
• Toyota has also reported a massive sales growth of 57% in the month
of April 2022.
• The company sold 15,085 cars in April 2022 as against 9,600 cars in
the same month last year.
Product Profile
1.Segment of based on Size & Type:
• Small Segment Cars (Renault Kwid , Tata tiago , Maruti Alto)
• Middle Segment Cars (Luxury cars, Compact SUV )
• 7 Seater Cars (Maruti Suzuki Ertiga, Toyota Innova Crysta)
2. Segment based on Fuel:
• Petrol
• Electric cars
• Gas Based cars
• H2 fuels
• Diesel
Evolving buying behavior of the
consumers:
• Human demand is quite difficult to satisfy. It’s floating from the
contemporaneous stage to another stage.
• Consumer behavior evolves as the purchasing way or channel alters.
Individuals’ purchasing behavior will be strained according to the
modification of wants, goals and personal beliefs
• With the help of proper information of the ever floating demand of
consumers, car companies can be able to prepare the ultimate
products that match with the demand of the consumers.
Consumers Perceptions:
• Buyer’s perceptions about the car markets are reorienting as the
modes of purchasing varies. Some people fancy physical shopping
through visiting the showroom, while some other people just cogitate
that online order serves the greatest options in case of purchasing.
Moreover, this practice of perception can be analyzed in two ways.
One is the ‘extreme effort perception while purchasing’and another is
‘shallow effort perception while purchasing’.
Consumers Decision Making Process:
• The competition in the world markets is getting harder all the time.
Therefore, maintaining consumer trust towards a car company is a
paramount headache for the car manufacturers.
Data Analysis and Interpretation
1. What type of car do you prefer?
• Small car
• Sedans
• SUV
Interpretations: You can see that 38.4% of people prefer to buy
SUV( cars like Vitara Brezza , Creta , Nexon). and 28.8% of people prefer
to buy Small cars. 32.8% of people prefer to buy sedans(cars like Honda
city,MarutiDzire,Verna)
2. Why do you decide to buy branded cars?
• Affordable Price
• Safety
• After Sale Service
• Quality
• Style And Design
Interpretation: You can observe that 54.9% of people buy Branded cars
because of Safety. 38.5% buy brand cars because of Their Quality.
34.4% of People Buy cars because of Affordable prices. 23.8% of people
buy because of Sale After Service. and 25.4 % people buy cars because
of style & Design.
3.When you purchase a car, which brand do you consider more?
• Maruti Suzuki
• Hyundai Motors
• Tata Motors
• Toyota Motors
• Kia Motors
Interpretation: You Can observe that 28.5% of people Consider
Hyundai motors.22% of people consider Maruti Suzuki. 19.5% Tata
Motors.18.7% of people consider Toyota Motors. 11.4% of people
consider Kia motors
4.What is your Perception About the Indian Automobile Industry’s
Product?
• Very Good
• Good
• Average
• Bad
Interpretation: You can observe that 42.7% of People Perception About
the Automobile Industry Good. and 38.7% of People's Perception about
the Automobile Industry is Very good. 16.9% of people's perception is
Average.
5.Which of the following factors do you consider when buying a car?
a .Availability of the preferred model b. Price
c. Well Known brands name d. good Dealer
e. High technology f. High Quality
g. family and friends highly appraise a car h. Others
Interpretation: you can observe that 43.2% of factors consider buying a car is Price.
40.8% of people consider factors is High Technology. 39.2% of people consider factors
as high Quality.36% of people consider factors Availability of the preferred model.
27.2% of people consider it a well known brand name. 22.4% of people consider is
good leader.16.8% of people consider family and friends.
6.Which car do you like Most.
• Fuel cars
• Electric cars
Interpretation: You can observe that 73.8% of people like electric cars.
26.2 % of people like Fuea cars.
7.Do you feel that electric cars improve the environment ?
• Yes
• No
Interpretation: You can observe that 92.1% of people feel that Electric
cars improve the environment. 7.9% of people feel that not good for
environment .
8.Electric vehicle are less expensive to own and operate than
conventional, internal combustion engines.
• Ture
• False
Interpretation: You can Observe that 83.9% People are say that are less
expensive. and 16.1% of people are say that is expensive.
9.What do you consider the main benefits or advantages of Electric
vehicles?
• Electric vehicle have excellence acceleration
• Electric vehicle are environmentally friendly
• its new in market
• The cost to charge an electric vehicle is much less than the costs of a
petrol & diesel vehicle
• Electric vehicle and Petrol or Diesel vehicle costs are same
Interpretation: you can observe that 52% of people think that Electric Vehical are Environmentally Friendly. 41.5 % of people think that electric vehicle have excellence acceleration. 37.4% of people are think that its new in market. 17.1% of people are think that electric vehicle and petrol or Diesel vehicle cots are same.
SWOT Analysis
Strengths: Opportunities:
• Growing Industry • Efficiency
• Innovation and advancement • Changing lifestyle & customer
groups
• Growing market
• Expansion of market
• Luxury commercial vehicle
Threats:
Weaknesses:
• Intense Competition in the market
• Recalled cars
• Volatility in the fuel Prices
• The dependent growth rate
• High fixed cost and investment in
• Power of bargaining R&D
Conclusion
• The automobile industry in India is evolving and expanding through
continuous innovation and technological advancement. Consumers'
perception, ideology and behavior are also refining all the time. The
spouse, friends and other family members take part in persuading a
consumer's ultimate decisions about the car purchase. The price and
the features of the car mostly influence the purchase decision of the
buyers. Thus, consumers need to sort out the balancing arrangement
between the price and features of the coveted cars.
Thank you
