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Submitted for the partial fulfillment of the

requirement
For the award of Post Graduate degree

Of
Master of business administration
Degree Programme of G.B, Technical University,
Lucknow

SESSION
2009 2011
Under the guidance of:
Dr. Abhioshek Maheshwari
Faculty of Management

Submitted By:
Gaurav Gupta
MBA III SEM
Roll No. 0907470029

DEWAN.VS INSTITUTE OF ENGINEERING


& TECHNOLOGY, MEERUT

A
PROJECT REPORT ON

SCOPE OF VEHICLE FINANCE


CONDUCTED FOR
ICICI BANK
In area of Ghaziabad

STUDENT DECLARATION
I Gaurav Gupta Student of MBA III Sem hereby declare that the project
report written & submitted by me is my original work. & guidance of
Dr. Abhishek Maheshwari, Faculty of Management, DIMS , Meerut
The empirical findings & conclusions in this report are based on the
information collected by me during the training session.

I also declare that the work is done by me sincerely & accurately.

Even if any mistake or error has been found then it is my humble request
to the readers to point out those errors & guide me accordingly.

GAURAV GUPTA
MBA III Sem
Roll No. 0907470029

PREFACE
This project has been designed to analyze the customers preferences &
behaviour towards vehicle finance. This project is useful for sales
manager engaged in practical selling work as well as strategies
formulation. The sales executive & sales person are primarily responsible
for formulating & implementing the strategies in various areas which
contribute to consumer satisfaction pricing, physical distribution,
marketing channels etc.

Study of management in classroom has been much indebted topic.


The two months summer training in an organization provides a
management student with a real life insight into an organization of
functioning.

Today market is consumer oriented where customer is the boss.


The sale difference between selling & marketing is that marketing ends
with customer satisfaction not after only selling of goods, but selling
stops when the goods have sold in the market

ACKNOWLEDGEMENT
An academic project work is diligent task which can be completed only
with the help of noble guidance. The credit for successful completion of
this project report goes to my respected Sir, Mr. Anuj Tyagi (Sales
Coordinator) ICICI Finance Ltd. Ghaziabad, who gave painstaking,
untiring help by guiding constantly the subject matter & also raising
pertinent issues.

I also want to express my heartly thanks to Mr. Sandeep kumar


(ICICI Finance Ltd., Ghaziabad) who had been kind enough to provide
relevant information & materials which served useful purpose.

I would also like to thank Dr. Abhishek Maheshwari, Faculty of


Management, DIMS , Meerut in computing this project report. This
project would not have executed without her help & efforts.
Finally, I express sincere gratitude to my parents & friends for their
support & moral encouragement.
GAURAV GUPTA
MBA III Sem
Roll No. 0907470029

INTRODUCTION
A project work on SCOPE OF VEHICLE FINANCE IN
GHAZIABAD based on market survey under the organization ICICI
BANK has beendone. The project work includes the survey of
vehiclemarket of region Ghaziabad. The major objective behind this
project workis to analyze the recent growth of vehicle market of
Ghaziabad and find out the scope of vehicle finance in Ghaziabad.

The study of vehicle market is a major importance for our organization.


In recent times due to liberation of trade, there is a growth of
financemarket in which various financing companies has emerged
providing various financing facility to the people to satisfy their needs.

The similar growth can be seen in the vehicle market which is


increasing rapidly. Now the customers are having various options to
purchase thevehicles either directly through cash or on the basis of
finance. Every financing house provides various alternative schemes that
will be able to cater the customers requirement. There are multiple
schemes present thecustomer can opt.

There is a also a wide variety of competition among the companies


which has got various parameters like easy installment plan, rate of
interest and various other incentives. After analyzing the complete vehicle
market with detailed study of each and every segment (scooty,bikes, cars)
it would be possible to draw out the conclusion that whether the auto
market is rising of declining with a proper comparison of cash and
finance components of sale. Through this analysis the study can be made
of finance market in which the comparison can be done between
financing schemes provides by various financing institutions at a glance.

ICICI BANK is putting its best efforts to cater the needs of every
class of customers through lending based on easy terms and conditions
that would be beneficial for them. Under the competitive environment it
is required to study the market conditions ie. The financing schemes that
other competitors are providing so that proper plan may be derived out
leading to most effective way of finance.

HISTORY OF ICICI

1955 : The Industrial Credit and Investment Corporation of India


Limited (ICICI) incorporated at the initiative of the World
Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial
institution for providing medium-term and long-term project
financing to Indian business. Mr. A.Ramaswami Mudalier
elected as the first Chairman of ICICI Limited.
ICICI emerges as the major source of foreign currency loans to
Indian industry. Besides funding from the World Bank and other
multi-lateral agencies, ICICI also among the first Indian
companies to raise funds from International markets.

1956 : ICICI declared its first Dividend at 3.5%.


1958 : Mr. G.L. Mehta was appointed the 2nd Chairman of ICICI Ltd.
1960 : ICICI building at 163, Backbay Reclaimation was inaugurated.
1961 : The first West German loan of DM 5 million from Kredianstalt
was obtained by ICICI.

1967 : ICICI made its first debenture issue for Rs. 6 crore, which

was

over subscribed.
1969 : First two regional offices in Calcutta and Madras were opened.
1972 : Second entity in India to set-up merchant banking services.
:

Mr. H.T. Parekh appointed as the third Chairman of ICICI.

1977 : ICICI sponsors the formation of Housing Development Finance


Corporation. Managed its first equity public issue.
1978 : Mr. James Raj appointed as the fourth Chairman of ICICI.
1979 : Mr. Siddharth Mehta appointed as the fifth Chairman of ICICI.
1982 : Becomes the first ever Indian borrower to raise European

currency Units.
: ICICI commences leasing business.
1984 : Mr. S. Nadkarni appointed as the sixth chairman of ICICI.
1985 : Mr. N. Vaghul appointed as the seventh Chairman and
Managing Director of ICICI.

1986 : ICICI first Indian Institution to receive ADB Loans. First public

issue by an Indian entity in the Swiss Capital Markets.


: ICICI along with UTI sets up Credit Rating Information
Services of Indian Limited, (CRISIL) Indias first professional
credit rating agency.
: ICICI promotes Shipping credit and Investment Company of
India Limited. (SCICI)
: The Corporation made a public issue of Swiss Franc 75 million
in Switzerland, the first public issue by any Indian equity in the
Swiss capital Market.

1987 : ICICI signed a loan agreement for Sterling Pound 10 million


with Commonwealth Development Corporation (CDC), the first
loan by CDC for financing projects in India.

1988 : ICICI promotes TDICI Indias first venture capital company.


1993 : ICICI sets-up ICICI Securities and Finance company Limited in
joint venture with J.P. Morgan.
: ICICI sets up ICICI Asset Management Company.

10

1994 : ICICI sets up ICICI Bank


1996 : ICICI becomes the first company in the Indian financial sector
to raise GDR.
: ICICI announces merger with SCICI.
: Mr. K.V. Kamath appointed the Managing Director and CEO of
ICICI Ltd.

1997 : ICICI was the first intermediary to move away from single

prime rate to three tier prime rates structure and introduced :


yield curve based pricing.
: The name The Industrial Credit and Investment Corporation of
India Limited was changed to ICICI Limited.

