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CHAPTER -1

INTRODUCTION

Garden City College Page 1


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INTRODUCTION TO THE AUTOMOBILE INDUSTRY

Industry Overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the

Automobile Industry of India has come a long way. During its early stages the auto

industry was overlooked by the then Government and the policies were also not

favorable. The liberalization policy and various tax reliefs by the Govt. of India in

recent years has made remarkable impacts on Indian Automobile Industry. Indian

auto industry, which is currently growing at the pace of around 18 % per annum,

has become a hot destination for global auto players like Volvo, General Motors

and Ford.

A well developed transportation system plays a key role in the development of an

economy, and India is no exception to it. With the growth of transportation system

the Automotive Industry of India is also growing at rapid speed, occupying an

important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of

vehicles and can be divided into 03 broad categories: Cars, two-wheelers and

heavy vehicles.



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The history of the automobile industry in India actually began about 4,000 years

ago when the first wheel was used for transportation. In the early 15th century, the

Portuguese arrived in China and the interaction of the two cultures led to a variety

of new technologies, including the creation of a wheel that turned under its own

power. By the 1600s, small steam-powered engine models were developed, but it

was another century before a full-sized engine-powered automobile was created.

The dream a carriage that moved on its own was realized only in the 18th century

when the first car rolled on the streets. Steam, petroleum gas, electricity and petrol

started to be used in these cars. The automobile, as it progressed, was a product of

many hands, of revolutionary concepts, and of simple, almost unnoticed upgrading.

India's transport network is developing at a fast pace and the automobile industry is

growing too. The automobile industry also provides employment to a large section

of the population. Thus the role of automobile industry cannot be overlooked in

Indian Economy. All kinds of vehicles are produced by the automobile industry. It

includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-

wheelers, etc. The industry can be broadly divided into the car manufacturing, two-

wheeler manufacturing and heavy vehicle-manufacturing units. 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.,



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Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd.,

to name just a few.

Indian Automobile History

In Brief

The origin of automobile is not certain. In this section of automobile history, we

will only discuss about the phases of automobile in the development and

modernisation process since the first car was shipped to India. We will start

automotive history from this point of time.

The automobile industry has changed the way people live and work. The earliest of

modern cars was manufactured in the year 1895. Shortly the first appearance of the

car followed in India. As the century turned, three cars were imported in Mumbai

(India). Within decade there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was

used for transportation in India. In the beginning of 15th century Portuguese

arrived in China and the interaction of the two cultures led to a variety of new

technologies, including the creation of a wheel that turned under its own power. By

1600s small steam-powered engine models was developed, but it took another

century before a full-sized engine-powered vehicle was created.

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The actual horseless carriage was introduced in the year 1893 by brothers Charles

and Frank Duryea. It was the first internal-combustion motor car of America, and it

was followed by Henry Ford's first experimental car that sameyear.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver

Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens

and hood, and an aluminum body. It was usually driven by chauffeurs and

emphasis was on comfort and style rather than speed.

During the 1920s, the cars exhibited design refinements such as balloon tires,

pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929

featured an 8-cylinder engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door

that suited more to the needs of families. In 1930s, vehicles were less boxy and

more streamlined than their predecessors. The 1940s saw features like automatic

transmission, sealed-beam headlights, and tubeless tires.

The year 1957 brought powerful high-performance cars such as Mercedes-Benz

300SL. It was built on compact and stylized lines, and was capable of 230 kmh

(144mph).

This was the Indian automobile history, and today modern cars are generally light,

aerodynamically shaped, and compact.



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Automobile industry in India

The automobile industry in Indiathe tenth largest in the world with an annual

production of approximately 2 million unitsis expected to become one of the

major global automotive industries in the coming years. A number of domestic

companies produce automobiles in India and the growing presence of multinational

investment, too, has led to an increase in overall growth. Following the economic

reforms of 1991 the Indian automotive industry has demonstrated sustained growth

as a result of increased competitiveness and relaxed restrictions. The monthly sales

of passenger cars in India exceed 100,000 units.

History

In 1953, the government of India and the Indianprivate sectorinitiated

manufacturing processes to help develop the automobile industry, which had

emerged by the 1940s in a nascent form. Between 1970 to the economic

liberalization of 1991, the automobile industry continued to grow at a slow pace

due to the many government restrictions. A number of Indian manufactures

appeared between 1970-1980. Japanese manufacturers entered the Indian market

ultimately leading to the establishment ofMaruti Udyog. A number of foreign

firms initiated joint ventures with Indian companies.

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Indian Automobile Industry Growth

The passenger car and motorcycle segment in Indian auto Industry is growing

by 8-9 per cent.

Current Scenario

The Indian automobile industry crossed a landmark with total vehicle

production of 10 million units.

Car sales was 8,82,094 units against 8,20,179 units in 2004-05.

The two-wheeler market grew by 13.6 per cent with 70,56,317 units against

62,09,765 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units

against 3,18,430 units in 2004-05.

Overview

Snippets

India, sourcing base for global auto majors.

Passenger car and motorcycle segment is set to grow by 8-9%.

The two-wheeler segment will clock 11.5% rise by 2007.

Commercial vehicle to grow by 5.2 per cent.

Estimated component market size is US$ 6.7 bn.

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Facts & Figures

India, in auto sector, is turning to be a sourcing base for the global auto majors.

The passenger car and the motorcycle segment is set to grow by 8-9 per cent in

coming couple of years, says the ICRA report. The industry is likely to maintain

the growth momentum picked up in 2002-03.

The ICRA's analysis points on the auto sector that the passenger car market in the

country was inching towards cars with higher displacements. The sports-utility-

vehicle (SUV) that was getting crowded every day, would witness intense

competition as many SUVs had been competitively priced, the report said.

Honda, Suzuki, General Motors and Hyundai, the global automakers had already

launched their premium SUVs in the market to broaden their portfolio and create

product excitement in the segment estimated at about 10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would clock

11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds.

Scooters sales would decelerate and mopeds would also see the same. Overseas

market would present huge opportunities for the two-wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy

commercial vehicles market would rise at 5.5 per cent and sales of light buses and

trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a

growth at 4.6 per cent.

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Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89,10,224

units as against 78,97,629 units in 2004-05.

The automotive industry crossed a landmark with total vehicle production of

10 million units.

According to the Society of Indian Automobile Manufacturers (SIAM), car

sales was 8,82,094 units against 8,20,179 units in 2004-05.

The growth of domestic passenger car market was 7.5 per cent

Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.

The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317

units against 62,09,765 units in 2004-05.

Motorcycles had the upward march, 17.1 per cent in domestic market

touching 58,15,417 units against 49,64,753 units in 2004-05.

Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428

units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units


Medium and heavy commercial vehicles managed a growth of 4.5 per cent

against 23 per cent growth in the year ended March 31, 2005.

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Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units


Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862

units in 2004-05.

Auto Component Market

The Indian auto parts industry is significantly fragmented with a large number of

players having a turnover of less than US$10 million per year. The industry

directly employs about 2,50,000 people and has an annual turnover over US$ 56.3

billion.

Estimated market size - US$ 6.7 bn

Estimated market size by 2012 - US$ 17 bn

Projected CAGR - 15%

Note: Nearly two-thirds of the auto component production is consumed directly by

Original Equipment Manufacturers (OEMs).

Market Advantage

Fast paced urbanisation to rise from 28% to 40% by 2020.

Upward migration of household income levels.

Middle class expanding by 30-40 million every year.



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Growing working population.



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INTRODUCTION TO THE SUBJECT

Consumer Behaviour

Consumer behavior is the study of people and the products that help to shape

their identity. There is diversity among consumer and the sometime there is

tremendous diversity among markets. There are traditional retailers as well as mass

merchandisers and big shopping mall

Meaning of Consumer Behaviour :-

Consumer acting a variety of way when faced with market situation that

requires purchase decision consumer behavior comprises of a number of uses and

is diverted to answer the question. What buyers buy, how much they buy, who

does buying, why buyers buy, how buyers buy and where buyers buy and so on.

