Project on Mahindra & Mahindra

INTRODUCTION
The Project assigned to me was “A STUDY ON CUSTOMER SATISFACTIOIN
REGARDING AFTER SALES SERVICES OF MAHINDRA&MAHINDRA AT SUTARIA
AUTOMOBILES SERVICE CENTRE, IN MUMBAI DIST”. This study will help me to find
and customer satisfaction level of the customer for authorized M&M service station in
Mumbai dist, To know the reason for decline of customers at service station, To know the
perception of customers regarding the charges or rates offered by the service station and To
know any suggestion from customers to improve the service station. The study is scheduled
through primary data and other information thereby preparing Questionnaire, which focus of
various variables, and attributes that are important to know the satisfaction level and the
factors affecting the purchase decision. The survey caused in the Mumbai Dist with the
sample size of 100.The collected data are tabulated and analyzed data and all suggestions are
given according to the analyzed data graphs and charts are used to illustrate the statistical
data and findings.
INTRODUCTION ABOUT AUTOMOBILES INDUSTRY:
History and development of Automobiles also marks the dynamism in technological growth
men have achieved. From the days of horseless carriages to the modern-age self-guided
automobiles that are designed meticulously using cutting-edge technology, we have certainly-
traveled too far. Automobile Industry in India is still in its infancy but growing rapidly. The
opportunities in the automobile industry in India are attracting big names with the big purse
and they are investing vigorously in infrastructure, design and development, and marketing.
Automobile industry in India is today poised for (he big leap and this segment helps you to
be ready for that.
Indian Automobile Industry
The automobile industry is one of the core industries in India economy, whose prospect is
reflective of the economic resilience of the economy. With the liberalization of the economy.
India has become the playground of major global automobile majors. This industry report of
SCOPE MARKETING & INFORMATIONS SOLUTIONS PVT LTD provides extensive
information on the Indian Automobile Industry.
The automobile industry in India is gradually evolving to replicate those of developed
countries. The report focuses on the trends that are emerging in the industry across segments,
namely, passenger cars/multi-utility vehicles, commercial vehicles, two-wheelers and
tractors. The qualitative analysis of the various trends reveals that the industry offers
immense scope even for allied industries and those looking at investing in the auto industry’s
Page 1
 Project on Mahindra & Mahindra

a background, a brief perspective of the global automobile industry across segments has been
provided with comparisons on Indian scenario wherever needed. It discusses the current
scenario in the industry, with detailed look on segmentation, structure, and supply and demand
scenarios. A detailed competitive analysis of the industry has been provided backed warn
comprehensive details on production, sales, exports and imports over the years, across segments.
Sales have increased with the entry of several foreign manufacturers and the
introduction of new vehicle models. The report also deals with aggressive marketing strategies
undertaken by different manufacturers in India. This highlights key issues influencing the
automotive industry in India such as import and excise duties, emission norms etc and it also
deals with various government regulations.
The Birth of Automobiles
The history of the automobile actually began about 4,000 years ago when the first wheel was
used for transportation in India. Several Italians recorded designs for wind-driven vehicles.
The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to
wheels. Vaturio designed a similar vehicle that was also never built. Later Leonardo da Vinci
designed clockwork-driven tricycle with tiller steering and a differential mechanism between
the rear wheels. In the early 15th century, the Portuguese arrived in China and the interaction of
the two cultures led to a variety of new technologies, including the creation of a wheel that
turned under its own power. By the 1600s, small steam-powered engine models were
developed, but it was another century before a full-sized engine-powered vehicle was created.
Although by the mid-15th century the idea of a self-propelled vehicle had been put into
practice with the development of experimental vehicles powered by means of springs,
clockworks, and the wind, Nicolas-Joseph Cugnot of France is considered to have built the
first true automobile 1769. Designed by Cugnot and constructed by M. Brezin, it is also the
first vehicle to move under its own power for which there is a record. Cugnot's three-wheeled
steam-powered vehicle carried four persons and was meant to move artillery pieces. It had a
top speed of a little more than 3.2 km/h (2 mph) and had to stop every 20 minutes to build up
a fresh head of steam. Evans was the first American who obtained a patent for "a self-
propelled carriage." He, in fact, attempted to create a two-in-one combination of a steam
wagon and a flat-bottomed boat, which didn't receive any attention in those days. During the
1830's, the steam vehicle had made great advances. But stiff competition from railway
companies and crude legislations in Britain forced the poor steam vehicle gradually out of use
on roads. The early steam-powered vehicles were so heavy that they were only practical on a

Page 2
 Project on Mahindra & Mahindra

perfectly flat surface as strong as iron. A road thus made out of iron rails became the norm
for the next hundred and twenty-five years. The vehicles got bigger and heavier and more
powerful and as such they were eventually capable of pulling a train of many cars filled with
freight and passengers.Carl Benz and Gotttlieb Daimler, both Germans, share the credit of
changing the transport habits of the world, for their efforts laid the foundation of the great
motor industry, as we know it today. First, Carl Benz invented the petrol engine in 1885 and a
year later Daimler made a car driven by motor of his own design and the rest is
history.Daimler's engine proved to be a great success mainly because of its less weight that
could deliver 1000 rpm and needed only very small and light vehicles to cany them.France
too had joined the motoring scenario by 1890 when two Frenchmen Pan hard and Levassor
began producing vehicles powered by Daimler engine, and Daimler himself, possessed by the
automobile spirit, went on adding new features to his engine. He built the first V-Twin engine
with a glowing platinum tube to explode the cylinder gas-the very earliest form of sparking
plug. The engines were positioned under the seat in most of the Daimler as well as Benz cars.
However, the French duo of Pan hard and Levassor made a revolutionary contribution when
they mounted the engine in the front of the car under a 'bonnet'.For many years after the
introduction of automobiles, three kinds of power sources were in common use: steam
engines, gasoline or petrol engines, and electric motors. In 1900, over 2,300 automobiles
were registered in New York, Boston, Massachusetts, and Chicago. Of these, 1,170 were
steam cars, 800 were electric cars, and only 400 were gasoline cars.In ten years from the
invention of the petrol engine, the motorcar had evolved itself into amazing designs and
shapes. By 1898, there were 50 automobile-manufacturing companies in the United States, a
number that rose to 241 by 1908. In that year, Henry Ford revolutionized the manufacture of
automobiles with his assembly-line style of production and brought out the Model T, a car that
was inexpensive, versatile, and easy to maintain. The introduction of the Model T transformed
the automobile from a plaything of the rich to an item that even people of modest income
could afford; by the late 1920s the car was commonplace in modem industrial nations.Herbert
Austin and William Morris, two different carmakers, introduced mass production methods of
assembly in the UK, thus paving the way for *a revolution in the automobile industry. Austin
Seven was the world's first practical four-seated "baby car' which brought the pleasures of
motoring to many thousands of people who could not buy a larger, more expensive car. Even
the 'bull-nose' Morris with front mounted engine became the well-loved model and one of the
most popular cars in the 1920s.Automobile manufacturers in the 1930s and 1940s refined and
improved on the principles of Ford and other pioneers. Cars were generally large, and many
Page 3
 Project on Mahindra & Mahindra

were still extremely expensive and luxurious; many of the most collectible cars date from this
time. The increased affluence of trie United States after World War II led to the development of
large, petrol-consuming vehicles, while most companies in Europe made smaller, more fuel-
efficient cars. Since the mid-1970s, the rising cost of fuel has increased the demand for these
smaller cars, many of which have been produced in Japan as well as in Europe and the United
States.Clearly, the consumer is king in a competitive environment. The automobile sector is
just one of several examples of how the consumer as benefited from competition. For
decades, the Indian consumer as paid dearly for our policy maker’s confusion between
socialism and capitalism. The thoughtless policy frame as neither allowed efficient producers
nor consumers to get optimum value for their effort or money. The recent price was triggered
by Telco’s Indica is an interesting case study. Let us trace the evolution of the Indian
passenger car industry. Since independence till the early 1980’s there were only to major
Indian players-Hindustan Motors and Premier auto-in the industry. As new players were
barred by licensing, and imports by absurd import duties, these two car manufacturers
constituted the oligopoly. They had neither financial muscle nor any incentive to invest in
technology or quality. Little wonder the Indian consumer had the worst quality of cars in the
World.Worse than cars available even in countries like Nepal, Srilanka or Bangladesh besides
the exorbitant duty structure ensured that ownership was restricted to the super rich the
oligopolists were happy with this situation. …Until the then prime minister’s omnipotent son
had brilliant idea! To manufacture a people car at an affordable price. Policies, government
machinery, etc were twisted to, cement prices in unofficial markets (make the dream come
true. The oligopolists were furious (read premier Autos annual reports of late
1980’s/early1990’s).but the people are maruti 800 came into existence.
We Indians have been quite happy with its japanee’s technology. But I realized how poorly it
compared to international cars when a well-built foreign guest of mine, unable to fit himself
in the front seat, remarked, “is this car or a toy?” All thought that people car was available at
such a low price because of the benevolent pricing our egalitarian government, which holds
the majority stake in the company. Then competition arrived even for the people car (the
competitor, indica, though is yet to hit the roads) and behold, the people car is affordable by
many more.-it is 10-12 percent cheaper. Some other carmakers have slashed prices by
almost25%. The private players plan to sell 10000cars at lower price then the erstwhile
“People’s Car” has brought down prices of models that together sell about 250000 units every
year. In cars, the price reduction is quantifiable and visible. In the past seven years, there
have been hundreds of products where unshackling competition has benefited the consumer.
Page 4
 Project on Mahindra & Mahindra

HISTORY OF THE COMPANY

1947: October, first batch of seventy-five Utility Vehicles (UVs) imported in CKD condition
from Willys overland Export Corporation.
1949: Lease of 11071 Sq. yds at Mazagaon from British India Steam navigation. The first
Willys Overland Jeep built in India at the Assembly Plant, Mazagaon, and Bombay.
1954: Phased manufacture of Vehicles undertaken in collaboration with Kaiser Jeep
Corporation and American Motors Corporation.
1962: Indigenous content of Jeep goes up to 70%. 137 acres of land purchased at Kandivli to
centralize manufacturing operations.
1965: FC 150 Petrol Trucks introduced.
1967: Two wheel drive Utility Vehicles introduced. 101" wheelbase and Metal Body UVs
introduced. Indigenous content goes up by 97%.
1969: Export of vehicles started, export of total 1200 UVs together with spare parts to
Yugoslavia. Exports also made to Ceylon, Singapore, Philippines and Indonesia.
1970: Contracts concluded to export of 3304 vehicles, mainly to Yugoslavia and Indonesia.
1971: Separate R&D section set up.
1974: Maxi miller campaign launched to conserve fuel. CJ 4A introduced with new
transmission and axle ratio. Collaboration agreement with Jeep corporation (subsidiary of
AMC, Detroit).
1975: FC 260 Diesel light truck introduced. CJ 500 D Diesel introduced with MD 2350
Diesel Engine.
1979: Government of India approves in principle, the technical collaboration with Peugeot,
France for the manufacture of XDP 4.90 Diesel Engine.
1981: Nasik Trucks Assembly Plant formally inaugurated. Peugeot Engine Assembly Plant
at Ghatkopar inaugurated. NC 665 DP Mini Truck rolls out from Nasik Assembly Line.
1983: FJ 460 model introduced with 4-speed gearbox. Engine plant at Igatpuri was formally
inaugurated by Mr. Jean Boillot, President of Automobiles Peugeot of France for the
manufacture of 25000 Peugeot and Petrol engines.
1985: New Mahindra Vehicle-MM 540 launched in Bombay. NC 640 DP with 4-speed
gearbox introduced. Mahindra MM 440 introduced.
1986: CJ 640 DP Vehicle introduced.
1987: MM 540 DP metal Body Wagonette introduced.