11

OVERVIEW

ICICI Bank is Indias second largest bank with total assets of about Rs.
146,214 crore at December 31, 2004 and profit after tax of Rs. 1,391
crore in the nine months ended December 31, 2004 (Rs. 1,637 crore in
fiscal 2004). ICICI Bank has a network of about 530 branches and
extension counters and over 1,880 ATMs. ICICI Bank offers a wide range
of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking,
life and non-life insurance, venture capital and asset management. ICICI
Bank set up its international banking group in fiscal 2002 to cater to the
cross border needs of clients and leverage on its domestic banking
strengths to offer products internationally. ICICI Bank currently has
subsidiaries in the United Kingdom and Canada, branches in Singapore
and Bahrain and representative offices in the United States, China, United
Arab Emirates, Bangladesh and South Africa.ICICI Banks equity shares
are listed in India on the Stock Exchange,
Mumbai and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock

12

Exchange (NYSE).As required by the stock exchanges, ICICI Bank has


formulated a Code of Business conduct and Ethics for its directors and
employees.At April 4, 2005, ICICI Bank, with free float market
capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) ranked third
amongst all the companies listed on the Indian stock exchanges.ICICI
Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly owned subsidiary. ICICIs
shareholding in ICICI Bank was reduced to 46% through a public
offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Banks acquisition of
Bank of Madura Limited in an all-stock amalgamation in fiscal 2002.
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of India industry. The principal
objective was to create a development financial institution for providing
medium term and long term project financing to Indian businesses. In
the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services
group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. In 1999,

13

ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in


the context of the emerging competitive scenario in the Indian banking
industry, and the move towards universal banking, the managements of
ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI groups
universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entitys access to low cost deposits,
greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction banking
services. The merger would enhance value for ICICI Bank shareholders
through a large capital base and scale of operations, seamless access to
ICICIs strong corporate relationships built up over five decades, entry
into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent
pool of ICICI and its subsidiaries. In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of ICICI and two

14

of its wholly owned retail finance subsidiaries, ICICI Personal


Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of ICICI and
ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad
in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002. Consequent to the merger, the ICICI
groups financing and banking operations, both wholesale and retail, have
been integrated in a single entity.

Free float holding excludes all promoter holdings, strategic


investments and cross holding among public sector entities.

15

INDUSTRY PROFILE
Vehicle finance is becoming major issue and major area of operation for
corporate in India. Besides private sector, semi government and
nationalized banks are in the race. With various schemes to suit your
requirement and with attractive interest rates, these Vehicle finance
companies are offering most

attractive finance options for Vehicle

seekers.

ICICI Vehicle Finance


Its given mortgage lenders a real run for their money. When it first
started Vehicle financing operations in the 1990s, ICICI Bank too on
direct selling agents to source business. The strategy paid off, enabling
the bank to increase penetration in urban and semi-urban areas, while
simultaneously controlling sourcing costs, and allowing it to offer lending
rates that were marginally lower than the competition. The bank currently
has a network of over 750 agents across the country. The result: in 2004,
ICICI Bank sanctioned loans to more than 300,000 new accounts,
disbursing a total of Rs. 13,281 crore, to become the countrys largest
mortgage financier that year. During the period April December 2004,
the bank disbursed Rs. 13,147 crore, the highest in the industry so far in a

16

block of nine months. ICICI Bank also stands out for pioneering a host of
value added services. These include free assistance in locating properties
in select cities through a special division, Home Search. For borrowers,
theres a free accident insurance cover, and a loan shield insurance
policy that covers death, permanent disability and critical illness on
payment of special premiums.

HDFC Vehicle Finance


Combine a 28 year history with a value driven work ethos, and
you get a Vehicle loan colossus called HDFC. When it started operations
in 1977, it was the only insitution providing mortgages. Despite that
monopoly status, it constantly sought customer feedback on products and
innovated services to build brand equity. HDFC was the first in Indian
corporate history to offer FD certificates over the counter, when it began
accepting retail deposits in the late 1980s. Until then, the concept was
unheard of. Today, it is Indias leading mortgage brand.

OTHER INSTITUTIONS
The retail outlays of the institutions are giving services, which Vehicle
seekers often do not get with traditional Vehicle finance companies.

17

has to take countless leaves to do documentation for Vehicle loans.


Interest rates were also made by the institution a major issue to think
before deciding on Vehicle loans. Tata Finance Ltd., Centurion and Citi
bank are likely to storm Vehicle finance market in near future.
Private Vehicle finance sector is also doing very well in catering the
need for housing finance. Kotak Mahindra Finance Corporation Ltd. is
one of the best options in private Vehicle finance sector. Having 22
branches allover the country and dealing in the market for more then 15
years, the group is well established in the market.

GOVERNMENT INSTITUTIONS
SBI Vehicle finance Ltd., a subsidiary of SBI, PNB Vehicle Finance Ltd.,
a subsidiary of PNB are also doing very good business. SBI Vehicle
Finance Ltd. is doing little bit slow for the time being but PNB Vehicle
Finance Ltd. has recently opened its new branch near Shoppers Stop,
Andheri. The timing are 12.00 noon till 8 pm and it remains closed on
Tuesday. BOB Vehicle Finance Ltd., a subsidiary of Bank of Baroda also
having very attractive Vehicle finance schemes. Can Fin Vehicle, very
aggressive subsidiary of Canara Bank in Southern India, is also doing
very good job in Western parts of the country. Nationalised banks are
coming in a very big way into Vehicle finance market. SBI, an oldest

18

financial institution and bankers for majority of Indians have entered with
interest rates of 12.24 %. PNB has crossed Rs. 50 crore alone in Mumbai
region for Vehicle finance in very short period of time. .

AWARD AND RECOGNITION FOR ICICI BANK


AND Erstwhile ICICI LTD
ICICI Bank
2005
Triple AAA Best Cash Management Country Award in India by
the Asset.
2004
Best Bank in India by Euromoney.
Best High Yield Borrower in India by Euromoney
Indias Most Customer Friendly Bank by Outlook Money
Best Bank by Business India
India Derivative House of the Year by Asia Risk
Best consumer Internet Bank in India by Global Finance
Best Corporate / Institutional Internet Bank in India by Global
Finance

19

Most Challenging IT Implementation Award for the ICICI Bank


EAI project by PC Quest.
Best Domestic Commercial Bank in India by Asiamoney
Best Emerging Market Bank in India by Global Finance
Best Domestic Fx Bank in India by Asiamoney Poll
Best Bank of the Year in India by Finance Asia
Best Retail Bank in India by Asian Banker
Best Foreign Exchange Bank in India by Global Finance
Indias Most Admired Private Sector Bank by Business Barons
2003
Best Bank of the Year in India by Finance Asia
The Asian Banker Excellence in Retail Financial Service
Program by the Asian Banker.
Best Bank Domestic Commercial Bank in India by Asiamoney
Best Emerging Market Bank in India by Global Finance
Magazine
Best Multi-Channel Strategy 2003 award by the Banker
Magazine, UK
Bank of the Year in India by the Bankers

20

Grand Prize Winner in Peak Workload, Unix Environments, OLTP


in Winter Corps Top Ten program.
DM Review Magazine World Class Solution Award 2003 in the
Business Intelligence category for its Teradata enterprise data
warehouse solution.
Best Consumer Internet Bank in India by Global Finance
magazine
Best Integrated Consumer Bank Site in the Asia / Pacific Region
by Global Finance
Best Foreign Exchange Bank in India by Global Finance
Best Trade Finance Bank in India by Global Finance
2002
Bank of the year from the Emerging Markets by the Banker
Magazine of UK
Bank of the year 2002, in India, by the Banker Magazine of UK
Best Managed Bank in Asia, in a poll by Euromoney
Indias top 5 most respected companies Business World magazine
Best Bank in India by Global Finance
Indias Most admitted Bank 2002 in the BB-TN Sofres Mode Poll
Best Foreign Exchange Bank in India by Global Finance.
Excellence in Retail Banking award by Asian Bankers Journal

21

Best Consumer Internet Bank in India by Global Finance


Best Bank in India by Global Finance
Indias Most Admired Bank 2002 in the BB-TN Sofres Mode Poll

2001
Best Retail Bank in India from the Asian Banker
Product Innovation Award for Kid-e-bank account from the Asian
Banker.
Indias top 5 most respected companies, Business World Magazine.
2000
Best Bank Award by Global Finance
I-payment was selected as a finalist in the commercial credit
product or service category in the Asian Banking Awards
Featured amongst the best 15 bank web sites in the world reviewed
by Forbes Global

1999
Best IT usage Award by TCS Limited and Computer Society of
India.

22

Asian Banking Award by the Asian Bankers Association for record


collections under the Resurgent India Bonds Scheme.
1998
www.icicibank.com got commended rating from the Financial
Times, London for two successive years.
Cyber Corporate Award by the Economic Times and Microland
Limited for making the best use of Internet for commercial
purpose.

