Introduction

What is the project?

Project entitled “Business Development” include gamut of activities like marketing,

selling, promotion and research. This project includes activities like generating
DEALERSHIP NETWORK with dealers, CUSTOMER’S PERCEPTION and
MARKET PENETRATION in which we are targeting untapped market to expand the
company’s business. Hence under this title I am getting the knowledge of business as a
whole which can help me further if I will be working with other firm.

Definition and Purpose of the project:-

Definition-Business development involves evaluating a business and then realizing its full
potential, using such tools as marketing, information management and customer service.

Purpose-As far as company is concern our purpose is to know why the market share of
CNG-Ambassador in Taxi segment of Hindustan Motors is declining and to do market
Penetration of untapped market for LCV ‘WINNER’ in Mumbai.

Scope of the Project:-

As Mumbai is a vast city, it is best place to determine the problem being faced by
customers in CNG Ambassador and to penetrate the market and also to find out customer
expectation for LCV ‘WINNER’. Mumbai city has helped us a lot because we were
dealing with all kinds of people from taxi-Drivers to Government-officials.

Contribution of Project:-

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This project has helped company to know their market share and what are the reasons in
their declining in taxi segment Also through research they came to know about the
customer’s expectation in the LCV ‘WINNER’. Hence they came to know about their
strengths, weakness, opportunity and threats.

Company Overview –

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 G.P Birla C.K Birla
Company Profile
Hindustan Motors was the first Indian Car Company to start production In India.
Hindustan Motors limited, pioneers in Indian automobile sector is one of the C.K.Birla
groups of companies. The company came into existence in 1942 at port Okha, later the
company was shifted to Uttarpara (West Bengal), near Kolkata.
It started production of the Land master in 1954, and in 1957 began the production of the
Ambassador. At present, it is a one billion turnover company manufacturing Passenger
Cars, Utility Vehicles, Power Products and Earthmoving Equipment.
The manufacturing facilities of the company are spread across India: Uttarpara in West
Bengal, Pithampur in Madhya Pradesh, Thiruvallur and Hosur in Tamil Nadu, and
Pondicherry. The latest model, Mitsubishi Lancer, is manufactured in their state - of - the
- art manufacturing facility at Thiruvallur, Tamil Nadu.
The Passenger Car and Utility Vehicle market is being attended by a 115 strong dealer
network, 50 Service and Parts dealers and additional 60 exclusive Parts
dealers. Hindustan Motors has a widely spread network which includes 4 Regional
Offices and Nation-wide Territory Offices all across the globe. Two dealers serve the
Earthmoving Equipment and Power Products market from 25 locations spread across the
country.

THREE DIVISIONS OF HINDUSTAN MOTORS

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In a bid to streamline the after sales service, three divisions have been made, namely red,
blue and green. The Red will handle the new Mitsubishi Lancer, Blue, the Ambassador
and Contessa Classic, while the Green caters to the rural market with the LVC “Winner”

HINDUSTAN MOTORS

BLUE LINE RED LINE GREEN LINE

Joint Ventures & Alliances

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  Isuzu and Joint Venture

Hindustan formed a collaboration with Isuzu to maufacture engines and transmission for
the Contessa in late 1980s at Pithambur near Indore.

 Mitsubishi Joint Venture

Hindustan has a joint venture with Mitsubishi that started 1998. The plant is located in
Thiruvallur, Tamil Nadu.

 Shandong Shifeng

Hindustan Motors, in collaboration with a Chinese company,Shandong Shifeng, has

launched a mini-truck that will compete directly with the Tata Ace. Named Winner, the
HM-Shifeng mini-truck will be built at HM’s Uttarpara plant.

Three Product Lines

The company has Three lines of products.

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The Hindustan Ambassador is a car manufactured by Hindustan Motors of India. It has
been in production since 1958 with few modifications or changes and is based on the
Morris Oxford III model first made by the Morris Motor Company at Cowley, Oxford in
the United Kingdom from 1956 to 1959.

Despite its British origins, the Ambassador is considered as a definitive Indian car and is
fondly called "The king of Indian roads". The automobile is manufactured by
Hindustan Motors at its Uttarpara plant near Kolkata, West Bengal.
All the cars manufactured by Hindustan Motors conform to Euro-1 emission norms. This
has been achieved by the upgrading of the Ambassador 1800 ISZ with multi - point fuel
injection. The Ambassador was always in conformance with these norms.
Various Variants of Ambassador Models.

Petrol: 1800 ISZ MPFI

Diesel: 1.5 E2 DSL

Classic 2000 DSZ

CNG: 1.5 E2 CNG/LPG

1800 ISZ with CNG/LPG

 Passenger Vehicles

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The company's second model line-up is the Lancer, made in collaboration with
Mitsubishi. Once a strong player in the small but important C-segment in India, the last
generation Lancer made by HM has seen sales decrease in the face of the entry of new
models to the segment.

Mitsubishi Motor's automotive tradition goes back to 1917 when the Mitsubishi Model
A, Japan's first series-production automobile, was introduced. Over the next two decades
the company established themselves as an innovator, developing, amongst others, Japan's
first diesel engine, its first large-sized bus (the start of the world famous Fuso commercial
vehicle series), its first four-wheel drive passenger car prototype, and its first diesel-
powered truck.

