Project on Automobile Industry

8/7/2019 Project on Automobile Industry

1/69


2/69


3/69

the next 8-10 years. The government is also giving some concessions to the auto industry.

To realize the above growth predictions, it is important to overcome various challenges the

industry is facing currently. Two of the foremost challenges are the spiraling cost of fuel

and the paucity of highly skilled manpower.

Rising oil price

International price of crude oil has crossed US$ 120 per barrel and is rising at an alarming

rate. The forecast of market experts that the crude oil price will plateau around US$ 100 per

barrel has been proved wrong. The skyrocketing crude oil price rise will affect theeconomic growth of most of the nations of the world including India. The prospects of India

and China of becoming economic superpower will be seriously affected. Also, the rise in oil

prices will impact the growth of global automotive industry. Unless the use of alternative

fuels increases, it is very unlikely that the situation will change for the better.

This necessarily means that more and more investments should be directed towards R&D,

establishing mechanisms to translate R&D results into products and their efficient

manufacturing. This will also require radical redesigning of engines.

Human resources

The second major challenge is the creation of highly skilled human resource required for

the auto industry. Auto industry, like many other industries is facing severe shortage of

skilled technical as well as managerial manpower. This challenge becomes all the more

daunting because faults lie at a more fundamental level of training infrastructure and the

social perception.

Page | 3
http://mbanetbook.blogspot.com/


4/69

Summary

The growth of auto industry in India will be contingent not just on domestic demand, but

also equally on exports. Therefore, the present projections will become a reality if thrust is

given to original research that will yield breakthrough results. These results help in

addressing the current global concerns such as environment, fuel efficiency, need for

alternate and renewable fuels and materials etc. This can happen only through a consortium

approach where various auto companies and academic institutions work together as in the

case of IT hardware industry. The consortium approach should be extended to address the

trained human resource shortage as well. The government should act as a facilitator by

bringing about necessary changes in the current laws that will encourage private

participation. Finally, there should be mechanisms in place that will ensure that there is a

balance in the pool of human resources comprising research scientists, managers, engineers,

designers, technicians, and skilled and semiskilled workers.

HISTORY

Honda Motor Company, Ltd. is a Japanese multinational corporation primarily known as

a manufacturer of automobiles and motorcycles. Honda is the world's largest manufacturer

of motorcycles as well as the world's largest manufacturer of internal combustion engines

measured by volume. Honda surpassed Nissan in 2001 to become the second-largest

Japanese automobile manufacturer.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand

in North America with the debut of Acura in 1986. Aside from their core automobile and

motorcycle businesses, Honda also manufactures garden equipment, marine engines,

personal watercraft and power generators, amongst others. Since 1986, Honda has been

Page | 4


5/69

involved with artificial intelligence/robotics research and released their ASIMO robot in

2000. They have also ventured into aerospace with the establishment of GE Honda Aero

Engines in 2004 and the Honda HA-420 Honda Jet, scheduled to be released in 2011.

From a young age, Soichiro Honda had an interest in automobiles. He worked as a

mechanic at a Japanese tuning shop, Art Shokai, where he tuned cars and entered them in

races. A self-taught engineer, he later worked on a piston design which he hoped to sell to

Toyota. The first drafts of his design were rejected, and Soichiro worked painstakingly to

perfect the design, even going back to school and pawning his wife's jewelry for collateral.

Eventually, he won a contract with Toyota and built a factory to construct pistons for them,which was destroyed in an earthquake. Due to a gas shortage during World War II, Honda

was unable to use his car, and his novel idea of attaching a small engine to his bicycle

attracted much curiosity. He then established the Honda Technical Research Institute in

Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling upon

bicycle shop owners across Japan to take part in revitalizing a nation torn apart by war,

Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This

marked the beginning of Honda Motor Company, who would grow a short time later to be

the world's largest manufacturer of motorcycles by 1963.

The first production automobile from Honda was the T360 mini pick-up truck.Powered by a

small 356 cc straight-4 gasoline engine, it was classified under the cheaper Kei car tax

bracket.

