A PROJECT REPORT ON A STUDY ON CUSTOMER PERCEPTION ABOUT LUXURY CARS IN INDIA AND ITS SCOPE FOR GROWTH

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR MASTER OF MANAGEMENT STUDIES TO UNIVERSITY OF MUMBAI BY GAURAV ARORA ROLL NO. 2011007 MARKETING 2011-2013 UNDER THE GUIDANCE OF PROF. SONALI JOGLEKAR

LALA LAJPATRAI INSTITUTE OF MANAGEMENT MAHALAXMI, MUMBAI 400 034

A PROJECT REPORT ON A STUDY ON CUSTOMER PERCEPTION ABOUT LUXURY CARS IN INDIA AND ITS SCOPE FOR GROWTH

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR MASTER OF MANAGEMENT STUDIES TO UNIVERSITY OF MUMBAI

BY GAURAV ARORA ROLL NO. 2011007 MARKETING 2011-2013 UNDER THE GUIDANCE OF PROF.SONALI JOGLEKAR

LALA LAJPATRAI INSTITUTE OF MANAGEMENT MAHALAXMI, MUMBAI 400 034

DECLARATION
I hereby declare that this dissertation submitted in partial fulfillment of the requirement for the award of MASTER OF MANAGEMENT STUDIES (MMS) of the University of Mumbai is my original work and has not been submitted for award of any other degree or diploma fellowship or other similar title or prizes. I further certify that I have no objection and grant the rights to LLIM to publish any chapter or project if they deem fit in journals or magazines and newspaper etc. without my permission.

NAME: CLASS: MMS II SEM IV BATCH: 2011-2013 ROLL NO.: DATE: 11th MARCH , 2013 PLACE: MUMBAI

GAURAV ARORA

PROJECT GUIDE CERTIFICATE FORM I Mr. Gaurav Arora, the undersigned Roll No. 2011007studying in the Second Year of MMS is doing my project work under the guidance of Prof. Sonali Joglekar wish to state that I have met my internal guide on the following dates mentioned below for Project Guidance:-

SR. NO.

DATE

SIGNATURE OF THE INTERNAL GUIDE

______________________ Signature of the Candidate

______________________ Signature of Internal Guide

Certificate
This is to certify that the dissertation submitted in partial fulfillment of the requirement for the award of MMS of the University of Mumbai is a result of the bonafide work carried out by Mr.Gaurav Arora under my supervision and guidance. No part of this report has been submitted for award o f any other degree, diploma fellowship or other similar titles or prizes. The work has also not been published in any scientific journals/ magazines.

DATE: 11th MARCH 2013 PLACE: MUMBAI

NAME: GAURAV ARORA ROLL NO.: 2011007

-----------------------------DR. V. B. ANGADI (DIRECTOR, LLIM)

--------------------------DR. /PROF (PROJECT GUIDE)

ACKNOWLEDGEMENT
This project has been a great learning experience for me. I take this opportunity to thank Prof. Sonali Joglekar, my internal project guide whose valuable guidance & suggestions made this project possible. I am extremely thankful to him/her for his/her support. He/She has encouraged me and channelized my enthusiasm effectively. I express my heart-felt gratitude towards my parents, siblings and all those friends who have willingly and with utmost commitment helped me during the course of my project work. I also express my profound gratitude to Dr. Angadi, Director of Lala Lajpatrai Institute of Management for giving me the opportunity to work on the project and broaden my knowledge and experience. My sincere thanks to Dr. Arati Kale for her valuable guidance and advice in completing this project. I would like to thank all the professors and the staff of Lala Lajpatrai Institute especially the Library staff who were very helpful in providing books and articles I needed for my project. Last but not the least, I am thankful to all those who indirectly extended their cooperation and invaluable support to me.