Page 5
 Project on Mahindra & Mahindra

1988: M&M signed a Memorandum of Understanding with Hyderabad Allwyn Nissan

Limited to form Mahindra Nissan Allwyn Ltd., as its associate company with LCV
operations in Andhra Pradesh.
1989: CJ 340 DP model introduced. M&M and Peugeot announced their tie up for the
manufacture of Peugeot 504 pick up truck, BA 10 gearboxes and latest XD 3 diesel engines.
M&M acquired automotive pressing unit at Kanhe, from Guest Keen Williams Ltd.
1991: Introduction of CJ 500 DI models with MDI 2500 A direct injection diesel engines.
M&M bags order to export 10000 CKD kits. Commander range of models: 650 DI, 750
DP/HT were launched with tremendous market response.
1993: Mahindra Armada launched. M&M was the only manufacturer to withstand the
demand recession, with increasing sales.
1995: Mahindra Nissan Allwyn Ltd. (MNAL) merged with M&M and Zaheerabad LCV
operations becoming part of Automotive Sector. FJ series of LCVs were shifted from Nasik
to Zaheerabad. Business Process Re-engineering Project initiated in the Division. Igatpuri
Engine Plant received ISO 9002 certificate from TUV of Germany. Single Cab/Double Cab
project was initiated.
1996: New LCV model Cabking DI 3150 & Mahindra Classic vehicles were launched.
New Commander 5 Door Hard Top was introduced.
The company was the first automobile manufacturer to get all the engine types approved for
the new emission norms effective from 1st April 96. IDAM (Integrated Design &
Manufacturing) set up for designing entirely new vehicle with the help of internationally
renowned consultants.
1997: Commercial production of Ford Escort commenced at Nasik Plant. License &
Technical Assistance Agreement was signed with Mitsubishi Motors Corporation for
Manufacture of SL Body at Zaheerabad (Voyager with XD 3 and BA 10). Soft/Hard top
versions of CL/MM 550, 8 seater Armada, Commander 650 DI with longer wheel base and
MM 540/550 XDB models were introduced. Kandivli and Nasik plants received ISO 9002
certificate from RW-TUV.
1998: Die shop Inauguration at Nashik Plant 2-8/8/97.
Voyager launched by the Chairman at Zaheerabad Plant on 12/11/97.
Complete localisation of Cabking model at Zaheerabad plant.
Change over from 3-Speed to 4-Speed Transmission.
400 nos. Army order successfully executed at Kandivli Plant in Mar'98.
Major Milestones: -
Page 6
 Project on Mahindra & Mahindra

1945 October 2, Mahindra & Mohammed formed.

1948: : The Company was renamed Mahindra & Mahindra Limited (M & M)
 Steel Trading business was started in association with suppliers in U.K
1948: Business connections in USA through Mahindra Wallace
1949: Wallace Steel trading on behalf of European suppliers
 Jeep Assembly commenced
1950: The first business with Mitsubishi Corporation (for 5000 Tons) for wagon building
plates for supply from Yawata Iron & Steel
1953: Otis Elevator Co. (India) established
1954: Technical & Financial Collaboration with Willys Overland Corporation
1956: Shares listed on the Bombay Stock Exchange
 Dr. Beck & Co. formed - a JV with Dr. Beck & Co., Germany
1957: Mahindra Owen formed - a JV with Rubery Owen & Co. Ltd., UK
1958: Machine Tools Division started
1960: Mahindra Sintered Products Ltd. (MSP) formed - a JV with the GKN Group, UK.
1962: Mahindra Ugine Steel Company (MUSCO) formed - a JV with Ugine Kuhlmann,
France
1963: International Tractor Co. of India (ITCI) formed - a JV with International Harvester
Co., USA
1965: Vickers Sperry of India Ltd. a JV with Sperry Rand Corporation, USA
 Roplas (India) a collaboration with Rubery Owen, UK
 Manufacture of Light Commercial Vehicles commenced.
1970: Mahindra Engineering & Chemical Products Ltd.(MECP) commenced operations.
1971: International Harvester collaboration ended
1975: Switch over to diesel vehicles in-house development.
1977: ITCI merges with M&M, to become its Tractor Division
1979: License from Automobiles Peugeot, France for manufacture of XDP 4.90 Diesel
Engines
1982: License from KIA for manufacture of 4 Speed Transmissions
 "Mahindra" brand of tractors born
 Siro Plats formed
1983: M&M becomes market leader in Indian Tractor Market. (Position retained ever since)

Page 7
 Project on Mahindra & Mahindra

1984: Mahindra Hellenic Auto Industries S.A. formed - a JV in Greece to assemble and
market utility vehicles in Europe
1986: Mahindra British Telecom (MBT) formed - a JV with British Telecommunications plc
(BT), UK
1987: Acquired International Instruments Ltd.
1989: Automotive Pressing Unit (now MUSCO Stampings) acquired from GKW
1991: Introduction of Commander series.
1992: Triton Overwater Transport Agency Ltd., formed
 Implementation of the Service Center project at Kanhe
 Merged diverse activities of Steel, Machine Tools, Graphics into Intertrade Division
1993: Mahindra Steel Service Centre Limited formed in association with Mitsubishi
Corporation and Nissho Iwai Corporation of Japan.
 Mahindra Acres Consulting Engineers Ltd. (MACE) formed - a JV with Acres
International, Canada
 Incorporation of MBT International Inc., USA, a wholly owned subsidiary of MBT
The Company’s maiden international offering – the US$ 75m GDR issue.
 Introduction of Armada.
1994: Mahindra Realty & Infrastructure Developers Ltd. (MRIDL) formed
 Mahindra USA Inc., formed, for distribution of Tractors in the USA
 EAC Graphics (India) Ltd., formed in collaboration with The East Asiatic Company
Ltd. A/S, Denmark
 Reorganization of the Group creating six Strategic Business Units
MSL Division (Auto Components) hived off to form Mahindra Sona Ltd.
 Mahindra Nissan Allwyn Limited merged with the Company.
1995: Mahindra Holding & Finance Ltd.(MHFL) becomes a subsidiary of M & M to carry
out business as an investment company
 Technical collaboration with Mitsubishi / Samcor to manufacture L300.
1996: Mahindra Ford India Ltd. (MFIL) - a JV with Ford, Motor Co. USA to manufacture
passenger cars
 The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115
million.
1997: A new die shop was inaugurated at Nasik
 Inauguration of The Mahindra United World College of India.

Page 8
 Project on Mahindra & Mahindra

1999:
 Launch of ‘Bijlee’ a battery-operated, 3-wheeler environmental-friendly vehicle.
 The largest online used vehicle website in India launched by Mahindra Network
Services.
 The business of Intertrade Division and Mahindra Exports Ltd. combined and
renamed Mahindra Intertrade Ltd.
 The Company acquired major stake in Gujarat Tractors.

 Mahindra & Mahindra Financial Services Limited becomes a subsidiary of M&M

2000: The Company unveils new logo.
 Mahindra Auto Specialties Ltd. a new 100% subsidiary is formed.
M&M sets up its first satellite tractor plant at Rudrapur.
 The Company launches New Age Tractor, the Mahindra Arjun 605 DI (60 HP
tractor).
 The Company launches Bolero GLX a Utility Vehicle a response to needs of urban
consumer.
2001: A 3-wheeler diesel vehicle "Champion" is launched.
 The Company launches Mahindra MaXX a MUV positioned with the caption
Maximum Space, Maximum Comfort.
 M&M ties up with Renault for petrol engines.
 M&M established a separate division to provide Defence Solutions
2002: M&M launches Scorpio - the new generation Sports Utility Vehicle
2003: Scorpio - Recipient of prestigious Awards –
 "Car of the Year" Award from Business Standard Motoring
 "Best SUV of the Year" and "Best Car of the Year" Awards from BBC on
Wheels
 "Car of the Year" Award from CNBC Auto Car
 M&M launches the "Invader" - a sporty open top vehicle.
 M&M opens a second tractor assembly plant in USA.
 M&M launches MaXX Pik Up.
 M&M Tractors awarded the prestigious Deming Prize for excellence in Quality -
 the first tractor company in the world to receive the award.