Mitsubishi does not have any plans to enter the small car segment as the ``segment was
too crowded.'' Hindustan Motors has fine tuned its marketing strategy and also made
some changes in the pricing of Lancer variants in an attempt to sell more number of
Lancer cars during 2010 to make up for the negative growth in 2009. In 2008, Hindustan
Motors sold 4,500 Lancer cars but its sales dipped to 3,000 units in 2009. It now expects
to sell 5,000 cars in 2010.

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 Light Commercial Vehicle

Hindustan Motors, entered the Light Commercial vehicle market, with HM Shifeng
Winner, the sub 3 Ton Mini Truck, with 1 ton payload capacity. Furthermore, to provide
its customers, focused service & attention, HM has intended to appoint exclusive Winner
dealership in select markets. The vehicle has a 4 cylinder 1800cc engine, with 5 forward
& 1 reverse gear that gives optimum fuel efficiency, double cylinder fuel tank with 65 ltr,
water capacity each, bigger tyres, high ground clearance & bigger cargo box, stylish
comfortable & safe truck.

Shandong Shifeng is the Chinese partner for HM in the mini-truck venture. There will be
1,000 units of the HM Winner produced monthly for while. In a couple of months from
now, we can also see a CNG Winner and some unspecified variants. The CNG Winner
will likely be sold only in New Delhi, which has a pretty good infrastructure of CNG
filling stations.

The HM Shifeng Winner has a capacity of 1 tonnes and is now available in Kolkata for a
price of Rs 3.9 lakhs ex-showroom. The reports about the Winner initially seemed to say
that it is a 2.3 tonne truck. Not so. This is a 1 tonne truck firmly placed in the Tata Ace
category.

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Vision and Mission Statement

 Mission
“Maintaining a global viewpoint, we are dedicated to supplying products of the highest
quality, yet at a reasonable price for worldwide customer satisfaction”.

 Vision

"HM’s vision is to be the world leader in transportation products and related services. We
will earn our customers’ enthusiasm through continuous improvement driven by the
integrity, teamwork, and innovation of HM people."

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Review of Literature And Theoretical Background
CNG is a fossil fuel substitute for gasoline (petrol), diesel, or propane/LPG. Although its
combustion does produce greenhouse gases, it is a more environmentally clean alternative
to those fuels, and it is much safer than other fuels in the event of a spill (natural gas is
lighter than air, and disperses quickly when released). CNG may also be mixed with
biogas, produced from landfills or wastewater, which doesn't increase the concentration
of carbon in the atmosphere. Worldwide, there were 11.2 million natural gas vehicles by
2009, led by Pakistan with 2.4 million, Argentina (1.8 million), Iran (1.7 million), Brazil
(1.6 million), and India (725 thousand) with the Asia-Pacific region leading with 5.7
million NGVs, followed by Latin America with almost 4 million vehicles.

CNG produces significantly lesser emissions of pollutants like carbon dioxide (CO2),
hydrocarbons (UHC), carbon monoxide (CO), nitrogen oxides (NOx), sulfur oxides (SOx)
and particulate matter (PM), as compared to petrol . For example, an engine running on
petrol for 100kms emits 22,000 grams of CO2, while covering the same distance on CNG
emits only 16,275 grams of CO2. Due to lower carbon dioxide and nitrogen oxides
emissions, switching to CNG can help mitigate greenhouse gas emissions. The ability of
CNG to reduce greenhouse gas emissions over the entire fuel lifecycle will depend on the
source of the natural gas and the fuel it is replacing.

THE Bombay High Court order stating that all 137-D diesel-engine Premier model taxis
in Mumbai be either phased out or converted to compressed natural gas (CNG) or
liquefied petroleum gas (LPG) by May 31, opened a can of worms that has, among other
things, exposed the lack of infrastructure to facilitate the change. The order states that by
April 30 all diesel taxis will have to go off the road and by May 31 their registration
should be cancelled if they have not been converted to CNG mode.

Financial Status of Hindustan Motors

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Hindustan Motors posted 12 pc growths in Ambassador sales during May this year with
1010 units. Between April and May 2005, the growth was 16 pc at 2012 units over the
corresponding period last year.

Last Price Market Capital Sales Turnover Net Profit

Hindustan Motors 23.45 377.85 Cr 580.27 Cr -51.10

Shares in car maker Hindustan Motors jumped as much as 20 per cent on Monday after a
television channel reported three foreign automakers were in talks to buy a stake. General
Motors, Mitsubishi Motors Corp and Isuzu Motors had started preliminary negotiations
separately for buying a holding.
The company, which has a tie-up with Japan's Mitsubishi Motors to make Lancer sedan
and the Pajero sport utility vehicle, had reported a net loss of Rs 428.6 million for the
year ended March 31.
In May, the firm said it would approach the Board for Industrial and Financial
Reconstruction (BIFR) as its net worth eroded by more than half.

The company's plant in Chennai, with a annual capacity of 12,000 vehicles, was a likely
target for acquisition. Hindustan Motors is a tiny player in India's booming automobile
market. Car sales in India rose 30 per cent to 148,481 units in May, data from the Society
of Indian Automobile Manufacturers showed.

Shares of Hindustan Motors, with a market value of $71.5 million were up 20 per cent at
Rs 24.6 ,while the main Mumbai market rose 1.71 per cent.