Consumer behavior is all the psychological social and physical behavior of

potential costomers as they become aware to evaluate, purchase, consume and tell

others about the products and service.

-Prof. G.W. Paul



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Consumer Perception:-

Individuals act and react on the basis of their perception, not on the basis of

objective reality. For an individual, reality is a totally personal phenomenon, based

on that persons need, wants values. And personal experience. Thus to the

marketer, consumer perception are much more important than their knowledge of

objective reality.

Perception is defined as the process by which an individual selects,

organizes and interprets stimuli into a meaning full and coherer picture of the

world it can be described as how we see the world around us.

ABOUT THE CAR:-

The Mahindra Scorpio (sold in some European countries as the Goa) is a Sport

utility vehicle manufactured by Mahindra and Mahindra Limited. It is the first

SUV from the company for the global market. The Scorpio has been successfully

accepted in international markets where it has been recently launched.

The Scorpio was conceptualized and designed by the in-house integrated design

and manufacturing (IDAM) team ofM&M. The car has been the recipient of three

prestigious awards - the "Car of the Year" award from Business Standard

Motoring, the "Best Car of the Year" by BBC on Wheels and the "Best Car of the

Year" award, again, from BBC on Wheels.

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The making of Mahindra Scorpio

Prior to the mid-nineties, M & M was an automobile assembly plant. The

company used to manufacture WillysJeeps and its minor modified versions

(modifications carried out in India). In 1996, the company planned to enter the

SUV segment with an all new product which can compete globally. Since M & M

didn't have the know-how of making a new age product, they devised a whole new

concept among Indian auto companies. For their growth, the company roped in

new executives such as Dr. Pawan Goenka and Alan Durante who have worked in

this industry in western countries.

The company broke the rule that says automakers must design, engineer and

test their own vehicles spending millions of dollars in the process. The new

Mahindra Scorpio SUV had all of its major systems designed directly by suppliers

with the only input from Mahindra being design, performance specifications and

program cost. Design and engineering of systems was done by suppliers, as was

testing, validation and materials selection. Sourcing and engineering locations were

also chosen by suppliers. The parts were later to be assembled in a Mahindra plant

under the badge of Mahindra (as Mahindra is a well known brand among Indian in

the MUV segment). The company built a brand-new vehicle with virtually 100

percent supplier involvement from concept to reality for $120 million, including

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improvements to the plant. The product took 5 years to materialise from a concept

to the final product.

In April 2006, the company launched an upgraded Scorpio dubbing it the 'All-

New' Scorpio.

In June 2007, Mahindra launched apick-up version in India known as the Scorpio

Getaway.

Mahindra Scorpio Pik Up (Getaway)

The Scorpio was also used in the 2008 Academy Award film Slumdog Millionaire.

The Mahindra Scorpio is sold across the world in countries such as:

India

Italy

France

Spain

Turkey

Sri Lanka

Nepal

Bangladesh

Egypt

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Russia

Malaysia

South Africa

Brazil

Chile: The Scorpio Pick Up is the first passenger vehicle of the Mahindra

brand to be offered in Chile, and both were presented to the press the night

of July 25th, 2007.

In Western Europe, so as not to confuse the vehicle with a previous Ford vehicle of

the same name, it is called the Mahindra Goa.

Future

Soon after the success of the Scorpio, Mahindra launched an upgraded Scorpio

with plush seats and rear centre arm rest, dual tone exterior colour and various

minor changes.

At Auto Expo 2006, Delhi, Mahindra showcased their future plans on the Scorpio

model by showcasing a Hybrid Scorpio with CRDe engine and a Scorpio based on

a pick-up truck. The Hybrid, the first such vehicle developed in India was

developed by Arun Jaura, a former Ford employee. His senior, Dr. Pawan Goenka,

a former GM engineer currently heads Mahindra's automotive division and looks

after the overall Scorpio project.

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Mahindra also plans on exporting to the United States in the near future, possibly

with a diesel-electric hybrid.

M&M today, 30th Nov 2007, launched a teaser campaign for the new model of

Scorpio named m_Hawk on their official - website.

On April 14th, 2008, Mahindra revealed a concept of a diesel-electric hybrid

version of their Scorpio SUV at the 2008 SAE World Congress.

21st Sep 2008 Mahindra launched latest Scorpio with 6 speed auto transmission

gears.

Review of Mahindra Scorpio

Mahindra Scorpio has been Manufactured by Mahindra

Mahindra Scorpio has redefined the expectations of the SUV (sports utility

vehicles) buyer and has set a new benchmark for the industry to follow. Its strong

engine complements its good looks and sophisticated interior design. The

Scorpios chain-driven SZ 2600 Plus DI diesel engine pumps out an adequate

1i5bhp of power and a massive 26 kgm of torque.

The wraparound, multi-reflector, clear lens type headlamp, the aggressive grille,

curvaceous, impact-absorbing side cladding, fire resistant interiors, the stepped

roof design to allow more headroom for passengers in the rear and the minimalist,

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but user-friendly dashboard have set a benchmark for the others to follow. Scorpio

is available in 4 variants - Turbo 2.6, Turbo 2.6 DX, Sportz, Turbo 2.6 SLX.

Style and Build

The looks of the Scorpio are burly and this is a bruising thing for the

competition. Thanks to the sheer presence it has, especially when barrelling down

the road and viewed in a front three-quarter shot, the Scorpio gives the impression

that it can swat the competition. The high and finely muscled lines coupled to those

beefy Bridgestones adorning pseudo-alloy look steel wheel rims is Bollywood at

its most ingenious. But then the question to ask is, why not?

It is an ever evolving market place, where now more than at any other time

previous in our nations automotive history, many C-segment car buyers are

seeking an alternative. The wares available to these buyers have either been archaic

(Bolero and Sumo), unstylish (Quails) or pricey (Safari). It is Mahindras intention



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to compete with all of these models and come up with something that cannot be

tagged with their deficiencies.

While waistline and the roof give it some sense of proportion, Mahindra werent

bold enough to do some original thinking which was also contemporary. The front

end is decidedly Korean and if anyone has seen the Kia Retona Jeep they will

know where the inspiration for the seven vertical slat grilles comes from. The head

lights though impart a bit of character while the wraparound bumper with the

recessed spots adds a dose of style.

I wish the sides were cleaner and the metal punched in the new body shop rather

than claddings being employed to enhance the rugged appeal. Same goes for

keeping raining gutters. And while we are at it, can you fellas tell us who it was

who forgot to engineer an inner hinge for the tailgate and left it out in the open for

us to comment on? Then there is the abruptly lopped off rear end.



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So much about the gripes but there are plus points as well, like the fine stance at

standstill, the trendy ski racks which change the Scorpios profile to a sporty one,

the alloy-look wheel caps on the steel wheels, the brilliant surface finish of all the

metal body parts and great plastic stuff on the exterior. But the panel gaps, though

reduced from the days of the Bolero are omnipresent and it is in this area that

better thought in design and execution will have to be lavished by Goenka and his

team because nothing else will do.

Engine and Transmission

Even though it comes from an agricultural background, the SZ 2600 DI engine

is the strength of the Scorpio. Employing a KKK turbocharger, this turbodiesel was

developed for Mahindra by famed Austrian engine consultancy AVL from a



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previous tractor engine it had done for the Mahindra Arjun. The large displacement

plus the brilliantly matched turbo makes for torquey power delivery which is a

delight and a boon for a vehicle of its girth and weight. On the flip side are noise

and high fuel consumption.

Make no mistake about it, the greatest attribute about the new Scorpio is its

powerplant which is the way forward for the rest of the industry. And this is not

difficult to comprehend. The four-cylinder direct injection all-cast iron engine has

cubic capacity on its side to begin with: 2609cc (sporting all-square cylinder

dimensions of 9494mm). This engine was earlier used in some of the Mahindra

tractors and because the block could afford a large displacement this was chosen as

the mill to be developed by AVL of Austria which designed the powerplants

internals, gave it an 18.8:1 compression ratio, added a KKK K04 turbocharger

(operating at 2.2 bar boost pressures) and gave it robustness to take on tough

operating conditions.