Page 9
 Project on Mahindra & Mahindra

 M&M launches India's first Turbo tractor - Mahindra Sarpanch 595 DI Super Turbo.
 Scorpio wins National Award for R&D.
 M&M ventures into Industrial Engine business
 Mahindra Defence & Lockheed Martin Information Systems, UK, strike an alliance
for Defence Product.
2004: Launched the Mahindra World Tractor - a 75 HP tractor in the overseas market.
Formed a new Sector, Mahindra Systems and Automotive Technologies (MSAT), to
focus on developing components as well as offering engineering services.
Launched "Bolero" and "Scorpio" in Latin American, Middle East and South African
markets.
Signed MOU to enter into JV with Jiangling Motor Co. Group (JMCG) of China to
acquire tractor-manufacturing assets from Jiangling Tractor Company, a subsidiary of
JMCG.
M&M becomes the first Indian company to achieve sales of one million tractors.
2005:
 Acquired 51% stake in SAR Transmission Private Limited, a company engaged in
manufacture of gears and transmission shafts.
M&M Farm Equipment Sector launch operations in Australia.
M&M becomes the first Indian auto manufacturer to launch the Common Rail Diesel
Engine (CRDe), offering it on the Scorpio.
Acquired 80% stake in the JV with Jiangling Motors i.e. in Mahindra (China) Tractor
Company.
M&M and Renault enter into a JV to manufacture of the mid-sized sedan, Logan, in
India.
M&M and International Truck and Engine Corporation enter into a JV to manufacture
Trucks & Buses in India The first tractor from the JV, Mahindra (China) Tractor Co.
Limited, rolled out on 2 July 2005

COMPANY PROFILE
M&M's association with the automobile business dates back to 1945. The Company was
incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian
market, initially by importing and assembling Willys Jeep kits. The manufacture of utility
vehicles commenced in 1954 in collaboration with Willys Overland Corporation and its

Page 10
 Project on Mahindra & Mahindra

successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the
Daimler Chrysler group). The Company commenced manufacturing Light Commercial
Vehicles (LCV) in 1965. The Company has recently entered the three-wheeler market. Over
the years, the Mahindra brand of vehicles have come to represent high quality, ruggedness,
durability, reliability, easy maintenance and operational economy. These are the qualities that
have endeared the vehicle to individuals as well as institutions like the Indian armed forces.
M&M is the leader in the MUV business in the country since inception.M&M has
comprehensive manufacturing facilities with high level of vertical integration. M&M's
automotive division has four manufacturing plants, three in the state of Maharashtra and one
in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-utility
vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles and three-
wheelers are manufactured at the Company's plant in Zaheerabad in Andhra Pradesh. Our
Mumbai and Nasik plants with the R&D facility at Nasik are ISO/TS 16949 certified. The
Mumbai plant has also been recommended for the TPM excellence award. Our engine plant
at Igatpuri has QS 9000 certification. Our LCV & three-wheeler plant at Zaheerabad have
ISO 9001:1994 certification. Both of these plants are also working towards TS 16949
certification. Our plants in Mumbai and Igatpuri are also ISO 14001 certified.M&M has a
strong Research & Development set-up, with over 300 engineers in the automotive division.
The Company's technical prowess is proven by negligible import content in our vehicle and
by the design and development of a totally, from ground upward, new contemporary SUV -
Scorpio.The division's marketing efforts are supported by a network of more than 275 dealers
across the country, which are managed by 20 sales offices. Additionally, the division has a
national network of authorized service stations and stockiest to meet customer needs for
servicing and spare parts.
Having conquered a substantial portion of India's semi-urban and rural markets, the division
has in recent years secured significant success in urban regions following the introduction of
premium MUVs like Bolero, and Scorpio. Scorpio is M&M's first indigenously developed
Sports Utility Vehicle - an off road vehicle with car like comforts. The Scorpio was launched
in June 2002 and has been universally acclaimed. It was declared to be the "Car of the Year"
by CNBC AutoCAD, BBC Wheels and Business Standard Motoring.M&M's automotive
division also exports its products to several countries in Africa, Asia and European & Latin
American countries.
SUV PRODUCT OF MAHINDRA AND MAINDRA
MAHINDRA BOLERO
Page 11
 Project on Mahindra & Mahindra

Mahindra Bolero is one of the most successful and popular utility vehicle of the Mahindra
and Mahindra Group. The car is robust in appearance and it has been elegantly designed,
keeping in mind the conditions of the Indian roads.
Mahindra Bolero is also among the best fuel-efficient cars of India as the manufacturer has
equipped it with a 500 cc diesel engine with5- speed transmission.

MAHINDRA SCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle
in India in 2002.
This SUV has redefined the expectations for the design of SUVs with its sturdy looks and
powerful performance, the sophisticated interior design adds to the further glory to the
appearance.
MAHINDRAINGENIO
Mahindra & Mahindra is planning to launch a new multi-purpose vehicle (MPV) to take on
the Toyota Innova and the Chevrolet Tavera in both the individual buyer and taxi segments.
Mahindra has currently named the project Ingenio. The vehicle is expected to hit the market
in2009.
MAHINDRA RENAULT LOGAN
Much awaited Mahindra-Renault Logan has been launched in India. This compact sedan is a
spacious, practical and affordable vehicle. The outlook of Logan is impressive and the basic
version is a value for money, however the top-end versions are a bit high on price. The
prominent feature of this car is its performance, interiors and economy.
MAHINDRA XYLO
Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) “Xylo” in
India on January 13, 2009. The car boasts of having all the luxurious features that are seen in
today’s sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes
to its commanding road presence. Fully packed with the latest features, the MUV is sure to
impress Indian consumers and provide a stiff competition to the other vehicles within its
class.
Performance Of Mahindra XYLO
Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine,
which generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000
rpm. The powerful engine is developed on the NEF CRDe platform and is mated to 5-gears
manual transmission. The car accelerates from rest to 60 km/h in just 5.8 seconds.
Page 12
 Project on Mahindra & Mahindra

Mahindra XUV 500

The Mahindra XUV 500 is a Sports Utility Vehicle (SUV) produced by the Indian
automobile company Mahindra & Mahindra and was launched in September 2011 and by
June 2012 the XUV 500 was available in 19 cities in India.
The XUV500 was designed and developed at Mahindra's design and vehicle build center in
Chennai, and is manufactured in Mahindra's Chakan plant in Pune, India. It is the
first monologue chassis based vehicle from the company. To meet the growing demand of its
hot selling model XUV 500, M & M plans to increase the monthly production to 5000 units
by Sept-Oct 2012.
MILSTONE, AWARDS AND ACCOLADES

M&M’s 61st year was studded with a number of noteworthy achievements, prestigious
prizes and glittering awards.
DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA
Chairman, Mr. Keshub Mahindra was awarded the “Business Visionary Award 2006”
instituted by the National Institute of Industrial Engineering (NITIE), Mumbai.
Chairman, Mr. Keshub Mahindra was also awarded the prestigious IBS Kolkata Lifetime
Achievement Award for his ‘unparalleled contribution to industrial growth and social and
economic development of the community’.
The Institute of Chartered Financial Analysts of India’s (ICFAI) India Business School (IBS)
presented it, Kolkata, at the Strategy Summit 2007, held in Kolkata.
SLEW OF HONOURS FOR MR. ANAND MAHINDRA
Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of prestigious awards
in 2006-07, including:
 The prestigious CNBC Asia Business Leader of the Year Award for the Year 2006 as
well as the CNBC TV India “Business Leader of the Year Award”.
 The ‘CEO of the Year’ award at the India Brand Summit 2006 co-sponsored by Business
Standard and ITM Business School in association with Times Now and DNA newspaper.
 The LMA Entrepreneur of the Year 2006 award, instituted by the Ludhiana Management
Association (LMA).
 The Most Inspiring Corporate Leader of the Year’ Award by NDTV Profit
 The NDTV Profit – Car & Bike Award 2007 for Automobile Man of the Year.

Page 13
 Project on Mahindra & Mahindra

Mr. Anand Mahindra was also nominated as a Member of the Council of the Executive
Committee of the National Sports Development Fund (NSDF) of the Govt. of India. He was
featured in the list of 50 Most Influential Indians in Business Week’s edition dated August
13, 2007
HIGHEST CRISIL RATING FOR M&M
M&M has received the highest Governance & Value Creation rating, CRISIL GVC Level - I
from CRISIL for the ability to create value for all stakeholders, while adopting sound
corporate governance practices.
DUN & BRADSTREET AMERICAN EXPRESS CORPORATE AWARDS 2006
Mahindra & Mahindra was rated as the leading Indian company in the Automobile - Tractors
sector in the ‘Dun & Bradstreet – American Express Corporate Awards 2006’. The
Automobile Sector comprises of three categories – Passenger Vehicles, Commercial Vehicles
and Tractors.
These awards recognize the virtues of size and growth in the awards methodology. M&M
ranked No. 1 in these two segments in the premier Dun & Bradstreet India publication,
India’s Top 500 Companies 2006.
MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD
Mahindra & Mahindra was honored with the Amity HR Excellence Award at the Fourth
Amity Global HR Summit 2007 held at the Amity International Business School, Noida. The
Amity HR Excellence Award recognized Mahindra as one the most admired companies
across the global on account of its innovative strategies for Human Resources Management
and Development.
GLOBAL HR EXCELLENCE AWARD FOR M&M
Mahindra & Mahindra won the Global HR Excellence Award for Innovative HR practices
(Manufacturing Sector), in the Asia Pacific HRM Congress, held in Mumbai. These awards
recognize organizations and individuals who have embraced change, encouraged constructive
challenges and demonstrated entrepreneurial skills in the corporate world.
M&M WINS BOMBAY CHAMBER GOOD CORPORATE CITIZEN AWARD 2006-
07
M&M was presented with the coveted Bombay Chamber Good Corporate Citizen Award
2006-07 at a glittering ceremony held to celebrate the Chamber’s 172nd Foundation Day on
September 21, 2007. Mr. Bharat Doshi, Executive Director, M&M Ltd. and Mr. Rajeev
Dubey, Member of the Group Management Board and Chairman, Mahindra & Mahindra
CSR Council, received the award on behalf of the company.
Page 14
 Project on Mahindra & Mahindra

This Award recognizes and honors conspicuous achievement by corporate organizations by

way of service to the civic community, in addition to outstanding operational performance. It
takes into account several parameters, including Business Performance, Corporate Interests,
Employee Welfare, Customer and Stakeholder Satisfaction and Social Investment.
GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE
GOVERNANCE
Mahindra & Mahindra won the coveted Golden Peacock Award for Excellence in Corporate
Governance 2006. This award validates the company’s ‘Best-in-Class’ corporate governance
practices and reflects its transparent and ethical dealings with stakeholders across the entire
value chain. It recognizes the Management’s commitment to the highest standards of
corporate conduct and its commitment to Corporate Social Responsibility as a distinct
activity that helps build commendable social values and adds to the ethical fiber of the
organization.
BEST AUTOMOTIVE MANUFACTURING SUPPLY CHAIN EXCELLENCE
AWARD
Mahindra & Mahindra has been awarded as the organization with the “Best Automotive
Manufacturing Supply Chain Excellence”. The awards were presented by India Times
Mindscape (Times of India Group) along with the Business India Group at the Express,
Logistics & Supply Chain Awards held in Mumbai on September 28, 2007. A. C. Neilson is
accredited with the research for the award nominees and winners.
HIGH RANKINGS FOR MAHINDRA
M&M was ranked second in the prestigious e Most Trusted Car Company in India study
conducted by TNS. M&M scored 127 points, just seven points below the top ranking
company, according to a TNS communiqué.
 M&M was ranked 14th in The Economic Times prestigious ‘ET 500’ list of top
achieving companies in India. The company has moved up four ranks from last year.
To quote from the ‘ET 500’ write-up: “M&M’s ‘art-to-part’ strategy of diversification
into the auto parts value chain and its plans for new platforms for utility vehicles and
joint venture with Renault for Logan have led to a gain in ranks.”
 M&M was ranked 22nd in Business India’s annual survey of the country’s top
companies - Super 100
 M&M was ranked 31st in Business Today’s annual survey of India’s most valuable
companies

