Car Service Mfs

________________________________Customer Satisfaction for after sales service by car mfs:
EXECUTIVE SUMMARY
The primary objective of the report is to measure customer satisfaction for after sales
services of cars (entry level) provided by car manufacturers (Maruti, Tata motors and
Hyundai) in Mumbai city. Rating is given to the three companies on the basis of the
after sales provided by the companies. In order to achieve this objective an extensive
research was undertaken in the areas of Mumbai.
The research is carried out by administering Questionnaires and interviewing the

dealers as well as the consumers. The sample size taken for the purpose of research is
90. The project has been compiled with the help of SPSS software. Pie charts, Bar
graphs and Data analysis tools are a part of the report to extensively cover the
research objectives.
The entry of foreign car players in India, has led to the exit of a lot of players from the
Indian auto industry and new products being constantly offered by both the foreign car
companies and their Indian counterparts.
In a scenario like today where cars do not differ very greatly in terms of technology at
the entry level, the various car companies have attempted to differentiate their products
on the basis of after sales service offered by them and their dealers in terms of Strong
Dealer Network accessible all over India, Technically qualified staff and Number of
Free after sales services offered to customers.
The project report highlights that after sales service is a major aspect while a customer
buys a car. The customer satisfaction of three major players in the car segment (entry
level) is conducted and Maruti came as the no: one brand followed Hyundai and Tata
motors. According to J.D. Power Asia Pacific Indian customer satisfaction Index 2002,
Maruti had the highest rating followed by Hyundai. Many people rank Maruti as the best
brand in the entry level cars. Respondents believe that after sales service provided by
the company reflects its overall image while buying a car. Many respondents are
1
satisfied by not only the service provided by the various service stations but their
availability. Respondents believe that dealer network is not a major criterion while
buying a car. Majority of the respondents believe that service station network is not a
major criterion while buying a car. Brand image is very important factor which is
considered by the respondents while buying a car.
Some recommendation to the Dealers and Service station providers which comes from
the course of this project report are -giving remainder calls of service to their customers,
spare parts at concessional rate, good exchange value for old cars, wheel alignment, A/C
maintenance etc. to name a few.
2
INTRODUCTION
Background of Indian car Industry
The no. of MNC’s entering in Indian car market is increasing and therefore needed to
carefully plan their entry into emerging markets. Early commitment to a market often
results in first mover advantages that are difficult to replicate. On the other hand, later
entrants have the opportunity to learn from the mistakes of the first entrant. The Indian
car market offers useful lessons in this context. In the 1990s, the Indian Government
removed several restrictions in a bid to attract foreign investors into the automobile
industry. Among the first to enter was Daewoo of South Korea, with its model Cielo,
targeted at the upper end of the market. Other MNCs such as Ford and General Motors
also entered the Indian market, followed by Hyundai, Honda, Toyota and Volkswagen.
In this case, we shall examine the strategies of some of the major players in the Rs
18,500 crore Indian car markets and how successful they have been till date. The case
is relevant to the issues being covered in this book as the Indian car industry is
completely dominated by MNCs*, barring the lone exception, Telco.
MUL
For a long time since the country’s independence in 1947, India had a protected
market, divided between two players, Hindustan Motors and Premier Automobiles. (A
third company, Standard Motors remained a marginal player for several years before
being wound up). Customers had little choice in what was an extreme version of a
sellers’ market. In the 1980s, India’s top politicians felt the need to produce a small car
which would be within the buying reach of the Indian middle class. The obvious place to
shop for technology was Japan which had developed world class capabilities in small
cars by this time. It was not Toyota or Nissan or Honda, the three largest players in
Japan, with whom the Indian Government tied up, but Suzuki, a much smaller
company. Suzuki’s small car capabilities probably influenced this decision.
Suzuki grabbed the opportunity with both hands and formed a joint venture with the
Indian Government, which was called Maruti Udyog Ltd (MUL). It decided to launch a
small car with an engine capacity of 800 cc, targeted at the masses. Suzuki showed its
commitment by setting up a full-fledged manufacturing facility at Gurgaon on the
outskirts of the Indian capital, New Delhi. Thanks to the various concessions offered by
the Indian government, the car, popularly known as the Maruti 800, was priced
attractively. Subsequently, in spite of price hikes from time to time, it remained within
the reach of India’s upper middle class and became a runaway success. Later, MUL
also launched a more up-market model, the Zen, and followed it up with a 1000 cc
engine model for the luxury segment. Besides these vehicles, MUL also launched two
utility vehicles, the Omni and the Gypsy. All these models became market leaders in
3
their respective segments with the possible exception of the Gypsy, which faced