Stock of Hindustan Motors

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The above figure shows the stock of Hindustan Motors indicating the stock price of this
automobile industry is going down day by day with a value of stock has dropped from
33.4 to 23.45 in current BSE.

“Hindustan Motors Limited enters into a Finance tie up

with Punjab National Bank for Commercial Mini Truck
“Winner” ”.

- Mr. Rattan Singh - Chief General Manager Sales & Marketing.

Hindustan Motors Limited (HML), the flagship company of the C. K. Birla group and a
pioneer of the automobile revolution in India, today entered into a 3 year MOU finance
tie up with Punjab National Bank for its new 2.3 Ton GVW Mini truck “HM – Shifeng
Winner”. The HMShifeng
Winner, the newly launched Mini Truck is presently available in following three
versions:

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1. HM Shifeng Winner 1.5 D BS II
2. HM Shifeng Winner 1.5 D BS III
3. HM Shifeng Winner 1.8 CNG BS IV
Mr Rattan Singh Chief General Manager Sales & Marketing (Vehicles) informed that
Hindustan Motors Mini Truck “Winner” is the first
LCV of the country in CNG with BSIV version which has a Powerful 4 cylinder 1800
cc Engine that assures best operating economics and income to its customers apart from
secured future with low running cost. He informed that Winner has advantage of double
cylinder CNG Tank that can cover large distance and can operate as Mini Highway Truck
with bigger tyres, high ground clearance and large loading space. Mr Rattan Singh also
informed that Winner being the only BSIV CNG vehicle in LCV category is the most
environment friendly vehicle that has been introduced by any Automobile manufacturer
in India most suitable for Inter & Intra city applications providing higher returns and
income to users.
At present the Winner is marketed in select markets of Tamil Nadu, Andhra Pradesh,
Karnataka, Orissa, West Bengal, North East & now in Delhi NCR. Shortly, Company will
enter the markets of Gujrat, Maharashtra &UP.
Considering the need of customers, Hindustan Motors & Punjab
National Bank has jointly signed a Memorandum of Understanding to finance Winner
throgh PNB for 3 years with an easy and attractive finance scheme. PNB with their
wide spread network in above markets will be able to cater the need of Hindustan Motors
customers of “WINNER” by financing their vehicles.

“The inability to innovate and provide a good after sales

network also has cost Hindustan Motors”
- Abdul Majeed, leader for auto practice.

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Sales of the Ambassador have been on a weak trend, while their counterparts from other
companies have seen rising demand. While the Ambassador sells only 850 units a month
countrywide, sales of comparable models, such as the Honda City, average 5,000 units
every month. On an overall basis also, HM doesn’t fare well. In the April-February
period, sales of the Ambassador, was at 7,976 units, is way lower compared to peers such
as the Maruti- Suzuki at 88,862 units.
Its marketshare, at 3% of the Indian mid-size sedan market, is miniscule compared to
rivals such as Maruti Suzuki at 36%, Tata Motors at 20% and Honda at 16%. The
inability to innovate and provide a good after sales network also has cost Hindustan
Motors dear.” Even the marketing reach of Hindustan Motors is small compared to its
peers. While the company’s products are served only through 45 dealers for the entire
country, Maruti Suzuki and Tata Motors have more than 1,000 dealers. The inability to
reach out to a larger section of the customers is another reason for the loss in market
share.

Primary Objective:

• Market Share Analysis of CNG Ambassador in Taxi – Segment in western region.

• Market Research of ‘Winner’ in LCV segment in western region.

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Secondary Objective:

1. To find out the reasons behind the reducing market share of

Hindustan Motors.
2. To understand the consumer perception from the vehicle.
3. To find out the market penetration of LCV ‘WINNER’ in
Mumbai Region.
4. To study the competitor analysis for ‘WINNER’ in LCV
Segment.

RESEARCH METHODOLOGY

-American Marketing association

“A systematic gathering, recording and analyzing of data about problem relatively to
marketing of good services”

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Market research in a problem solving device. It is a continuous and evolving process as
the need and wants keeps changing. It is a well-defined, planned process compromising
of systematic and intensive investigations. It adopts scientific methods and objectivity in
solving marketing problem. Market research should be given prime importance in an
every organization. This not only help us to analyze our weakness but also give first hand
information about the latest trend going on market. One has to learn from report and takes
appropriate actions on which strategies are also to be adopted in future. Research should
be given prime importance in every organization. This is not taken in a negative way but
one has to learn from mistakes and adopt the appropriate way of successful marketing.
The choice of research activity in the organization gives a solution to the exact method to
be adopted for the selling activity

To find out the prospect of Hindustan Motors, Mumbai region followed research process
was followed.

STEP 1:

Problem identification

The first step of marketing research is to understand the problem. Management of

company faces lot of difficulties and it expect marketing research to address solution to
these problems.It is most important stage in applied research as poorly defined problems
will not yield useful results. It is rightly said that “a problem well defined is half-solved
“Poorly defined problem cause confusion and do not allow the researcher to develop a
good research design.

STEP 2
Research Objectives

There should be some objectives related to the problem after defining the problems. After
defining objectives there should be the plan developed for gathering the information. So I
plan accordingly and formulate the objectives and work on it.