Page 15
 Project on Mahindra & Mahindra

MEANING OF THE CUSTOMER SATISFACTION:

Whether the buyer is satisfied alter purchase depends on the oilers performance in relation to
the buyers expectations in general;"Satisfaction is a persons feeling of pleasure or
disappointment resulting from comparing a products perceived performance (or outcome) in
relation to his/her expectations.As this definition makes clear, satisfaction is a faction of
perceived performance and expectation. If the performance fails short of expectations, the
customer dissatisfied, highly many companies are aiming for high satisfaction, because
customers who are just satisfied still find it easy to switch when a better offer comes along.
Those also are highly satisfied are much less ready to switch high rates faction or delight
creates un emotional bond with the brand, net just a rational preference the result is high
customer loyalty. Buying experiments friends and associates advice and market and
competitors information and promises. If marketer raises expectations too high the buying is
likely to be disappointed.A customer decision to be loyal or to default is the sum of many
small encounters with the company, consulting firms etc. corporation says that in order to
convert all the small encounters to customer loyalty, companies need to create a "Brand
Customer Experience".Customer oriented thinking requires the company to define customer
needs from the customer point of view not from its own point of view. Every product
involves trade offs, and management cannot known what these are without talking 10 and
researching customers. Thus, a car buyer would like a high performance car that never breaks
down that is safe, attractively styled and chief Since, all of them virtues cannot be confined
in one cany the car designer must make hard chooses not on what pleases them but rather on
what customer prefer are expect. The aim, after all, is to make a sale through meeting the
customer’s need.
Why is it supremely important to satisfy to customer?
Basically because of company's sale each period comes from two groups. New customer and
repeat customer. It always cost more to attract new customers than to retain current customer.
Therefore, customer retention is more critical than customer attraction.
The. Key to customer retention is customer satisfaction to satisfied Customer.
 Buys again
 Talks favorably to others about the company.
 Pays less attention to competing brands and advertising.
 Buys other products from the same company.

Page 16
 Project on Mahindra & Mahindra

One Japanese businessman told the magazines "our aim goes behind satisfying the
customers, our aim is to delight the customer". In fact, this is higher the great marketers.
They go behind meeting the mere expectations of the customers, when they delight a
customer, the customer talks to even more acquaintances about the One companies. The
delighted customers are more effective adventurous than advertisement placed in the Media.
Now let us consider what happen when the company creates a dissatisfied customer. Whereas
we have pointed out, a satisfied customer tells three people about a good product experience,
a dissatisfied customer gripes to eleven people. In fact, in one study, 13% of the people who
had a problem with an organization complain about the company to more than 20 people.
Suppose each person who heard the bad story told to eleven people. Suppose each person
who told another eleven and soon. Clearly, bad word of mouth travels faster an faster than
good word of mouth and car easily poison the public's attitude about the company.
Thus, a company should be away to regularly measure customer satisfaction. It cannot rely
just on voluntary complain from customers when they are dissatisfied. In fact, 96% of the
unhappy customers never tell the company. Companies should set up survey and suggestion
systems to maximize to customers opportunity to complaint.In this way. The company will
learn how we!! It is doing. It is also a major way for (lie company to learn how to do better.
The 3M company claims that over 2/3 rd of innovative ideas come from the listening to
customer complains.Listening is not enough. He company must respond constructively in the
complain of the customers who register a complain between 54 and 70% will do business
again with the organization. If the customer feels that t h e complaint was resolved quickly.
Customers who have complain to an organization and had their complaints satisfactorily
resolved tell about the organization to fine people about the treatment they received. When a
company realizes that a loyal customer may account for a substantially sum of revenuer over
the years, it seems foolish to risk loosing over a small matter, for example, IBM makes sales
person write a full report on each least customer and all the steps are taken to restore
satisfaction.A customer-oriented company would track its customer satisfaction level each
period and set improvement goals. If they manage to increase customer satisfaction and
loyalty, it docs not have top worry even if its profits are down in a particular year. If is on the
right track satisfaction keeps falling it is on the working track. Profit would go up or down in
a particular year for many reasons, inclosing rising controls, falling prices, major new
investments and soon. But, the ultimate sign of a healthy company is that its customer
satisfaction index is high and keeps rising company’s future profits.

Page 17
 Project on Mahindra & Mahindra

Management Problem
Management wants to know why there is decline of customer’s visit at Sutaria Automobiles
Service centre, Mumbai. Sutaria automobile is situated at mujawar complex

puna road Mumbai. It was started in the year 1937 by shri devidas
tarundas shah first it was dealer of ford motors. Then 1952-it dealer of
Mahindra and Mahindra under the dealership of universal motors
Bombay. In the year 1972 it acquired the dealership of Mahindra and
Mahindra wholly in Mumbai district. Till today it has maintained its
reputation.Sutaria automobile is a partnership firm. It has three partners
and all the three partners look after three departments. The departments
are spares department, sales department, &service department. Mr.
kishor d shah looks spares parts department, Mr. dinesh d shah looks
sales department and Mr. Mahindra d shah looks service department
Spares department has 4 employees. Sales department 3 employees.
This three employees have different posts. They are sales manager and
sales executives. Service department has total 25 employees; in there
are 5 clerks and 20 mechanics. Sutaria automobiles sell every products
of Mahindra and Mahindra expect scorpio.orginal spare parts are sold in
sutaria automobiles only and no where else
ORGANISATION CHART
Sales Department
Sales department in charge
(Mr. Dinesh D Shah)

Sales Manager

Sales Executives
Spares Department
Spares Department In charge

Page 18
 Project on Mahindra & Mahindra

(Mr. Kishore D Shah)

There are four employees under Mr.Kishore D Shah

Service Department
Service Department In charge
(Mr. Mahindra D Shah)
In this servicing centre, there are 20 employees in that there are 15 are mechanics and rests of
5 them are thinkers. Other than this there are 2 clerks and 1-computer operators.
PRODUCTS SOLD BY SUTARIA AUTOMOBILES IN MUMBAI
 Mahindra Touristar
 Mahindra Bolero
 Mahindra Load king
 Mahindra FJ Minibus
 Mahindra Cab king 576 DI
 Mahindra Pik-Up-CBC
 Mahindra Bolero Sports
 Mahindra Maxx Festiva
 Mahindra Champion
 Mahindra Marshal DX Royale
 Mahindra Bolero Camper
 Mahindra Maxx
PRODUCT PROFILE
PRODUCTS OF MAHINDRA AUTOMOTIVE
MAHINDRA-XUV-500

Page 19
 Project on Mahindra & Mahindra

MAHINDRA“SCORPIO”

MAHINDRA “BOLERO”

MAHINDRA “XYLO”

MAHINDRA RENAULT “LOGAN”

MAHINDRA “MARSHAL”
Page 20
 Project on Mahindra & Mahindra

Mahindra Scorpio
VLX 4DWD Airbag AT BS-IV

Features and Specification

Make Mahindra
Model Scorpio
Variant VLX 4 DWD Airbag AT BS-IV
Body Type SUX
No. of Doors 5
Fuel Efficiency:

City Mileage 9.7km/liter

Highway Mileage 14.2 km/literl
Fuel Capacity 60 liters
Fuel Type Diesel
Fuel Grade -

Engine Parameters:

Displacement 2179cc
Bore 94mm
Stroke 94mm

Page 21
 Project on Mahindra & Mahindra

Cylinder Configuration Inline

Valve Gear Operation -
Compression Ratio 18.5
Valves per cylinders(valve) 2

No. of cylinders (cylinder) 4

Aspiration Turbo Charged
Fuel System Common-rail
Horse Power 120@4000 (PS@rpm)
Torque 290@1800 (Nm@rpm)

Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes
Front Suspension 4WDIndependent, Torsion bar
Rear Suspension Multilink, Coil Spring

Dimensions & weights

Length 4430 mm
Height 1975 mm
Width 1817 mm
Wheel Base 2680 mm
Clearance 180 mm
Boot 460 liter
Front Head Room 965 mm
Front Leg Room 1090mm
Rear Leg Room 920mm
Gross Weight 2610 kg

Drive Train

Type Manual

Page 22
 Project on Mahindra & Mahindra

Gears 6
Drive Line RWD

Comforts Features

AM / FM Radio Present

Mahindra Scorpio
VLX Airbag BS-III

Features and Specification

Make Mahindra
Model Scorpio
Variant VLX Airbag BS-IV
Body Type SUX
No. of Doors 5
Fuel Efficiency:

City Mileage 9.7km/liter

Highway Mileage 14.2 km/literl
Fuel Capacity 60 liters
Fuel Type Diesel
Fuel Grade -

Engine Parameters:

Displacement 2179cc

Page 23
 Project on Mahindra & Mahindra

Bore 94mm
Stroke 94mm
Cylinder Configuration Inline
Valve Gear Operation -
Compression Ratio 18.5
Valves per cylinders(valve) 2

No. of cylinders (cylinder) 4

Aspiration Turbo Charged
Fuel System Common-rail
Horse Power 120@4000 (PS@rpm)
Torque 290@1800 (Nm@rpm)

Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes
Front Suspension 2WD Independent, Coil Spring, Anti Roll
Bar 4WD Independent, Torsion bar
Rear Suspension Multilink, Coil Spring

Dimensions & weights

Length 4430 mm
Height 1975 mm
Width 1817 mm
Wheel Base 2680 mm
Clearance 180 mm
Boot 460 liter
Front Head Room 965 mm
Front Leg Room 1090mm
Rear Leg Room 920mm
Gross Weight 2510 kg

Page 24
 Project on Mahindra & Mahindra

Drive Train

Type Manual
Gears 6
Drive Line RWD

Comforts Features

AM / FM Radio Present

Mahindra Scorpio
SLF BS-III

Features and Specification

Make Mahindra
Model Scorpio
Variant VLX 4 DWD Airbag AT BS-IV
Body Type SUX
No. of Doors 5
Fuel Efficiency:

City Mileage 9.7km/liter

Highway Mileage 14.2 km/literl
Fuel Capacity 60 liters
Fuel Type Diesel
Fuel Grade -

Page 25
 Project on Mahindra & Mahindra

Engine Parameters:

Displacement 2179cc
Bore 94mm
Stroke 94mm
Cylinder Configuration Inline
Valve Gear Operation -
Compression Ratio 18.5
Valves per cylinders(valve) 2