intense competition from local players such as Mahindra & Mahindra.
Most Mac’s began their operations in India as joint ventures with local partners.
Examples include Suzuki, G.M, Ford and Daewoo. With the exception of Suzuki, these
joint ventures have become fully owned subsidiaries of the foreign partners. In all
these cases, the local partners have just not had enough resources to chip in whenever
the equity base has been expanded. Consequently, the foreign partners have pumped
in the additional capital and raised their equity stakes.
Currently, MUL sells about 15,000 units of Maruti 800 per month. Till date, it has sold
more that 1.5 million units of this model and does not face any direct competition worth
mentioning. The Zen, MUL's second best selling car, faces competition from Santro
(Hyundai), Matiz (Daewoo) and Indica (Telco). The Omni, with its van like shape can
seat up to eight people. The low excise duty on Omni (as per government rules)
makes it the cheapest personal transportation vehicle in India. The Omni is
inexpensive to run and is popular with taxi operators and large families. The 1000 cc
up-market Esteem also offers value for money with a reputation for reliability and low
running cost. With the entry of other MNCs, especially the Koreans, both the Zen and
the Esteem have been facing stiff competition in recent times.
In the late 1990s, Suzuki and the Government of India ran into disputes1 over
management control and the appointment of a new CEO after the then CEO, R C
Bhargava’s retirement. Tensions ran high for several months as the government and
Suzuki decided to take the dispute to an international arbitration agency. Later,
tensions subsided and the two partners decided to settle their differences amicably.
Both parties obviously realized that it made eminent business sense to stick together in
a highly successful joint venture.
In the recent past, MUL’s market share has declined from 64% (in 1999) to 52% (in
2000). Profits have also slid from Rs 522 crore in 1999 to Rs 330 crore this year. MUL
is also waking up to the changing profile of the Indian car market which has seen faster
growth in the Zen-Santro-Indica-Uno-Matiz segment2 than the bread and butter Maruti
800 segment which it has totally dominated till date. Another problem that MUL faces
is largely of its own making. It had left the basic 800 model unchanged for over 15
years, leading to a growing consumer perception that it was offering only older models
unlike its competitors. Recently, MUL has launched two new models, Wagon R, priced
a little above the Zen and Baleno, a product for the premium segment. MUL hopes that
with a more complete product range, it will not only be able to attract new customers,
but also hold on to existing customers. New models, however, will not come cheap. If
MUL has to implement its plan of launching one new model, every 6-12 months, it will
need an estimated Rs. 2500 crore over the next three years. Till now, MUL has
financed most of its expenditure through internal accruals, but borrowings have now
become inevitable. MUL has recently announced plans to borrow Rs. 200 crore
through non-convertible debentures and Rs. 100 crore through commercial paper.
4
Even though MUL’s market share has fallen sharply in recent times, some analysts feel
that the company's strengths should not be underestimated. According to consultant1,
Arindam Bhattacharya of A.T. Kearney, "As long as Maruti's own growth targets are
being met, it doesn't really matter whether the market share is falling." With annual
sales of 406,574 vehicles and a total income of Rs 9,673 crore in 1999-2000, MUL's
might is still formidable. As Bhattacharya argues2, "The Maruti 800 is a great product.
No other car in the world can match its functionality and price even with the high duty
incidence of 60 per cent in India. There is need for such a car, which competes not
with other cars but two wheelers."
In mid 2000, MUL's fixed investment in assets totaled Rs. 3500 crore, including a
depreciated component of Rs. 1200 crores. With a production capability of 450,000
cars, trained manpower, vendor and service network and dealership, MUL feels its
replacement cost is in the range of Rs. 10,000 crore, a figure which will be daunting
even to global players. MUL has also been proactive in cutting costs. It is working with
its vendors on various value engineering projects currently; MUL procures about Rs.
5000 crore of components every year. Even a 5 percent cut can lead to cost savings of
Rs. 250 cores. MUL is working on a plan to reduce the number of vendors by
encouraging them to merge. It is also looking at the possibility of reducing the cost of
capital for its vendors by taking advantage of its superior credit rating and borrowing on
their behalf.
Hyundai
Unlike most other MNCs, Hyundai of South Korea decided to enter India with its small
car model, Santro, which it priced attractively at about $7000. Hyundai chose to set up
a fully owned subsidiary and hired some of the most reputed executives in the
Indian automotive industry. Hyundai also invested heavily in a modern car plant near
the city of Madras, in the southern part of India. The facility can manufacture 130,000
engines, transmission sets and components per annum. According to Business India1,
“What makes HMI’s (Hyundai Motor India) progress even more impressive is that the
Sriperambadur plant is not another knocked down (KD) operation but an integrated
manufacturing facility. The Santros that will roll out of this plant will be manufactured
from day one and not merely assembled. This is a historic achievement. No company
has begun operations in this manner, not even Maruti Udyog, which initially imported