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This push-rod unit, no overhead camshaft here even though some others might

have suggested so, activates overhead valves but as you will read further, this

doesnt impinge on the performance delivered. Mahindra states that the engine

develops 109bhp (at 3800rpm), making it the first Indian-built UV to have power

output in excess of the 100bhp mark. No less impressive is the 255.2Nm of torque

(made at 1800rpm). The Scorpio needed this sort of engine performance given its

bulk and weight (1895kg kerb weight) and while we would have liked a bit more,

generally the power and torque on tap will be appreciated tremendously by all

those who desire street cred from their SUV.

Mahindra has done a good job of packaging the ancillaries under the bonnet. Given

the fact that air con and power steering were to be OE from day one, Mahindra

thoughtfully adopted a very large radiator which is a step in the right direction. On

the engine front there is much to applaud Mahindra for, especially on the thought

process behind its concept and development, considering the fact that it can work

itself better with turbocharging to meet future emission legislation.

A hydraulic clutch is employed to effect the transfer of power via the 5-speed

manual gearbox which is essentially the Peugeot BA-10 unit standardised by

Mahindra some years ago. Nothing wrong in the choice of box but Mahindra

could have looked at getting the shift actuation to be less clunky and smoother



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shifting than what we have at the moment. Mahindra has worked on the BA-10

transmission for the Scorpio application but it yet needs to go that extra mile to

make it just right for those C-segment carwallahs it is trying to lure. I cant resist

adding that nothing else will do.

Performance, Handling, Fuel Economy

The Scorpio lives up to its macho image with the most powerful diesel

engine in the MUV segment. The 2.6-litre direct-injection turbocharged engine has

come in for its first major overhaul, gaining a common rail direct-injection system,

replacing the old distributor-type fuel pump, along with a host of other changes.

Power has risen by 6bhp to 115, and torque by 2.3kgm to 28.3. The aim was



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increased smoothness and refinement, better response, and of course, better

emissions control. It is more perky and responsive as well, especially at the bottom

end, the reactions both quicker and meatier.

Turbo lag has been appreciably reduced, and the power delivery is more linear

now, the torque curve smoother, without the sudden burst of acceleration when the

turbo kicked in on the old car. The Scorpio, always a good city car, is now even

easier, more drive able through traffic, making up gaps in quick time, and getting

more swiftly away from the lights. The figures speak for themselves: the CRDe is

both faster in the 0-100kph sprint, taking 16.53sec to the old Turbos 19.63sec, and

is better through the gears as well - 20-80kph in the third gear is completed in a

quick 13.69 seconds while the older one finishes a 40-100kph dash in 17.8

seconds, in the same gear.

But what the figures dont tell you is the impressive way the Scorpio delivers its

performance. It never feels stressed and the engine is pretty quiet and smooth too,

even more so than before. Noise levels are very acceptable for a diesel and all of

this adds up to make the Scorpio a very relaxing car to drive both in town and on

the highway. The gearbox hasnt been changed much, except for a taller third gear,

the ratio increased to 1.38:1 for better fuel consumption; however, the gearlevers

action has been improved, and though its still not very precise, the metallic



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clicking of the old box has gone, and the throw is slightly shorter as well. The

taller third makes life easier on the highway, where it feels perfect for overtaking,

but its perhaps a bit too tall for the city, making you drop down into second a bit

too often, despite the higher torque.

Top-end performance is better as well, the Scorpio now going from 40kph to

100kph in 17.07sec when shifted into the fourth, as compared to the old cars 23.7

sec. The CRDe consumes slightly less fuel (9.7kpl) than the older Scorpio (9.5kpl)

in the city. It, however, returned 13.4kpl on the highway as compared to its older

brothers 13.8kpl. The Scorpio also has the option of four-wheel drive, and a 2.0-

litre, 116bhp petrol engine sourced from Renault, which is extremely powerful and

tractable, and fairly refined as well. The downside is awful fuel economy, at 6.7

and 7.8kpl in the city and highway.



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The Scorpios chassis is extremely rigid and stiff and you dont get an ounce of

rattle or shake - remarkable for a Mahindra. The suspension is very supple and in

city traffic or at low speeds, the Scorpio glides over the road, the soft suspension

working noiselessly to filter out the bumps. Even on rough or bad road, at least

when driven at low speeds, the suspension copes pretty well. The steering and

other controls are pretty light, which makes the compact Scorpio easy to drive in

town. However, pile on the speed and the Scorpios chassis exposes its flaws very

quickly.

There are now larger 16-inch wheels, on slightly lower-profile tyres, which make

for marginally sharper handling. Overall though, stability is still an issue,

especially given the speeds the Scorpio is capable of. It still rolls excessively (and

alarmingly at high speeds), pitches around at the rear, and wallows too much. The

brakes have been improved with more bite and quicker response, but still lack a

linear feel, tending to grab at the last moment. They feel over-servoed as well: stab

the brakes and the rear wheels lock up immediately. This is quite a pain, and can

get scary if youre forced to brake mid-corner: over-compensate on the brakes and

youll be punished with a scream from the rear, and an already jiggly rear end

stepping happily out of line. The biggest thief of confidence, however, is the over-

light steering, which lacks feel, and is telegraph-like in its response and accuracy.



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Interiors and Comfort

The scorpio can seat 8-9 compartably depending on what type you choose, first the

legroom at all the three rows is not that great but the fabulous interiors make up for

it ,although not as polished as some phoren cars it still does a fab job. The a/c is

one of the best in its class and the dashboard and the instrument panel at the front

is absolutely best compare it to anything even qualis or tavera .the seats are

comfortable and they are fire resistant too. only problem with the interiors is that if

you want to add some extra speakers and woofers god bless you but there is very

little space left for you to do it so.

Exteriors

Well as you might have seen for yourself the scorpio is also one of the best looking

cars India has made (indigenously) (look at the competition ambassador, mar 800

hahaha),the scorpio looks best with the cladding on aither in a dual shade or in



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body colored but isn?t quiet pretty in the plastic ones .also the advantage it gives

you while driving this cars is the it scares your fellow riders,rickshawallas,

motorcyclist and even car owners. also the scorpio still can turn heads even after

two years after launch only the right person has to sit at the driver seat .



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Models

Scorpio 2.6 turbo

Basic Scorpio with a/c and power-steering as standard

Scorpio 2.6 turbo DX

Scorpio that has a/c ,power steering, plastic cladding, wheel caps as standard

Scorpio 2.6 turbo GLX

a/c , power-steering ,body colored cladding,power windows ,central locking, rear

window defroster, ski rack and wheel caps rear wiper and stereo system

Scorpio 2.6 turbo SLX

All of the above in GLX plus two toned body color( exterior as well as interiors)

and a sensor which alerts you on various things.



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If you are on the rise in your office and are looking to step up from a small carto a

sedan, we'd suggest another option: a Mahindra Scorpio. Why? Because the

Scorpio is an SUV whose price falls in the bracket of C segment cars and can seat

more people than the usual sedan. Mahindra has just launched the new Scorpio so

prices of the older Scorpios are expected to fall. If you can't afford a new one, this

would be the perfect time to sniff out a good used Scorpio.

History

Mahindra have a long history of making rugged jeeps for the rural and the semi-

urban market. Remember the Commander and the MM540? It was

in the wake of an image change that Mahindra developed the new Scorpio and

introduced it to the growing

Indian automobile market in 2002.

The Scorpio came with a 2.6-litre, non-turbo and turbo diesel engines.

It looked modern and compact and was a worthy urban vehicle a good option to

the C-segment cars.