Erstwhile ICICI Ltd.


ICICI
2002
Ranked Third Best Employers in a Campustrack study amongst
the
students of the best business school in India conducted by
ORG-MARG.
2001
Mr. K.V. Kamath, MD and CEO won the Asian Business leader
Award organized by CNBC Asia Pacific and TNT.
Indian express Marketing Excellence Award for Most recalled

23

advertisement on television.
20th Century Achievement Award for distinguished service to the
cause of Development Financing and promoting national economic
development by ADFIAP (Association of Development Financial
Institutions of Asia Pacific)
Best Presented Accounts by the Institute of Chartered
Accountants
of India for the third year running.
Ranked fifth in the survey of Indias Most Respected Companies,
Conducted by Business World and IMRB.
2000
Best CEO for innovative HR practices to Mr. Kamath by World
HRD Congress.
National HRD Network Award 2000 for innovative HR practices.
Rio Tinto Award for Long-term Commitment by Worldaware an
UK-based charity organization, for companies showing strong
commitment to development.
Fourth leading Company of India-Far Eastern Economic Review.
Fourth best company to work for in India in the Hewitt
Associates

24

and Business Today survey.

PRODUCT OFFERED BY ICICI BANK


*SAVING, FIXED
ACCOUNTS:-

DEPOSIT,

CURRENT

and

DEMAT

Apart from the usual facilities, you get a free ATM card,
interbranch Banking, Net banking, Bill pay, Phone Banking, Debit
card, Mobile banking, among other.

*ICICI BANK PREFERRED ACCOUNT:A preferential saving


account where you are assingned a dedicated relationship Manager
who is at your one point contact. You also get privilege like free
waivers, enhanced ATM withdrawal limit. Priority locker allotment
and lower interest rates on loan etc.
*SWEEP IN ACCOUNT
A fixed deposit linked to your saving
account. So if you are saving account so even if your savings Account
ruins a bit short, you can issue a cheque (or use your ATM card). The
money is automatically swept in from your saving account.

25

*SUPER SAVER ACCOUNT


Super saver account gives you an
overdraft facility up to 75% of your fixed deposit. In an emergency,
you can access your funds while your fixed deposit continues to earn
high interest.
*ICICI BANK PLUS
Apart from regular and premium account ICICI
also have ICICI bank PLUS ie. A current account and you can transfer
up to Rs. 50 lakh per month at no extra charge between the four
metros. You can also avoid of the cheque clearing between the four
metros, get cash delivery/pick up to Rs. 25000/- home delivery of
demand drafts at per cheques, outstanding cheques, outstation cheque
clearance facility etc.
*DEMAT ACCOUNT
Conduct hassle free transactions on your shares.
You can also access your demat account on the Internet.

26

INNOVATE SERVICES FOR CUSTOMER


CONVENIENCES AT ICICI BANK
*PHONE BANKING
24 hr automatic banking services with different
phone banking numbers available.
*ATM 24 Hr BANKING
Apart from routine transactions you can also
pay your utility bills and transfer funds, at any of ICICI ATMs across
the country.
*INTERCITY/INTERBRANCH BANKING
Access your account from any of our 241 branch in
129 cities.
*NET BANKING
Access your banking account from anywhere in
the world at any time at your convenience. You can also view your
demat through banking.

*INTERNATIONAL DEBIT CARD

27

An ATM card you can shop


with all over the country and over 140 countries with. You can spend
in any currency and pay in rupees.

*MOBILE BANKING
Access your account on your mobile phone
screen at no airtime cost. Use SMS technology to conduct your
banking transactions from your cell phone.

LOAN FOR EVERY NEED AT ICICI BANK


*PERSONAL LOAN
Take a loan of up to Rs 3 lakh for a wedding,
education, purchase of a computer or a holiday.
*CAR LOANS
ICICI finance up to 90% of the cost of the car new or
used. And the loans come to you with easy documentation and speedy
processing at attractive interest rates.
*TWO WHEELER LOANS
You can get a loan for your new two wheeler.

28

*CONSUMER DURABLE LOANS


To help you by the best durable for your home ICICI provides you
loan.

APPROVED CAR CATEGORY

CATEGORY
1 CARS
CATEGORY
2 CARS

M-800, Zen(Petrol) , Santro ,Omni ,Indica


,Wagon-R, Alto

CATEGORY
3CARS

Sumo, Bolero, Bolero


Invader, Accord (Automatic transmi
Astra(Diesel), Baleno, Zen(Diesel), Zen(Automatic),
Honda automatic), Altura,
Siena Weekend, Opel Swing
M-1000, Gypsy, Ambassador, 118-NE, Contessa,
Premier Padmani, Sierra, Tata Estate
Mercedes

CATEGORY
4CARS
CATEGORY
5 CARS

Palio,Versa, Skoda, Scorpio, Camary, Indigo, Corolla,Optra,Honda CRV,


Esteem, Siena, Lancer, city, Ikon, Accent, Uno, Qualis, Corsa, Safari, Astra(Petrol),
Honda
VTEC,
Sonata,Baleno,Ford Endeavour, GM Forrester

29

CAUTION PROFILE
Wine Merchant
Builder/Contractor/Building Material Supplier
Transporter
Film Industry Professional (including actors,directors,producers and
distributors)
Finance companies/ Financial services companies (except A and above
rated companies by ICRA/CRISIL)
Stock Brokers
Insurance Agents
Auto Spare Parts Dealers
Chit Funds/Nidhi Companies
Real Estate Agents / Property dealers
Advocates (Except High Court & Supreme Court Lawers)
STD/Xerox Booth Operators
Smalltime

Travel

&Tour

30

Operator

(<5employees)

NEGATIVE PROFILES

Politicians
Policemen (except IPS & IAS officers)
Bar Owner (including Bar cum Restaurants)
Video Parlor Operators
Cable Operators
Contractual Employees
HUFs, Trusts, Credits Societies
Time Share &Motels
Plantation Companies

31

APPLICATION FORM

MANDATORY FIELDS TO BE FILLED UP

CUSTOMER DETAILS
Name
Residential and office address with pin code
Marital status
House owner ship
Years at current address
Bank details
Phone number of residence and office
Date of Birth

32

2 OCCUPAQTIONAL DETAILS
Occupation
Employers Name
Years with current employer
Entity status
Line of business
Years of establishment