CKD kits for the Maruti 800... The very essence of Hyundai’s strategy is to localize
heavily from day one to give it a very early cost advantage, the number one priority in
this highly price sensitive market.” The Santro has been a major success. Though not
very elegant looking, the car has enough leg and head room. Hyundai sold more than
75,000 vehicles during the period April 1999 - March 2000 and looks set to cross the
100,000 figure in the current year. During the period January-June, 2000, Hyundai sold
45,513 units, against 21,884 in 1999. Encouraged by the success of the Santro,
Hyundai has recently launched the upmarket Accent model. Recently, Hyundai
exported a big consignment of 760 cars (350 units of Santro and 410 of Accent) to
5
Algeria. Hyundai has also announced plans to export engine and transmission sets to
the parent company in Korea and to Turkey.
Hyundai's performance in India has not been entirely blemishing less. The company
did not bring its latest engine technology to India and unlike rival Daewoo, could offer
its Euro II2 compliant versions only at a higher price. In the process, the company's
image took a beating. Hyundai also miscalculated the demand for the Santro. When
demand peaked, customers had to wait for three months. Hyundai has now embarked
on a capacity expansion project at its plant in Sriperambadur in Madras. The
investment of around $400 million will take the capacity from 120,000 cars to 200,000
by December 2001.
A major worry for Hyundai is that it has just one small car in its stable. Hyundai is
pinning its hopes on luxury models such as the Sonata, priced at around Rs 12 lakhs,
but as the company's senior executives themselves admit, such models are unlikely to
sell more than 250 units per month. Hyundai is also vulnerable because of its relatively
small size, when compared to global majors such as Ford, General Motors, Toyota,
Daimler Chrysler, Volkswagen and Honda.
Telco
Founded in 1945, the Tata Engineering and Locomotive Company (Telco) is one of the
leading players in the Indian automobile industry. In its early years, Telco
manufactured only commercial vehicles, through a technical collaboration with
Mercedes Benz of Germany. Starting with the 1980s, Telco has moved into light
commercial vehicles, pick-up trucks, multi-utility vehicles, large cars and finally, small
cars. The Tata Mobile pick-up truck launched in 1988 was probably a turning point in
Telco’s history. The model failed to build volumes, but gave Telco engineers
confidence in their design capabilities. Telco then launched its big cars, Tata Sierra
(1991) and Tata Estate (1992). Both these cars have been more or less phased out,
as Telco decided to take a plunge into the mass market small car segment1.
The star in Telco's portfolio today is the small car, Indica, designed in Italy, but
manufactured in India as an almost completely indigenous effort. The car has a
distinctive look and sufficient space but its engines can probably be improved. At the
time of launch, the Indica was plagued by quality problems. Telco engineers, however,
ironed these out in quick time. Priced at just over Rs. 3 lakhs, the Indica offers value
for money and has catapulted Telco to a position in which it is one of the few serious
challengers to MUL. In the Rs 3 - 4.5 lakh price segment consisting of the Santro, the
Zen, the Matiz, the Wagon R and the Uno, Indica has a market share of 21%.
Telco seems to be well ahead of the other players in the industry in its e-business
initiatives. It has created a portal, vcm.com, where business partners can log in with
their unique passwords. Enquiries can be floated electronically to qualified vendors,
6
quotations received and orders processed through the Internet. As soon as a vendor
supplies goods, Telco's systems and the vendor's books are updated. Information
regarding acceptance of a consignment is also conveyed electronically. Telco is
attempting to integrate its internal ERP system with the web so that production
schedules can be given online for the different vendors.
One concern expressed by analysts is Telco's staying power. The project will not
break even for some time. As Business Today2 recently remarked: "The car foray is
sucking Tata Engineering into a vicious loop: as its losses keep mounting, the
breakeven target keeps getting pushed back further. As things stand today, analysts
point out that to make money, Tata will have to sell close to one lakh cars, against the
original target of 90,000 cars and the project cost has escalated to over Rs 2000
crore." Some analysts even suggest that Telco should spin off its car venture and offer
a stake to a foreign car major. Another worry for Telco is that it is dependent on just
one model. To be a serious player, the company needs a couple of additional models,
which would obviously cost money.
Telco executives are not unaware of these problems. Chairman Ratan Tata has
admitted that the company needs a wider product range to compete with global players
who have the capability to offer as many as 8-10 new models every two years. While
senior Telco executives have emphasized that there are no plans for any spin off, Tata
himself has admitted the need for an alliance. Tata, however, is particular on choosing
a partnership that will leave Telco with a sufficient degree of independence*: "What I
would be looking for would be a swapping or exchange of products where perhaps I
have access to their power trains and certain platforms. They have access to our
platforms, may be over time, we share distribution outlets in India. May be we both
have product lines coexisting, share markets together. We have the greatest edge in
low cost engineering as against our global partner.”
7
The Indian Passenger Car Market in FY2002-03