The first production car from Honda was the S500 sports car.Its chain driven rear wheels

points to Honda's motorcycle origins.

Page | 5


6/69

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock

Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya,

Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. American Honda Motor Co. is

based in Torrance, California. Honda Canada Inc. is headquartered in the Scarborough

district of Toronto,

Ontario, and is building new corporate headquarters in Markham, Ontario, scheduled to

relocate in 2008; their manufacturing division, Honda of Canada Manufacturing, is based in

Alliston, Ontario. Honda has also created joint ventures around the world, such as Honda

Siel Cars and Hero Honda Motorcycles in India , Guangzhou Honda and Dongfeng Hondain China, and Honda Atlas in Pakistan.

Honda is the 6th largest automobile manufacturer in the world as well as the largest engine-

maker in the world, producing more than 14 million internal combustion engines each year.

As of August 2008, Honda surpassed Chrysler as the 4th largest automobile manufacturer in

the United States. Currently, Honda is the second largest manufacturer in Japan behind

Toyota and ahead of Nissan.

Honda, Nissan, and Toyota, three of the strongest vehicle companies in the world, were still

not immune to the global financial crisis of 2008, as these companies reduced their

profitability forecasts. The economic crisis has been spreading to other important players in

the vehicle related industries as well.

Honda spends about 5% of its revenues into R&D.

Page | 6


7/69

PHILOSOPHY

HMSI operates on a principle, which is followed worldwide by all Honda companies.

Maintaining a global viewpoint, we are dedicated to supplying products of the highest

quality, yet at a reasonable price for worldwide customer satisfaction. Honda's

philosophy is based on the company's guiding principle and advocates 2 fundamental

beliefs:

Respect for the Individual

Honda recognizes and respects individual differences. The respect for individual

stems from the following three points:

Initiative

Equality

Trust

It is the contribution from each individual in the company that has made our

company what it is today and that, which will take us into the future.

The Three Joys

In line with Honda's Philosophy, HMSI conducts all its daily activities in pursuit of the following joys:

The joy of manufacturing high quality products.

The joy of selling high quality products.

The joy of buying high quality products.

Page | 7


8/69

The Joy of Buying The Joy of Selling The Joy of Manufacturing

Page | 8


9/69

OBJECTIVES

"Maintaining an international viewpoint, we are dedicated to supplying products of

the highest efficiency, yet at reasonable prices, for worldwide customer

satisfaction." (1956)

To make good adverts, and great motorcycles... and the occasional good car...

and keep the shareholders happy...

To minimize the defect.

To Minimize the Accidents.

To see the consumer complaints will be zero.

To keep the environment pollution free.

Maximize capital utilization.

Increase production capacity.

Increase plant availability.

Minimize indirect and direct loses

Efficient use of resources.

Effective use of all employees.

Training for all.

Ensure empowerment and improvement of department.

Establish the sustain document quality management system.

Compliance with relevant legislation and regulation

Page | 9


10/69

ORGANIZATION STRUCTURE (as of April 1,2006 )

Page | 10


11/69

FINANCIAL HIGHLIGHTS

Honda Motor Co., Ltd., and Subsidiaries (Years ended March 31)

Page | 11


12/69


13/69

Activa Best automobile brand of India

2007 (Planman Media)

2006 Shine TNS Voice of The customer

Award 2006 (TNS)

2005 Unicorn Motorcycle of the Year 2005

(B.S.Motoring&

Autocar)

Unicorn TNS Voice of the Customer

Award (TNS)

Eterno Scooter of the Year 2005(B.S.Motoring

& Overdrive)

2004 Eterno Best Scooter of the Year by B. S.

Motoring & ICICI Bank,

Overdrive Magazine

2003 Dio Scooter of the Year 2003

(BBC)

2002 Activa Scooter of the Year by Overdrive

Magazine

2001 Activa Scooter of the Year 2001 (BS

Motoring)

PRODUCT PROFILE

Page | 13


14/69

There are various product of Honda motors which are as follow as:-

UNICORN BE A WING RIDER

Unicorn is powered by a newly developed Honda 4-stroke, 150cc engine and incorporates

many cutting-edge technologies developed by Hondas global R&D team. It sets new

benchmark in the upper majority motorcycle segment in India with its swift acceleration,

superior mileage, international styling, riding comfort and convenience.

