INTRODUCTION TO STUDY

Marketing is the process of planning and executing the conception, Pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing simply means Meeting needs profitably. It is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the Organization and its stakeholders. It is also about persuading customers a product meet their needs and convincing them to buy it. Creating customer awareness is to capture the attention of customers and create a place for the companys product. India's quest to become a global auto manufacturing hub has made the worlds top auto makers increasingly turn to India for their vehicle components. Riding this success and capitalizing on the spiralling demand from domestic auto companies, the Indian auto components industry is strengthening the demand and is emerging as one of fastest growing manufacturing sectors, and a globally competitive one. The entry of foreign automobile manufacturers ranging from Mercedes Benz, Ford, and General Motors to Daewoo following the government liberalizing the foreign investment limits has created a beginning of auto ancillary industry to witness huge capacity expansions and modernization initiatives in the post liberalization period. India is also becoming a global hub for R&D: GM, Daimler Chrysler, Bosch, Suzuki, Johnson Controls etc. have set up development centres in India.ACMA says that India is amongst the most competitive manufacturers of Auto Components; especially metal Intensive components like forgings, stampings, and castings. We have come to understand frugal product engineering and marketing. The mindset behind the SCORPIO (Mahindra and Mahindras successful utility vehicle)- an example of frugal engineering- is what we want to learn. We need to know how to assemble and source such products and make money out of them. Indian manufacturers know it best. China is also a low cost manufacturer. But there is something unique about Indias frugality of engineering and management. If I have to fight the battle on low cost, I am going to do it (with a base) in India. said by Carlos Ghosn of Nissan.

INTRODUCTION ABOUT INDUSTRY The Automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. Byronic automotive industry emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to carry on the momentum in the foreseeable future. Indian automobile industry has come a long way since the first car ran on the streets of Bombay in 1898. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly it employs more than 10 million people and if we add the number of people employed in the auto-component and auto ancillary industry then the number goes even higher.

The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger cars; and two-wheelers. Heavy vehicles section is dominated by Tata-Telco, Ashok Leyland, Eicher Motors, Mahindra and Mahindra, and Bajaj. The major car manufacturers in India are Hindustan Motors, Maruti Udyog, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., and Skoda India Private Ltd., Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Yamaha etc. In the initial years after independence Indian automobile industry was plagued by unfavourable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world. Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. The growth of the Indian middle class along with the growth of the economy over the past few years has attracted global auto majors to the Indian market. Moreover, India provides trained manpower at competitive costs making India a favoured global manufacturing hub. The attractiveness of the Indian markets on one hand and the stagnation of the auto sector in markets such as Europe, US and Japan on the other have resulted in shifting of new capacities and flow of capital to the Indian automobile industry.

Global auto majors such as Japanese auto majors Suzuki, Honda and Korean car giant Hyundai are increasingly banking on their Indian operations to add weight to their businesses, even as numbers stay uncertain in developed markets due to economic recession and slowdown. Moreover, according to a study released by global consultancy firm Deloitte, at least one Indian company will be among the top six carmakers that would dominate the global auto industry by 2020. According to the study, the car industry would see a massive capacity building in low-cost locations like India and China as manufacturers shift base from developed regions. Production Although the sector was hit by economic slowdown, overall production (passenger vehicles, commercial vehicles, two wheelers and three wheelers) increased from 10.85 million vehicles in 2007-08 to 11.17 million vehicles in 2008-09. Passenger vehicles increased marginally from 1.77 million to 1.83 million while two-wheelers increased from 8.02 million to 8.41 million. In recent times, India has emerged as one of the favourite investment destinations for automotive manufacturers. German car major Audi will start assembling its sports utility vehicle Audi Q5 from mid-2010. The company plans to assemble more cars locally at its Aurangabad plant instead of importing completely built units (CBUs). Ford India commenced commercial production of its compact car Figo, and diesel and petrol engines at a new factory in Chennai. The Figo will be built exclusively in India and exported to Asian countries and South Africa. Japanese major Nissan has decided to shift the entire production of its small car, Micra, from the UK to India. After production of the Micra begins here, Nissan plans to manufacture four more models in India, involving a total investment of over US$ 412.2 million. Suzuki Motorcycle India (SMIPL), a wholly-owned subsidiary of Japanese auto major Suzuki Motor Corporation, plans to double production capacity of its two-wheelers to 300,000 units by the end of the current fiscal year. The company will invest US$ 26.77 million. Volkswagen has set a target to localise production in India to about 80 per cent in 2-3 years from the current levels of almost 50 per cent as it seeks to offer cars at more competitive prices. As per an Automotive Component Manufacturers Association of India (ACMA) report, the turnover of the auto component industry was estimated at over US$ 18 billion in 2007-08, an