Segments Size Volume Percentage share
A Compacts 195366 28%
B Mid-sized 375292 53%
C Premium 130983 18%
D&E Luxury 6437 1%
Total 708078*
Source: SIAM
• Includes MUV’s/SUV’s
8
Passenger Car Market Share 2002-

2003
15.3 Maruti
16.1 Telco
57.1 Hundai
11.5 Others
Major players in the Indian market
Installed Capacities Utilization %
MUL 350000 102%

Telco 160000 58%
Hyundai 120000 78%
Daewoo 110000 -
Ford 100000 10%
HM 64000 36%
Fiat 50000 -
Honda 30000 34%
GM 25000 33%
Daimler C 10000 14%
Source: SIAM
9
10
11
PROBLEM STATEMENT
“TO MEASURE CUSTOMER SATSFACTION FOR AFTER

SALES SERVICE BY CAR MANUFACTURERS.”
12
RESEARCH OBJECTIVE:
Major:
 To measure the customer satisfaction on basis of after
sales service provided by the car companies.
Minor:
 To give rating to the car companies on the basis of after
sales service provided by them.
 Issues which customers give preference while rating

customer satisfaction post buying a car.
 Awareness among people regarding the services offered by

the various car companies and car dealers.
13
RESEARCH METHODOLOGY
SAMPLING DESIGN:
Sample Design
p------- Probability of population satisfied with after sales services provided by Car
Company
q------Probability of population not satisfied with after sales services provided by car
company
z------At 95% confidence interval level
σx-----standard error of deviation
n------Sample size
calculation
n= (z2pq)/σx2
n= 1.9*1.9*0.5*0.5/ 0.10*0.10
n=90
p=0.5
q=0.5
σx=0.10 10% standard error of deviation
z=1.9 95% confidence interval level
Hypothesis Testing
Our research objective is to check the customer satisfaction level for the after sales
service provided by the car companies.
H0 (null hypothesis) -------Customers are satisfied with after sales services provided by
the car company
H1 (alternate hypothesis) -----Customers are not satisfied with after sales services
provided by the car company
The sample size taken for this project is 90
14
RESEARCH DESIGN
1. Data design
Data design consists of two parts first part is preparing instrument for the
Collection of data & the second part is to Revision of instrument.
2. Instrument Design:
Data is designed through questionnaire method, is used as the instrument for the
Collection of the data. Related questions were asked to respondents. And getting
their views about after sales service . Hence the data collection instrument is survey
(Questionnaire) method.
3. Instrument Revision:
There are around 13 questions were prepared to ask the respondent to get
actual information about the topic. Related question were asked to know the,
After sales service provided by car companies and satisfaction level of the consumers.
the instrument was revised after visiting 90 respondents by using SPSS software .
15
DATA COLLECTION
Method adopted for the data collection is survey method. I asked questions related to
the subject and collected their responses by personal or impersonal means. Here the
data was collected through various respondents who are using Maruti, Hyundai, and
Tata Motors cars.
Hence questionnaire was formed, and data is collected from respondents about their
satisfaction about the service provided by car companies.
Primary data and secondary data are collected through various sources. Like….
Primary data:
• Existing car users

