Research Proposal

Topics: Automotive industry, Tata Nano, Automobile industry in India Pages: 17 (4447 words) Published: October 10, 2013
Asian Journal of Business Management 2(3): 48-56, 2010
ISSN: 2041-8752
© Maxwell Scientific Organization, 2010
Submitted Date: February 26, 2010 Accepted Date: March 18, 2010 Published Date: September 30, 2010 Corresponding Author: Sreekumar, Rourkela Institute of Management Studies, Gopabandhu Nagar, Chhend Rourkela-769015, Orissa, India

Factors Influencing Purchase of ‘NANO’ the Innovative Car from India-An Empirical Study
R.D. Bikash, S.K. Pravat and Sreekumar
Rourkela Institute of Management Studies, Gopabandhu Nagar, Chhend Rourkela-769015, Orissa, India
Abstract: This study attempts to find the factors, which are important for choosing the revolutionary car ‘Nano’ launched by one of the leading Indian automobile industry called ‘Tata Motors’. The year 2009 has been significant for Indian automobile industry as numbers of new models were launched for the domestic market and also registered a significant growth in exports. The report published by Cygnus research ranked Indian automobile sector to be number one on the basis of sales growth and Profit After Tax (PAT) growth during October- December 09 over October- December 08 over other 14 manufacturing sectors. The paper considers 22 factors, which may be important in the customer decision-making process. Two approaches viz. Grey Relational Analysis and RIDIT analysis is used to rank the factors. Key words: Automobile, grey relational analysis, nano, RIDIT INTRODUCTION

India has become a fast-growing auto market over the
past decade. Growth has been driven by rapid economic
growth and increasing wealth-double-digit average wage
gains over the past decade and more than a three-fold
surge in equity markets. The growth in Indian economy
encounters the growth in industrial production. According
to the Society of Indian Automobile Manufacturers
(SIAM), the Indian automobile industry has maintained a
steady growth of 20% till May 2005. The industry
currently contributes about 5% of the GDP and it is
targeted to grow fivefold by 2016 and account for a
geographically diversification.
The development in automobile sector overhauls the
perception of potential car buyers, with their increased
disposable income, enormous information search, and
availability of lucrative financial options. People today are more pragmatic before acquiring the automobile.
For most people, purchasing a car is one of the most
important and expensive investment, next to purchase of
a house; for the automotive manufacturers, first-time car
buyers give them the opportunity to create positive brand
image which definitely could be reflected on in next
coming years because consumers could make repeat car
purchasing. The small car market changed very rapidly
due to the fierce competition and advanced technology;
therefore, it requires the automotive manufacturers and
car dealers to understand the consumers’ preference on
time and take fast actions to reflect market changes
quickly. So, it would be very interesting to know
consumers’ preference in today’s fast-changing small car market. In this context this study is carried out to
understand how the customers’ buying process is, what
the critical elements of making their purchasing decision
for the innovative car “Nano”.
Review of Indian automobile industry: The last few
years have witnessed revolutionary changes in the
management systems and manufacturing innovations of
the world automotive industry. A proprietary study
conducted by McKinsey and the Associated Chambers of
Commerce and Industry of India (summarized in PTI,
April 18, 2005; Newsweek International November 28,
2005, and the Financial Times, December 1, 2005)
estimates that by 2015 global auto production is likely to
reach $1.9 trillion dollars, of which around $700 billion
dollars will be produced in low cost countries. The United
Nations Development Program (UNDP) report hailed
India as a powerful force in the global automobile
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