EXECUTIVE SUMMARY

The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 25% per year. A luxury car is a luxuriously styled automobile which is designed to give satisfaction and comfort to its owner. A luxury car typically has carrying capacity of 6 passengers. The luxury cars in the Indian market are very expensive, with price tags that start from Rs. 20 lakh. Hence, luxury cars can only be afforded by the people who belong to the high income group and there are a lot of such takers in the Indian automobile market. The various reasons for the growth of the luxury car market in India are:

The economy is rising in the country which has given the people more disposable income which they are spending in buying luxury cars.

Various loan schemes have been launched by the automobile manufacturers and the financial institutions. This has made it very easy for the people to buy luxury cars and this has boosted the luxury car market in India.

With the IT boom in the country many youngsters are earning high pay packages which enable them to buy luxury cars. And this have further given boost to the market of luxury car in India.

The government have formulated many polices such as the relaxation of equity regulations and the reduction of import tariffs pertaining to the automobile industry. These have helped to reduce the prices of the luxury cars, which in turn have led to the growth of the luxury car market in India

Luxury car markets in India have grown over the last few years. That it continues to grow more efforts must be made by the Indian automobile industry and the government of India. And only then the luxury car market in India will be able to reach its heights India set its foot in the global automotive industry in 1898, with the first car rolled out in the streets of Mumbai. Since then, India has come a long way. Taking into Scrutiny the current statistics, automotive industry is now, the most dynamic sectors in India. The car market of India boasts of attractive finance schemes, increasing purchasing power and a vast variety of Luxury car range. India being one of the lucrative hubs for the car market is attracting auto majors from all over the world. The count of people ready to buy these high sticker cars is gaining momentum. In effect to this, almost all the overseas manufacturers including Mercedes, BMW, Audi, Suzuki, and most recently Volkswagen have entered the fray. Ferraris announcement to roar into the India market from 2010 and Aston Martins aspirations to enter the Indian market soon next year also signals that the market has just picked up pace and there are great possibilities for these indulgent vehicles to thrill the Indians. With Tatas recent Acquisition of Fords Land Rover and Jaguar brands, The Indian companies are in the right gear to compete with other global luxury brands making a rush in the country. Recent analysis show that India is now among the principal driving markets for the Asian automotive industry. The reasons for these unprecedented changes being in favour of India are quite a few. The growing population of well heeled citizens in India emerges to be the primary cause. With the overall population being 1 billion, the 1% people who constitute the affluent society or the new Global Indians are estimated to be over 10 million, mainly because of the growing disposable income of India. Secondly, Change in attitude of the customer accounts for the sudden acceleration in the Luxury car Market in India, as the emphasis has been shifted from price consideration and affordability to design, quality and pleasure. The Indians who believed in traditional savings now follow an extravagant approach. Stepping down to the third possible reason, exposure and passion for speed, power and elegance run on to take their seats. With more and more Car rallies, exhibition, televising of

Formula 1 and international motor shows happening in the country, these luxurious coups have created an urge in drivers to experience comfort and control at the very same time. Growth in the luxury segment has been helped by an economy expanding at nearly 9 percent on average in the last four years, and the entry of new players and launches from the likes of BMW, Mercedes-Benz, Porsche and Audi. Consequently, the picture seems to be apparently flaunting that the Global Indians are all ready to take the Luxury Car market to an all-new high and it has been well said For a luxury car to remain one, its features have to stay ahead of the innovative curve

INDEX
SR. NO. 1 2 3 4 5 6 7 8 9 CONTENT INTRODUCTION & RESEARCH METHODOLOGY REVIEW OF LITERATURE HISTORY & GROWTH OF LUXURY CARS AUTOMOBILE INDUSTRY IN INDIA LUXURY VEHICLES & MARKET SEGMENTS MARKETING MIX ADOPTED BY LEADING LUXURY CAR BRANDS LUXURY CAR BRANDS IN INDIA DATA ANALYSIS & INTERPRETATION FINDINGS PAGE NO. 1 9 18 24 30 37 50 83 93

10 11 12 13

CONCLUSION RECOMMENDATION ANNEXTURE BIBLIOGRAPHY

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