No. of cylinders (cylinder) 4

Aspiration Turbo Charged
Fuel System Common-rail
Horse Power 120@4000 (PS@rpm)
Torque 290@1800 (Nm@rpm)
Steering and Suspension

Steering Type Rack and pinion, power assist

Power Steering Yes
Front Suspension 2WD Independent, Coil Spring, Anti
Roll Bar 4WD Independent, Torsion
bar
Rear Suspension Multilink, Coil Spring

Dimensions & weights

Length 4430 mm
Height 1975 mm
Width 1817 mm
Wheel Base 2680 mm
Clearance 180 mm
Boot 460 liter
Front Head Room 965 mm
Front Leg Room 1090mm

Page 26
 Project on Mahindra & Mahindra

Rear Leg Room 920mm

Gross Weight 2510 kg

Drive Train

Type Manual
Gears 6
Drive Line RWD

Page 27
 Project on Mahindra & Mahindra

Comforts Features

AM / FM Radio Present

Mahindra Scorpio Ex

Features and Specification

Make Mahindra
Model Scorpio
Variant Ex
Body Type SUX
No. of Doors 5
Fuel Efficiency:

City Mileage 8.7km/liter

Highway Mileage 12.5 km/literl
Fuel Capacity 55 liters
Fuel Type Diesel
Fuel Grade -
Engine Parameters:

Displacement 2523cc
Bore -
Stroke -
Cylinder Configuration Inline
Valve Gear Operation -
Compression Ratio 18.5
Valves per cylinders(valve) 2

Page 28
 Project on Mahindra & Mahindra

No. of cylinders (cylinder) 4

Aspiration T -
Fuel System -
Horse Power 75@3200 (PS@rpm)
Torque 200@1400 (Nm@rpm)
Steering and Suspension

Steering Type Rack and pinion,

Power Steering Yes
Front Suspension Independent fornt coil spring
Rear Suspension Multilink, Coil Spring, Suspension

Dimensions & weights

Length 4430 mm
Height 1916 mm
Width 1817 mm
Wheel Base 2680 mm
Clearance 180 mm
Boot -
Front Head Room -
Front Leg Room -
Rear Leg Room
Gross Weight 2510 kg
Drive Train

Type Manual
Gears 5
Drive Line RWD
Comforts Features

AM / FM Radio Present

Page 29
 Project on Mahindra & Mahindra

Research Problem
To analysis customer’s satisfaction level and Response with respect to Sutaria Automobiles
Service centre, Mumbai.
Statement of the Problem
Today’s customers are an important element in every business so to retain a customer and
make the loyal company is a great challenge.
This is what made me to take up this project on “A STUDY ON CUSTOMER
SATISFACTION REGARDING AFTER SALES SERVICES OF
MAHINDRA&MAHINDRA AT SUTARIA AUTOMOBILES SERVICE CENTER
MUMBAI”.
Purpose of the Study
The purpose of the study on customer satisfaction regarding after sales services and to know
any suggestions to improve the sutaria automobiles service centre, Mumbai.
Scope of the Study
In this competitive world retaining the customers has become important part and parcel of the
business activity, since in these arena the people who adopt to changes and new technologies
will survive. This study will help to understand customer need, preference and what they
require from the service station and this study will not only help me as a student but it will
also the sutaria automobiles to improve its service standard.
Objectives of the Study: -
1. To know the customer’s satisfaction level at Authorized Mahindra &Mahindra service
centre in Mumbai District
2. To know the perception of customer’s regarding the charges/ rates offered by the service
centre.
3. To know the reasons for decline of customer’s visit at Sutaria Automobiles Service
centre.
4. To know the suggestions from customer’s to improve the service center.
Sampling Concerned to my project, the respondents were chosen Stratified Random
Sampling (quota sampling).
SAMPLING PROCESS
 Area: Mumbai District
 Sample Frame: consumer’s who owned Mahindra vehicles.
 Sample unit: Individual owners of Mahindra vehicle.

Page 30
 Project on Mahindra & Mahindra

 Sample size: 100 Respondents of Mahindra vehicle.

 Sampling method: Stratified random sampling (quota sampling).
Research Design
The research study was made keeping in mind the various factors that were worked out in
informal discussion with the Sutaria Automobile, that would be included as a research object
and the study can be based on the objectives.

Steps in the Research Design

 Define the research problem
 Estimate the value of Information
 Select the data collection method
 Select the measurement technique
 Select the Sample
 Select the Analytical Approach
 Evaluate the ethics of the Research
 Specify time and financial cost
 Prepare the Research Proposal
1. Define the research problem
To analysis customer’s satisfaction level and Response with respect to Sutaria Automobiles
Service centre, Mumbai.
2. Estimate the value of Information The value of information should exceed the expected
cost. I am conducting the Stratified Random Sampling method. Sample sizes for my research
will 100 in numbers.
3. Select the data collection method Decided to go for survey methods i.e., stratified
random sample. Using the questionnaire conducting the survey and using Dichotomous
(close-ended), rating scale and open-ended questions.
4. Select the measurement technique Descriptive type of research, using the questionnaire
with rating scale, open & close- ended questions.
5. Select the Sample The sample would be Individual owners of Mahindra vehicle
, In Mumbai Dist
6. Select the Analytical Approach
Analyzing the collected information with the help of percentages (%) using MS-Excel
software.

Page 31
 Project on Mahindra & Mahindra

7. Evaluate the ethics of the ResearchThe collected information (data) will be used for
solving the management problem and not for any non-ethical objects; the main objectives
will be addressed.
8. Specify time & financial cost
Time needed is two months (8 weeks) and the financial costs are,
 Daily expenses about 20/- for two months it would be 1200/-
 Stationary and Printing about 1500/-
 Traveling Expenses about 1000/-
 Total Financial Cost = 1200+1500+1000 = 3700/-
Prepare the Research Proposal:
As the customers visit were going down from few years in the Sutaria Automobiles Service
center, Mumbai So the management wants to know what are the Customers expectation and
responses towards Sutaria Automobiles Service centre, Mumbai. For this purpose there was
need to know the Customer satisfaction level regarding after sales services of Mahindra and
Mahindra at Sutaria Automobiles Service Centre, Mumbai.
Data Collection Methods:
The information necessary for this research data collected by tapping primary and
secondary sources. The sources are as follows:
 Primary Sources:
a) Questionnaire
b) Personal interaction
 Secondary Sources:
a) Company Websites
b) Related Information from Internet
c) Company Reports Books and Publications.
 Measuring Tools:
The measurement and evaluation of the data is done using statistical tools and techniques
such as simple percentage method, mean, graphical representation with help of data code
sheet using MS Excel software.

Page 32
 Project on Mahindra & Mahindra

INDUSTRY GROWTH IN VARIOUS SEGMENTS

Passenger cars : 17%
Utility vehicles : 23%
Light commercial vehicles :
12% Heavy and multi commercial vehicles : 23% 3 wheelers :
8%

PORTER FIVE FORCES MODEL:

Supply: The Indian automobile market is plagued with excess capacity. Demand: Is largely
cyclical in nature and dependent upon economic growth and per capita income. Seasonality is
also a vital factor.

Barriers to entry: High capital costs, technology, distribution network, and availability of
auto components.

Bargaining power of suppliers: Low, due to stiff competition and its fragmented nature.
Bargaining power of customers: Very high due to availability of options. Competition:
Except for heavy commercial vehicles segment, competition is stiff. The competition is
expected to increase even further.

PROSPECT IN THE SECTOR:

The government spending on infrastructure in roads and airports and higher GDP growth in
the future could benefit the auto sector in general. This combined with a softer interest rate
environment will play a vital role in providing a fillip to demand. Utility vehicle segment is
expected to grow at around 8% in FY05.

 Though the market size is expected to grow by 12% -15%, competitive pressure
could keep prices and margins under control.

 After three years in the wilderness, tractor industry seems to have finally come out
of the trough as it grew by 10% during FY05. While good monsoon is a positive for the
sector, given the fact that the country has had erratic rainfall in the past, volumes may not
recover sharply. But the longer-term picture is impressive in light of poor mechanization
levels in the country.

 With an estimated 39% of CVs plying on the roads 10 years old, demand for HCVs

Page 33
 Project on Mahindra & Mahindra

is expected to grow by 8% in FY05. Also adding the positives are higher crop output,
industrial sector growth and favorable interest rate environment. While the industry is cyclical
in nature, we expect this factor to weaken in the medium term arising out of structural
changes in the industry. The privatization of select state transport undertakings and hiking of
bus fares bodes well for the bus segment as well.

 The reduction in peak customs duty from 30% to 25% in the budget will result in
savings on the raw material front as well. Since raw material costs account for almost 50% of
revenues of auto companies in general, this is a positive. Also, steel prices have shown some
signs of softening and this is likely to have a positive impact on the margins of the players.

 We expect Indian auto majors to increase capital expenditure budget at an average

of 4%-5% of revenues in FY05 as against around 2%-3% historically. This would be
towards product development and complying with new environmental regulations. With
MNCs willing to sacrifice profitability for growth in the short-term, it has become
imperative for domestic players to spruce up R&D efforts. At the same time, cash flow
position is much stronger now given that most manufacturers have reduced working capital
and debt. This would mean financing bulk of incremental capex from internal accruals.
Product Pricing:
The Indian automobiles are slowly shifting away from the price sensitiveness towards the
value addition concept. Besides, even the SIAM has changed the norms of classification from
the previously followed Price basis to the size/ length of the vehicle. Previously, the industry
was highly price sensitive and the sales were dependent on price brackets. But the Indian
customer’s perception is slowly changing and moving towards the value additions such as the
size of the car, the style, the comfort, the level of service offered by the manufacturers, the
variants available in the category etc. Even though the perception is changing, it is true that
still price plays an important role in the industry. The role of price may be very negligible in
some segments, but in the other segments they are very much reactive to the price
fluctuations. Thus, the some players in segments concentrate on the value addition to achieve
competitive advantage, while the other players in the segments use price as weapon along
with their core service. These players also offer discounts during festival season to boost the
sales.
Growth Drivers:
Economic growth: There is a direct co-relationship between the per capita income of the
people and the demand for automobiles. Due to the increased business activity, the economy

Page 34
 Project on Mahindra & Mahindra

supports the industry growth as well as generates employment. The demand for automobile is
expected to grow with the improved standard of living. Even though the economic growth rate
during the year was 8.056 percent, the future average growth rate is expected to be around 6.5
percent without any economic reforms.