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STEP 3
Research design

Steps of Research Methodology

a) Collection of data: Both the primary and secondary data has been collected from
the various Taxi Drivers, Tour Operators, Fleet Operators and Places where CNG
Ambassador is being used by the Customers.

b) Organization of data: Data once collected needs to be organized for further

processing. Data collected by us would be carefully going through then the relevant and
useful matter where it would be assorted and will be properly organized.

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c) Presentation of data: The data collected is of no use unless and until it is given in
a presentable form. Thus, after proper organization, the data is given in a presentable
form with complete details with the help of bar diagrams, pie charts etc.

d) Analysis of data: The data is carefully analyzed keeping in consideration both the
pros and cons for the purpose of arriving at concrete conclusions.

e) Interpretation of data: After carefully analyzing the data, it has been aptly
interpreted in order to give concrete conclusions and proper recommendations.

Research design is a path for market research project. It is procedure for gaining the
information required to solve research problem.
Source of data
Secondary data :-
Secondary data can be obtained internally i.e. within the firm. These includes knowledge
about company and sells process of the company.
Primary data:-
It consist of original collection gathered to specific purpose
It contains questionnaire also involved.
Methods for Collecting Primary Data
1. Observation method

2. Survey method

 Personal interview

 Telephonic interview

 Mail survey

3. Experimental survey
4. Panel survey
Researcher worked on survey method for collecting the primary data. As my research
area was very large so I prefer personal interview.
Design of Questionnaire

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It contain set of question which can be answered by respondent. And also approve by
company to it.

1. Research Design:

a) Descriptive research design has been used.

2. Research Plan:
a. Data sources:

i. Primary Data: Primary data has been collected from dealers, Taxi
Drivers & Tour Operators.

ii. Secondary Data: Secondary Data has been collected from Internet,
Brochures and Earlier Reports.

b. Research Approaches:
Type of research approaches used is: Survey Research.

c. Research Instruments:

Questionnaires (closed end as well as open ended

Questions have been used)

i. Interviews
ii. Schedules

d. Research Technique:

i. Pie Charts
ii. Bar Graphs

3. Sampling Plan:

Sampling Unit: Taxi Owners, Dealers and Car owners.

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Sample Size: The total Sample Size of 203 respondents was been taken for each
project.

86 were Taxi Drivers

47 were Tour Operators
40 Fleet Operators
30 Govt. officials.

Sampling Area: Mumbai City (West)

Sample Type: Non-Probalistic Convenience Sampling

Time Taken For Research: 8 Weeks.

Geographical Area: The Study has been Carried Out in Mumbai City, Especially in
These Areas.

a. Andheri West
b. Bandra West
c. Colaba
d. Malad West
e. Jogeshwari West
f. Boriwali West
g. Thane West
h. Vashi West.

3. Contact Methods:

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 a. Personal Interactions with the Dealers and Fleet owners.
b. Interviews with the Taxi drivers and the Tour operators.

4. Survey Research has been used because of the following Reasons:

a) Can accommodate large sample sizes and generalize results
b) Ease of administering and recording questions and answers
c) Ability to use statistical analysis
d) Factors and relationships not directly measurable can be studied.

A) Data Analysis & Interpretation of CNG-Ambassador.

Q1. From how long you are using the ambassador car?

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 AIM:-Through this we can determine from how long the respondents are using
Ambassador car so as to determine some of the loyal customers who still prefer this
Vehicle.

No. of Years No. of

Respondents
8-6 yrs 79 %
6-4 yrs 16 %
4-2 yrs 3%
2-1 yrs 2%

INTERPRETATION:- The above Graph Shows that 79% of the respondents are using
the CNG car from last 8 to 6 years or more than that, 16% of the respondents were using
from last 6 to 4 years, and 3% and 2& respondents are the users from Last 4-2 years and
2-1 yrs respectively.
Q2: What factors do you consider while purchasing the new vehicle?
AIM :-To determine and capture the Consumer Behavior in which factors
they feel are highly considered while purchasing new vehicle.

Factors Initial Comfort Safety Brand Space Fuel Average Maintenance Others
Price Type Cost
% of 10% 8% 10% 7% 10% 5% 20% 23% 7%
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Respondents
INTERPRETATION:- 23% respondents were very conscious about the Maintenance
Cost to be incurred after purchase. They look for less maintenance cost vehicle. Another
factor which respondents highly consider while purchasing the vehicle is Average

Q3. Had this model not been available which other model you would have
considered?
AIM:-To determine which vehicles are preferred by the consumers in the taxi-segment
Excluding Ambassador. Also to study the competitor analysis of CNG-Ambassador in
taxi segment.

Other Model % of Respondents

Indica 22%
Esteem 24%
Indigo 12%
Innova 16%
Tavera 14%
Omni 7%

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 Others 5%

Other Preferences

5% Indica
7% 22%
Esteem
14% Indigo
Innova
Tavera
16% 24%
Omni
12% Others

INTERPRETATION:- Apart from Ambassador People preferences lies in these Cars. Out of
which people mostly prefer the Esteem (24%) and indica (22%), these cars are the preferences of
Taxi drivers and tour operators, others like fleet operators and other tour operators.
Q4. What are the advantage ambassadors has over the other models
available?