Value

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With the recent launch of the new Scorpio we could expect a dip in the prices of

the older versions. However, certain dealers in the used car business are of the

opinion that prices of the Scorpio CRDe may not drop as much as those of the old

diesel, because the 2.6-litre CRDe unit also powers the new Scorpio and has not

been upgraded, so CRDe owners won't feel such a pressing need to upgrade. The

Scorpio moved into its second generation in 2004 when M&M introduced the

CRDe (common-rail diesel) motor. The CRDe has the same base as the earlier unit

but is equipped with common rail technology, which is modern and more refined.

Mahindra has also kept the price of the new Scorpio unaltered for some time,

which reinforces our belief that used CRDe prices won't drop much. So, you could

choose between the 2.6 turbo and the 2.6 CRDe which are available at between Rs

3.25 lakh and Rs 5.00 lakh depending on the variant. Most Scorpios would have

completed at least 40,000km as they are diesels and would have seen a lot of

tarmac on outstation errands. They also serve as tourist cabs and before you buy

one you must check the mileage for one and also keep an active ear for noises from

the engine and suspension. We recommend you to go in for privately owned

Scorpios.

Costs

Scorpios with private number plates are usually maintained well and serviced



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regularly so we could expect a maintenance-free car. Regular service costs

shouldn't exceed Rs 2500. Service in authorised Mahindra workshops includes

change in engine oil, oil filter and the diesel filter. The Scorpio is a reliable vehicle

and doesn't give up on you generally.

One aspect in the Scorpio you may like to spend money on is the leaf spring rear

suspension. Leaf springs are rugged enough to bear huge loads. Even if they give

way they can very easily be repaired by a local mechanic. There are plenty of

vendors in metros who sell and replace aftermarket leaf springs. In fact one in the

Opera House locality of Mumbai has designed leaf springs for the Scorpio which

are offered with a lifetime warranty and the replacement would cost you Rs 15,000.

These springs apparently reduce pitching at the rear and improve the handling

marginally.



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Engine

The Scorpio's 4-cylinder, eight-valve, 2.6-litre turbocharged powerpack produces

109bhp and an ample 255Nm of torque. The engine is a conventional setup as the

power plant was conceived to be reliable and easy to maintain. Post-2004 Scorpios

come equipped with a chain-driven valve actuating (cam and crankshafts connected

with the help of a belt) mechanism which is more reliable than the pre-2004 belt-

driven one. The reliability of the Scorpio's engine proves itself as 82,000km-old

examples are still going great guns and show no sign of fatigue. But ensure that

your Scorpio gets a service every 5000km as prescribed by the manufacturer; that

will keep the powerpack breathing freely.

Transmission

The Scorpio's five-speed synchromesh gearbox is fairly unrefined; although the

Scorpio feels like a car in city traffic, its gearshift will remind you that it's still an

UV. The gear lever and throws are long, the shift action vague and the slots not as

easy to find as one would like.The lower gears are well matched to the powerful

turbo-diesel unit and in town drivability is quite good. But on the highways the

taller ratios of the higher gears makes overtaking somewhat tedious and requires

downshifts to keep the engine on song.



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Suspension

The Scorpio comes with tough independent front suspension and conventional leaf

springs or paata (the local name) at the rear. There are apparently no problems with

the Scorpio's suspension. It's quite rugged, and potholed roads pose no threats. The

Scorpio was designed specifically for India and its specs, right from the engine to

its load-bearing capacity was tuned to the extravagant 'extra cheese on everything'

Indian driving conditions. The leaf springs are terrific as far as load bearing

demands are concerned, but they also ensure that rear seat occupants hit their heads

on the roof on bad roads as the suspension is softly sprung and becomes a tad too

bouncy. But due to the light steering the Scorpio is very nimble and easy to drive in

city traffic.



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Body and Chassis

The Scorpio has a body-on-chassis set up which is not as modern as a monocoque

frame, but it works well on our roads, and is the preffered setup for some seroius

four wheel drives. The Scorpios high-set, with tall springs; and this means that it

has plenty of body roll which shows up nastily during corners and at high speeds.

The chassis however is tough and can withstand the worst of roads. The build

quality of the Scorpio is also decent, and though fit and finish arent great, its a

robust, durable vehicle.

Interior

The Scorpio's interiors are modest and come in single-toned trim except for the

SLX variant which is offered with two-tone combination. Its a functional interior

with a basic dashboard and instruments and not too well-placed switches. Middle-

seat passengers will feel the lack of legroom over long drives. The seats are quite

small and lack thigh support. But M&M has done an impressive job of arresting

noise-harshness-vibrations (NVH) in the passenger compartment

Driving ImpressionsThe Scorpio will make you feel as if you're riding in a car which is set high, rather

than an SUV. It gives the impression that you are driving a car because its steering

is light and suspension is on the softer side. The Scorpio's also quite compact and

fits well in an urban environment, where it is quite easy and stress-free to drive.



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Its 2.6-litre turbo (or even the CRDe) is reliable and both the turbo and CRDe

powered versions are reasonably quick and responsive, but as speeds build up the

light steering and nervous handling are a big letdown and the Scorpio becomes

quite a handful.The soft setup of the suspension cushions you at low speeds, but at

high speeds its much too soft and road irregularities have you bouncing around

especially at the rear, which is decidedly unpleasant. For those who prefer being

chauffeured, the back seat may not be the nicest place and they are much better off

sitting in the front. The view will be better too.

Verdict

The Scorpio is a good buy in the used car market and the prices could slip downfurther once enough numbers of the new Scorpio roll out and more people start

trading in their old ones. The Scorpio has many faces: it can play the role of a car

and drive you to office, it can take you and your family to the multiplex during the

weekend and at the same time play your adventure partner for long journeys and

expeditions. Its multitasking capability makes it one of the most sought after

vehicles, and now they have also started making their way into the used car marts.

So, make hay while the sun is shining track the old Scorpio's prices closely and

you could get a good deal.



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CHAPTER-2

RESEARCH DESIGN



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Research design and methodology

2.1 Title of the study

A study on consumer behaviour and perception towards Mahindra-Scorpio .

2.2 Statement of the problem

Every person has certain expectations from the purchases he make. He wants to

buy a product or service which will render him the best value of his money

invested. Therefore every person holds some perception and has some behavioural

approach towards the product owned by him. The company must pay heed to the

perception and behaviour of the customer as it will help them to provide its

customers the value product. The company if does not take it into consideration it

will be detrimental to its interest in the long run.

2.3 Objective of the study

The prime objective of the study are to help the company track down the

approach / behavior of consumer in purchasing Mahindra-Scorpio so as to elicit

information with regard to:-

To study and analyse consumers behavior and perception towards Mahindra-

Scorpio.



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To analyse market demand for Mahindra-Scorpio in general and demand for

various brand specific.

To study the consumer needs or preference.

To studythe dealer and services renders role with regard to the product.

To find the consumer satisfaction level of the product.

Satisfaction towards the service.

To investigate the actual problem faced by the customer.

2.4 Scope of the study

The study is designed to gather information on the consumer behavior and

perception towards cars. Scope of study also extend to discover or research

dealer reaction, how the product is perceived as compared to its competitors

performance in respect of price, quality and services.

The scope of study is limited to the information provided by the dealers of

Mahindra-Scorpio in the sikar district.

2.5 Methodology of the project

Sample size



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Taken into consideration of the time factor and extent of the study in the given

territory. The sample size was taken as 50 consumers.

Source of data

Primary data:

Collected through personal interviews with the help of detailed

and structured questionnaire

Secondary data:

Company website

Company magazines

Target customers

Target customers are those who already own a Mahindra-Scorpio car

Type of sampling

The samples were selected by convenience sampling method.

2.6 Tools and techniques of data collection

Tools:



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The questionnaire forms the communication method to collect the required

information. For the present study, a structures questionnaire was formed to get the

facts, the questionnaire was administered in accordance with a prearranged order.

Techniques:

The people contacted for the surveys were threw owners of the scorpio car.