Income level: The level of income has got a direct impact on the sales of the automobile. The
rise in income level, results in increase in the number of people crossing the income threshold,
thus changing the profile of customer. The lifestyle of the people tends to change
automatically. With their increased buying power, they would lookout for more comfort.
For E.g. when the income of a lower middle class family increases, say they would like to
shift from two-wheeler to buy a used car. This in turn increases the demand for used car
market and a good resale value for the seller, thereby indirectly increasing the sales of new
cars. With the entry of MNCs especially in the IT, ITES and BPO sector, the income level and
lifestyle, both are encouraging the younger generation. This has also reduced the average age
of a car buyer.

Monsoons/ Rural economy: The monsoon is the backbone of the Indian agriculture. In India,
around 65 percent of the national income is contributed by the agricultural sector and
constitutes about 22 percent in the GDP. The monsoons support the economic growth. With the
arrival of monsoons, the rural sector is expected generate more jobs in the rural economy and
more income, thus increasing the purchasing power of people. Along with this, even other
industries performance will boost up. Thus, the demand mainly for utility vehicles increases
with the better performance of the rural sector.

Used car Segment: The industry saw a growth of around 30 percent in the used car segment
during fiscal year. The profile of an Indian Car buyer has been changing due to the increasing
purchasing power. Besides, the used cars are becoming affordable due to the reduced Equated
Monthly Installments (EMI) and increased repayment period. A more active lifestyle, rising
disposable income and lower cost of replacement are guiding the customers to change their
cars once every three years now. Even though this market is unorganized to a large extent, the
organized used car segment is slowly growing in India. With the manufacturer’s only coming
forward to buy back their models, has in turn helped the sales of new vehicles.

Availability of finance for both new and used vehicles: With the ease in the availability of
finance both the new and used auto market segment has been witnessing a growth. Previously,
loans were provided only for the new vehicles, but now the financial institutions have come

Page 35
 Project on Mahindra & Mahindra

forward to offer the loans for used vehicles too. With the increasing competition among the
finance providers, they are reducing the rates day by day. Along with this, even some
companies go beyond the industry benchmark by financing up to seven year old vehicles,
thereby helping the growth of the used auto segment. The interest rate has almost halved in
comparison to the rates during 1998 and has touched as low as 6.5 percent per annum. Auto
manufacturers are using this as a tool to increase the sales. They are having tie-ups with the
finance providers or floating their own finance companies. Raw material cost pressures was
faced by most of the companies in the sector. For instance, raw material cost as a percentage of
net sales increased by 5.7 percentage points for Punjab Tractors, 5.2 percentage points for
BAL, 2.8 percentage points for ALL and 2.5 percentage points for Tata Motors. Staff cost
declined by 66bps and other expenditure increased 41bps as a percentage of net sales. Punjab
Tractors and M&M enjoyed the benefit of a reduced staff cost by 370bps and 230bps as a
percentage of net sales. Punjab Tractors maintained its margins in spite of a high rise in raw
material cost due to savings in staff cost and other expenditure.

Major competitors and Market position:

Prior to 1980, Premier Automobiles Limited (PAL) and Hindustan Motors (HM) had
dominated the Indian passenger car market. With the entry of Maruti Udyog Limited (MUL)
in 1980, the former players faced a tough competition. Even though they were able to
maintain their volumes, their market share drastically reduced. MUL dominated the passenger
car market and faced no competition till early 1990’s. After the liberalization took place, with
the entry of foreign players, the problems began for MUL. MUL started loosing its market
share slowly. During the initial stages of liberalization, since MUL had depreciated its plant
already by then, no player in the industry was able to match MUL’s Maruti 800’s entry price.
But still, MUL faced tough time in the upper segment. With the launch of the models like
Indica, Santro and Matiz by Tata, Hyundai and Daewoo respectively, in the price range of 3-
4.5 lakhs, MUL’s market share fell down sharply. But, however MUL is still the market
leader in the passenger car segment, and was able to maintain its market share with its
successful models like Maruti 800, Esteem, Zen, Wagon R and Alto. The overall market share
of MUL fell from 70.2 percent in 1995-96 to 58.1 percent during 1999-00, which further
declined to 51 percent as on February 2004. This can be attributed to the increased
competition from Hyundai, Tata motors, Fiat, General motors, Hindustan motors and Honda
Siel.

Page 36
 Project on Mahindra & Mahindra

In the A segment, MUL hold the monopoly position with its 800 model and no other player
has been able to enter this segment. This model alone accounts for about 25 percent of the
total sales of the passenger cars. In the lower B segment, MUL holds the leadership position
with its three models in the segments viz Zen, Alto and Wagon R, followed by Hyundai. But,
model wise Santro tops the segment with its 37 percent share in this segment. There are three
players in the upper B segment, with Tata in the No.1 position. Its model Indica accounts to
86 percent of the total sales in the segment. MUL’s Esteem lost its leadership position to
Tata’s Indigo, which has dominated the market with 31 percent share. This ahs been followed
by Hyundai’s percent and 22 percent respectively. Honda Siel occupies the dominant position
with its City model. Toyota’s Corolla and Honda’s Accord are dominant in the D & E
segments respectively Accent and Ford Ikon, whose market shares are 27. With the launch of
new models in MUVs and SUVs, the utility vehicles sales are in an upward trend. In the
utilities segment Mahindra & Mahindra has been able to maintain its leader position, followed
by MUL, which manufactures the models like omni and versa. The launch of Qualis model
has given a new look to the industry. Even, it grabbed some share of passenger car industry,
since the customers perceived it as a big car, which is even easy to drive, unlike other utility
vehicles. The launch of Mahindra’s SUV Scorpio also moved along the lines of Qualis,
dragging the passenger car customers. Watching the Scorpio’s success a new range of SUVs
were launched by other players in the industry. The new SUV models, which are launched,
recently are Maruti’s Jimny, Ford’s Endeavour, Suzuki’s Vitara, Chevrolet’s Forester and
Hyundai’s Terracan. With this move by the players, the red line between the utilities and the
passenger car is slowly vanishing.

Government Regulations:
Even though the auto sector has been deregularised, the government still vests the powers with
itself to influence the industry, in terms of controlling the import, excise and customs duties
and emission norms. After the lifting of licensing in 1993, 16 ventures came up to manufacture
cars. The government’s auto policy has restricted import of cars and automotive vehicles in
completely built (CBU) form or in completely knocked down (CKD) or in Semi knocked down
(SKD) condition. And the car manufacturers were issued licenses to import components in
CKD or SKD form only after execution of the Memorandum of Understanding (MOU) with the
Director General Foreign trade (DGFT). 11 companies signed MOU and they have agreed to
bring in minimum foreign equity of US $ 50 mn, if a joint venture is involved in majority
foreign equity ownership. Along with this, they have also agreed to indigenize components up
to a minimum of 50 percent in the third year and 70 percent in the fifth year. The government

Page 37
 Project on Mahindra & Mahindra

has permitted for 100% foreign equity investments for the manufacturing of automobiles and
components. The Government will review the automotive tariff structure periodically to
encourage demand, promote the growth of the industry and prevent India from becoming a
dumping ground for international rejects. The incidence of import tariff will be fixed in a
manner so as to facilitate development of manufacturing capabilities as opposed to mere
assembly without giving undue protection, to ensure balanced transition to open trade, to
promote increased competition in the market and enlarge purchase options to the Indian
customer. Appropriate measures including anti dumping duties will be put in place to check
dumping and unfair trade practices. The conditions for import of new Completely Built Units
(CBUs) will be as per Public Notice issued by the Director General Foreign Trade (DGFT)
having regard to environment and safety regulations. Used vehicles imported into the country
would have to meet CMVR, environmental requirements as per Public Notice issued by
DGFT laying down specific standards and other criteria for such imports. The government’s
policy allows weighted tax deduction for the sponsored research and in-house R&D
expenditure and also excise duty rebate of 1% of the gross turnover. The government is also
encouraging auto design firms by providing them tax breaks and concessional duty. The
government is supporting the development and introduction of vehicles propelled by energy
sources other than hydrocarbons by promoting appropriate automotive technology. The road
tax on vehicles varies from state to state and a lifetime road tax is in existence. The government
controls the import of automobiles and its components through its EXIM policy. It has allowed
the import of used cars with some restrictions and they should confirm to the Central Motor
Vehicle Rules, (1989). Excise duty on (Basic + SED) on cars and MUVs reduced from 32% to
24% and for CKD and SKD kits reduced from 30% to 25%. The government has announced 48
new road projects with an estimated cost of Rs400bn and it a levy of 50 paisa on per liter of
diesel will be collected for the funding of the above road projects. By the year 2010, the Indian
safety regulations will be completely aligned with the ECE regulations like anti-theft, EMC,
noise, front, side and lateral collision, etc.

Emission: The need to reduce vehicular pollution has led to emission control through
regulations in conjunction with increasingly environment- friendly technologies. It was only
in 1991 that the first stage emission norms came into force for petrol vehicles and in 1992
for diesel vehicles. From April 1995 mandatory fitment of catalytic converters in new
petrol passenger cars sold in the four metros of Delhi, Calcutta, Mumbai and Chennai along
with supply of Unleaded Petrol (ULP) was affected. Availability of ULP was further

Page 38
 Project on Mahindra & Mahindra

extended to 42 major cities and now it is available throughout the country. From the year
2000, the passenger cars and commercial vehicles are meeting Euro I equivalent India-2000
norms. Euro II equivalent Bharat Stage II norms are in force from 2001 in 4 metro’s of
Delhi, Mumbai, Chennai and Kolkata. Since India embarked on a formal emission control
regime only in 1991, there is a gap in comparison with technologies available in the USA or
Europe. Currently, India is behind Euro norms by few years, however, a beginning has been
made, and emission norms are being aligned with Euro standards and vehicular technology
is being accordingly upgraded. Vehicle manufactures are also working towards bridging the
gap between Euro standards and Indian emission norms. In this move, the government is
making all efforts to implement Euro III from 2005 effectively
WTO:
The WTO restrictions came into effect from 1st April 2001 and the Indian industries were
feeling a sense of threat of cheaper imports. However, with the government’s decision to hike
up the imports tariffs, it pulled down the curtains of threat. Besides, the government laid down
many restrictions with regard to imports, in order to save the country from being the dumping
ground for deteriorate foreign products. It allowed the import of vehicles only from the
country, where they have been manufactured and they should comply with the Central Motor
Vehicle
Rules, (CMVR, 1989) and import of new cars would be allowed through only through few
ports viz Mumbai, Kolkata and Chennai. The government has lifted quantitative Restrictions
on imports of second-hand automobiles. The government has decided to allow the entry of
second hand vehicles into the country only through the Mumbai port. Used vehicles being
imported should not be more than three years old and the importing agency is expected to
submit a certificate issued by a testing agency notified by the central government that the
second hand vehicle being imported has been tested immediately before shipment and that the
vehicle conforms to all the regulations specified in Motor Vehicles Act, 1988. The policy lays
down that imported automobiles should have a minimum residual life of five years and the
importer should ensure supply of spares and service during this period. Import of left hand
vehicles was banned. The vehicles should necessarily have right-hand steering controls, a
speedometer indicating the speed in kilometers and a photometry of the headlamps to suit
'keep-left' traffic. All these restrictions were made in order to see to it that the Indian customer
gets the best vehicle from abroad. The government made a policy, which totally bans the
import of cars whose engine capacity ranges from 1000 to 2500cc. All these steps were taken
in order to limit the imports only to the upper end segment..