Two references

3 FINANCE DETAILS
Product, brand
Vehicle, model
Invoice price
Tendor
Finance amount
Scheme
No. of advance EMIs

33

LTV GRID For personal use vehicle only

Income
Tenure

<60 K 60K-100K
1-3
1-3
45

>100K-150K
1-3
4-5

Cat 1

70%

85%

85%

85%

85% 90%

85%

Cat 2

70%

70%

70%

85%

80% 85%

80%

Cat 3

60%

70%

0%

75%

0%

75%

0%

Cat 4

0%

50%

0%

50%

0%

50%

0%

Cat 5

50%

0%

0%

0%

0%

60%

0%

34

>150K
1-3

4-5

35

INCOME PROOF
SALARIED
Latest (any of last three months) salary slip from Govt/Limited
Company/Pvt ltd/MNCs
Salary certificate from Govt/ Limited Cos
ITR filled by Pvt Ltd Company Employees
Proof of continuity of employment >1 years (form 16 or appointement
letter/certificate from HR/ Prev salary slip 1 years old from Govt,ltd,MNC

SELF EMPLOYED

Latest 2 years ITRs/Assessment orders with computation/ITCC/Tax Challan


>25K(for income of 60k)

PARTNERSHIP FIRMS
*Financial (CA certified) + ITR/Assessment order/ITCC?Tax challans
>25k
*Audited financial with audit report

LTD/PVT LTD COMPANIES


Audited financial for last two years with schedules
Director as Gurantor in PVT LTD companies

36

AGRICULTURAL INCOME
For all categories upto max. of Rs 15000/ For all categories upto Rs 30000/- subject to:

* Agriculture income reflected in last two years ITRs


* Lower of the latest two years agriculture income considered

NIP CASES

Business / Employment continuity for 2 years


any one

1.

Memorandom of association

2.

Certificate of incorporation

3.

Partnership deed

4.

Audited financial

5.

ITRs<60k

6.

Sales tax Rgd/ Shop establishment certificate

7.

Form 16 (Self employed)

8.

Form 16 +Latest salary slip

9.

Previous years salary slip +latest salary slip

10. Bank statement


11. Bankers certificate

37

NIP CASE
LTV of 85% for 3years on category 1 cars
1.

Latest 3 months bank statement

2.

Avg. Balance >30k constantly maintained

3.

No cheque returns

4.

Adequate Freq. Of transactions

5.

In case of OD/CC account, balance not to exceed limit

CO-APPLICANTS
Co-applicant can be Parents,Spouse,Son & co-residing
daughter. Partnership Firm or Company if applicant is Partner/
Director &vice-versa

AGE PURPOSE
*

Either of the co-applicant needs to meet the age norms

Age at maturity of transaction not to exceed 70 years for both


applicant & co-applicant

INCOME PURPOSE
PDC Purpose

38

TOP UP LOAN
Objective : To provide a top up loan to existing customers of ICICI Bank
car loans

Target segment : Existing customers who have a clear repayment (defined


one bounce per year) and wish to avail an enhancement to the existing loan.
Minimum seasoning of 6 monyhs in a year loan and 12 monyhs in a >1year loan
are necessary for a loan to be topped up.

Extent of finance: upto 90% of fresh valuation amount/grid value or


loan existing loan amount whichever is earlier

Tenure: upto 36 months-age of the car cannot exceed 8 years at the


time of maturity of the loan
Process:
1.Customer with the existing loan approaches us for a top up.
2. No FI/TVR is to be done if address on application form is same as the
one on our system
3. Signature verification is to be waived if cheques are being issued from
the same account asa the last loan

39

4. No income proof to be taken.


5.CPA/Ops to check the SOA of the customer to ensure that max. 1
bounce per year condition is met.
6. Cases to be marked under TOP UP product in the system.

POSSIBLE VARIANTS
Top up without foreclosing the earlier loan

In this case, the top up amount will be booked on the system as a


new loan. The top up and the principal out standing cannot exceed
90% of the value of the car.

Payment in this case will be only on top up amount.This will be a


RAAC variant.
Top up after foreclosing the earlier loan on the system

In this case, a newe loan will be booked for the entire loan amount
and the termination value (including foreclosure charges) will be
deducted from the disbursement of the new loan

Payment in this case will be on the entire loan amount


To ensure that DSAs do not encourage foreclosure of the loan so as
to earn higher payouts on the new loan, these loan will need an
approval either from the product team or NSMJ used cars

40

Loan to value norms for used car loans


Section 1 Proposal

It is proposed yhat for the following LTV grid will be applied for clients
who meet modified product/credit norms
Income <=60k/No
income >60kto100k
proof provided
LTV

70%(as
against
currently)

100k

60% 80%( as against 70% 85%( as against


currently)
80% currently)

Section 2- Product and Credit Norms


Modified product /Credit norms:
Criterion

Norms

Validation

Vehicle to
be
funde
d

Maruti
800/
Maruti
Alto/Maruti
Zen
(petrol)/Santro/Wagon
R/Esteem/Accent/Honda
City(
only
manual
transmission models allowed)
6 years

Application
Form/
Valuation
report

Funding
to
individualSalaried and Self employed
for
personal
use( Taxi/Commercial use not
allowed)

Application
Form/
Identity
proof

Maximum
age ate the
end of the
tenor
Eligible
borrower
category

41

Application
Form/
Valuation
report

Deviation
Level
No
deviation to
be
excercised
on
this
norm
No
deviation to
be
excercised
on
this
norm
No
deviation to
be
excercised
on
this

norm
Should meet one comfort condition each out of the comfort condition listed in part A
and part B

Part A
Ownership
of
premises

Either residence Electricity


bill/Share
or the office Certificate
/Sale
should be in Aggrement/Property tax bill
owned premises

No
deviation to
be
excercised
on
this
norm
Average
Should be 1.5 Balance to be calculated by No
bank balance times
the calculating
average
of deviation to
th
th
th
proposed EMI
balances on 5 ,15 ,25
be
of every month
excercised
on
this
norm
Repayment
As per section 6 As per section 6 b of car No
track
b of car loans loans credit policy
deviation to
credit policy
be
excercised
on
this
norm
Income
Minimum
Rs ITR/Form16/Salary
No
1.75 lac per Certificate
deviation to
annum
be
excercised
on
this
norm

42

PART B
Employment Minimum 2 years in the current Salaried:Form
/Business
employ6ment/ business and 3 years of 16/Appointment
stability
total stability at employment/business letter/ Identity
card
Self
employed:ITR/
Sale
tax
regestration
Previous car This should be
Photocopy of
ownership
1) a vehicle other than which is the regestration
proposed to be funded
book
2) should not be more than 3 years
old when acquired
3)
should have been in
applicants/spouse/proprietorshi
p/name for at least 12 months

Credit card

1) Should have a credit limit of at


least Rs 35000/2) The card statement should not
reflect any penal charges
3) Card should be at least 12
months old(6 months if issued
by ICICI bank)

Latest
billing
statement and
one
more
billing
statement
pertaining
to
last six months
should
be
collected

*This amendment shall be applicable at location where collection


manager is based
*All norms of the car loan credit policy other than mentioned above shall
be applicable

43

No
deviation
to
be
excercised
on
this
norm
Credit
manager
and above
can sign
off
the
deviation
of
ownership
vintage of
less than
12 months
but more
than
3
months
No
deviation
to
be
excercised
on
this
norm

SECTION 3 TRACKING AND MONITORING


Scheme coding :
All cases under the scheme to be coded as following

<city

name>ucExten#
(e.g. ChennailucExten#1 ,ChennailucExten#2 and so on)
REFINANCEVARIANT OF THE USED CAR POLICY
PRODUCT OVERVIEW :
Re-finance essentially means providing funding for an asset which has
already been acquired by the applicant seeking loan. The risks envisaged
in the re-finance are higher as compared to re-sale transaction on account
of the unknown end use and notional equity vis--vis actual equity
contribution
Additional/modified norms