AIM:-In order to determine the advantage of Ambassadors over other models available so as
to know which factors makes Ambassador to have a competitive edge over others.

Advantages Safety Engine Luggage Seating Maintenance Mileage Others

Capacity Capacity Capacity Cost
% of 25% 8% 10% 22% 15% 15% 5%
Respondents

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INTERPRETATION:- 25% respondent were with opinion that safety is the major
advantage in the ambassador due to its Strong body and Shape. 8% of the respondent
have the view that the engine of the ambassador is very good and very powerful as
compared to others. 30 out 203 respondents has their own view and other things as an
advantage of ambassador over the other cars like-it’s an OLD and loyal vehicle, it is
regarded as the status symbol by the Govt. officers as it is smooth.

Q5: What are the problems Faced with the Ambassador cars?

AIM:-To understand what are the problems being faced by the Ambassador, which the
company can look into and take some corrective steps against it and try to resolve it.

Problems % of Respondents
Suspension 55%
Water Seepage 37.5%
Poor Door Pads 23%
Defenser 13%
Improper Working 7%
of Wipers
Compressor 2%
Fast Heating of Car 42%
Malfunctioning of 27%

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 A/C
Gear Box Problem 2%
Sound From 27%
various parts
Others 5%

INTERPRETATION: - 35% of the Respondents had a problem with Suspension of the

Ambassador Car, which they are facing, at regular intervals. This is the most common
and frequently occurring problem, which customers are facing.
Q6: What more you expect (Features) from the current model of
Ambassador?
AIM:-To understand the consumer’s Behavior of what features they would like to see in
new Model of ambassador.

Expectations % of
Respondents
Shape Changes 28%
Engine Changes 35%
Price Changes 22%
Others 15%

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INTERPRETATION: - 35% of the Respondents are not happy with the regular
problems faced by them frequently, so they demand the engine changes in Ambassador
Car. 28% respondents expects some other changes in the Present Model of the car like
there should be better A/C, mileage should be better, and same old Steel Bumpers should
be kept.

Q7: How do you compare CNG driven vehicles with petrol/diesel vehicles?
AIM:-To study and understand the comparison between CNG driven vehicles and
petrol/diesel vehicles among the following factors.

Comparison % of
factors Respondents

Mileage 23%
Smoothness 2%

Less Power 10%

Engine Life 5%
Emission rate 20%
Limited 30%
Availability
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Others 10%
INTERPRETATION:- 30% of the respondents told that availability of Gas for the
CNG vehicle is very limited than Availability of Petrol/Diesel.

Q8: What all problems do you face with CNG vehicles?

AIM:-To know what are the problems being faced by the customers who are using CNG
gas in their vehicles.

Problems % of Respondents
Leakage problem 0%
Filling problem 37%
No Proper Supply 16%
Reduction in Mileage 6%
Affects Engine 10%
capacity
Others 37%

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INTERPRETATION: - 37% of the respondents face problems at the CNG filling
Stations, because they (Taxi drivers) have to stand and wait in long queues. 31%
respondents have the problem regarding filling, according to them CNG Cylinders Could
not Contain the Gas to its full capacity.
Q9: Can you cover more places outside Mumbai with your CNG model of
Ambassador?

AIM:-To understand if CNG model of Ambassador can be used for long distances
outside Mumbai without giving any problem.

Yes 12%
No 88%

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INTERPRETATION: - 88% of the respondents have their View that they could not cover
more places outside with the Present model of CNG Ambassador Car, they are complaining about
the in availability of CNG outside the Mumbai and they are not getting the sufficient Average so
that they can cover more places outside the Mumbai.

Q10: Do you get any service/offers after sales ?

AIM:-To understand the Customer’s Perception on after sales services on their current
vehicles.

After Sale Services % of Respondents

Service Camps 65%
Regular Check-ups 12%
New Scheme Information 19%
Festival offers 4%

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 100%
90%
Percentage of Respondents

80%
70% 65%
60%
50%
40%
30%
19%
20% 12%
10% 4%
0%
Service camps Regular Check-ups New Scheme Festival offers
Information
After sale Services

INTERPRETATION:- 65% of the respondents are happy and they get regular Service
camps at their Sites by the Company, these respondents include mainly the Taxi stand
owners, tour operators, and many govt. officials and their departments. only 4% of the
respondents Get festival Offers from the Company, which needs to be increased as
compared to the Competitors offers to their Customers.

Q11: a) How you find the spare parts of Ambassador in terms of availability
of parts?
AIM:-To determine whether the spare parts of Ambassador are easily available within
Mumbai Region.

Availability-Easy 79%
Availability-Difficult 21%

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INTERPRETATION:- Customers are satisfied with the availability of the spare parts of
the Ambassador in the market. This could be inferred from the above graph that 79% of
the customers find the availability of the spare parts very easily or nearby.

(b): How you find the spare parts in terms of availability and cost?
AIM:-To determine whether the spare parts of Ambassador are easily available within
Mumbai Region.

Cheap 37%
Costlier 63%

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INTERPRETATION:- From the above Graph it is clearly arrived that respondents feel
that the Spare parts available in the Market are little Costlier than the Spare parts of the
other cars or than the spare parts of local quality. They are getting the spare parts at
comparatively higher prices which need to be concentrated upon.