Page 39
 Project on Mahindra & Mahindra

Challenges:

Price is the factor to penetrate the Indian automobile market. MNCs bring in with them
enormous research and development skills, global design expertise and years of experience in
manufacturing and selling automobiles in multiple countries. Indian companies are taking small
steps in entering new markets with one or two offering compared to global companies. Ability
to meet changing technology, customers’ needs and styling and shortening product life cycle
are the challenges that Indian companies have to face.

Future Outlook:
The overall elements in the economy seem to be in favor of growth of automobile industry.
The passenger car segment is expected to grow at around 8% during the period 2004-07.
Besides, the exports are also expected to grow, which will be driven by the increasing demand
for compact cars. The GDP growth, increasing income level, changing lifestyle of people,
availability of finance for both new and old cars with low EMI’s, new launches, new
infrastructural projects and export growth are the factors which fuel the growth of the
automobile industry. Now, with the extension of services of finance providers to the rural
market, the car and utility vehicles sales are expected to move up. The manufacturers are even
concentrating to sell their new launches including SUV’s in the rural market. With a big
success of SUV concept in India, almost all the players in the market have come out with their
competitive models, thus hotting up the competition. All the players are concentrating on cost
cuts and cost effective methods in order increase the profits of their supply chain. The
government has reduced the excise duty on steel from previous 16 percent to 8 percent from
first week of March. With this, the automobile manufacturers are benefited with the improved
margins. Despite the excise duty cut, the steel prices are on a bullish trend. To overcome this
problem, the manufacturers are in a thought of replacing the steel components with aluminum,
which reduces their cost considerably.
If the rupee continues to appreciate against dollar and depreciate against the won, yen and
euro, then the industry’s profits will be squeezed, since it means higher cost of import and
lowered revenue. With the companies establishing their R & D centers here, India is expected
to emerge as an International hub for product development. However, the automotive industry
has to work closely with the dealers and vendors to make the expected growth possible. The
automobile industry needs to aggressively benchmark its products and processes with the
Industry best - both in India as well the world’s best. Only those companies, which improve
their processes regularly, will survive.

Page 40
 Project on Mahindra & Mahindra

Further, Indian automobile Industry needs to learn the best practices quickly to survive the
threat of WTO. However Indian markets are very advanced in using the state-of- the-art
technology and Indian auto component makers are becoming global sourcing partners for auto
makers. Most Indian players are sourcing their component requirement from Indian
component makers only. Any paradigm shift in technology with the emission norms and
alternate fuels will likely increase the technology gap between the local companies and MNCs
here. So a substantial investment in R&D is necessary for domestic players. Dieselization is
going to be a future trend in the Indian market with rising petrol prices and the significant
difference between petrol and diesel prices. Currently, 20-25% diesel engines are in use in the
Indian market, and this is likely to grow up to 30-35% in the medium term. Another trend that
might be seen in the near future is rise in the utility vehicle sales. With infrastructure facilities
increasing more people prefer the UVs for inter city travel. So, in the future small and
compact cars are likely to face competition from UVs. As the economy is growing, the car
industry will see a 12-15% compounded annual growth rate in the medium term. As long as
India continues to grow economically and the income of Indians continues to rise, India will
become a major automobile consumer and producer.

Mahindra and Mahindra Valuation:

Mahindra and Mahindra is one the leading names in the Automotive and farm sector industry.
The company’s solid reputation and brand name recognition give them a great advantage in
their field. The company has shown great improvement and promise throughout its history,
and expectations are high as ever. Sales are expected to continue to grow and the company
will continue to flourish. This is why we placed such an importance on sales for our valuation
model. We used our growth in sales to help forecast many of the company’s accounts. By
using sales growth, or a percentage of sales to forecast we feel our numbers safely represent
where the company is headed. For the first year of our forecast we have sales growth of 10%,
and the following four years have growth reducing by 1% every year. We feel these numbers
are accurate gbowth rates due to company’s history. The company is very well developed and
in the growth and expansion of their lifecycle. We feel the company will continue to grow at a
good pace. We chose to forecast the five year period for a few reasons. We feel the five year
period is enough time to avoid any questions or uncertainties as number of new players
entering the market. Through the forecasting of the company’s major financials we were able
to find important value driver calculations.

Page 41
 Project on Mahindra & Mahindra

We were able to find the Reported PAT, operating Profit, Free Cash Flow of M&M Co.
These are important numbers needed to find our target stock price. The WACC was a very
important part of our valuation model. To find the WACC we had to find the cost of equity
and debt for the company. In order to find the cost of equity we used the CAPM equation.
This allowed us to find the company’s cost of equity of 16.18%. To find the cost of debt we
had to use interest and total debt funds of the company and interest spread. This allowed us to
find the company’s cost of debt to be 3.48%. With these numbers we were then able to find
company’s WACC of 14.31%. Last, to complete our valuation model we had to find our
target stock price. In order to find our price we used the DCF Model. For the DCF Model we
use free cash flows to find the stock price of Rs 517.22. We also used the relative P/E ratio
analysis as well as PEG ratio .To use the relative P/E analysis; we found comparable
companies to Mahindra, and their respective price to earning ratios.

Page 42
 Project on Mahindra & Mahindra

Literature Review

Marsha Peter (2OO2) examines temporal changes in post-purchase product satisfaction

for a durable goods purchase. Involvement and satisfaction variables were measured in a
cross-sectional and a longitudinal study of car owners. Overall, consumers with high
product involvement showed slightly greater satisfaction with their cars than low-
involvement consumers over the term of ownership. However, in the 2-month period
after purchase, consumers with high product involvement showed a decline in
satisfaction, whereas low-involvement consumers' satisfaction increased. The role of
disconfirmation in these changes was investigated. Benefits and problems
disconfirmation were found to make independent contributions to satisfaction judgments,
and the strength and form of contribution varied with product involvement. These
findings suggest that benefits and problems disconfirmation need to be measured
separately in satisfaction research.
Yooshik Yoon(2004) studied the effects of motivation and satisfaction on destination
loyalty: a structural model and investigates the relevant relationships among the
constructs by using a structural equation modeling approach. Consequently,
destination managers should establish a higher satisfaction level to create positive
post-purchase behavior, in order to improve and sustain destination competitiveness.
Diane Halstead(1993) studied the Focuses on a group of unsatisfied car owners.
Examines the roles of the car warranty and the post-purchase service received during
the complaint process in terms of their effects on customers' satisfaction with
complaint resolution. Presents some suggestions for customer service policies,
complaint handling procedures, and warranty fulfillment service.
James Y.L. Thong(2006) studied the effects of post-adoption beliefs on the
expectation-confirmation model for information technology continuance .The
expectation-confirmation model (ECM) of IT continuance is a model for investigating
continued information technology (IT) usage behavior. This paper reports on a study
that attempts to expand the set of post-adoption beliefs in the ECM, in order to extend
the application of the ECM beyond an instrumental focus. The expanded ECM,
incorporating the post-adoption beliefs of perceived usefulness, perceived enjoyment
and perceived ease of use, was empirically validated with data collected from an on-
line survey of 811 existing users of mobile Internet services. The data analysis

Page 43
 Project on Mahindra & Mahindra

showed that the expanded ECM has good explanatory power (R2=57.6% of continued
IT usage intention and R2=67.8% of satisfaction), with all paths supported. Hence,
the expanded ECM can provide supplementary information that is relevant for
understanding continued IT usage. The significant effects of post- adoption perceived
ease of use and perceived enjoyment signify that the nature of the IT can be an
important boundary condition in understanding the continued IT usage behavior. At a
practical level, the expanded ECM presents IT product/service providers with deeper
insights into how to address IT users’ satisfaction and continued patronage.
Marsha L. Richins(2002) Post-purchase product satisfaction: Incorporating the
effects of involvement and time describes changes in post-purchase product
satisfaction for a durable goods purchase. Involvement and satisfaction variables were
measured in a cross-sectional and a longitudinal study of car owners. Overall,
consumers with high product involvement showed slightly greater satisfaction with
their cars than low -involvement consumers over the term of ownership. However, in
the 2-month period after purchase, consumers with high product involvement showed
a decline in satisfaction, whereas low-involvement consumers' satisfaction increased.
The role of disconfirmation in these changes was investigated. Benefits and problems
disconfirmation were found to make independent contributions to satisfaction
judgments, and the strength and form of contribution varied with product
involvement. These findings suggest that benefits and problems disconfirmation need
to be measured separately in satisfaction research
Claes Fornell(1992) examines that Many individual companies and some industries
monitor customer satisfaction on a continual basis, but Sweden is the first country to
do so on a national level. The annual Customer Satisfaction Barometer (CSB)
measures customer satisfaction in more than 30 industries and for more than 100
corporations. The new index is intended to be complementary to productivity
measures. Whereas productivity basically reflects quantity of output, CSB measures
quality of output (as experienced by the buyer). The author reports the results of a
large-scale Swedish effort to measure quality of the total consumption process as
customer satisfaction. The significance of customer satisfaction and its place within
the overall strategy of the firm are discussed. An implication from examining the
relationship between market share and customer satisfaction by a location model is
that satisfaction should be lower in industries where supply is homogeneous and
demand heterogeneous. Satisfaction should be higher when the
Page 44
 Project on Mahindra & Mahindra

heterogeneity/homogeneity of demand is matched by the supply. Empirical support is

found for that proposition in monopolies as well as in competitive market structures.
Likewise, industries in general are found to have a high level of customer satisfaction
if they are highly dependent on satisfaction for repeat business. The opposite is found
for industries in which companies have more captive markets. For Sweden, the 1991
results show a slight increase in CSB, which should have a positive effect on the
general economic climate.
Richard Oliver (2000) Response determinants in satisfaction judgement, examines
that The effects of five determinants of satisfaction are tested as well as individual
differences in satisfaction formation. Manipulations of attribution, expectancy,
performance, disconfirmation, and equity are written into stock market trading
scenarios in a full factorial design. Results show that all main effects and four ordinal
two-way interactions are significant. Then, an individual-level analysis is performed
on the repeated measures data. Three clusters of subjects sharing similar response
tendencies (disconfirmation, performance, and equity) are identified and related to
investment attitudes, outcome attitudes, and demographics. No consistent
relationships are discovered, suggesting that the response differences reflect deeper
behavioral tendencies. Implications of this approach for satisfaction paradigms,
satisfaction theory, and individual satisfaction response orientations are presented.
Jafar and Sur (2006)studied the efficiency in management of working capital in
National Thermal Power Corporation Ltd. during the period from 1983-81 to 2002-
03. The researchers have applied financial tools and statistical techniques and
revealed that the company has managed its working capital efficiently during the post-
liberalization era by adapting itself to the new environment resulting from
liberalization, globalization and competitiveness.
Meszek and Polewski (2006) analyzed the profiles of the selected construction
companies from the view point of working capital formation and their management
strategies applied to working capital. Financial tools were applied. Researcher
revealed that construction companies under studies differ in their level of working
capital and the same is influenced by the formation of partial elements. They
suggested that construction companies require the development of methodology of
working capital control on the formation of desired parameters using the knowledge
of organization of investment processed.