Personal interview was conducted with the person to gather the information

required.

Apart from the collecting replies to the questionnaire, discussion was also held

with the owners of the scorpio.

2.7Limitations of the study:

Consumer behaviour involves mainly the human element, getting accurate

information about the buyer is slightly difficult task as respondents may try

to hide certain information may give ambiguity or evasive answers care is

taken in the formulation of questionnaire to get as far as possible true

responses.

Another limitation is that the study is based more upon secondary data rather

than primary data.



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Study is limited to only potential areas in sikar city, due to lack of time.

The method selected is complex and time consuming.

The time for the study was also a limiting factor where the study had to be

complete in two months.

CHAPTER-3

COMPANY PROFILE



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ABOUT MAHINDRA & MAHINDRA

Few groups can identify as closely with India's destiny and industrial progress as

the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were

born around the same time, had the same aspirations and both experienced the

inevitable troughs and crests in the journey towards their goals. And both continue

to march on the path to progress and global recognition.

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United

States of America as Chairman of the India Supply Mission. He met Barney Roos,

inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of

inspiration: wouldn't a

vehicle that had proved its invincibility on the battlefields of World War II be ideal

for India's rugged terrain and its kutcha rural roads?

Swift action followed thought. The Mahindra brothers joined hands with a

distinguished gentleman called Ghulam Mohammed. And, on October 2nd, 1945,



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Mahindra & Mohammed was set up as a franchise for assembling jeeps from

Willys, USA.Two years later, India became an independent nation and Mahindra & Mohammed

changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to

Pakistan post-partition and became the first Finance Minister of Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size and stature and

evolved into a Group that occupies a premier position in almost all key sectors of

the economy. The Group's history is studded with milestones. Each one taking the

Group forward. In fact, today, its total turnover is about 6.7 billion dollars.

Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged

penetration into the global arena. Its spirit can be encapsulated in the words of the

poet Robert Frost, a favourite of India's first Prime Minister, Pandit Jawaharlal

Nehru:

"The woods are lovely, dark and deep,

But I have promises to keep,

And miles to go before I sleep,

And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more milestones to be set up

before it rests. If ever.



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The Mahindra Groups Automotive Sector is in the business of manufacturing and

marketing utility vehicles and light commercial vehicles, including three-wheelers.

It is the market leader in utility vehicles in India since inception, and currently

accounts for about half of Indias market for utility vehicles.

Although created in 1994 following an organisational restructuring, the

Automotive Sector can trace its antecedents back to 1954. The iconic jeep that led

American G.I.s to victory in World War II is the very same vehicle that drove the

Mahindra Group to success in

the Automotive Sector. Mahindra & Mahindra Limited, the flagship company of

the Group, was set up as a franchise for assembling general purpose utility vehicles

from Willys, USA.

Over the years, the Group has developed a large product portfolio catering to a

diverse customer base spanning rural and semi-urban customers, defence

requirements and luxurious urban utility vehicles. In 2002, it launched the

indigenously engineered world-class sports utility vehicle-Scorpio, which bridges

the gap between style and adventure, luxury and ruggedness, and performance and

economy.

The Group exports its products to several countries in Europe, Africa, South

America, South Asia and the Middle East.



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The Automotive Sector continues to be a leader in the utility vehicle segment with

a diverse portfolio that includes mass transport as well as new generation vehicles

like Scorpio and Bolero.

The International Operations of the Automotive Sector focuses on the international

business.

Mahindra Renault announced the launch of Logan, Indias first wide body car,

sporting a host of class-defying features at an aggressive price. The Logan

redefines its segment in terms of spaciousness as well as performance, technology

with the latest generation dci common rail engine. It has been designed for the

Indian market incorporating a contemporary styling and design.

Mahindra Navistar Automotives Ltd., a joint venture between Mahindra &

Mahindra Limited and International Truck and Engine Corporation, will

manufacture trucks and buses for India and export markets. It will also provide

component sourcing and engineering services to International Truck and Engine

Corporation.

Milestones in years 2006 -2008



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2006: Announced plans to set up a 3000 acres Special Economic Zone in Jaipur.

The Mahindra United football team won the Federation Cup trophy.

The Mahindra Group pledged to dedicate 1% PAT to social responsibilityactivities and announced Esops (Employee Social Options) to harness thetime and talents of employees for social activities.

The Farm Equipment Sector posted its first ever five digit monthlyvolumes by selling 11,051 tractors in a single month.

MBT (now Tech Mahindra) announced the acquisition of Texas-basedAxes Technologies, a global telecom solutions provider.

Mahindra & Mahindra a JV with an American auto major InternationalTruck & Engine Corp. to manufacture trucks and buses in India.

Bolero won the title of UV Number 1.

Systems and Technologies Sector acquired Plexion Technologies (India)Ltd. to enter new territories.

Mahindra & Mahindras fifth full-scale automotive plant opened inHardiwar Industrial Estate to manufacture three-wheeler.

The Scorpio Hybrid was unveiled at the Delhi Auto Expo along with 9other prototype vehicles.

Mahindra & Mahindra acquired the Stokes Group of UK, the largestautomotive forgings company in the UK.

Mahindra Finance became the first Mahindra Group Company in 23 years

to be listed publicly and was oversubscribed 27 times.

BMW entered Mahindra World City, Chennai.

Tech Mahindra was identified as a leader in the The Global Outsourcing100 by the International Association of Outsourcing Professionals(IAOP), at the 2006 Outsourcing World Summit.



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Club Mahindra marked 10 years of making a difference to the way peoplespend their vacation.

Mahindra & Mahindra reiterated its commitment to art and culture withthe establishment of the Mahindra Excellence in Theatre Awards(META).

The All New Scorpio with 43 new features was launched.

Mahindra Lifespaces announced plans to set up a Special Economic Zonespreading over 3000 acres in Pune.

The Scorpio crossed the one lakh production mark.

The global launch of the Scorpio Pik- Up range was held in South Africa,an indication of the strategic importance of Mahindra South Africasoperations in the companys global growth plans.

Mahindra & Mahindras Farm Equipment Sector remained dominant inthe domestic market, notching up sales of 78048 tractors for the previousfinancial year and crossing the Rs. 11 lakh mark in tractor sales.

The Madrid Motor Show was led by the Mahindra Goa, the MahindraPik-Up and the Bolero Pik- Up range of vehicles.

Mahindra United proved its supremacy in the football world by clinchingits maiden National Football League title.

Scorpio was chosen for the Gondwanaland Expedition a landmarkassignment for the vehicle.

Motorola and Tech Mahindra shook hands, in order to bring content to the

customer through CanvasM to enable network service providers andenterprises launch applications such as mobile wallet, m-commerce,entertainment applications and productivity applications.

Mahindra Finance and Maruti Udyog, leaders in their specific domains,joined hands in a deal for rural auto financing.



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The Government of India approved Mahindra Lifespacess proposal for aBio-technology SEZ in Mumbai.

Mahindra & Mahindra signed a MoU with the Maharashtra Governmentfor world-class new manufacturing facility in Nashik.

Tech Mahindra, Mahindra & Mahindras infotech powerhouse, braved avolatile market to enter the bourses with 12.7 million shares and wasoversubscribed 71 times.

Mahindras global vehicles the Scorpio and the Bolero marched intoKenya, as part of Mahindra & Mahindras globalisation drive.

Mahindra & Mahindra was assigned the Governance & Value Creation

Rating (GVC) Level 1 rating, the highest in the category, by CRISILfor its Corporate Governance Practice.

Renault and Mahindra signed a memorandum of understanding toestablish a long-term strategic partnership in India to create a Greenfieldsite with capacity of 500,000 units per year within 5 years, offeringinnovative products to their customers in India.

Mahindra Holidays & Resorts Ltd. launched ZEST, a unique vacationownership for short breaks.

The Mahindra Group founds a place in the formidable Forbes List of theWorlds Most Reputable companies and also in Indias Most ReputableCompanies.