• Dealers and service stations
Secondary data:
• Internet
• Magazines
• Newspapers
16
DATA ANALYSIS
Brand of Car Preferred –(Found from the survey)

Frequency Percent Valid Cumulative
Percent Percent
Valid Maruti 61 67.8 72.6 72.6
Hyundai 9 10.0 10.7 83.3
Tata motors 10 11.1 11.9 95.2
Others 4 4.4 4.8 100.0
Total 84 93.3 100.0
Missing Missing 6 6.7
Total 90 100.0
brand of car
80
60
40
20
Percent
0
maruti hyundai tata motors others
brand of car
Source: questionnaire
From the survey conducted it was found that 67.8 % preferred Maruti as the brand.
17
Age of the Car

Frequency Percent Valid Percent Cumulative Percent
Valid <1year 13 14.4 14.4 14.4

1-5 years 50 55.6 55.6 70.0
5-10 years 16 17.8 17.8 87.8
>10 years 11 12.2 12.2 100.0
Total 90 100.0 100.0
age of the car

60
50
40
30
20
10
Percent
0
<1year 1-5 years 5-10 years >10 yeaers
age of the car
.
From the survey it was found that average age of the cars was 1-5 years.
18
After Sales Service Effect On Brand Image Of The Companies
Frequency Percent Valid Percent Cumulative

Percent
Valid Yes 75 83.3 84.3 84.3
No 14 15.6 15.7 100.0
Total 89 98.9 100.0
Total 90 100.0
after sales service effect on brand image

100
80
60
40
20
Percent
0
yes no
after sales service effect on brand image of the companies
Thus, the data shows that 83% of the people surveyed say that after sales service does affect the
overall image of the company. So the car manufacturing companies have to focus on their after
sales service in order to maintain brand loyalty.
19
Reliability Of After Sales Service Provided By The Service Stations

Percent
Valid Yes 55 61.1 64.7 64.7
No 30 33.3 35.3 100.0
Total 85 94.4 100.0
Total 90 100.0
Reliability of Service Stations

70
60
50
40
30
20
Percent
10
0
yes no
Reliability of service startions
From the survey conducted it was found that 61.1% of the respondents found the
service delivered by the service stations to be reliable. But companies need to work on
it improve upon this figure.
20
Respondents Satisfied With the Services Provided By The Company

Percent
Valid Yes 60 66.7 73.2 73.2
No 22 24.4 26.8 100.0
Total 82 91.1 100.0
Total 90 100.0
satisfaction level of respondents

80
60
40
20
Percent
0
yes no
respondents satisfied with the services provided by the company
From the survey it is found that 67.6% of the respondents from the sample were satisfied with
service provided by the companies. But still companies need to work on it.
21
Availability of Service Station Within Reachable Area

Percent
Valid Yes 65 72.2 73.9 73.9
No 23 25.6 26.1 100.0
Total 88 97.8 100.0
Total 90 100.0
availibility of service station

80
60
40
20
Percent
0
yes no
availibility of service station
From the survey it was found that 72.2% of respondents were satisfied with the no: of service
stations available within their reachable area.
22
Statistics Regarding Ranking Given By Consumer to Car Companies
Rank given to Rank given to Rank given to

Maruti Hyundai Tata motors
N Valid 86 84 84
Missing 4 6 6
Mean 1.58 1.95 2.45
Std. Error of 8.35E-02 8.62E-02 7.07E-02
Mean
Median 1.00 2.00 3.00
Mode 1 2 3
Std. Deviation .77 .79 .65
Variance .60 .62 .42

Range 2 2 2
Minimum 1 1 1
Maximum 3 3 3
Percentiles 25 1.00 1.00 2.00
50 1.00 2.00 3.00

75 2.00 3.00 3.00
23
Rank Given To Maruti

Percent
Valid No 1 51 56.7 59.3 59.3
No 2 20 22.2 23.3 82.6
No 3 15 16.7 17.4 100.0
Total 86 95.6 100.0
Total 90 100.0
rank given to maruti
Missing
no 3
16.7%
56.7%
22.2% no 1
no 2
From the survey conducted it was found that 56.7% of respondents ranked Maruti as no.1 car on
the basis of after sales service.
24
Rank Given To Hyundai