B) Data Analysis & Interpretation of LCV ‘WINNER’.

Q1.Which LCV (Light Carriage Vehicle ) do you own?

AIM:-In order to determine which LCV are used by the customers, in order to study the
competitor Analysis of LCVs in Mumbai Region.

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 LCVs Percentage of
Respondents
Mahindra-Maximo 10%
Tata-Ace 81%
Premier Roadstar 4%
Mahindra-Gigo 5%

INTERPRETATION:- From the above graph we can conclude that 81%

of respondents own TATA-ACE, followed by Mahindra Maximo with 10
number of respondents owning them.
Q2. From how long you are using the LCV?
AIM:-To know and understand from how long the respondents are using LCV to know
their experience and knowledge in the LCV segment in Mumbai region.

No. of Years % of
Respondents
1-2 years 15%
2-4 years 20%

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 4-6 years 38%
6-8 years 27%

INTERPRETATION:-From the above graph we come to conclusion that 38% of the

respondents are driving LCV since 4-6 years, followed by 6-8 years with good knowledge
upon the LCVs in Mumbai and across the nation. While 15% have just entered in this
sector.

Q3. Which model of LCV do you currently have?

AIM:-To know which their preference upon diesel, petrol and CNG is and to know the
reason why do they prefer it.

Make/Model % of
Respondents
Petrol 4%
Diesel 86%
CNG 10%

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INTERPRETATION:-From the above graph we can conclude that 86% of the
respondents are using the Diesel which include mainly the tempo Drivers and private
securities operators.10% of respondents use CNG, while very less percentage of the
respondents use petrol as they need to cover long distances.

Q4: How do you compare CNG driven vehicles with petrol/diesel vehicles?

AIM:-To understand from various factors what makes the respondents differ CNG from
petrol/Diesel.

Comparison % of
factors Respondents

Mileage 23%

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 Smoothness 2%

Less Power 10%

Engine Life 5%
Emission 20%
rate
Limited 30%
Availability
Others 10%

INTERPRETATION:- From the above graph we can conclude that 30% of the Limited
Availability of the CNG Stations in and outside Mumbai, also it is not feasible to travel
long distance on CNG,while 23% believe in Mileage is effective though for intercity.
Q5. What factors do you consider while purchasing the new vehicle?

AIM:-To understand what are the factors while purchasing the new LCV so as to know
the purchasing behavior of the customers.

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Factors Initial Comfort Safet Brand Space Fuel Average Maintenance Others
Price y Type Cost
% of 12% 5% 12% 3% 8% 15% 10% 32% 3%
Respondent
s

INTERPRETATION:-From the above graph 84% of the respondents believe in the

Maintenance cost would be the major factor in purchasing decision. Also Initial price do
takes a important role in purchasing decision.

Q6.How many number of times do your current LCV carries cargo/goods

per day?
AIM:-To know the number of times LCV carries their cargo per day hence determining
the loading capacity of the Vehicle.

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 No. of Trips % of
Respondents
1 trip 28%
2 trip 55%
More than 2 17%

INTREPRETATION:- From the following graph we can conclude that

55% of the respondents make a trip twice by which we can analysis the
loading capacity of the LCV carrying cargo per day.

Q7.What is the capacity which you require for loading your cargo/goods?
AIM:-To determine the LCV’s loading capacity for carrying cargo.

Loading Capacity % of Respondents

750 Kg 22%

39
 1 tone 48%
More than 1 tone 30%

INTERPRETATION:-From the following graph we can conclude that the loading

capacity of the tempo drivers have is of 1 tone which is 48%.Also they put extra pounds
depending upon how much LCV can take the load.

Q8: What are the problems Faced with your current LCV Vehicle?

AIM:-To determine the problems being faced on the respondents on their current
LCVs.

Problems % of
Respondents

40
 Suspension 55%
Water Seepage 10%
Compressor 15%
Fast Heating of 5%
LCV
Starting Problem 8%
Others 7%

INTERPRETATION:-From the above graph we can conclude that 55% of the

respondents feel there is a problem in suspension.7% of respondents are unhappy with the
Other problem regarding the LCV which they Frequently faces like less average as
compared to other cars, Hard Clutch, Plastic Bumpers, Weak Shaft, Bad Lock Quality,
High Maintenance etc.

Q9) Are you planning to buy a LCV?

AIM: To know if respondents are interested in buying LCV so as to know the purchasing
behavior of the respondents in the near future.

No of Years % of
Respondents

41
 Within 6 10%
months
1 -2 years 15%
2-5 years 34%
Not Yet 41%

INTERPRETATIONS:-From the above graph we can conclude that 41% of the

respondents are not interested in buying LCVs in near future, while 34% of the
respondents would be looking to buy within 2-5 years.

Q10. Would you think of purchasing Hindustan Motors ‘Winner’ in near

future?

AIM:-In order to determine whether the sales of the ‘WINNER’ would rose up in near
future and if they would be willing to buy ‘WINNER’ in near future.

Buying LCV % of
-WINNER Respondents

42
 YES 25%
NO 75%

INTERPRETATION:- From the above graph 75% of the respondents are not expecting
to buy ‘WINNER’, while 25% of them are keen in looking to buy WINNER for
commercial purposes.