Mahindra through its subsidiary agreed to acquire 67.9% stake in JecoHolding AG, one of the top five forging companies in Germany.

Mahindra announced its plan to enter the United States with a Sports

Utility Vehicle and pick-up by signing a distribution agreement withGlobal Vehicles USA Inc. for the import and distribution of Mahindravehicles, parts and accessories in September.

Mahindra entered into an agreement to acquire 66% equity stake in DGPHinoday Industries Limited (Hinoday), thus marking its entry into thesophisticated SG Iron casting space.



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The Honourable Chief Minister of Rajasthan, Smt. Vasundhara Rajeunveiled the foundation stone of Mahindra World City, Jaipur.

2007: Mahindra World City Developers Ltd (MWCDL), the pioneer in SpecialEconomic Zones (SEZ) development in India, inaugurated the redesignedstation building and passenger amenities at the Paranur railway station,adjoining Mahindra World City, New Chennai on December 14, 2007. A

public private partnership initiative between Mahindra World City andSouthern Railway, the Paranur railway station is the first to be redesignedand maintained by the corporate sector.Mahindra Holidays & Resorts India Limited (the "Company"), a leisure

hospitality provider offering quality family holidays and part of theMahindra Group of Companies, has filed its Draft Red HerringProspectus ("DRHP") with the Securities and Exchange Board of India("SEBI") for an Initial Public Offering ("IPO") of 10,719,347 equityshares of Rs 10 each for cash at a price ("Equity Shares") to be decidedthrough a 100% book-building process (the "Issue"). The Issue wouldconstitute 13.0% of the fully diluted post-issue paid-up capital of theCompany. The DRHP was filed on December 14, 2007.Mahindra & Mahindra's Farm Equipment Sector (FES) showcased India'sfirst bio-diesel tractor at the Kisan Mela in Pune on December 14, 2007.Created entirely through indigenous R&D at Mahindra Tractors, the bio-diesel B5 tractor is yet another first in the Farm Equipment Sectors longline of achievements including the first tractor manufacturer in the worldto be awarded the Japanese JQM award for qualityIn keeping with its relentless focus on customer-centricity, M&M set up acentralized call centre - One Mahindra to address queries related to anysector under the Mahindra Group on December 1, 2007. For instance, if a

caller wishes to find out the price of a Scorpio or learn more about thevarious packages offered by Club Mahindra, he/she can simply dial 1800-425- 1624 (1MAH)*, toll free, for further information.

Mahindra World City, Jaipur signed an MoU with Deutsche Bank on thesidelines of the Resurgent Rajasthan - Partnership Summit' being held inJaipur on November 30, 2007. Other companies with which it signed



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MOUs to set up campuses include Tech Mahindra and QH Talbros. TheseMOUs entails that Deutsche Bank, Tech Mahindra and QH Talbros willestablish their operations within the upcoming Mahindra World City atJaipur.

Mahindra & Mahindra launched the Scorpio V-series, a new line-up ofIndia's leading SUV, with the introduction of the Scorpio VLX on

November 30, 2007. The new VLX edition is equipped with the powerfulmHawk engine and a wide array of smart features which gives the SUVan even greater competitive edge in its segment. The Scorpio V-seriesoffers customers a dual advantage - a technologically superior, morerefined and more fuel efficient engine, coupled with innovative techfeatures which will provide passengers with greater luxury at their fingertips.

On Nov. 1, 2007, a wholly owned affiliate of Navistar InternationalCorporation (Other OTC: NAVZ), signed a joint venture agreement withMahindra & Mahindra Ltd. to produce diesel engines for medium andheavy commercial trucks and buses in India. The joint venture, to benamed Mahindra International Engines Ltd. (MIEL), will be 51 percentowned by Mahindra & Mahindra (M&M) and 49 percent owned byWarrenville, Ill.-based Navistar, North America's largest combinedcommercial truck, school bus and mid-range diesel engine producer. Thecombined investment of the two companies will be $90 million over thenext five years.

Mr. P. Chidambaram, the Honourable Finance Minister of India deliveredthe second annual Harish C. Mahindra Annual Endowed Lecture at theHarvard Business School in Massachusetts, USA on October 22, 2007. AHarvard graduate himself, Mr. Chidambaram spoke on 'Poor richcountries: The challenges of development'. Held in memory of the lateMr. Harish C. Mahindra, this lecture series is co-sponsored by theHarvard Business School and is an ideal forum for the next generation of

global leadership.

Mahindra & Mahindra ushered in its 62nd anniversary on October 2 2007with significant Corporate Social Responsibility initiatives focusing onhealth and the environment. CSR forms a vital part of the Sustainabilityinitiative at the Mahindra Group. The initiatives launched includedMahindra Hariyali, a programme which aims to add 1 million trees to



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India's green cover and inauguration of the Lifeline Express, which wasbrought to Uttarakhand for the first time.

Mahindra & Mahindra Ltd, inaugurated Impact India Foundation'sLifeline Express, world's first hospital on rails on October 2007. ThisCorporate Social Responsibility initiative was flagged off today at HaldiRoad railway station by Mr. Banshidhar Bhagat, Honourable Minister ofForests and Transport, Government of Uttarakhand, and Mr. AnjanikumarChoudhari, President, Farm Equipment Sector, Mahindra & Mahindra, onthe occasion of the company's 62nd anniversary.

Mahindra Tractors, the 3rd largest tractor manufacturer in the world,notched up yet another first in the tractor industry by delivering 1232tractors on Independence Day - August 15, 2007

Mahindra launched the Mahindra Pik-Up (double cab) in Chile in July2007. The Mahindra PikUp Double Cabin is a part of Mahindra's globalrange of vehicles and has been launched successfully in various globalmarkets. Mahindras global range in addition to Mahindra Pik Up DoubleCabin comprises Scorpio SUV and Mahindra Pik Up Single Cabin whichwould later be introduced in Chile.

The Honourable Chief Minister of Maharashtra, Mr. Vilasrao Deshmukhmarked the auspicious beginning of a new era at the ceremonial roll-outof the Logan car from the assembly line at Nashik. The Logan is being

produced at a world class Greenfield facility at Nashik, which has acapacity of 50,000 units per year.Mahindra & Mahindra Limited in the month of July rolled out its 2millionth vehicle, achieving a significant sales milestone. Over the lastdecade itself, Mahindra has sold 1 million vehicles. This can be attributedto the company's constant practice of taking customer feedback on its

products at critical stages in their lifecycles.

Logan was the highest selling sedan and Scorpio the highest selling UV inJuly 2007.

Mahindra launched the Mahindra Pik-Up (double cab) in Chile in July2007. The Mahindra PikUp Double Cabin is a part of Mahindra's globalrange of vehicles and has been launched successfully in various global



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markets. Mahindras global range in addition to Mahindra Pik Up DoubleCabin comprises Scorpio SUV and Mahindra Pik Up Single Cabin whichwould later be introduced in Chile.

Leading publication, Businessworld in its issue dated 16 July 2007 hasranked Mahindra Lifespaces Developers Ltd. among the 'Ten Biggestwealth creators' in the Rs. 100 - 500 crore range. Mahindra Lifespaceswas ranked second in the list.

Mahindra & Mahindra is ranked 37th in the B & E Power 100 while itranks 4th in the Transport Equipment Sector as per the Business &Economy magazine issue dated 28 June 2007. Net profits have been takeas the parameter for this exclusive100 most profitable companies of Indialist.

Tech Mahindra Limited launched the Tech Mahindra Foundation on June13, 2007. The foundation will address the educational needs of theunderprivileged in our society, especially children, as well as espouse thecause of women's empowerment in education with a view to realizingeach group's full potential. Tech Mahindra Ltd launches it foundationwith a current corpus of Rs.250 million. The Company and employees

both have contributed towards this corpus. Tech Mahindra is committedto contribute up-to 2% of it post tax profit every year towards the cause ofthis foundation.