increase of 27.2 per cent since 2002. It is likely to touch US$ 40 billion, increasing Indias share in the global auto component market from 1 per cent to 3 per cent by 2015-16. Aided by a 7 per cent growth in the original equipment manufacturers (OEM) segment and an 8.5 per cent rise in exports and after-market segment, it is expected that auto ancillary production would grow by 8.2 per cent in 2009-10, according to a report by the Centre for Monitoring Indian Economy (CMIE). Investments in the auto component industry were estimated at US$ 7.2 billion in 2007-08 and are likely to touch US$ 20.9 billion by 2015-16. In Tamil Nadu alone, nearly US$ 1 billion have been invested by some of the major trye companies, such as Apollo tyres, ATC tyres, MRF, Dunlop and TVS srichakra. Exports of auto components grew at the rate of 35 per cent during 2002-07 and touched US$ 3.6 billion in 2007-08. It is estimated to reach around US$ 20 billion-US$ 22 billion by 2015-16. During April-January 2008-09, exports grew by 27.3 per cent to US$ 2.12 million. A majority of Indian exports are sent to Europe and North America. India will be the next destination for the Automotive Testing Expo to be hosted by UKIP Media at Hyderabad next year. The expo will now be an annual event for the country and will showcase latest technologies, including simulation, for new automotives and components. Domestic Market According to figures released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales have increased 32.28 per cent to reach 145,905 units in January 2010 from 110,300 units in the same month last year. Across all categories, total sale of vehicles increased 44.94 per cent to 1,114,157 units in January 2010, against 768,698 units in the January 2009. The Indian auto industry is likely to see a growth of 10-12 per cent in sales in 2010, according to a report by the global rating firm, Fitch. According to its report, Indian Auto Sector Outlook, competition in the country's auto sector is likely to increase due to increasing penetration of global original equipment manufacturers (OEM). The Indian auto component industry is one of India's sunrise industries with tremendous growth prospects. From a low-key supplier providing components to the domestic market alone, the industry has emerged as one of the key auto components centres in Asia and is today seen as a significant player in the global automotive supply chain. India is now a supplier of a range of high-

value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen, amongst others. Indian companies are also expanding their footprints abroad. For instance, TVS Logistics, a part of the TVS group, acquired one of the largest after market logistics companies in the UK. The company will undertake an investment in excess of US$ 26.77 million in Multipart Holding in the next 18 months in order to expand its operations in the UK and rest of Europe. Further, Coimbatore-based Elgi Rubber Company has formed a fully owned subsidiary company in Texas, US under the name of Elgi Rubber Company LLC, investing upto US$ 5 million on the venture. Destination India According to the Investment Commission of India, global automobile manufacturers see India as a manufacturing hub for auto components and are rapidly increasing the value of components they source from India due to: India's cost competitiveness in terms of labour and raw material. Its established manufacturing base.

Makers of luxury cars are increasingly looking at making India a sourcing hub for components, besides using more local components in cars for the Indian market. BMW is likely to sign the first direct sourcing deal with local vendors by the end of this year. Skoda Auto India is looking at increasing localisation for its small car Fabia to over 50 per cent over the next two years. Mercedes Benz India expects growth in sourcing from India to continue at 10 per cent. Investments Foreign Investments India enjoys a cost advantage with respect to casting and forging as manufacturing costs in India are 25 to 30 per cent lower than their western counterparts. Seeing the growing popularity of India in the automotive component sector, the Investment Commission has set a target of attracting foreign investment worth US$ 5 billion for the next seven years to increase India's share in the global auto components market from the existing 0.9 per cent to 2.5 per cent by 2015. Swiss auto clamps maker, Oeitker Group, has inaugurated the first phase of its manufacturing facility in India. It has invested US$ 12.58 million in Phase I and hopes to start work on the second phase by the end of next year.

The Tamil Nadu state cabinet recently gave clearance to the French tyre major, Michelins proposal to set up a US$ 851.5 million greenfiled project near Chennai, Tamil Nadu. A memorandum of understanding (MoU) has been signed by the US auto giant, Ford Motors, with the Tamil Nadu government to set up a unit with a capacity of 250,000 engines a year. German auto company, Volkswagen has commenced sourcing components from India for its Russian plant and is also looking at sourcing light systems, plastic-related items and metals for its European plants. Domestic Investments The market is so large and diverse that a large number of players can be absorbed to accommodate buyer needs. The sector not only has global players looking to invest and expand but leading domestic component companies are also pumping in huge sums into expanding operations. An auto park is coming up near Hyderabad with investments worth over US$ 409.30 million from around 34 automotive ancillary units. This is in addition to a US$ 245.59 million Greenfield project being set up by MLR Motors near the park. Moreover, Indian tyremakers are rolling out investment plans worth US$ 1.24 billion, due to the rising popularity of radial tyres in the commercial vehicles segment. Some other investments include: Apollo Tyres is to scale up investment at its upcoming radial tyre project at Oragadam in Tamil Nadu from US$ 106.4 million to US$ 447.04 million. Hero Motors will invest US$ 19.84 million in association with Austrian firm BRP Powertrain for manufacturing automotive transmissions in India. Indian arm of Swedish automotive component maker SKF is investing US$ 30 million in a new ball bearings manufacturing plant at Haridwar. Policy Initiatives The government has taken many initiatives to promote foreign direct investment (FDI) in the industry. Automatic approval for foreign equity investment up to 100 per cent of manufacture of automobiles and components is permitted. The automobile industry has been delicensed. There are