Page 45
 Project on Mahindra & Mahindra

Padachi (2006) has examined the trend in working capital management and its impact
on performance of 58 Mauritian small manufacturing firms. For purpose of analysis,
financial tools and statistical techniques have been used. Researcher revealed that
there is significant relationship between working capital management and
profitability. The findings also reveal an increasing trend in the short-term component
of working capital financing.
Sayaduzzaman (2006) investigates the efficiency in management of working capital
in British American Tobacco Bangladesh Company Limited. The study covers a five
year period from 1999-2000 to 2003-04. The researcher has analyzed the case with
the help of financial tools and statistical techniques and has found that working capital
management of British American Tobacco Bangladesh Company Limited is highly
effective.
Zingwiro (2006) tried to study the impact of hyperinflationary environment on
management of working capital in Zimbabwe. The finding reveals that cash and
receivable were not kept at optimal level and funds were borrowed at higher rate of
interest which resulted in poor management of working capital during
hyperinflationary environment.
Beydokhti (2007) studied to know the system, concept, process and efficiency in
management of working capital in 60 firms of small-scale industry in and around
Pune. Findings reveal that motivation of manpower can increase efficiency of the
organization, proper management and coordination of operations can decrease the
cost, efficient management and administration of liquidity can determine efficient
management of working capital, small-scale firms should improve their overall
efficiency by applying modern management techniques in production, marketing and
finance. Efforts should be made to improve the profitability of the firms by effective
management of working capital

Page 46
 Project on Mahindra & Mahindra

ANALYSIS OF CUSTOMER SATISFACTION

Satisfied with overall service provided by sutaria automobiles

1. Strongly Agree 10 2. Agree 25

3. Neither agree not disagree 31 4. Disagree 18
5.Strongly Disagree 16

Interpretation
According to my survey, out of 100, responds 31% of the people says neither agree nor
disagree about overall service provided by Sutaria Automobiles. And 25% of the people
agree. And 18% of the people disagree, and 16% of the people says strongly disagree, and
lastly 10% of the people strongly agree about overall service provided by Sutaria
Automobiles.

Page 47
 Project on Mahindra & Mahindra

Authorized service station has sophisticated tools and techniques.

1. Strongly Agree 06 2. Agree 28
3. Neither agree not disagree 32 4. Disagree 25
5.Strongly Disagree 09

Interpretation
Out of 100 respondents 32% of the people moderate about tools & techniques & 28% of the
people agree, &25% of the people disagree & 9%of the people says strongly disagree & 6%
of the people strongly agree for tools & techniques.

Page 48
 Project on Mahindra & Mahindra

Authorised service station has sufficient and genuine spares.

1. Strongly Agree 07 2. Agree 36
3. Neither agree not disagree 30 4. Disagree 17
5.Strongly Disagree 10

Station has sufficent tools and Genuine Spares

40
Samples

30

20

10

0
1. Strongly 2. Agree 3 .Neither 4. Dis agree 5. Strongly
Agree Agree nor Dis agree
dis Agree

Respondents

Interpretation
From the source of field survey, out of 100 respondents 36% of the people agree with
sufficient & genuine spares, & 30% of the people moderate with the spares, & 17% of the
people disagree, & 10% of the people strongly disagree,& remaining 7% of the people
strongly agree for sufficient & genuine spares.

Page 49
 Project on Mahindra & Mahindra

Labour charges compared to Authorised service and roadside Mechanics.

1 Very high 60 2 High 32
3 Economical 08 4 Low 0

Labour Charges

70
60
Samples

50
40
30
20
10
0
1. Very high 2. High 3. Economical 4. Low

Respondents

Interpretation
According to my survey 60% of the people says labor charge is very high in the Sutaria
Automobiles as compared to roadside or any other Authorized service centre, & 32% of the
people says labor charge is high & remaining 8% of the people says labor is reasonable.& no
body is ready to agree with low labor charges.

Page 50
 Project on Mahindra & Mahindra

Delivery as per schedule.

1 Always 10 2 Most of times 25
3 Some Times 45 4 Never 20

Delivery as per schedule

50

40

30

20

10

0
1. Always 2. most of the 3. Some times 4.Never
times

Respondents

Interpretation
45% of the respondents are disagree with the delivery of vehicle timings and 25% of the
respondents are moderate, 20% of them said they never get timely, and 10% of them are
agree with the delivery as per schedule.

Page 51
 Project on Mahindra & Mahindra

On Road Break down Service.

1 Poor 11 2 Fair 46
3 Good 36 4 Excellent 07

Break down Service

50
45
40
35
Samples

30
25
20
15
10
5
0
1.Poor 2.Fair 3.Good 4.Excellent
Respondents

Interpretation
In the samples taken out of 100 respondents 46% of the people says on road break down
service is fair, &36% of the people says good & 11% people says poor, & remaining people
says on road break down service is excellent.

Page 52
 Project on Mahindra & Mahindra

Whether people at service station are co- operative or not.

Attributes Low Moderate High Very High
Works Manager 20 23 38 19
Service Advisor 13 25 44 18
Service Supervisor 15 27 39 19
Technicians 22 16 34 28

People at service station are cooperative

50
40
30
low
20
moderate
10
high
0 very high
works Service Ad- service Su- Technicians
manager visor pervisor
Respondents

Interpretation
Based on my survey the customers are says that works manager is 38% high, 20%
low &23% moderate with them at service station and service advisor is 44% is high,
13% low and 25% moderate with them and service supervisor is 39% is high , 15% is
low and 27% moderate with them. And technicians are 34% high, 22% low and is 16%
moderate with them at service station.

It is helpful if service station is kept open on Sundays

Yes 80
No 20

Page 53
 Project on Mahindra & Mahindra

Service Station kept on Sundays

No; 20; 20%

Yes; 80; 80%

Interpretation
From the source of field survey nearly 80% of people says it is helpful to them, if service
station is kept open on Sunday’s.

Page 54
 Project on Mahindra & Mahindra

Whether you would recommended Sutaria service station to others.

Yes 71
No 29

Recommend to others

No; 29

Yes ; 71

Interpretation
According to my survey 71% of people says that, they are recommended sutaria
automobiles to others. And 29% of people are not recommended sutaria automobile to
others.

Page 55
 Project on Mahindra & Mahindra

FINDINGS AND SUGGESTIONS

Findings: -
 According to my survey, out of 100, responds 31% of the people says neither agree nor
disagree about overall service provided by Sutaria Automobiles
 Out of 100 respondents 32% of the people moderate about tools & techniques
 From the source of field survey, out of 100 respondents 36% of the people agree with
sufficient & genuine spares,
 According to my survey 60% of the people says labor charge is very high in the Sutaria
Automobiles as compared to roadside or any other Authorized service centre.
 45% of the respondents are disagree with the delivery of vehicle timings.
 In the samples taken out of 100 respondents 46% of the people says on road break down
service is fair.
 From the source of field survey nearly 80% of people says it is helpful to them, if service
station is kept open on Sunday’s.
Suggestions: -
 Management should make availability of sufficient tools and techniques and genuine
spare parts.
 Management should try to reduce labor charge and service charges as much as possible.
 Management should maintain delivery timings and on road break down service’s as they
promised to their customers.
 Majority of the customer’s wants to kept open service station on Sunday’s, so
management should try to provide service’s on Sunday’s also

CONCLUSION
According to my survey majority of the customers are not satisfied with overall service
provided by Sutaria Automobiles, they expect management should provide:-
 Sophisticated tools and techniques.
 Genuine spare parts.
 Reduction in labor charges.
 Timely delivery of vehicle.
So Management should concentrate on these aspects to satisfy their customers.

Page 56
 Project on Mahindra & Mahindra

QUESTIONNAIRE
1. Which Mahindra vehicle do you own?
_______________________________________________________________

2. Are you satisfied with the overall service provided by the Sutaria Automobiles
1. Strongly Agree 2. Agree
3. Neither agree nor disagree 4. Disagree
5. Strongly Agree

3. Authorized service station has sophisticated Tools and Techniques.

1. Strongly Agree 2. Agree
3. Neither agree nor disagree 4. Disagree
5. Strongly Agree

4. Authorized Service Station has sufficient and genuine spares

1. Strongly Agree 2. Agree
3. Neither agree nor disagree 4. Disagree
5. Strongly Agree
5. Labor charges (Comparison to roadside mechanics or other authorized service station)
1. Very High 2. High
3. Economical 4. Low

6. Delivery as per schedule

1. Always 2. Most of times
3. Some times 4. Never
7. Distance of service station from your residence
_____________________________________________________________
8. On road break-down service
1. Poor 2. Fair
3. Good 4. Excellent

9. Have you come across any problem with authorized service station?
1. Yes 2. No

Page 57
 Project on Mahindra & Mahindra

If yes, specify _________________________________________________

10. Whether people at service station are co-operative or not
Low Moderate High Very High
1. Works Manager
2. Service Advisor
3. Service Supervisor
4. Technicians

11. Whether it is helpful for you, if service station is kept open on Sundays
1. Yes 2. No
12 Can you suggest the best working time for the service station?
_____________________________________________________________
13. Whether you would recommended Sutaria Service Station to others
1. Yes 2. No
14. Any Suggestions to improve the services provided at Sutaria Automobiles.
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________
1. Name of the Respondent: _________ ___________________________________
2. Address of the Respondent____________________________________________
3. Vehicle Model ____________________________________________
4. Vehicle No. ____________________________________________
5. Phone No: _______________ Mobile No.: ______________

Thank you, Signature

Page 58