Mahindra & Mahindra launched its highly anticipated utility vehicleMahindra Pik-Up in Australia in partnership with TMI Pacific. The Pik-Up from Mahindra, signals a rugged and value for money offer that themarket has shown much interest in to date. It has a 2.5l common rail turbodiesel engine which meets Euro 4 emission standards. The vehicle

produces 79kW of power and 247Nm of torque, and will be available insingle or dual cab to Australian buyers from June.

Mahindra & Mahindra has been awarded the ISO/IEC 27001:2005certificate. This completes the company's successful migration from BS7799 to ISO 27001. The company received the certificate in New Delhifrom Dr.SL Sarnot, Director General, STQC Directorate, Ministry of IT,Govt of India.

Tech Mahindra was awarded for Outstanding contribution, Achievements



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in the telecom industry and for continued support to the OSS/BSScommunity at the "Billing & OSS World 2007" conference. The awardwas announced by Telestrategies on April 25th 2007 as a part of theBilling & OSS World 2007 conference in Chicago.

Mahindra Renault, a joint venture between M&M and Renault of Francelaunched the Logan in India. The Logan debuts in India with a host ofclass-defying features at an aggressive price. The Logan will roll out fromMahindra's plant at Nashik, which has been upgraded with an installedcapacity to produce 50,000 Logan annually.

Mahindra announced its entry into the challenging North African marketby launching the All New Scorpio SUV and its single cab and double cabpick-up variants in Morocco. M&M has appointed MediAuto, which is

owned by the $2 billion GBH Group based in France, to launch itsmaiden entry into the Moroccan Market. M&M is the first major Indianauto major to foray into the country. The Morocco launch is part of aseries of international launches.

Mahindra inaugurated its state -of-the-art Blanking Line facility in Nashikbacked by German technology. The new blanking line has been set up byMahindra Intertrade Ltd. (MIL), which is a part of the Mahindra Group'sTrade & Financial Services Sector. An investment of Rs. 50 cr has beenmade so far in the plant.

Mahindra signed a deal to acquire 43.3% stake in Punjab Tractors Ltd. ata price of Rs. 360 per share. M&M Ltd. along with its subsidiaryMahindra Holdings and Finance Ltd. agreed to acquire the stake fromActis Group and the investment companies of the Burman family, subjectto the receipt of requisite approvals.

The beginning of March saw commencement of development work inMahindra World City, Jaipur, in line with its promise of cutting-edge

business facilities and comprehensive social infrastructure.

Mahindra & Mahindra launched the new Bolero at Rs. 4.58 lakhs, thesecond generation of India's most popular sports-utility vehicle. The newBolero has been styled with a wide array of interior and exterior featuresthat appeal to the younger generation of car lovers.



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Tech Mahindra and TAZZ Networks, Inc., a leading provider of policycontrol solutions that assure the quality of IP services, formed a

partnership designed to help service providers accelerate the creation ofnext-generation IP services.

Jodhpur - the largest district in Rajasthan played host to the 33rd editionof the popular Mahindra Great Escape in the nearby the Osian village - a

part of the great Thar desert.

Mahindra Defence Systems, a division of Mahindra and Mahindra hassecured an exclusive marketing and support agreement with SeabirdAviation Jordan to supply the Seabird SEEKER range of aircraft intoIndia.

Mahindra & Mahindra was ranked second in the prestigious Most TrustedCar Company in India in a study conducted by TNS.

Mahindra was ranked 22nd in Business India's annual survey of thecountry top companies - Super 100.

Mahindra was ranked 31st in Business Today's annual survey of India'smost valuable companies.

Mahindra announced its plan to set up a world class plant in Maharashtrato manufacture commercial trucks through its joint venture with US-basedtruck major International Truck and Engine Corp.

Mahindra through its subsidiary Mahindra Forgings Global Limited basedin Mauritius acquired 90.47% stake in Schoneweiss & Co. GmbH., aleading company in the forgings sector in Germany.

Mahindra announced a landmark breakthrough in Indian alternate fueltechnology by formally announcing its emphasis on bio-diesel and

unveiled the bio-diesel Scorpio and Bolero DI vehicles for 100% realworld usage trials.

Mahindra signed an agreement for the design and development of a newGeneral Aviation Aircraft between National Aerospace Laboratories,Council of Scientific and Industrial Research, Government of India inkeeping with the current thrust of public private partnership.



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Systems and Technologies Sector acquired Plexion Technologies (India)Ltd. to enter new territories.

Mahindra was ranked 22nd in Business India's annual survey of thecountry top companies - Super 100.

2008: Mahindra enters into JV with TMI Pacific in Australia

Project Ingenio is now Mahindra XYLO

Mahindra introduces FuelSmart system in Bolero and Scorpio SUVs

Tech Mahindra receives the Frost and Sullivan 2008 Growth ExcellenceAward

Anand Mahindra receives Harvard Business School Alumni AchievementAward

Mahindra launches first Sustainability Report with highest GRI Rating

Mumbai Mantra forays into Bhojpuri cinema

Mahindra First Choice Services launches first CarXSpace outlet inChennai

Mahindra ED Arun Nanda conferred the highest French award

Mahindra Holidays signs MoU with Rajasthan Government for promotionof Homestays

MHRIL honoured with Superbrand 2008 award

Mahindra Powerol launches high power range of diesel gensets

Mahindra Renault launches the Logan in Nepal

Mahindra acquires majority stake in 3rd largest tractor company in China



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Mahindra Holidays launches Mahindra Homestays

Mahindra to enter the two-wheeler industry

Mahindra signs MoU with Maharashtra Govt. to upgrade two ITIs

Mr. M. Damodaran joins the Tech Mahindra Board

Mahindra Tractors is among Indias most innovative companies

Mahindra Renault launches the Logan Edge

Tech Mahindra wins USD700 million ST Program from BT

Mahindra launches the revolutionary Scorpio V-Series in Kochi

Mahindra launches Environment Friendly Bolero Pik-Up CNG in Delhi

Mahindra Holidays Travel Portal receives IATA certification

Mahindra Tractors tops USA dealer satisfaction survey

Mahindra World City, Jaipur signs MOU with Vamani Overseas to set upa 4 acre campus

Mahindra acquires controlling stake in Engines Engineering S.r.l

Mahindra introduces international range of vehicles in Turkey

Mahindra Holidays launches ZEST signature resort in Puducherry

Mahindra honoured with the Businessworld FICCI-SEDF Corporate

Social Responsibility Award

Mahindra launches Pik Up Double Cab in Paraguay

Mahindra launches new After-Market Business Vertical

Mahindra launches Scorpio SUV in Chile



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Anand Mahindra appointed Chairman of National Safety Council

Mahindra and ICICI Venture consortium inks ageement to acquireMetalcastello S.P.A.

Mahindra signs MoU with Government of Maharashtra to invest anadditional Rs 1500 Crore

French President confers Chevallier de La Legion dhonneur on Mr ArunNanda

Mahindra Tractors launch Indias first bio-diesel tractor

Mahindra Intertrade inaugurates a world-class Electrical Steel processingplant in Vadodara

MHRIL signs MOU with WBTDC to promote tourism in West Bengal

Mahindra receives the Innovation Excellence award

Mahindra Scorpio SUV and Pik-Up range launched in Peru

Mahindra Lifespaces signs MOU to set up a SEZ in Sri Lanka

PM, Dr. M. Singh inaugurates Van Vihar Biodiversity Park & Reserve atMUWCI, Pune

Mahindra commences first CKD operations abroad; launches theMahindra Scorpio in Egypt



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BOARD OF DIRECTORS

The Board of Directors of the Company has, as its members, eminent persons from

Industry, Finance, Investment and other branches of business, who bring diverse

experience and expertise to the Board.