no restraints on import of components. The government has envisaged the Automotive Mission Plan 2016 to promote growth in the sector. It targets, Emerging as the global favourite in the area of design and manufacture of automobiles and auto components. Taking the output to US$ 145 billion, accounting for more than 10 per cent of the GDP. Offering additional employment to 25 million people by 2016. With investments around US$ 15 billion slated for the sector over the next few years, the prospects for India's auto market are bright. Even though India's auto component industry has conventionally relied on exports for its profits, the domestic market itself is ripe with rapidly growing opportunities. Industry experts are hopeful that the country will be able to offset China and other Southeast Asian countries' traditional manufacturing advantage in the coming years, facilitating the industry's achievement of its targeted market value of US$ 40 billion by 2014. Car Market in India Over the last few decades. the car market in India have been in a burgeoning stage with all types of cars flooding the market in order to meet the demands of Indian customers who are increasingly exposed to state-of-the-world automobiles and want the best when it comes to purchasing a car. It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. Small cars seem to be ruling the roost in the Indian automobile market with over 7.5 lakh small cars being sold in India in 2006-07. The main encouraging factors for the success story of the car market in India are the increase in the opportunity for new investments, the rise in the GDP rate, the growing per capita income, massive population, and high ownership capacity. The liberalization policies followed by the Indian government had been inviting foreign investors and manufacturers to participate in the car market in India. The recent trend within the new generation to get work in the software based sector has led to the rise in the income level and change in the lifestyle which has further led to the increase in the demand for different varieties of cars among them. Moreover, there are many financing companies providing easy car loans at reasonable interest rates and affordable instalments. The car Market in India is crowded with all varieties of car models like the small cars, mid-size cars, luxury cars, super luxury cars, and sports utility vehicles. Initially the most popular car model dominating the Car Market in India was the Ambassador, which however

today gave way to numerous new models like Maruti, Fiat, Hyundai, BMW, and many others. Moreover, there are many other models of cars in the pipeline, to be launched in the car market in India. Some of the leading brands dominating the car market in India at present are Hindustan Motors Limited, Reva Electric Car Co., Fiat India Private Limited., Daimler Chrysler India Private Limited, Ford India Limited, Honda Siel Cars India Limited, General Motors India, Hyundai Motors India Limited, Skoda Auto India Private Limited, and Toyota Kirloskar Motor Limited. Since the demand for foreign cars are increasing with time, big brands like Mercedes Benz, Aston Martin, Ferrari, and Rolls-Royce have long since made a foray into the Indian car market. Automobile Domestic Sales Trends Category Passenger Vehicles Commerci al Vehicles Three Wheelers Two Wheelers Grand Total 2002-03 2003-04 707,198 902,096 2004-05 1,061,572 2005-06 1,143,076 2006-07 1,379,979 2007-08 1,549,882 2008-09 1,551,880

190,682

260,114

318,430

351,041

467,765

490,494

384,122

231,529 4,812,1 26 5,941,5 35

284,078

307,862

359,920

403,910

364,781

349,719

5,364,249 6,810,537

6,209,765 7,897,629

7,052,391 8,906,428

7,872,334 10,123,98 8

7,249,278 9,654,435

7,437,670 9,723,391

TVS COMPANY PROFILE TVS & sons ltd.,established in 1911, is the parent and holding company of the TVS group. TVS & sons ltd., is the largest automobile distribution company in india with a turnover

exceeding us$950 million. It employs over 5000 persons. The company operates through three divisions; TVS, sundaram motors and madras auto service.

Product and services TVS distributers heavy duty commercial vehicles, utility vehicles and cars. It represents various leading manufactures like Ashok layland,Mahindra andmahindra ltd., Honda .The company has around 150 outlets and is also the largest distributor of spare parts in india, handling more than 80 suppliers and 35000 part lines The company has diversified into sales and service of service station equipment for Two_wheelers, cars and trucks. The range includes lifts, A/C management system, paint booths, Engine analysers and other work shop equipments. Customers includes all OEMs / Dealers. With service availability round the clock and countrywide coverage, this division is a one stop source for all service station needs. The company has also diversified into marketing & providing support for special products such as construction and material handling equipment, Man lifts, Air compressors, Bus air conditioners representing leading names from india & overseas. The company has also launched a new avenue of service providing fork lift truck with trained operators on a monthly lease basis under its unique concept called own and operate scheme. This own & operate business is being merged into TVS logistics service limited During 2003, the company has launched MY TVS, A unique concept of providing three services under single umbrella brand for cars viz., 24/7 emergency services, All car service and quality used cars. This integrated service covers expectations of car customers over the entire life span and provides comfort of TVS care, speed & value for money under one roof. In its desire to reach out to the customers directly through its own products and services, keeping the customer as the epicenter of business, TVS & sons forayed into customer centric car services business through its brand MY TVS . MY TVS is an independent, multi brand, integrated , after-market car services business with core values of relationship and trust . MY TVS IS present in the important stages of car ownership cycle and is available for buying and selling of pre-owned cars through MY TVS QUC. Providing emergency road side assistance through MY TVS-24/7ES and providing complete car body repair facility through MY TVS-CRS. The global business operation of the company includes managing joint ventures/alliances in Srilanka, Thailand, Bangladesh, UK, Europe and USA for automobile distribution/ dealership business, sourcing and supply chain related actively.

The company is the leading logistics solution provider specializing in the auto vertical and has set up state-of-art warehouses across the country for this purpose. The logistics business unit has created a special name for their excellence in the inbound logistics. It has now extended providing the supply chain solution across the globe for the Indian auto component manufactures which include a wide array of value added services. Currently the logistics business unit is the lead logistics provider for almost all the leading automobile companies in india. The company has since been hived off as a subsidiary company called TVS logistics services limited. STRATEGIC BUSINESS UNITS 1.Dealership line of business(DLOB) a. AL SBU b. E-comet SBU c. M&M SBU d. HONDA SBU e. petroleum products f. value trucks g. special products SBU 2. Parts distribution SBU parts mart 3. customer centric business a. MY TVS-24/7 Emergency services b. MY TVS all car services c. MY TVS- quality used cars 4. insurance 5. Tools & garage equipments SBU 6. International operations a. global expansion b. global sourcing

from 2002 onwards, TV sundram iyengar & sons limited embarked on a theme to reach their goal and make things happen Theme of the year 2002-2003 In kaliyuga Happiness=Wealth In business Wealth=profit Theme of the year 2003-2004 Profit=action Speed of action alone will sustain growth