NORMS
Maximum
loan value

CRITERIA
Rs 5.00 Lacs

VALIDATION
DEVIATION
Application Form
1) Upto
20%
and ITRs
NCM/
NSM/Risk
head/Business
Head
2) Beyond
20%
Business
Head
/Risk
Head

44

Minimum
Loan tenor

36 months for Application form


standard profile

1)RCM/
NSM/Risk
head/Business
Head for caution
profile upto 24
months
2)
NSM/Risk
head/Business and
above for any
other combination
of
tenors
and
profiles

Age of the At the end of RC book along Business head and


car
tenor
should with
the above
not be more application form
than 6 years
INCOME
1)For
self ITRs
1)RCM/NSM
employed/
for
shortfall
business entities
upto 10%
atleast Rs 6000/2)NCM
p.a (for current
/Business head
and
previous
/Risk head for
byear)
shortfall upto
2)For salaried Rs
20%
100000/- p.a (For
3) For short
current year)
fall>20%
business
head/Risk
head
COMFORT
Any one of the
1) Share
1)NCM/Busin
CONDITION following
certificate/ Sale ess head/Risk
condition to be
deed/Electricit Head for the
satisfied
y bill
validation
1) Owned
2) Shop
and document
residence/
establishment
2)Otherwise
owned
certificate of business head/
office
the
risk head
2) In
the
commencemen
current
t
of
the

45

business for
at least 5
years(self
employed)/i
n
current
job for 3
years
(salaried)
3) Repayment
track
4) Healthy
bank
statement

business/audite
d
financials/salar
y
slip/Form16/Letter from
the employer
3) As defined in
the section 6(b)
of the auto
policy
4) As defined in
the section 5 of
the auto policy
for
the
alternate to the
income proof

LTV

1)Up
to
5%-NCM/NSM/Business
head/Risk head

As per the As per the


Grid
Grid

2) >5% Business head /Risk


Head and above

No income proof product not to be done for this variant.


Individual employed with proprietorship and partnership
firms shall not qualify for this variant.
No disbursment to be made to the DMA/dealer (otherwise
applicable for the used cars) under this variant.
All credit and the documents norms of the used car policy
not mentioned in this note shall apply

46

LTV GRID

For tenor upto 2 years and standard profiles only

Income

<=60k

LTV as 65%
% of

>60kto100k

>100k

70%

75%

Should meet one comfort condition each out of the comfort condition listed in part A
and part B

Part A
Ownership
of
premises

Either residence Electricity


bill/Share
or the office Certificate
/Sale
should be in Aggrement/Property tax bill
owned premises

No
deviation to
be
excercised
on
this
norm
Average
Should be 1.5 Balance to be calculated by No
bank balance times
the calculating
average
of deviation to
th
th
th
proposed EMI
balances on 5 ,15 ,25
be
of every month
excercised
on
this
norm
Repayment
As per section 6 As per section 6 b of car No
track
b of car loans loans credit policy
deviation to
credit policy
be
excercised
on
this
norm
Income
Minimum
Rs ITR/Form16/Salary
No
1.75 lac per Certificate
deviation to
annum
be
excercised
on
this
norm

47

CAR LOANS AT
.ICICI BANK
CAR LOANS
ICICI bank car loans scheme is the most convenience way to get the loan
for your new dream car.

ADVANTAGES OF CAR LOANS SERVICES AT ICICI


BANK
Speedy processing within 24 hours.
Covers the widest range of cars and multy utility vehicle in
India.
Finance up to 90% of its invoice value.
Flexible repayment option 12-84 month period.
Attractive car loans plans.
Among the lowest interest rates.
Hassle free documents.
Prepayment Prepay the loan anytime after 1 months at a small
charge(3%,4%).

48

ELIGIBILITY AND DOCUMENTATION FOR CAR


LOANS
FOR SALARIED INDIVIDUALS
ELIGIBILITY: Minimum age of applicant :21 years
Maximum age of applicants at loan maturity 58 years.
Minimum employment: 1 year in current employment and
minimum 2 year of employment.
Minimum annual income :Rs 60000 net annual income
Telephone : must at residence.

DOCUMENTATION:
Proof of Identy: Passport copy , PAN card, Voter ID, Driving
license.
Income proof: Latest salary slip with Form No 16
Address proof: Ration card, Driving license, Telephone bill,
PAN card, Voter card/ Electricity bill.

49

Bank statement: Not mandatory.

FOR SELF EMPLOYED


ELIGIBILITY:
Minimum age of employment: 21 years
Maximum age of Applicant at loan maturity: 65 years.
Minimum employment: 3 years in business.

Minimum annual income: Net profit price 60000 pa. for


standard cars and Rs 100000 pa. for mid sized and premium
cars.
Telephone: must at residence.

DOCUMENTATION:
Proof of identy: Passport copy, PAN card, Voter ID card,
driving license.
Income proof: Latest ITR

50

Address proof: Ration card/Driving license,/Telephone


Bill/PAN card/Voter card/Electricity bill.
Bank Statement: Waived for small cars for mid sized and
premium car if income is greater than Rs 1.5 laks then bank
statement can be waived.

FOR PARTNERSHIP FIRMS


ELIGIBILITY: Minimum income: Net profit Rs. 60000 pa. for standard cars
and Rs. 100000 pa. for mid sized and premium cars.
Minimum turn over: Turn over Rs 4.5 lacs.
Telephone : one phone at least at business and residence of the
loan executing partner.

DOCUMENTATION: Proof of Identy: NA


Income proof: Audited balance sheet, profit and loss account for
latest 2 years and list 2 years IT return of the company.

51

Address proof: Telephone Bill/Electricity bill/shop and


establishment act certificate/SSI registered Certificates/sales tax
certificates.
Bank statement: Waived for small cars, for mid sized and
premium cars, if income is greater than Rs. 1.5 lacs than bank
statement requirement can be waived.

FOR PRIVATE LIMITED COMPANY


ELIGIBILITY: Minimum income: net profit Rs. 60000 pa. for standard
cars and Rs. 100000 pa. for mid sized and premium cars.
Minimum turn over: Turn over Rs. 4.5 lacs.
Telephone: one phone at least at business premises.

DOCUMENTATION: Proof of Identy: NA


Income proof: Audited balance sheet, profit and loss account for
latest 2 years and list 2 year IT returns of the company.

52

Address proof: Telephone Bill/Electricity bill/shop and


establishment act certificate/SSI registered Certificates/sales tax
certificates.
Bank statement: NA

FOR PUBLIC LIMITED COMPANY


ELIGIBILITY: Minimum income: net profit Rs. 60000 pa. for standard
cars and Rs. 100000 pa. for mid sized and premium cars.
Minimum turn over: Turn over Rs. 4.5 lacs.
Telephone: one phone at least at business premises.

DOCUMENTATION: Proof of Identy: NA


Income proof: Audited balance sheet, profit and loss account for
latest 2 years and list 2 year IT returns of the company.

53

Address proof: Telephone Bill/Electricity bill/shop and


establishment act certificate/SSI registered Certificates/sales tax
certificates.
Bank statement: NA

TWO WHEELERS LOANS AT


.ICICI BANK
Two wheeler loan at ICICI is simple documentation is minimal
and approval is quick.

ADVANTAGES OF TWO WHEELER LOANS


SERVICES AT ICICI
Speed loan approval
Wide variety of two wheeler financed.
Flexible repayment options, ranging from 6 to 36 months
available even at the point of purchase.
Repay through post dated cheques with easy EMIs
Lowest Interest rates.
Larger range of Schemes.

54

No guarantor required.