Unicorn is engineered and styled for the taste of the younger generation. With the 4-stroke,

150cc engine delivering a whooping 13.3 bhp, Unicorn is the fastest motorcycle in India

racing from 0 to 60 kms per hour in a mere 5 seconds. It has a distinctive sporty and machodesign with a racy front face, masculine fuel tank with knee grip and a sleek rear cowl.

Unicorn offers perfect balance of pickup and mileage, delivering 60 kmpl through its famed

4-stroke Honda engine, cutting edge technologies like Multi-Mapping CDI, Tumble Flow

Combustion Chamber, Roller Rocker arm, and a Classy Aerodynamic Body.

This engineering masterpiece with international design appeal, guarantees to quench your

thirst for motorcycle frenzy with all its stunning features.

Page | 14


15/69

STUNNERCBF PGM-FI

Reprogrammed to the code of the CBR1000RR Fire blade.Upgraded to a PGM-FI engine. A High Speed Drive with top speeds of 100 km/hr.

Preloaded with an auto save function that gives 65km/l.

A Malfunction Indicator Lamp for real time system diagnosis. The Handle Bar Weight

made for improved stability. Bank Angle Sensor automatically switches off the ignition &

fuel supply when bike tilts over a certain angle.

Emission gasses as low as 1/10^th of BS II Norm.

New 3D graphics make gaming a lot more fun.

So Update to the Honda Stunner Version 2.0.Or get left behind.

STUNNERCBF

Honda re-defines style with the new sporty CBF Stunner. Equipped with a perfect blend of

great looks, Stunning performance and unbeatable quality its an ultimate desire of every

Page | 15


16/69

youth. So set your spirit free And leave others breathless with this absolute sensation, the

ultimate style icon.

ACTIVA Ride on &on

Ingeniously designed the all new Activa is made for you to go miles, to do things

and to go places. With your loved ones. Developed on Honda's globally tested

engineering technology, it comes with a host of new features. The seats maximizes

riding comfort. Thus offering you a smooth ride. Perfect in design and technology,

the all new Activa is more than just a scooter. With an increased mileage of 15%, it

allows you to enjoy your rides, no matter how long they are. So now you can enjoy

life without stopping. Step onto your all new Activa, spread the joy with your loved

ones, and go on and on.

Design

Page | 16


17/69

Honda Activa was the first scooter launched by Honda in India. It has been designed as a

family two-wheeler and features higher load carrying capacity. Now, Honda India has come

up with all new Activa with major styling changes all around.

Honda new Activa gets a redesigned front and rear section. The front is dominated by

curvy and aerodynamic styling with redesigned headlamps. Clear lens turn indicators

dominate the rear. Honda has used impact resistant ABS plastic panels to reduce the overall

weight of the two-wheeler.

Following changes/additions have been made in new Activa:

Redesigned headlamps with integrated clear lens indicators.

All new clear lens tail lamp with integrated clear lens indicators.

Impact resistant ABS plastic panels.

New 109cc 4 Stroke 8 Bhp engine.

Redesigned front and rear section. New CBS System which applies front braking force whenever the rear brake is

operated.

The New Activa is available in following six shades:

Grey metallic

Candy lucid red

Metallic Black

Force silver metallic

Wild purple metallic

Pearl sunbeam white

Page | 17


18/69

AVIATOR

Exuding style from the word go, the Aviator is for those who don't have to try hard

to impress. Topped up with classy features, it adds to your quotient in more ways

than one. Yes, the Aviator is here. And it's time for you to arrive. In style.