Theme of the year 2004-2005 Timely action sustain growth Theme of the year 2005-2006 Timely action Perfect result Theme of the year 2006-2007 Capability the key Theme of the year 2007-2008 Shared vision

Mutual responsibility & accountability

Complimentary skills Collective effort & experience Well designed working approach Cohesion & underlining trust Theme of the year 2008-2009

ISO 9001:2000 Quality policy TVS company is committed to achieve and sustain excellence in service and retain the customers through continual improvements QUALITY OBJECTIVES Enhancing the satisfaction level of customers by meeting or exceeding their needs and expectation on quality of servicing, delivery and cost. Continuous improvement of the performance and skills of employees through active training programmes. Implementing atleast one continual improvement project per quarter. To improve the responsiveness to address customer needs. Achieving enhanced business targets.

Board of directors Sri suresh Krishna Sri k. Ramesh Sri s. Ram Sri k.Mahesh, whole time director Sri s. viji Sri venu srinivasan Sri gopal srinivasan Sri T.K. Balaji Sri R. Haresh,joint managing director Sri R.Dinesh, joint managing director

Sri srinath R rajam Sri srivats ram

Major group companies & subsidiary companies Major group companies 1. Auto (india) engineering limited 2. Axles india limited 3. Brakes india limited 4. Delphi-TVS diesel system limited 5. India motor parts and accessories limited 6. India Nippon electricals limited 7. Irizar TVS private limited 8. Royal sundaram alliance insurance co ltd 9. Sundaram brake linings limited 10. Sundaram clayton limited 11. Sundaram finance limited 12. Sundaram fastners limited 13. Sundaram home finance limited 14. TVS autoparts P limited, srilanka Major subsidiary companies 1. Lucas TVS limited 2. Lucas Indian service limited

3. Madras system & allied services limited 4. Sundaram industries limited 5. Southern roadways limited 6. Sundaram textiles limited 7. TVS automotive Europe limited UK 8. TVS CJ components limited UK 9. TVS interconnect systems limited 10. TVS logistics lberia SL , spain 11. TVS logistics services limited 12. TVS logistics slam limited, Thailand 13. TVS automotive systems limited 14. TVS AUTO SERV gmbh, germeny

Company profile

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 Hondas latest passenger car models and technologies, to the Indian customers. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant. HSCIs first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The annual capacity of this facility is 100,000 units. The companys second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility was inaugurated in September 2008. Honda Siel Cars India Ltd. launched its much-awaited small car, the Honda Brio (pronounced as Br-ee-o and means energetic and cheerful in Italian), in the Indian market. The car, offered as the perfect package for a new era, embodies the best of Hondas technologies to deliver fun and agile driving, fuel-efficiency, spaciousness & safety. The companys product range includes Honda Brio, Honda Jazz, Honda City, Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 80%, 77%, 76%, 74% and 28% respectively. The CR-V is

imported from Japan as Completely Built Units. Hondas models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency.

Environment and Safety

The Honda Group is globally recognized for its concern towards environment, safety and conservation of the society in which it operates. HSCI follows the same in India for achieving high standards in environmental safety in the various processes of car manufacturing.

Honda Assure
Reinforcing its position as a customer centric company, and to enhance ownership experience for Honda car customers, Honda Siel Cars India (HSCI) launched the 'Honda Assure', Hondas Insurance initiative. Under the Honda Assure program all Honda customers get the benefit of a more transparent, hassle-free transaction and a quick turnaround time on their insurance claims. The entire transaction is routed through an on-line central server which enables HSCI to monitor the overall operations more effectively. Some of the direct benefits to the customers include Cashless Insurance across India, instant policy issuance, and improved turnaround time.

Auto Terrace
Honda's Exchange and Pre-Owned car division Auto Terrace has been in existence ever since the interception of HSCI in India. Present in all major Honda dealers across the country, Auto Terrace presents itself as the one-stop solution for catering to the needs of customers wanting to exchange their existing cars for a New Honda car.

Exclusive Honda Care Program

Honda Care Program is designed to bring an extra measure of security & comfort to being a Honda Owner. It includes additional warranty* of 2 years or 40,000 kms after the new vehicle warranty expires and 24 hrs Roadside Assistance support* for 4 years from the standard warranty start date. *Conditions Apply

Sales Network
Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 135 authorised dealership facilities in 83 cities. HSCI dealerships are based on the 3S Facility (Sales, Service, Spares) format, offering complete range of services to its customers.

vision
Basic Principles
Respect for the individual. The Three Joys (buying, selling and creating)

Company Principle (Mission Statement)

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide 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.

Products of Honda cars

Honda Brio :
The Brio is the new entry-level hatchback from Hondas stable which is placed a segment below the premium hatchback Jazz. The Brio competes with the Chevrolet Beat and the Hyundai i10 and also gets the same 1.2-litre Jazz engine. The Brio has been designed smartly which doesnt just look funky but is also a practical hatchback.