Percent
Valid No 1 28 31.1 33.3 33.3
No 2 32 35.6 38.1 71.4
No 3 24 26.7 28.6 100.0
Total 84 93.3 100.0
Total 90 100.0
rank given to hyundai

Missing
6.7%
no 1
no 3 31.1%
26.7%
35.6%
no 2
From the survey conducted it was found that 31.1% of respondents ranked Hyundai as no.1 car
on the basis of after sales service.
25
Rank Given To Tata Motors

Percent
Valid no 1 7 7.8 8.3 8.3
no 2 32 35.6 38.1 46.4
no 3 45 50.0 53.6 100.0
Total 84 93.3 100.0
Missing missing 6 6.7
Total 90 100.0
rank given to tata motors
Missing no 1
7.8%
35.6% no 2
50.0%
no 3
From the survey conducted it was found that 7.8% of respondents ranked Tata Motors as no.1
car on the basis of after sales service.
26
After sale service as a factor considered while buying a car

Percent
Valid yes 51 56.7 56.7 56.7
no 39 43.3 43.3 100.0
Total 90 100.0 100.0
after saleservice as a factor buying a car

60
50
40
30
20
10
Percent
0
yes no
after s aleservice as a factor considered while buying a car
From the survey it was found that 56.7% of the respondents said that they consider
after sales service delivered by the companies as the important factor while buying a
car.
27
Dealer Network As A Factor Considered While Buying A Car

Percent
Valid yes 24 26.7 26.7 26.7
no 66 73.3 73.3 100.0
Total 90 100.0 100.0
dealer network a factor while buying a car

80
60
40
20
Percent
0
yes no
dealer network as a factor considered while buying a car
73% of the respondents believe that dealer network is not a major criterion while buying a car.
28
Service station network as a factor considered while buying a car

Percent Percent
Valid yes 43 47.8 47.8 47.8
no 47 52.2 52.2 100.0
Total 90 100.0 100.0
service station network- factor in buying a car

60
50
40
30
20
10
Percent
0
yes no
service station network as a factor considered while buying a car
Majority of the respondents believe that service station network is not a major criteria
while buying a car.
29
Brand image as a factor considered while buying a car

Percent Percent
Valid yes 65 72.2 72.2 72.2
no 25 27.8 27.8 100.0
Total 90 100.0 100.0
brand image a factor while buying a car

80
60
40
20
Percent
0
yes no
brand image as a factor considered while buying a car
Brand image is very important factor which is considered by the respondents while buying a car.
30
LIMITATIONS OF THE STUDY
1. The size of the sample, as calculated by the Z-test, is very small because we
took error as 10%.
2. We have chosen the proportions sampling. And we are taking error as 10% to
consider the constraints of time and money. it is not feasible to target large
number with around 0.001% error .
3. As random sampling is being used, the results could be skewed.
4. The data provided by the respondent at an earlier date and thus the
Present situation could be different.
5. Since the consumer attitudes keeps on changing the findings may not be
Applicable in all the cases.
31
CONCLUSION
 From the survey conducted it was found that 67.8 % preferred Maruti as the brand.
 From the survey it was found that average age of the cars was 1-5 years.
 The data shows that 82% of the people surveyed say that after sales service does
affect the overall image of the company. So the car manufacturing companies have to
focus on their after sales service in order to maintain brand loyalty.
 From the survey conducted it was found that 61.1% of the respondents found the
service delivered by the service stations to be reliable. But companies need to work on it
improve upon this figure.
 From the survey it is found that 67.6% of the respondents from the sample were
satisfied with service provided by the companies. But still companies need to work on it.
 From the survey it was found that 72.2% of respondents were satisfied with the no:
of service stations available within their reachable area.
 From the survey conducted it was found that 56.7% of respondents ranked
Maruti as no.1 car on the basis of after sales service. From the survey conducted it
was found that 31.1% of respondents ranked Hyundai as no.1 car on the basis of
after sales service. From the survey conducted it was found that 7.8% of
respondents ranked Tata Motors as no.1 car on the basis of after sales service.
 From the survey it was found that 56.7% of the respondents said that they
consider after sales service delivered by the companies as the important factor
while buying a car.
 73% of the respondents believe that dealer network is not a major criterion
while buying a car.
 Majority of the respondents believe that service station network is not a major
criteria while buying a car.
 Brand image is very important factor which is considered by the respondents