Key findings for CNG – Ambassador in Taxi Segment

 84% of respondents were very conscious about the Maintenance cost during the
purchase of taxi vehicle in Mumbai region.

 Apart from CNG taxi Ambassador, people usually prefer Esteem And Indica in
taxi segment.

 Most of the respondents were with opinion that safety is the major advantage of
Ambassador due to its strong body.

43
  79% of taxi drivers are satisfied with the availability of the spare parts while as far
as cost of spare parts are concerned 63% of taxi drivers feel that the spare parts
are relatively costlier.

Key findings for CNG – Winner in LCV Segment

 86% of respondents are using diesels model in their LCV’s.

 84% of tempo drivers were very conscious about the Maintenance Cost in this
segment.

 The biggest competitor for Winner in LCV segment in Mnmbai region is “TATA-
ACE”.

 Unfortunately,75% of the respondents are not interested in buying Hindustan

Motors – ‘Winner’.

SWOT ANALYSIS OF CNG-AMBASSADOR

44
 Strength
 Oldest Car in the Market.
 Only car with dedicated CNG engine.
 Status symbol for Government
officials.
 Only car suitable for Bullet Proofing.
Opportunity
 By just Improving Few engine
Problems Company can tap a larger
retail market.
 Company should improve its service
station so that customers could get
better service.
 With slight changes in its pricing
Policy and providing better and
improved engine, HM will
Certainly rule the market.
45
Weakness
 Pricing Policy, comparatively higher
price of products.
 Few advertisement.
 Regular Faults being faced by Users in
engines.
 Poor spare parts and service network.
 Non availability of features i.e.
defogger, ABS, Air Bags, Rear wiper
etc.
Threat
 New and Better model in comparison
to Ambassador.
 New models are being approved for
Taxi Segment and also in the Govt.
Departments.
 No change in model looks and engine
making it outdated in the eyes of
customers.
 Introduction of new technologies i.e.
CRDI Engine, Automatic gears etc. by
competitors.
SWOT ANALYSIS OF CNG-WINNER.
Strength
 Only car with dedicated CNG engine.
 Better Loading capacity than other
LCVs.
 Good pick-up.
 Stylish and Classic Design
Opportunity
 By just Improving Suspension and
implementing ‘Pa-tta’ Company can
tap a larger retail market.
 Company should improve its service
station so that customers could get
better service.
 With slight changes in its pricing
policy and providing better HM will
Certainly do better.
CONCLUSION
46
Weakness
 Pricing Policy, comparatively higher
price than its competitor.
 Few advertisement..
 Non availability of features i.e, Air
Bags, Rear wiper etc.
 No ‘Pa-tta’ at the lower end.
 Suspension problem.
Threat
 New and Better model in comparison
to WINNER.
 Introduction of new technologies i.e.
CRDI Engine, Automatic gears etc. by
competitors.
 Came very late in the LCV Market.
 Tata-Ace it’s the biggest competitor
covering majority of the market.
 Maximum number of the respondents was well known and had the better
knowledge about the Ambassador -Car and the problems being faced by them in
the problem of the model car.

 Most of the respondents look for the Maintenance Cost, Initial Price, Comfort as
the main factors while purchasing any new vehicle.

 Respondents see CNG vehicle as the most important factor to reduce the
pollution problem in Mumbai region.

 Most of the respondents look for the Maintenance Cost, Initial Price and fuel
efficiency as the main factors while purchasing any new Light Carriage Vehicle.

 Steel Plates ‘Pa-tta’ as termed described by local drivers which is located at the
lower down side of the car similar to that what Tata-ace delivers.

47
 LIMITATIONS

 Only one of the data Collection methods (Questionnaire Method) was used.

 Respondents were also not willing to give answers in some questions.

 Some of the respondents did not have enough time to spare with researchers.

 Some of the respondents give very biased answers.

 Mumbai city was vast city to cover hence could not cover many respondents in
the speculated time.

48
 RECOMMENDATION

 HELP- LINE NUMBER :-As the number of CNG-Filling stations are scarce, so
we as a marketing researcher would recommend Hindustan Motors to come up
with the help line number wich would help the taxi drivers in Mumbai region to
navigate the nearest CNG filling station available.

 Use of ‘PATTA’ :- Hindustan Motors should rather use Patta (a metal rod which
is embedded at the bottom side of the vehicle to prevent it from the jerks, a
concept used in ‘TATA ACE ‘

 Revise their Prices:- Company should revise the LCV-‘WINNER’ Prices

According to their Competitors Price to capture a good Market, in LCV Segment.

 Increasing the size of CNG cylinder:- As per the requirements of the Customers,
company should think on increasing the size of CNG cylinder to on an average of
15 kgs.

 Strong need of good marketing :-There’s a Strong need of good marketing of

Company product, though it’s a well known Brand and trusted by people but to
attract new and untapped customer company should increase their Advertising
through various modes like through newspapers, Television, Glow signs. Personal
interactions, Visiting Tempo stands and giving Demos to the taxi drivers and fleet
owners.