Honda city:
The first generation Honda City was introduced in 1996, quickly responding to the growing needs for automobiles in Asian markets associated with economic growth in the region. The Honda City which is produced in seven countries and enjoyed by customers in 39 nations around the world has been given a new lease of life. A product of Honda Siel Cars India Ltd, the third-generation City is a hot favourite as the luxurious sedan offers a lot to its potential buyers new engine, new design, more grandeur, increased cabin space, and of course, top-notch performance. Honda City has been regarded a prestigious brand in India since its launch in 1998. It maintains a significant market share in its class and the latest model has taken it popularity to a much higher level. Exterior The front is definitely inspired by the likes of the European Honda Civic and the Honda FCX Clarity. The headlamps feature reflector lense instead of the more expensive projector type, which is expected at this price range. The Rear of new city looks like a mini-ish BMW 3-series with aggresive looking bumper and tail lights. The refined aero-dynamics of Honda City heighten its presence wherever it goes. The new car is longer, wider and sturdier as compared to its previous model. The height of the new City has been lowered by 15 mm, with ground clearance remaining the same. The sleeker and sturdier body shape is enticing. Interior

Everything is laid out nicely, and there is a quality feel to all the controls. The plastics are hard, but in a solid and chunky sort of way. The steering wheel is now adjustable for reach as well as height, which is a really excellent feature for this segment of the market. Another nice touch is the iPod compatible USB connector. Although the Jazz already has this, the City has a very nicely integrated system. The display section of the audio system is hinged, opening to reveal a short USB cable which will accept your iPod cable. There is a little felt-lined compartment for your iPod. Once installed, you can control your iPod via the car's audio system. The City doesn't have a CD player, so you need an iPod, or other compatible MP3 player to take your songs with you. Still, it's nicely done. Engine The brand new edition of Honda City is powered by highly developed 1.5L, 4 cylinder new generation i-VTEC engine, which assures class-leading output and excellent fuel economy. The engine churns out a power of 118 PS @ 6600 rpm and a maximum torque of 146 Nm @ 4800 rpm. The engine is E10 compliant and has Euro IV emission levels, which reduce the negative impact on environment. Ride and Handling In the automatic model of city the unique Paddle Shift gear option allows you to switch gears without using the clutch pedal. The 5 gear automatic trasmission allows you to change gear ratios automatically-freeing you from having to shift gears manually. The right paddle is for shifting up while the left paddle is for shifting down, which is the same as for an F1 machine. In D-range mode, the driver can shift up and down by using the paddles, while automatically returning to normal AT driving mode when a sensor determines the car is cruising. On the other hand, in S-range, the mode does not revert automatically to AT driving mode, which allows the driver to enjoy a manual transmission-like driving feel. Intake valve timing and valve lift settings switch to meet both low- and high-speed driving requirements. Optimized valve overlap in the low-, mid- and high-speed ranges enhances intake and exhaust efficiency for excellent performance with plenty of torque throughout all speed ranges. Safety Honda City comes fully loaded with all active and passive safety features including ABS (AntiLock Braking System) with Brake Assist, Dual SRS airbags, pre-tensioner seat belts andG-Force Control Technology body with a crush-proof survival zone. The front body structure ensures advanced pedestrian safety features. With the new City, these safety features are now a standard offering across the entire range of Honda in the Indian market. The brand new Honda City is available in three variants - 1.5E (MT), 1.5S MT and 1.5S AT. It comes in a range of spectacular colors, including Habenero Red Pearl, Alabaster Silver Metallic, Polished Metal Metallic, Bold Beige Metallic, Tafetta White and Crystal Black Pearl.

Verdict The Honda City is regarded as a prestigious brand in India and the luxurious sedan has lot to offer its potential buyers after the revamp, in the form of a new engine, new design, more grandeur, increased cabin space, and not to mention top-notch performance.

Honda jazz:
After achieving success on most of its models in India, Honda has launched its first ever hatchback called the Jazz for the Indian car market. The Jazz is a costliest premium hatchback available in the Indian market and is powered by a 1.2-litre petrol engine producing 90bhp.

Honda civic:
The Honda Civic is quite a looker. It appears futuristic inside and out and theres no doubting it. Place it in the Star Wars series and it would look completely at home. The cab-forward design has been carried on to the Civic too which partly helps it achieve an aerodynamic shape.

The Honda Civic is a low-slung car which endows it with a sporty stance that is enhanced by the perfect harmony between the front end, side and the rear of the car. The V-shaped hood and fenders merge perfectly while at the rear you get a good dose of style. The double-barreled tail pipe looks stunning and adds to the style quotient. Equating the dashboard with a cockpit will not be an exaggeration; such is its look. The moment you look at it, you go ooh la la. The digital display, the luminescent blue lighting of the instrument panel, that asymmetrical centre console, the funky steering wheel and the unconventional placing of the handbrake lever all make it look and feel extremely sporty. The quality of plastics is quite good and the interior has a built-to-last feel to it. The seats offer sufficient comfort and are good for long journeys but the low rear bench can be a bit bothersome when an occupant would like to stretch the legs. The soft rear armrest and ample legroom ensure that despite of being driver-focused, the Civic will not do too bad as a chauffeur-driven alternative. Its a Honda motor that lurks under that bonnet, so refinement and reliability are taken for granted. The 1.8-litre, 130bhp engine is rev-happy and comes equipped with the famed VTEC badge. The sprint to hundred clicks is negotiated in a shade less than 10 seconds, and that is pretty rapid by any measure. It is not as frugal as we would have expected but still manages to deliver about 11kpl overall. The body-roll is evident but it is not something that you cannot control. The long wheelbase and wide track help the Civic remain calm and stable at all speeds. The tyres offer copious amount of grip but what gives the plot away is the ride quality. Though cushy and pliant on regular Indian roads, it tends to take on a choppy note when shown a pothole. The rear tends to crash which is surely not a good thing. Also, the light steering, though a jolly nice thing to have in the city, does not induce a sense of confidence when doing highway speeds. Spectacular design and gorgeous looks makes the Civic one of the most alluring cars in the country. The interiors are extraordinary and futuristic and the quality is extremely good. This is the car to have when on the track owing to its dynamic ability and eager-to-rev engine. Ride quality over even modestly broken roads is not good (considering that this is a premium car) but it gets better as you pick up speed. Boot space too is not as spacious as the rivals.