while buying.
32
RECOMMENDATION
 Dealers should give a monthly remainder call to their customers for the after
sales service.
 There should be free wheel alignment provided by the service station.
 Air condition should be given a free service charge.
 Spares parts of various cars within the service period should be given at a
concessional or discounted rate.
 When the customers go for a new car the dealers should give them a fair re-
sale value or for an exchange offer.
 Dealers should position themselves as a quality service provider.
 After the service, the service station must give the delivery of the car to the
customer free of cost at his desired time.
 Schemes of free service after a consecutive 5th service at a particular service

station should be adopted by the service station.
33
BIBLIOGRAPHY
 www.goodlassnerolac.com
 www.indiainfoline.com
 CMIE JOURNALS
 ECONOMIC TIMES
 NCAER REPORTS
34
APPENDICES/ANNEXURES
Questionnaire
We, the students of N L DALMIA Institute of Management Studies &

Research. The information required is part of the project done by the
students of the institute to analyze the reasons for rating the companies on
the basis of customer satisfaction post buying the cars. The information
will be kept confidential.
1. How old is your car?
a) < 1 year b) 1-5 years c) 5-10 years d) 10 + years
2. Which brand of car do you have?
a) Maruti b) Hyundai c) Tata d) Others
3) What are the services provided by the company?

a)
b)
c)
4). Does after sales service effect the image company in

Consumer mind?
a) Yes b) No
35
5). Do you find the service delivered by the service station to be

reliable?
a) Yes b) No
6).Are you satisfied with services provided by the company
a) Yes b) No
7).Are you satisfied with the number of service stations with in

reachable area
a) Yes b No
8).Are you satisfied with services delivered or implemented by

dealers?
a) Yes b) No
9).How would you rate the companies on the basis of after sales
services provided by them?
CAR HYUNDAI MARUTI TELCO

COMPANY
Rank (1-3)
36
10).What additional features would you like to be incorporated in their

After sales package?
1)
2)
3)
11). Please mention your Name.
THANK YOU
37

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________________________________Customer Satisfaction for after sales service by car mfs:

The research is carried out by administering Questionnaires and interviewing the

Background of Indian car Industry

The Indian Passenger Car Market in FY2002-03

A Compacts 195366 28%

B Mid-sized 375292 53%

C Premium 130983 18%

D&E Luxury 6437 1%

Passenger Car Market Share 2002-

Major players in the Indian market

Installed Capacities Utilization %

MUL 350000 102%

“TO MEASURE CUSTOMER SATSFACTION FOR AFTER

 Issues which customers give preference while rating

 Awareness among people regarding the services offered by

z------At 95% confidence interval level

σx-----standard error of deviation

• Existing car users

Brand of Car Preferred –(Found from the survey)

Age of the Car

Valid <1year 13 14.4 14.4 14.4

age of the car

age of the car

After Sales Service Effect On Brand Image Of The Companies

Frequency Percent Valid Percent Cumulative

after sales service effect on brand image

after sales service effect on brand image of the companies

Reliability Of After Sales Service Provided By The Service Stations

Frequency Percent Valid Percent Cumulative

Reliability of Service Stations

Reliability of service startions

Respondents Satisfied With the Services Provided By The Company

Frequency Percent Valid Percent Cumulative

satisfaction level of respondents

respondents satisfied with the services provided by the company

Availability of Service Station Within Reachable Area

Frequency Percent Valid Percent Cumulative

availibility of service station

availibility of service station

Statistics Regarding Ranking Given By Consumer to Car Companies

Rank given to Rank given to Rank given to

Variance .60 .62 .42

50 1.00 2.00 3.00

Rank Given To Maruti

Frequency Percent Valid Percent Cumulative

rank given to maruti

Rank Given To Hyundai

rank given to hyundai

Rank Given To Tata Motors

Frequency Percent Valid Percent Cumulative

rank given to tata motors

After sale service as a factor considered while buying a car

after saleservice as a factor buying a car

after s aleservice as a factor considered while buying a car

Dealer Network As A Factor Considered While Buying A Car

Frequency Percent Valid Percent Cumulative

dealer network a factor while buying a car

dealer network as a factor considered while buying a car

Service station network as a factor considered while buying a car

Frequency Percent Valid Cumulative