FOR
SELF
INDIVIDUAL

EMPLOYED

OR

SALARIED

ELIGIBILITY: Applicant must be between 21 and 60 years of age.


Applicant minimum gross income is equivalent to Rs 54000-pa.
if you reside in Mumbai, Delhi, Chennai, Banglore, Calcutta,
Pune and 42000/ pa. for all over the cities.
Applicant has working for last 2 years.
Applicant has a phone at his residence or office.

DOCUMENTATION: Proof of Identy: Passport copy/photo credit card/ voter ID


card/Driving license/PAN card.
Proof of address: Passport copy/rental agreement voters ID
card/Driver license/telephone bill.
Income proof: Latest salary slip with form 16 or latest ITR
copies.

55

56

RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of
action steps, necessary to effectively carry out research and the desired
sequencing to these steps. The marketing research is a process of involves
a no. of inter-related activities, which overlap and do rigidly follow a
particular sequence. It consists of the following steps: Formulating the objective of the study
Designing the methods of data collection
Selecting the sample plan
Collecting the data
Processing and analyzing the data
Reporting the findings
Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Report of findings

57

OBJECTIVES OF THE STUDY


The study undertaken includes the study of vehicle market, its recent
growth with a special focus on scope of vehicle finance.
Along with all this the basic objectives of the study undertaken are as
follows:

1. To find out the growth of vehicle market in Ghaziabad in last one


year.
2. To find out the growth of vehicle finance in Ghaziabad to know the
customers preference for various vehicles.
3. To know the customer choices for various schemes of vehicle
finance.
4. To find out the attribute emphasize by ICICI bank to do well in
Ghaziabad .

58

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a
particular study.
A research design is the arrangement of conditions for collection and
analysis of the data in a manner that aims to combine relevance to the
research purpose with economy in procedure. Research design is broadly
classified into three types as
Exploratory Research Design
Descriptive Research Design
Causal Research Design
I have chosen the descriptive research design.

DESCRIPTIVE RESEARCH DESIGN:


Descriptive research studies are those studies which are concerned with
described the characteristics of particular individual.
In descriptive as well as in diagnostic studies, the researcher must be able
to define clearly, what he wants to measure and must find adequate
methods for measuring it along with a clear cut definition of population
he want to study. Since the aim is to obtain complete and accurate
information in the said studies, the procedure to be used must be carefully
planned. The research design must make enough provision for protection
against bias and must maximize reliability, with due concern for the
economical completion of the research study.

59

METHOD ADOPTED
The method adopted for the study is survey method. The data
is collected through questionnaires. The sample size for car market is 8
for 2 wheeler market are 9 and for customer it is 250. The sampling used
for collecting data from the customers is accidential sampling.

SURVEY PLACE
The project has been done in Ghaziabad City, in State
Uttaranchal with LUXMI FNANCERS DSA OF ICICI BANK.

SURVEY TOOL
For the purpose of the study, data of last two financial year
2005 and 2004 has been taken into account. Thus for carrying out the
study the method adopted is questionnaire method for the purpose of data
collection. These questionnaires are in the form of structured one. There
were basically two types of questionnaires that were designed.

1. Questionnaire for vehicle dealers


2. Questionnaire for customers

60

FIELDWORK
The questionnaire administrating covered a period of
40 days. All the major showrooms of vehicle are visited and the
appropriate data was collected through filling questionnaire by the
appropriate person.
Apart from these 250 customers has been surveyed
through especially designed questionnaire to know the scope of vehicle
finance in Ghaziabad.

61

DATA ANALYSIS
FIG NO 1.
SALES CHART OF THE TWO WHEELER
COMPANIES IN GHAZIABAD(Last 2 years sales)
S
Company
NO.
1
2
3
4
5
6
7
8
9

BAJAJ
HONDA
H.
HONDA
TVS
KINETIC
HERO
YAMAHA
R.
ENFILD
LML

2003-2004
Total Cash
sales Sales
7530 5898
2600 1690
2400 1400

2004-2005
Financed Total Cash
Sale
sales
sales
1632
6822 5515
910
2300 1490
1000
2400 1400

Financed
sale
1307
810
1000

2150
1500
800
400
167

1600
900
500
200
83

550
600
300
200
84

2400
1400
850
600
287

1600
820
500
300
143

800
580
350
300
144

***

***

***

800

640

160

howroom was not there


The above table is showing the cash, financed and total sales of two
wheelers Companies in Ghaziabad in last 2 years.

62

FIG NO 2
SALES GROWTH OF TWO WHEELERS IN
GHAZIABAD
(last one year)
SALES GROWTH

The above graph is showing that the total sales of the two wheelers have
increased in 2004-05 as compared to 2003-04 in Ghaziabad.

63

FIG NO 3
CASH AND FINANCED SALES RATIO OF TWO
WHEELERS MARKET IN GHAZIABAD
(last 2 years sales)

The above graphs are showing the percentage of financed sales ratio of
two wheelers have increased in 2004-05 as compared to 2003-04 in
Ghaziabad.

64

FIG NO 4
TOTAL
SALES
OF
TWO
COMPANIES IN GHAZIABAD

WHEELERS

Sales in 2003-04

Sales in 2004-05

The above graphs are showing the total sales of two wheelers companies
in Ghaziabad in year 2003-04 and 2004-05

65

FIG NO 5
SALES GROWTH OF TWO
COMPANIES IN GHAZIABAD
S No.

COMPANY

1
2
3
4
5
6
7
8
9

BAJAJ
HONDA
H HONDA
TVS
KINETIC
HERO
YAMAHA
R RNFILD
LML

WHEELERS

SALES OF SALES OF SALES


2003-2004
2004-2005
GROWTH
IN %
7530
6822
-9.40
2600
2300
-11.54
2400
2400
STABLE
2150
2400
+11.63
1500
1400
-6.67
800
850
+6.25
400
600
+50.00
167
287
+71.86
***
800
------

***showroom was not there in 2003-04


The above table is showing the percentage of sales growth of two wheeler
companies in Ghaziabad in last one year.

66

FIG NO 6
CASH AND FINANCED SALES OF TWO
WHEELERS COMPANIES IN GHAZIABAD
Cash and financed sales in 2003-04

Cash and financed sales in 2004-05

The above graph showing the cash and financed sales of two wheeler
companies in Ghaziabad in year 2003-04 and 2004-05.

67

FIG NO. 7
FINANCED GROWTH OF THE TWO WHEELER
COMPANIES

S No.

COMPANY

1
2
3
4
5
6
7
8
9

BAJAJ
HONDA
H HONDA
TVS
KINETIC
HERO
YAMAHA
R RNFILD
LML

FINANCED
OF
20032004
1632
910
1000
550
600
300
200
84
***

FINANCED
OF
20042005
1307
810
1000
800
580
350
300
184
160

FINANCED
GROWTH
IN %
-19.91
-10.99
STABLE
+45.45
-3.33
+16.67
+50.00
+71.43
------

***showroom was not there in 2003-04


The above table is showing the percentage of financed growth of two
wheeler companies in Ghaziabad in last one year.

68

FIG NO 8
MARKET
SHARE
OF
COMPANIES in 2003-04

TWO

WHEELER

MARKET
SHARE
OF
COMPANIES in 2004-05

TWO

WHEELER

The above fig showing the market share of two wheeler companies in
Ghaziabad.