Honda Accord:

Remember the first Accord that was introduced to India? It had demure and uninspiring looks. The Accord that came in after that one has always been quite attractive. The large triangular headlamps make the front end look daunting but the heavy-looking behind is incongruous with the bold front. Still, the Accord is meant to attract eyes of all, be it an elderly person or an infant. It is bold and brash, a party frock that you will surely flaunt at the disco. Inside, it is a different story altogether. Once you seat yourself on that armchair of a seat that you get, you notice that its a welcoming, airy atmosphere that surrounds. Centre console is quite a cool looking element; the neatly laid-out dashboard has a soft, plush feel to it and the instrument binnacle is easy to read and comprehensive. Therere a lot of cubby holes which is surely a boon when going for a long distance drive, which you will since the Accord is more of a cruiser. The seats at front are big, wide and well-bolstered but offer little lumbar support while the rear pales in comparison to the Camry and Sonata owing to its low height and lack of under-thigh support. There are two engines on offer and both are mighty impressive. The base 2.4-litre four-pot motor features variable everything and is bent towards providing good torque at lower revs to aid city driving and delivering better fuel efficiency numbers but has bucket loads of power at the top end to keep performance freaks happy. The V6 is for the purists. There are two transmissions to choose from for the 2.4-litre version: a 5-speed manual and a 5-speed automatic while the V6 has the auto tranny as standard. If offered, we will take the manual every time and not just because the manual is for enthusiasts, but because the automatic feels a tad slow to respond and does not go in sync with the cars overall sporty instinct. For an engine this mad, the fuel efficiency is acceptable. With the manual, you should get close to 8.5kpl in the city and 12kpl when doing highway speeds. The automatic will return 7kpl and 11kpl in the city and on the highway respectively. The V6 however is dismal in the fuel efficiency department. We doubt you will get more than 7kmpl on an average with it, but then again, the nature of this engine makes you rev it to the limit of mechanical tolerances, so mileage ought to get affected, right? The Accord is a car that can achieve speeds close to 200kmph with ease. The handling is really sublime and the ride quality over broken roads is soft and well-damped. The steering too is pretty quick for normal use. But as you bury the throttle and the needle reaches the mad side of the speedo, the steering starts to feel light and even vague. Not good. Accord has been, since its launch, the best D-segment sedan in India. It is also one of the well priced ones, because honestly, the cars that can hold a candle to the Accord are the Camry and Sonata Embera. The former is too costly, the latter just not as good. The Accord has almost everything going for it: supermodel looks, elegant cabin, refinement, performance, dynamic

ability, everything makes it a car to have, if youve got the money. The new, eighth-generation Accord is just out, but we think this seventh-gen model still looks far better!

Honda cr-v:
The 2007 Honda CR-V has very bold looks and is the most compact crossover SUV available. It is very evident that Honda has attempted to make it more car-like and has succeeded. What this has done is made the new CRV sportier. Tweaks to the A pillar and the centre of gravity has bolstered the performance. The grille and headlight cluster adds to the aggressive and sporty stance. The changes, though radical, are functional even from the engineering aspect. The engine choices on offer are the 2.0l and 2.4l. The 2.4l version also comes with an automatic. This rightly brings with the manual transmission which is really smooth with assured silky, short shifts. This really stands out apart from the good power output from the engine which is 143bhp for the 2.0l and 161bhp for the 2.4l. The ride quality acts as the litmus test to show the car-like dynamics it displays. The body roll observed in common crossovers is more car-like. It does not have a rugged appeal though and from inside is very silent. Overall it is a good package and value for money with the features that accompany the impressive ride quality. The contemporary styling and neat arches are head turners. A fine cruiser for long drives wherein you can expect 12kpl and around 9kpl within city limits. The 2.0l version could give you a tad bit more on the mileage front.

STATEMENT OF PROBLEM The main problem is to know the preference of the HONDA in the market. To estimate the market share of the FIAT PUNTO. To find out the future demand of the product. To find out whether advertisement is effective to create impact on consumer or not. To find out the expectation level of the consumer.

RESEARCH OBJECTIVE Primary objectives: To find the brand preference of Honda cars

Secondary objectives: I. II. III. IV. To find the brand loyalty of the customer To find the satisfaction level of customer To find the reason for preferring Honda cars To find the factors which influence the customer regarding the purchase of four wheelers

RESEARCH DESIGN

Descriptive research: Descriptive research, also known as statistical research describes data and characteristics about the population or phenomenon being studied .Descriptive research answers the questions who, what, where, and how .This research is the most commonly used and the basic reason for carrying out the descriptive research is to identify the cause of something that is happening Descriptive research includes surveys and facts- Findings enquires of different kinds. The major purpose of descriptive research is the description of the state of affairs as it exists at present under this type of research, the researcher has no control over the variables: he can only report what has happened or what is happening. SAMPLE SIZE: The Sample Size of the Study is 100. SAMPLING METHOD: Questionnaire Method: consists of set of questions present to respondents for their answer. Close ended questions: These types of questions specifically all the possible answer and the respondents are made to choose among them. Probability Sampling: In this method, every item in the universe or population has a known chance of being chosen .This implies that the researcher selects the sample objectives and then proceeds. Random Sampling: This is the process of drawing a sample from a population in such a way that each member of the population has an equal chance of being included in the sample. In this research, using Random sampling technique, respondents from different parts of the city are being interviewed and the data are recorded in a structured questionnaire

DATA COLLECTION Primary Data: It consists of original information gathered for a specific purpose. The primary data is collected through interviewing people personally and questionnaire survey. Secondary Data: It consists of detail investigation towards the product by collecting information regarding customer personal details and there opinion about the product.