Page | 18


19/69

DIO

DIO Indias first motoscooter is named after the son of Venus Dyonisiac, also known asCupid, the God of Love. DIO is set to add passion and excitement with its stunning looks

and performance, by incorporating the latest world trends that

make it a scooter that is much ahead of its time.

Page | 19


20/69

One look at DIO will tell you its more an accessory than a mere convenience. As Indias

first motoscooter, it blends the looks of a motorcycle with the comfort of a scooter. DIO

heralds the dawn of twowheeler fashion. And if looks are anything to

fall for, this is a treat. The bodymounted headlamp and sleek indicators leap right off the

front. Ample legroom gives you an elegant poise. The body tapers into the taillight and yet

continues to draw attention.

The DIO is complete in itself. Cutting edge technology and style have been brought

together in such a way as to make it an engineering marvel. So, you can ride assured that a

bike doesnt get or look any better.

Of course, this qualifies us to have the last word on style. If there ever existed an attention

magnet, this is it.

OBJECTIVE OF STUDY:-

To know the awareness level in the market for the Activa 110

To analyze the customer satisfaction.

To analyze the customer preference.

To estimate the market potential and perception towards HONDA.

This study helps to check the efficiency of dealers.

Page | 20


21/69

This study helps the company to take corrective decision regarding

marketing.

This study also helps in evaluating the effectiveness of various brands of

different company.

This study helps the company to take corrective decision regarding

marketing.

This study helps the company to know their actual position in the market.

This study ensure the availability of the product in the market.

Page | 21


22/69

RESEARCH METHODOLOGY

It is well known fact that the most important step in marketing research process is to

define the problem. Choose for investigation because a problem well defined is half

solved. That was the reason that at most care was taken while defining various

parameters of the problem. After giving through brain storming session, objectives were

selected and the set on the base of these objectives. A questionnaire was designed major

emphasis of which was gathering new ideas or insight so as to determine and bind out

solution to the problems.

RESEARCH DESIGN

To conduct the market research first of all it is necessary to create a research design. A

research design is basically a blue print of how a research is to be conducted, it may

include;

1. CHOOSING THE APPROACH

2. DETERMINING THE TYPES OF DATA NEEDED.

3. LOCATING THE SOURCE OF DATA.

Page | 22


23/69

Research Design

ExploratoryConclusion

CasualDescriptive

Observati

onSurvey

Experimen

t

4. CHOOSING A METHOD OF DATA.

Basically there are 3 types of approaches used during the any research:-

1. EXPLORATORY.

Page | 23


24/69

2. DESCRIPTIVE.

3. EXPERIMENTAL.

During this research Descriptive and Exploratory approach is taken into consideration

because of the availability of relevant information to describe the relationships between the

marketing problem and the available information.

SIGNIFICANCE TO THE INDUSTRY :

This is a limited study which takes into consideration the responses of 108 people. This data

can be explorated to take in the trends across the industry. The significance for the industry

lies in studying these trends that emerge from the study. It is a rapidly changing and

evolving sector. People are only beginning to wake up to its vast possibilities. A study like

this can attempt to guide the future of the industry based on current trends .

SIGNIFICANE FOR THE RESEARCHER :

To facilitate and provide all the useful information of the study, the company, the

automobile industry and also provide marketing ways, methods of Honda.

DATA SOURCE

Research included gathering both primary and secondary data.

Primary data is the first hand data, which are selected a fresh and thus happen to be

original in character. Primary Data was crucial to know various customers and past

consumer views about bikes and to calculate the market share of this brand in regards to

other brands.

Primary data is collected during the survey with the help of questionnaires

Page | 24


25/69

Secondary data are those which have been collected by someone else and which already

have been passed through statistical process.

Secondary data has been taken from internet, newspaper, magazines and companies web

sites.

RESEARCH APPROACH

The research approach was used survey method which is a widely used method for

data collection and best suited for descriptive type of research survey includes research

instrument like questionnaire which can be structured and unstructured. Target population is

well identified and various methods like personal interviews and telephone interviews are

employed.