The Company's current Board of Directors is as follows:

1. Mr. Keshub Mahindra Chairman

2. Mr. Anand G. Mahindra Vice Chairman and Managing

Director

3. Deepak Shantilal Parekh Director

http://www.mahindra.com/OurGroup/management_bod.html#kushubmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#anandmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#deepakparekhhttp://www.mahindra.com/OurGroup/management_bod.html#kushubmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#anandmahindrahttp://www.mahindra.com/OurGroup/management_bod.html#deepakparekh


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4. Nadir Burjorji Godrej Director

5. M. M. Murugappan Director

6. Bharat Narotam Doshi Executive Director & Group Chief

Financial Officer (Group CFO)

7. Arun Kumar Nanda Executive Director & Secretary

8. Narayanan Vaghul Director

9. Dr. Ashok Sekhar Ganguly Director

10. R. K. Kulkarni Director

11. Anupam Pradip Puri Director

12. Thomas Mathew T. Nominee of LIC

GROUP MANAGEMENT BOARD

Anand G. MahindraVice Chairman & Managing Director

Bharat DoshiExecutive Director & Group Chief Financial Officer (Group CFO)

A. K. NandaExecutive Director

Mr. Anjanikumar ChoudhariPresident - Farm Equipment Sector and Member of the Group Management Board

http://www.mahindra.com/OurGroup/management_bod.html#nadirgodrejhttp://www.mahindra.com/OurGroup/management_bod.html#mmmurugappanhttp://www.mahindra.com/OurGroup/management_bod.html#bharatdoshihttp://www.mahindra.com/OurGroup/management_bod.html#arunnandahttp://www.mahindra.com/OurGroup/management_bod.html#narayanvaghulhttp://www.mahindra.com/OurGroup/management_bod.html#asgangulyhttp://www.mahindra.com/OurGroup/management_bod.html#rkkulkarnihttp://www.mahindra.com/OurGroup/management_bod.html#anupampurihttp://www.mahindra.com/OurGroup/management_bod.html#thomosmathewhttp://www.mahindra.com/OurGroup/management_bod.html#nadirgodrejhttp://www.mahindra.com/OurGroup/management_bod.html#mmmurugappanhttp://www.mahindra.com/OurGroup/management_bod.html#bharatdoshihttp://www.mahindra.com/OurGroup/management_bod.html#arunnandahttp://www.mahindra.com/OurGroup/management_bod.html#narayanvaghulhttp://www.mahindra.com/OurGroup/management_bod.html#asgangulyhttp://www.mahindra.com/OurGroup/management_bod.html#rkkulkarnihttp://www.mahindra.com/OurGroup/management_bod.html#anupampurihttp://www.mahindra.com/OurGroup/management_bod.html#thomosmathew


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Rajeev DubeyPresident (HR, After-Market & Corporate Services) Board & Member of the Group Management Board

Dr. Pawan GoenkaPresident (Automotive Sector) and Member of the Group Management Board

Hemant LuthraPresident Systech Sector and Member of the Group Management Board

Mr. Ulhas N. YargopPresident - IT Sector and Member of the Group Management Board

Structure:

Organization structure defines the authority, Responsibilities and

relationship in the organization.

Grhlot Motors Dealers in Mahindra-Scorpio


Mr. Raghu Murti

President - Trade, Retail and Logistics Sector and Member of the Group Management Board

Mr. Uday PhadkePresident - Finance, Legal and Financial Services Sector and Member of the Group Management BoardExecutive Director

Senior General

Manager

Deputy General

Manager

Sales

ManagerWorks

ManagerAdministration Personnel

Asst

Manager

Entry

ExecutivesBack Office CRE

SalesExecutive

Sales

Executive


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CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION

Table 1

DIFFERENT MODELS OF MAHINDRA SCORPIO CAR

MODEL NUMBER OF

RESPONDENTS

PERCENTAGE

Scorpio 2.6 turbo SLX 10 20%

Scorpio 2.6 turbo GLX 15 30%

Scorpio 2.6 turbo DX 25 50%



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Total 50 100%

CONCEPT: The test is designed to find out most acceptable model in

Mahindra - Scorpio

ANALYSIS: 50% of respondents are with turbo DX, and remaining 40% with

turbo GLX, remaining 20%are found with turbo SLX.

INFERENCE: Most of the respondents are enjoying drive in turbo DX and turbo

GLX they believe turbo DX and turbo GLX are much economic

than turbo SLX due, to which there is very Minute respondents

found forturbo SLX

GRAPH SHOWIG DIFFERENT MODELS OF MAHINDRA - SCPRPIO

CAR.



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0%

10%

20%

30%

40%

50%

Respondent

Turbo

SLX

Turbo

GLX

Turbo

DX

Model

TABLE- 2

RESPONDENTS WITH MAHINDRA SCORPIO TILL DATE.

NUMBER OF YEAR NUMBER OF PERCENTAGE



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RESPONDENTS

1 Year 30 60%

2 Year 10 20%

3 Year 7 14%

More than five years 3 6%

Total 50 100%

CONCEPT: The test is designed to find out how long respondents are

driving Mahindra-Scorpio.

ANALYSIS: 60% of respondents are driving Mercedes-bens from past one

year Next 20% from past 2 years. 6% correspondents were

in drive with Mahindra-Scorpio from past 5 years.

INFERENCE: Due to fast growth in technology, respondents urge to buy a

luxury car, due to which Mahindra-Scorpio respondents are

increased in a large extent from past 2 years.

GRAPH SHOWING RESPONDENTS WITH MAHINDRA SCORPIO TILL

DATE



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0

10

20

30

40

50

60

Respondents

Year

1 year

2year

3 year

more than 5y

TABLE - 3

LEVEL OF SATSIFACTION TOWARDS MAHINDRA SCORPIO.

LEVEL OF

SATISFACTION

NUMBER OF

RESPONDENTS

PERCENTAGE



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Very high 20 40%

High 15 30%

Moderate 10 20%

Average 5 10%

Total 50 100%

CONCEPT: The test is designed to find out the level of satisfaction towards

Mahindra-Scorpio

ANALYSIS: 40% of respondents, level of satisfaction are very high,

30% says high, 20% says moderate, & rest of 10% respondents

say average.

INFERENCE: according to the above analysis, we can conclude that theirs is

no respondents saying they are not satisfied. & the level of

satisfaction is not to the mark.

GRAPH SHOWING THE LEVEL OF SATSIFACTION TOWARDS

MAHINDRA - SCORPIO



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Very high(40

High(30%)

Moderate(20

Average(10%

TABLE - 4

RESPONDENTS INTREST FOR SERVICES.

CENTERS NUMBER OF

RESPONDENTS

PERCENTAGE

Authorized dealer 40 80%

Unauthorized service 10 20%



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station

Total 50 100%

CONCEPT: The test is designed to find out the where respondents prefer for

there car Serviced.

ANALYSIS: 80% of the respondents go to authorized dealer to get their car

service. There are only 20% respondents who go to unauthorized

service centers.

INFERENCE: From the above data we can conclude that every respondent

wants his car to be serviced by authorized dealer only.

GRAPH SHOWING RESPONDENTS INTEREST FOR SERVICES



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TABLE 5

RESPONDENTS PERCEPTION ABOUT CUSTOMER CARE OF

MAHINDRA SCORPIO SHOWROOM.

PERCEPTION NUMBER OF PERCENTAGE


0%

10%

20%

30%

40%50%

60%

70%

80%

Responden

ts

Authorized

dealer

Unauthorized

service

station

Center


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RESPONDENTS

Good 30 60%

Moderate 10 20%

Average 10 20%

Bad 0 0%

Total 25 100%

CONCEPT: The test is designed to find out the perception about the

customer care. In Mahindra-Scorpio showroom.

ANALYSIS: 60% of the respondents feel it good and 20% of respondents says

moderate, rest 20% of respondents says Average.

INFRENCE: According to the above table the customer-care of In Mahindra-

Scorpio is good & moderate, but not bad, which is not good sign.

GRAPH SHOWING THE RESPONDENTS PERCEPTION ABOUT

CUST