RESEARCH TOOLS USED FOR DATA ANALYSIS

The collected data is scrutinized and after proper coding and tabulation, a detailed analysis is made. The following are the various statistical tools that are used for analysis in this research; ANOVA Chi-square Percentage Analysis

Cross Tabulation Analysis: It is an application for the data analysis in which both the dependent and independent variables appear in a categorical form. It is simple tabulation provides data about one or more groups categories and as such it is designed to give information concerning one or more set of inert-related questions.

Chi-square test The formula for chi-square test is as follow: (Oij Eij)2 Chi square (2) = Eij

(a) Degrees of freedom = (R-1) (C-1) (b) Oij Observed frequency (c) Eij - Expected frequency (e) R - Number of rows (d) C Number of columns

1. PERCENTAGE ANALYSIS: Percentages are used in making comparison between two or more series of data. Percentages are used to describe relationships. Since the percentage reduce everything to a common base and there by allow meaningful comparison to be made.

Number of respondents Percentage Analysis = --------------------------------------------- *100 Total number of respondents Analysis Of Variance(ANOVA) It is a procedure of testing the difference among different groups of data for homogeneity. It is a method of analyzing the variance to which a response is subject into its various components corresponding to various sources of variation.

LIMITATIONS Some of the respondents answered the questionnaire in accordance with the current visit rather than the past experience. Some respondents due to time constraint might not have given actual facts in order to quickly finish off the interview.

S.NO 1 2 3 4

PARTICULERS 25-30 30-40 40-50 Above 50 Table no-1

NO OF RESPONDENTS 27 25 26 22

PERCENTAGE 27 25 26 22

That table showing the age group of the respondents figure no-1

interpretation The above table reveals that out of 100 respondents

 27% respondents are in the category of 25-30 years of age 25% respondents are in the category of 30-40 years of age 26% respondents are in the category of 40-50 years of age 22% respondents are above 50 years of age s.no 1 2 particulers Madurai Out of Madurai respondents 94 6 Percentage 94 6

Table no-2 That table showing the location of the respondents Figure-2

interpretation

 From the above table it is clearly understood that out of 100 respondents 94% respondents are lived in Madurai s.no Particulers Respondents 1 Below 500000 28 2 500000-1000000 56 3 Above 1000000 16 6% respondents are lived in out of Madurai Percentage 28 56 16

Table no-3 table showing the income of the respondents

interpretation From the above table it is clearly understood that out of 100 respondents 28% respondents are earned below 500000Rs per anam 56% respondents are in the category of 500000-1000000 Rs 16% respondents are earned above 1000000 Rs

Table no-4 You have a own car s.no 1 2 Particulers Yes No Respondents 68 32 Percentage 68 32

you have a own car

0% no 32%

yes 68%

interpretation From the above table it is clearly understood that out of 100 respondents 68% respondents are having a own car 32% respondents are not having a car

Table no-5 That table showing the choice of the respondents s.no 1 2 Particulers Maruti Suzuki Hyundai respondents 15 7 Percentage 14.70 7.35

3 4 5 6 7 8 9

Ford Toyota Mahindra Renault Gm TATA Others

6 7 10 2 3 4 30

5.88 7.35 10.29 1.47 2.94 5.88 44.11

0%

whichcar you own 0%

maruti 15% hyundai 7% others 44% ford 6%

toyota 7% mahindra 10%

TATA gm renault 6% 3% 2%

interpretation From the above table it is clearly understood that out of 84 respondents 15% respondents are the maruti customers 7% respondents are the Hyundai customers 6% respondents are the ford customers 7% respondents are the Toyota customers 10% respondents are having Mahindra 2% respondents are having Renault 3% respondents are having gm

 6% respondents are the TATA customers 44% respondents are the other brands customers

Table no-6 That table showing reason for choose that particular brand car s.no 1 2 3 4 Particulers Cost Fuel efficiency Style and model Others Respondents 9 18 19 22 Percentage 13.23 26.47 27.94 32.35

reasonfor choose that car

0% 0% 0%0% 0% cost 13% fuel 27% 0% others 32%

style 28%

interpretation From the above table it is clearly understood that out of 68 respondents 13% respondents are preferred cars based on the cost 27% respondents are preferred cars based on the fuel efficiency 28% respondents are preferred cars based on the style 32% respondents are preferred cars based on the other components

Table no-7 Are you aware of Honda brand cars s.no 1 2 Particulars Yes No No of respondents 95 5 Percentage 95% 5%

interpretation From the above table it is clearly understood that out of 100 respondents 95% respondents are having knowledge about the Honda cars 5% respondents are not having knowledge about the Honda cars

