A STUDY ON AUTOMOTIVE INDUSTRY GROWTH IN GUJARAT : A CASE STUDY OF SELECTED CITIES

Abstract

The automotive industry consists of four major components - two wheelers, three wheelers, passenger vehicles and commercial vehicles. In the present study we are only considering passenger vehicles of Ford, Toyota, Tata Motors, Suzuki and Volkswagen. The sedans and hatch back of the top 5 brands are compared with each other in Ahmedabad. A total sample of 100 Directors, managers and supervisors were interviewed and filled up questionnaire. From the study it was found that is the top selling brand is Ahmedabad followed by Toyota, Ford, Tata and Volkswagen. The results show customers switch over due to car quality, high maintenance cost and other car offers more features. The supply of cars is affected by presence of segments and availability of finance. Increasing purchasing power, availability of public transport, status symbol, literacy rate, high population, and easy availability of loans are the factors impact sale of passenger cars. The sale of passenger car is affected by GST, fuel price, car price, opening up of rural market, advertisement, income of buyers, availability of loans, brand, model and test drive. Manufacturing of car preference is given to luxury and comfort, engine performance, resale value, technology, eco-friendliness, value for money, cost of production and design of the car. As demand changes in market, the product renovation is essential.