SAMPLING UNIT

It gives the target population that will be sampled. This research was carried in

Aligarh.

These were 104 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings of the project were

presented followed by analysis and interpretation to reach certain conclusions.

SCOPE

My project was based on the Awareness of active 110 and data was taken in the

Aligarh only.

Page | 25


26/69

Limitations of the research

The training period was short during this short period I tried my level to

marketing the study perfect and full proof. Yet these is following limitations-

1. It was observed that the most of the customers were not playing

Proper attention to fill the questionnaire

2. The research is confined to a certain parts of ALIGARH (U.P.) and does not

necessarily shows a pattern applicable to all of Country.

3. Some respondents were reluctant to divulge personal information which can affect

the validity of all responses.

4. In a rapidly changing industry, analysis on one day or in one segment can changevery quickly. The environmental changes are vital to be considered in order to

assimilate the findings.

5. Findings of the project are also limited because of availability of lesser information.

6. I required the submitted the report in two months and hence I had less time

at my disposal .It was not possible therefore to Conduct a census survey.

Page | 26


27/69

DATA ANALYSIS:-

Q.1 (a) Currently do you use any Two Wheeler?

Yes No

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 84 81%

No 20 19%

Total 104 100%

Page | 27


28/69

INTERPRETATION

81% of the respondents are owner of two-wheeler.

19% of the respondents are not owner of two-wheeler.

In this case all of those who have two-wheeler have responded.

Q.1 (b) Model Name: Make:

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 29 28%

No 75 72%

Total 104 100%

Page | 28


29/69

INTERPRETATION

28% of the respondents are owner of Hondas two-wheeler.

72% of the respondents are not owner of Hondas two-wheeler.

In this case we know that 28% of population is the user of Hondas two-

wheeler.

Q.2) Have you heard about the new Activa Model?

Yes No

Page | 29


30/69

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Yes 78 75%

No 26 25%

Total 104 100%

INTERPRETATION

75% of the respondents are aware about New Activa.

25% of the respondents are not aware about New Activa.

In this case we found that 75% of population is known about the New Activa.

Q.3) What do you know about New Activa in terms of Performance features, Brand?

No Idea 110cc HondaBrand

Page | 30


31/69

15% more Mileage Large under seat box

Tuff Up Tube Others------------------

NO. OF

RESPONDENTS

SHARE (%)

No Idea 17 11%

110 cc 40 25%

Honda Brand 45. 28%

More mileage 15 10%

Large Seat Box 15 10%

Tuff up tube 26 16

Page | 31


32/69

INTERPRETATION

11% of the respondents are not have idea about New Activa.

And all other facilities of New Activa known the respondents.

Q.4) From Where did you get to know about New Activa?

TV Newspaper Adv

Newspaper Supplement/Article Auto Magazine

Website Banner/Hoarding

Display at Public Places Dealership/test Ride

Friends/Relatives Road Shows PWOs

Test ride others

NO. OF RESPONDENTS SHARE (%)

TV 25 19%

Newspaper Adv 15 11%

NewspaperSupplement/Article

1 1%

Auto Magazine 3 2%

Page | 32


33/69

Website 1 1%

Banner/Hoarding 13 10%

Display at Public Places 39 29%

Dealership/test Ride 6 4%

Friends/Relatives Road Shows 31 23%

PWOs 0 0%

Test ride 0 0%

Others 0 0%

INTERPRETATION

Mostly respondents know about New Activa trough Display At Public places,

Friends/Relatives, TV, Paper Adv., Banner/Hordin.

Page | 33


34/69

Q.5)Which One of the above activity prompted you to enquire more about New Activa?

1. 2. 3.

INTERPRETATION

For that Question there is no respondent.

Page | 34


35/69


36/69

ENTERPRETATION

89% of respondent are not though of buying New Activa because of they all are

already having their own two-wheelers.

Q.7) Do you rate the satisfaction level of New Activa on this 5pt scale?