BIBLIOGRAPHY

49
Websites Visited
WWW.HINDUSTANMOTORS.COM
WWW.CARWALE.COM
WWW.AUTOJUNCTION.COM

Books Referred
Marketing Management by Philip Kotler

Other References
Company Brochures
Previous Reports
Company Presentations

HINDUSTAN MOTORS

50
 QUESTIONNAIRE For CNG Ambassador
TOPIC:- ‘ Market Share Analysis of Ambassador in Taxi Segment and
Market Penetration of ‘WINNER’ in LCV Segment in Western Mumbai ’

NAME : ____________________________________________

AREA : ____________________________________________

OPERATOR: ____________________________________________

MOBILE: ________________________

Q1: From how long you are using the ambassador car?
a. 8-6 yrs
b. 6-4 yrs
c. 4-2 yrs
d. 2-1 yrs
e. New Customer

Q2: what factors do you consider while purchasing the new vehicle? (On scale of 1 to 10)….
(1 for least and 10 for highest)
a. Initial price ………………………
b. Comfort ………………………
c. Safety ………………………
d. Brand ………………………
e. Space ………………………
f. Fuel type ………………………
g. Average ………………………
h. Maintenance cost ………………………
i. Availability ………………………
j. Others__________________

Q3: Had this model not been available which other model you would have considered ?
a. Indica
b. Esteem
c. Indigo

51
 d. Innova
e. Tavera
f. Omni
g. Others ______________________
Reasons: -______________________________

Q4: What are the advantage ambassadors has over the other models available?
a. Safety
b. Engine capacity
c. Luggage space
d. Seating Capacity
e. Maintenance Cost
f. Mileage
g. Others ________________________

Q5: What are the problems Faced with the Ambassador cars?
a. Suspension
b. Water seepage
c. Poor Quality of Door pads
d. Defenser
e. Improper working of wipers
f. Compressor
g. Fast heating of car
h. Malfunctioning of A/C
i. Sound from various parts
j. Others ______________________________

Q6: What more you Expect (Features) you want from the current model of Ambassador?
a. Stylish
b. Engine Changes should be made
c. Price
d. Others ______________________________

Q7: How do you compare CNG driven vehicles with petrol/diesel vehicles?
a. CNG gives you more mileage than petrol/diesel.
b. CNG has the smoothness in the engine performance.
c. CNG has less power than petrol/diesel.
d. CNG makes the life of engine longer then petrol/diesel.
e. CNG has less Emission than Petrol/diesel.
f. CNG availability is limited than petrol/diesel.
g. Others __________________________________________

Q8: What all problems do you face with CNG vehicles?

a. Leakage Problem
b. Filling Problem
c. No Proper Supply

52
 d. Reduction in Mileage
e. Affects the engine Capacity
f. Others ______________________

Q9: Can you cover more places outside Mumbai with your CNG model of Ambassador?
YES
NO

Q10: Do you get any service/offers after sales also?

a. Service Camps
b. Regular Checkups
c. New scheme information
d. Festival offers
e. Others ______________________

Q11: How you find the spare parts in terms of availability and cost? (Rate them on the scale of
1 to 10)
a. Availability -Minimum______________________________Maximum
b. Cost -Cheap______________________________Costlier

Q12: Are the Accessories provided with the Ambassadors better and attractive or of other
models?

Q13: Any Advice for future Improvements?

THANK YOU FOR YOUR VALUABLE TIME

HINDUSTAN MOTORS

53
 QUESTIONNAIRE For Winner
TOPIC:- ‘ Market Share Analysis of Ambassador in Taxi Segment and
Market Penetration of ‘WINNER’ in LCV Segment in Western Mumbai ’

NAME : ____________________________________________

AREA : ____________________________________________

OPERATOR: ____________________________________________

MOBILE: ________________________

Q1.Which LCV (Light Carriage Vehicle ) do you own?

a. Mahindra-Maximo

b. Tata-Ace

c. Premier Roadstar

d. Mahindra-Gigo

Q2. From how long you are using the LCV?

a) 1-2 years

b) 2-4 years

c) 4-6 years

d) 6-8 years

Q3. Which make/model of LCV do you currently have and which you purchased last?
a. Petrol b. Diesel c. CNG

54
Q4: How do you compare CNG driven vehicles with petrol/diesel vehicles?
a. Mileage……………

b. Smoothness…………

c. Less Power…………..

d. Engine Life………….

e. Emission Rate…………

f. Limited Availability…………

g. Others………………………….

Q5. What factors do you consider while purchasing the new vehicle?
k. Initial price ………………………
l. Comfort ………………………
m. Safety ………………………
n. Brand ………………………
o. Space ………………………
p. Fuel type ………………………
q. Average ………………………
r. Maintenance cost ………………………
s. Others__________________

Q6.How many number of times do your current LCV carries cargo/goods per day?
a) One time trip

b) Twice Trip

c) More than Two

Q7.What is the capacity which you require for loading your cargo/goods?
a) 750 kg

b) 1 tonne

c) More than 1 tonne.

Q8: What are the problems Faced with your current LCV Vehicle?
k. Suspension
l. Water seepage

55
 m. Compressor
n. Fast Heating of LCV
o. Starting Problem
Others ______________________________

Q9) Are you planning to buy a LCV?

a) Within 6 months

b) 1 -2 years

c) 2-5 years

d) Not Yet

Q10. Would you think of purchasing Hindustan Motors ‘Winner’ in near future?
a) Yes

b) No

THANK YOU FOR YOUR VALUABLE TIME

56