69

FIG NO. 9
TOTAL SALES CHART OF THE
WHEELERS MARKET IN GHAZIABAD
(last 2 year sales)
S
Company
NO.
1
2
3
4
5
6
7
8

2003-2004
Total Cash
sales Sales
HYUNDAI
475
87
TOYATA
144
22
TATA
850
298
G MOTORS 110
2
S
KODA ***
***
IND
FIAT
205
5
MAHINDRA 540
-AND
MAHINDRA
MARUTI
1600 800

FOUR

2004-2005
Financed Total Cash
Sale
sales sales
388
896
142
122
160
24
552
899
311
108
125
2
***
80
1

Financed
sale
754
136
588
123
79

200
540

234
580

3
--

231
580

800

1600

800

800

***showroom was not there in 2003-04


The above table is showing the total sales of four wheeler companies
including cash and financed sales in Ghaziabad in last one year.

70

FIG NO 10
TOTAL SALES GROWTH OF FOUR WHEELERS
MARKET IN GHAZIABAD

The above graph showing the total sales of four wheelers have increased
in 2004-05 as compared to 2003-04.

71

FIG NO 11

CASH AND FINANCED RATIO OF


WHEELERS MARKET (last 2 year sales)

FOUR

CASH AND FINANCED % IN 2003-04

CASH AND FINANCED % IN 2003-04

The above graphs are showing the percentage of cash and financed ratio
of four wheelers in Ghaziabad.

72

FIG NO 12
TOTAL
SALES
OF
FOUR
COMPANIES IN GHAZIABAD

WHEELER

SALES IN 2003-04

SALES IN 2003-04

The above graphs are showing the total sales of four wheeler companies
in Ghaziabad.

73

FIG NO. 13
SALES GROWTH OF THE FOUR WHEELER
COMPANIES IN GHAZIABAD

S No.
1
2
3
4
5
6
7
8

COMPANY

FINANCED
OF
20032004
HYUNDAI
475
TOYATA
144
TATA
850
G MOTORS
110
SKODA IND
****
FIAT
205
MAHINDRA AND 540
MAHINDRA
MARUTI
1600

FINANCED
OF
20042005
896
160
899
125
80
234
580

FINANCED
GROWTH
IN %
+86.33
+11.11
+5.76
+13.63
****
+14.15
+6.90

1600

STABLE

****showroom was not there in 2003-04


The above table is showing the percentage of sales growth of four
wheeler companies in Ghaziabad in last one year.

74

FIG NO 14
CASH AND FINANCED
WHEELERS MARKET

RATIO

OF

FOUR

Cash and financed sales in 2003-04

Cash and financed sales in 2003-04

The above graph is showing the cash and financed sales of four wheelers
companies.

75

FIG NO. 15
FINANCED GROWTH OF THE FOUR WHEELER
COMPANIES

S No.

COMPANY

1
2
3
4
5
6
7

HYUNDAI
TOYATA
TATA
G MOTORS
SKODA IND
FIAT
200
MAHINDRA AND 540
MAHINDRA
MARUTI
800

FINANCED
OF
20032004
388
122
552
108

FINANCED
OF
20042005
754
136
588
123
79
231
580

FINANCED
GROWTH
IN %
+94.32
+11.48
+6.52
+913.89

800

STABLE

+15.50
+6.90

****showroom was not there in 2003-04


The above table is showing the percentage of financed growth of four
wheeler companies in Ghaziabad in last one year.

76

FIG NO 16
MARKET SHARE OF
COMPANIES IN 2003-04

FOUR

WHEELER

MARKET SHARE OF
COMPANIES IN 2004-05

FOUR

WHEELER

The above table is showing the percentage of market share of four


wheeler companies in last one year.

77

FIG NO 1
PREFERENCE OF VEHICLE
Scooty
Scooty

Out of 250 sample size 40 percent responded to bike, 35 percent


responded to cars and remaining 25 percent responded to scooty.

FIG NO 2
Age wise preference of Bikes

Out of 40 percent who respond for bike are most of 18-25 years age
group because youngsters mostly prefer bike to others.

78

FIG NO 3
Age Wise Preference To Scooty

Out of 25 percent who respond for scooty are mostly of 18-25 years of
age group because middle class groups and girls mostly prefer scooty to
others. As it is easy, comfortable and economical.

FIG NO 4
AGE WISE PREFERENCE OF CARS

Out of 35 percent who responds for cars are mostly of 35-50 years age

79

because higher income groups mostly prefer cars to others because it


belongs to the status. In addition to this there is one more reason why
people prefer cars in a day there is easy availability of financing schemes
at minimal rate of interest.

FIG No 5
PRIORITIES IN SCOOTY SEGMENT

People prefer fuel efficiency more in scooty than other priorities because
middle class mostly purchase scooty and they want it more economical
for them.

80

FIG NO 6
PRIORITIES IN BIKES SEGMENT

People prefer look and fuel efficiency more in bikes than other priorities
because youngsters mostly prefer look in bikes.

FIG NO 7
PRIORITIES IN CARS SEGMENT

In car segment people prefer fuel efficiency and look simultaneously.

81

FIG NO 8
CASH/FINANCE RATIO IN BIKES

In bikes segment 64 percent people wants to purchase bike on finance and


36 percent wants on cash basis.

FIG NO 9
CASH/FINANCE RATIO IN SCOOTY

In scooter segment 45 percent people wants to purchase scootey on


finance basis and 55 percent on cash basis.

82

FIG NO 10
CASH/FINANACE RATIO IN CARS

In car segment 78 percent people want to purchase car on finance basis


and 22 percent on cash.

FIG NO 11

PRIORITIES OF SCHEME

People mostly prefer low interest rate schemes and more time period of
EMI to other schemes.

83

FINDINGS
1. Two wheeler market are rising in Ghaziabad because of stiff
competition between two wheeler companies. Every company is
launching new model with attractive prices and with latest
technology in order to capture the market.
2. Customers are getting easy and hassle free finance option for
purchasing the vehicle because of emergence of various financial
institutions in Ghaziabad.
3. Total sales of most two wheelers companies are increasing.
4. Two wheeler companies like TVS, YAMAHA, ROYAL ENFIELD
are doing well in the market of Ghaziabad.
5. More than 2% of wheelers market has gone up in Ghaziabad in last
one year.
6. Four wheeler market is also rising in Ghaziabad because of easy
finance options provided by various financial institutions.
7. Almost all four wheeler companies sales have increased in last one
year.

84

8. Finance sales of four wheeler are increasing very fast than cash
sales.
9. In car segment there are various models available for every class of
customer.
10.In customer survey it has been found that there is a lot of scope for
vehicle finance in Ghaziabad in future.

85

SUGGESTIONS AND RECOMMENDATIONS


1. As the market is growing in Ghaziabad so there is a lot of scope for
vehicle finance in Ghaziabad so ICICI bank should keep this thing
in
mind and make the vehicle finance more comfortable for customer.
2. ICICI Bank should cover all vehicle dealers in Ghaziabad.
3. ICICI BANK should make vehicle finance easier and hassle free to
customer.
4. As people still dont know about the schemes of ICICI BANK in
Ghaziabad so ICICI BANK should do campaigning at different
locations at Ghaziabad to increase awareness about the bank
existence .
5. ICICI BANK should focus on better communications between
vehicle dealers and the bank to maintain good relationship.
6. ICICI BANK should make people aware about their vehicle
finance schemes to people of Ghaziabad to attract more customers.
7. ICICI BANK should pay attention towards these vehicle dealers

86

which are doing well in Ghaziabad.


8. ICICI bank should go for more eye catching advertisement
programmers and roadside hordings.
9. ICICI BANK should introduce new and attractive vehicle
financing
schemes like 0% interest schemes on some special occasions.
10.ICICI BANK should develop a healthy competition between the
two wheeler dealers through various incentives schemes.
11.ICICI BANK should advertise about their schemes in leading news
paper ofGhaziabad like Amar Ujala,Danik Jagran,Times of India
etc.
12.HDFC BANK should offer more attractive schemes of vehicle
finance on leading vehicle companies to capture the market.