Table no-8 Which Honda car you aware s.no 1 2 3 4 5 6 Name of cars City Civic Accord Cr-v Brio jazz No of respondents 45 19 14 10 3 4 Percentage 47.36% 20% 14.73% 10.52% 3.15% 4.21%

interpretation From the above table it is clearly understood that out of 100 respondents 47% respondents are having knowledge about Honda city 20% respondents are having knowledge about Honda civic 15% respondents are having knowledge about Honda accord 11% respondents are having knowledge about Honda cr-v 3% respondents are known about Honda brio 4% respondents are known about Honda jazz

Table no-9 How do you know about Honda car s.no 1 2 3 4 Particulars Newspaper ad Television ad Magazines Word of mouth No of respondents 9 13 20 53 Percentage 9.47% 13.68% 21.05% 55.78%

interpretation From the above table it is clearly understood that out of 95 respondents 9% respondents are known Honda through the news paper 14% respondents are known Honda through television 21% respondents are known Honda through magazines 56% respondents are known Honda through word of mouth

Table no-10 You have any Honda car s.no 1 2 particulars Yes No No of respondents 34 66 Percentage 34% 66%

Interpretation From the above table it is clearly understood that out of100 respondents 34% respondents are having Honda brand cars 66% respondents are not having Honda brand cars

Table no-11 If yes which car you have s.no 1 2 3 4 5 6 Name of the car City Jazz Civic Accord Brio Cr-v No of respondents 27 5 1 1 0 0 Percentage 79.41% 14.70% 2.94% 2.94% 0% 0%

whichhonda car you have

brio civic cr-v 0% accord 3% 0% 3% jazz 15%

city 79%

interpretation
From the above table it is clearly understood that out 34 respondents

79% respondents are having Honda city car 15% respondents are having Honda jazz car 3% respondents are having Honda accord 3% respondents are having Honda cr-v

Table no 12 Reason for preferring Honda s.no 1 2 3 4 5 Reason cost Style&model Fuel efficiency Brand name Comfort No of respondents 1 8 2 11 12 Percentage 2.94% 23.52% 5.88% 32.35% 35.29%

Interpretation From the above table it is clearly understood that out of 34 respondents 3% respondents are like cost of the Honda cars 24% respondents are like hondas style and model 6% respondents are like fuel efficiency of the Honda cars 35 and 32% respondents like comfort and brand name of the honda

Table no-13 Based on price range what impression do you carry Honda cars s.no 1 2 particulars Economical Costly No of respondents 16 84 Percentage 16% 84%

Interpretation From the above table it is clearly understood that out of 100 respondents 16% respondents are says Hondas price is economy 34% respondents are says Honda is the costly car

Table no-14 What about the fuel efficiency of Honda cars s.no 1 particulars Highly satisfied No of respondents 6 Percentage 6%

2 3 4

Satisfied Dis-satisfied Highly dis-satisfied

46 33 15

46% 33% 15%

Interpretation From the above table it is clearly understood that out of 100 respondents 6% respondents are highly satisfied with hondas fuel efficiency 46% respondents are satisfied with fuel efficiency of Honda 33% respondents are dissatisfied with hondas fuel efficiency 15% respondents are highly dissatisfied with hondas fuel efficiency

Table no -15 Which brand do you think toughest competitor of Honda s.no 1 2 3 4 5 6 7 8 9 Brand name Maruti suzuki Hyundai Mahindra TATA Ford GM Toyota Renault Others No of respondents 17 16 5 7 11 1 18 2 23 Percentage 17% 16% 5% 7% 11% 1% 18% 2% 23%

Interpretation From the above table it is clearly understood that out of 100 respondents 17% respondents are says maruti is the competitor of Honda 16% respondents are says Hyundai is the competitor of Honda 5% respondents are says Mahindra is the competitor of Honda 7% respondents are says TATA is the competitor of Honda 11% respondents are says ford is the competitor of Honda 1% respondents are says gm is the competitor Honda 18% respondents are says Toyota is the competitor of Honda 2% respondents are says Renault is the competitor of Honda

 23% respondents are says other brands are the competitor of honda

Table no-16 What do you think of advertisement of Honda s.no 1 2 3 particulars Impressive Satisfactory Un-satisfactory No of respondents 7 56 37 Percentage 7 56 37

advertisementag honda out

0% impressive 7%

un satisfactory 37%

satisfactory 56%

interpretation From the above table it is clearly understood that out of 100 respondents 7% respondents are get impressive about the advertisement of Honda 56% respondents are satisfied with the advertisement of Honda

 37% respondents are unsatisfied with the advertisement of honda

Table no-17 Do you think Honda cars are s.no 1 2 interpretation particulars Successful Un-successful No of respondents 97 3 Percentage 97% 3%

hondacarsaresuccessfull or un -successful brand

un-successful 3%0% 0%

successful 97%

From the above table it is clearly understood that out of 100 respondents 97% respondents are says Honda is the successful brand

 3% respondents are says Honda is the unsuccessful brand

Table no-18 Will you suggest it on your friend s.no 1 2 particulars Yes No No of respondents 73 27 Percentage 73 27

will you sug est it on your friend g

0% no 30%

yes 70%

interpretation From the above table it is understood that out of 100 respondents 73% respondents are ready to suggest Honda to their friends 27% respondents are not ready to suggest Honda to their friends

Table no 19 If you go for repurchase of car will you prefer Honda car s.no 1 2 particulars Yes No No of respondents 64 36 Percentage 64% 36%

Interpretation From the above table it is understood that out of 100 respondents 64% respondents are ready to repurchase a Honda car 36% respondents are not ready to repurchase a Honda car