Very Satisfied Satisfied Cantsay

Dissatisfied Very Dissatisfied

Page | 36


37/69

RESPONSE NO. OF

RESPONDENTS

SHARE (%)

Satisfied 26 25%

Very satisfied 10 10%

Dissatisfied 17 16%

Very Dissatisfied 0 0%

Cant say 51 49%

Total 104 100%

Page | 37


38/69


39/69

As the people think that Activa is for girls and lady. They are aware of the fact

& realizing its, importance. The company should try to expand & build up its

infrastructure because there is a large potential for automobile in India.

Company should come up with its branch in Chennai

Honda should take into account this benchmarking very carefully and should work

to maintain its position

Honda should keep on undertaking promotional Activities and awareness building

programme, so that awareness of the people about the Activa will be increased.

Honda should also pay attention to customers feedback. Even if a customer does

not give feedback himself/herself, he/she should be called up to know his/her

feedback about the product and services offered. Only through this, the company

can modify its products and grow with customers love and faith

Last but not the least, Honda should work on the suggestions given by the

respondents.

Conclusion:-

Our in-depth research in the field of Automobile threw up some interesting trends which

can be seen in the above analysis. A general impression that we gathered during Datacollection was the huge awareness and knowledge among people about Honda and New

Activa also various companies and their two-wheeler products..

Page | 39


40/69


41/69

BIBLIOGRAPHY

1.BOOKS/MAGAZINES REFFERED:

MARKETING RESEARCH By- Sunanda Easwaran,Shama J.Singh

Marketing management By- Phillip Kotler

2. WEBSITES REFFERED:

www.honda2wheelersindia.com

www.autos.maxabout.com

www.motosindia.com

www.extrememachines.com

www.indiauto.in

Page | 41


42/69

QUESTIONNAIRE

Q1. (a)Currently do you use any Two Wheeler? Age

Yes No

If Yes then:

(b)Model Name: Make:

Note: If he is a New Activa User, Please Ask Question No. 4, 5, 7,& 8

Q.2) Have you heard about the new Activa Model?

Yes No

If No then explain the product from the leaflet & handover the same & terminate

Q.3) what do you know about New Activa in terms of Performance, features, Brand ?

No Idea 110cc Honda Brand

15%moreMileage Large Under seat box Tuff Up

Tube

Others.

If the answer is No Idea than explain the product from the leaflet &handover the same & terminate

Q.4) From Where did you get to know about New Activa ?

TV News Paper Adv News

paper

Supplement/Article Auto Magazine Website

Banner/Hoarding Display at Public Place

Page | 42


43/69

Dealership/Test Ride Friends/Relatives Road

Shows

PWOs Test ride

Others

Q.5) Which One of the above activity prompted you to enquire more about New Activa?

1. 2. 3.

Q.6) Have you thought of buying New Activa?

No Yes

If Yes,

by when Why & What all did you like in New Activa

If No ,

by when Why & What all did you not like in New Activa

Q.7) Do you rate the satisfaction level of New Activa on this 5pt scale?

Very Satisfied Satisfied Cantsay

Page | 43


44/69

Dissatisfied Very Dissatisfied

Why

If the answer is Dissatisfied or Very Dissatisfied ,note address & contact for

resolving the issue

Q.8) any suggestions for improvement?

..

Page | 44


45/69

Photograph of showroom and others:-

Page | 45


46/69

Page | 46


47/69

Page | 47


48/69

Page | 48


49/69

Page | 49


50/69

Page | 50


51/69

Page | 51


52/69


53/69

Page | 53


54/69

Page | 54


55/69

Page | 55


56/69

Page | 56


57/69

Page | 57


58/69

Page | 58


59/69

Page | 59


60/69

Page | 60


61/69

Page | 61


62/69

Page | 62


63/69

Page | 63


64/69

Page | 64


65/69

Page | 65


66/69

Page | 66


67/69

Page | 67


68/69


69/69

Documents

Project on Automobile Industry