87

LIMITATIONS OF SURVEY
1. Sample size of customers is very small ie.. 250 people as compared
to survey place ie. Ghaziabad.
2. In our customer survey some people was not ready to fill the
questionnaire.
3. Sometimes due to lack of respondents support it has become
difficult to get required information.
4. The data collected is approximate as it is obligatory for every
company to disguise its actual data.
5. The tool we used for the study was the structured questionnaire
which is itself has narrow scope.
6. The analysis done has got limited scope.

88

TWO WHEELER DEALER IN GHAZIABAD


1.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

BAJAJ
ESPEE ENTERPRISES PVT LTD
93 NEW RAILWAY ROAD
274909,274187

:
:
:

HERO HONDA
GHAZIABAD MOTOR
81 HARIDWAR ROAD,CIVIL

2747343,274733

3.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

TVS MOTORS
B M AUTO
124/3A AZAD NAGAR
274565,274500

4.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

LML
PRAGATI SALES
36/2 HARIDWAR ROAD
274138,274398

5.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

HONDA
ESS ELL MOTORS
446/5,DEHRADUN ROAD
274362,274363

2.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
LINES
PHONE NUMBER

89

6.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

YAMAHA
SHREE VASU MOTORCYCLES
23,CIVIL LINES GHAZIABAD
265426

7.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

ROYAL ENFILD
AHUJA ENTERPRISES
94 CIVIL LINES
265082

8.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

KINETIC
JAIN ENTERPRISES
714/3C PATHANPURA
271040,272796

90

FOUR WHEELER DEALERS IN GHAZIABAD


1.
NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

COMMERCIAL HYUNDAI
COMMERCIAL AUTO PVT LTD
653 DELHI ROAD
26512,271882

NAME OF COMPANY
NAME OF DEALER

:
:

TOYOTA
COMMERCIAL MOTORS
SALES PVT LTD

ADDRESS

PHONE NUMBER

M22 RAMNAGAR,
INDUSTRIAL AREA,
SAHARANPUR ROAD
264162,264841

NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

TATA
MALWA MOTORS
79 CIVIL LINES
264011

NAME OF COMPANY
NAME OF DEALER

:
:

ADDRESS

PHONE NUMBER

FIAT
FIAT MOTORCRAFT
AUTOMOTIVE
SUBHASH NAGAR CHOWK,
GHAZIABAD
264080

2.

3.

4.

91

5.
NAME OF COMPANY
NAME OF DEALER

:
:

ADDRESS

PHONE NUMBER

MAHINDRA AND MAHINDRA


GHAZIABAD PREMIER
MOTORS PVT LTD
44/3,CIVIL LINES HARDWAR
ROAD
260057,262058

NAME OF COMPANY
NAME OF DEALER
ADDRESS
PHONE NUMBER

:
:
:
:

MARUTI
SHAKUMBARI MOTORS
130/1 DEFENCE COLONY
266097

6.

92

QUESTIONNARE FOR DEALERS

1) Name of Dealer .

2) Name of Company

3) Details of Firm

Name ..

Address .

Phone No. (O)

93

(R)

E Mail ID ..

4) NO. of years in the Market of Ghaziabad.

5) Number of two wheeler Models


S No.

Model

Price

a)
b)
c)
d)

6) Number of Four wheeler Models


S No.

Model

Price

a)
b)

94

c)
d)
7) Financing companies you are attached with

a)

HDFC

b)

ICICI

c)

CITI BANK

d) CENTURION BANK
e) TATA FINANCE
f) KOTAK MAHINDRA

8) Last two year cash sales of Two wheeler in figure

YEAR

MODELS

2003-2004

2004-2005

95

9) Last two yearFinanced sales of Two wheeler in figure

YEAR

MODELS

2003-2004

2004-2005

10) Last two year cash sales of Fourwheeler in figure


YEAR

MODELS

2003-2004

2004-2005

96

11) Last two year Financed sales of Fourwheeler in


figure
YEAR

MODELS

2003-2004

2004-2005

12) If any new financing company presents its financing


plan

what

will

be

response..
13) If yes, what will be the criteria
14) Any other information .

97

your

Signature
Name

98

CUSTOMER QUESTIONNAIRE

1.NAME .

2.WHICH AGE GROUP DO YOU BELONG

(A) 18-25

(B) 25-35

(B) 35-50

(D) Above 50

3.WHICH VEHICLE DO YOU WANT TO PURCHASE

(A)BIKE

99

(B)CAR

(C)SCOOTY

4.HOW DO YOU RATE THE FOLLOWING ATTRIBUTES(ON


SCALE 1-8) WHILE PURCHASING A VEHICLE
(A)LOOK
(B)FUEL EFFICIENCY
(C)POWER
(D)RESALE VALUE
(E)PRICE

5.ON WHAT TERMS WOULD YOU LIKE TO PURCHASE A


VEHICLE

(A)ON CASH PAYMENT


(B)FINANCE BY INSTITUTION

100

6.IF FINANCED THE PRIORITY OF FINANCIAL INSTITUTION

(A) RATE OF INTEREST

(B) DOWN PAYMENT SCHEME

(C) TIME PERIOD OF EMI

(D) LESS PAPER WORK

7.IF FINANCED WHICH INSTITUTION YOU WOULD LIKE TO


PREFER FOR FINANCE

(A)CENTURION BANK
(B)ICICI BANK
(C)HDFC

BANK

(D)KOTAK MAHINDRA
(E)TATA

FIANANCE

(F)OTHERS

101

8.WHY DO YOU PREFER THE PARTICULAR INSTITUTION

9.WHY YOU DONT PREFER THE ASSOCIATES

10.HOW MANY FINANCIAL INSTITUTIONS THAT FINANCE


VEHICLES DO YOU KNOW IN GHAZIABAD

(A) CENTURION BANK


(B) (B)ICICI BANK
(C)HDFC

BANK

(D)KOTAK MAHINDRA
(E)TATA

FIANANCE

(F)OTHERS

102

11.DO YOU WANT SECURED LOAN OR UNSECURED LOANS


(A) SECURED
(B) UNSECURED

12.YOUR ANNUAL INCOME


(A)0-60,000
(B)60,000-1,00,000
(C)1,00,000-1,50,000
(D)1,50,000-2,50,000
(E)ABOVE 2,50,000

13. WHAT ABOUT LOAN REPAYMENT


(A)ANUALLY
(C) MONTHLY

14.DO YOU HAVE ANY LOAN A/C IN ANY BANK


(A) YES
(B) NO

15.IF YES,BANK NAME..

103

A/C NO

SIGNATURE
NAME

BIBLIOGRAPHY
REFERENCE BOOK:
Marketing Research (Author- G C Beri)
(Publish by Tata McGraw Hill Publishing Co. LTD., New
Delhi)
Third Edition (2002)
Marketing Management (Author- Rajan Sexana)
(Publish by Tata McGraw Hill Publishing Co. LTD, New Delhi)

104

Second Edition (2001)


Marketing Management (Author- R S Sexana)
(Publish by Himalaya Publication, New Delhi)
Ninth Edition (2000)
Marketing Management (Author- Philip Kotler)
(Publish by Pren Tice-hall of India PVT. LTD., New Delhi)
Ninth Edition (2002)
Research Methodology (Author- Bhandrai)
Print 2004, second edition
WEB SITE:

www.icici.com
www.google.com
www.carsloanindia.com
www.rediff.com

105