[VOLUME 6 I ISSUE 1 I JAN.

– MARCH 2019] e ISSN 2348 –1269, Print ISSN 2349-5138

http://ijrar.com/ Cosmos Impact Factor 4.236

A STUDY ON CONSUMER PREFERENCE TOWARDS INDIAN BRAND CARS

Dr. R.Krishna Kumari1 & C.Saranya2

1Head & Assistant Professor, Department of B.Com (CA) and M.Com, PSGR Krishnammal College
for Women, Coimbatore.
2PSGR Krishnammal College for Women, Coimbatore.

Received: December 07, 2018 Accepted: January 09, 2019

ABSTRACT: The Indian automobile industry is one of the most lucrative industries. Increase in disposable
income in both rural and urban sector and availability of easy finance are the main drivers of high volume car
segments. There are different segments of cars in Indian brand automobile industry such as micro, macro,
compact, hatchback, sports utility vehicle, and luxury cars. The present study is undertaken to identify the
brand and type of Indian brand car preferred and the factors influencing the preference. Data is collected
from 150 Indian brand car owners through systematic sampling method. The findings show that Tata and
Mahindra are the brand cars preferred by most and macro cars are preferred. Quality, after sales service and
brand name are influencing factors in preferring Indian brand cars.

Key Words:

INTRODUCTION
India being the second most populated country in the world and eleventh largest car manufacturer
with increasing growth rate as compared to developed countries, attracts the presence of huge demand in
the automobile car industry. India is emerging market for worldwide auto giants. India is on growing p ath
and has highest passenger car penetration. There are various reasons for the growth of Indian automobile
market such as the people have more disposable income as economy is growing, increase in the need of
mobility due to urbanization and leisure travel, car finance options available from financial institutes at
reasonable rate of interest, availability of service centres and spare parts in near vicinity, improvement in
highway infrastructure.
STATEMENT OF THE PROBLEM
Due to the emergence of globalization and liberalization there is stiff competition among various
brands of automobile industries which are focusing attention in capturing the Indian market. India’s
demographics is such that, it can absorb voluminous number of cars every year and the Indian market
attracts all popular overseas brands. Further, Indian brand car companies are competing with global brands
and are successfully establishing their brands in the Indian market. In this scenario the study focuses to
identify the Indian brand car preferred and the factors that influence in the preference of Indian brand cars.

SCOPE OF THE STUDY

This study focuses on the Indian brand cars preferred by the consumers and the factors influencing
the consumers to purchase Indian brand cars.
OBJECTIVES OF THE STUDY
 To identify the Indian brand car preferred
 To identify the factors influencing Indian brand car preference

RESEARCH METHODOLOGY
i) Period of the study : The period of the study is from September 2017 to March 2018.
ii) Sampling technique : The sampling technique used for the study is systematic sampling.
iii) Area of the study : The study was undertaken in Coimbatore city.
iv) Sampling size : The sample size used in the study is 150 respondents.
v) Sources of Data: The primary data has been collected through questionnaire from Indian car brand
owners. The relevant secondary data have been collected from journals, magazines, thesis and dissertations,
online reports, published and unpublished reports.
vi) Statistical tools: The data collected for the study are analyzed with suitable statistical tools. The
following statistical tools are used for the analysis in this study.
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• Simple percentage analysis • Descriptive statistics • ANOVA • t - test

LIMITATIONS OF THE STUDY

There are some limitations in this study as follows,
 The study covers respondents in Coimbatore city only.
 The sample size is limited to 150 respondents.
REVIEW OF LITERATURE
Sakthivel (2017), studied about “Consumer Behaviour on Automobile Passenger Car” with special
reference to Coimbatore city. The objective of the review is the identification of elements impacting client's
inclinations for specific fragment of automobiles. The study reveals that easy cash flow with the people and
accessibility of simple fund are the primary drives of high volume automobile sectors. With host of new
players coming in and worldwide brands set to wander in Indian market. This examination will be useful for
the current and new participant auto fabricating organizations in India to discover the client desires and
their market offerings.
VasanthaShanmugam (2016), has made research on “Antecedents of Social Media Information
Search towards Purchase Decision”. The objective of the study is to study the social media’s influen ce on
consumers purchase decision making and analyse the antecedents that impact their purchase decision.
Methods and statistical analysis used are consumer-based attitude scale and a questionnaire was completed
by respondents who either have purchased a car in last one year or, are willing to purchase in next one year.
Frequency, t-test, ANOVA and factor analysis were used for data analysis using SPSS. The study finds that,
advertisement and social media are considered as high source of awareness, then purchase intention may
differ due to gender, family income, family type.
RESEARCH GAP
Few of the studies focus on variables such as financial position, consumer intention on purchasing
new car, customer relationship management, measurement of service quality, customer intention, car
market and buying behavior. But there is no study focusing on consumer behavior specifically towards
Indian brand cars. Hence the present study is undertaken to fulfill the gap in the literature.
FINDINGS OF THE STUDY
Table 1 – Percentage Analysis showing Demographic Classification of the Respondents
Particulars Classification No. of Respondents Percentage
Gender Male 60 40
Female 90 60
Age 18 to 25 years 51 34
26 to 35 years 52 34.7
36 to 45 years 30 20
Above 45 years 17 11.3
Marital status Unmarried 56 37.3
Married 94 62.7
Educational School level 38 25.3
Qualification UG 35 23.3
PG 65 43.3
Professionals 12 8
Occupation Student 35 23.3
Self Employed 33 22
Business 33 22
Profession 11 7.3
Homemaker 38 25.3
Type of family Joint 64 42.7
Nuclear 86 57.3
Number of members 1 7 52.7
In the family 2 43 28.7
More than 2 28 18.7
Monthly family Less than Rs.30,000 20 13.3
Income Rs.30,001 to Rs.60,000 31 20.7
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Rs.60,001 to Rs.1,00,000 66 44
Above Rs.1,00,000 33 20
Total 150 100

TABLE 2 - INDIAN BRAND CARS OWNED BY THE RESPONDENTS

(MULTIPLE RESPONSE)
Indian brand cars Respondents Percent
Mahindra 41 21.4
Tata 58 30.2
Maruti 58 30.2
Force motors 26 13.5
Hindustan motors 9 4.7
Total 192 100.0
Source: Primary data

From the above table it is clear that, 21.4 per cent of the respondents own Mahindra, 30.2 per cent own Tata,
30.2 per cent own Maruti, 13.5 per cent own Force motors and 4.7 per cent own Hindustan motor. 30.2 per
cent of the respondents own Tata and Maruti.
TABLE 3 - DESCRIPTIVE STATISTICS - TECHNOLOGIES USED IN INDIAN BRAND CARS
Statements Mean Standard deviation Respondents
Adjustable steering 1.57 .496 150
Alarm system 1.93 .803 150
Airbags 1.51 .501 150
Bluetooth 2.51 .496 150
Foglamp 2.65 .480 150
MP3 Player 2.25 .723 150
FM 2.21 .641 150
TV 1.57 .496 150
Rear power windows 3.00 .000 150
Rear wipers 3.00 .000 150
Reverse parking sensor 3.00 .000 150
Remote locking 3.00 .000 150
Height adjustable seats 2.76 .429 150
Source: Primary data
Descriptive statistics has been used to find the mean scores for the technologies used in Indian
brand car. The technologies used by the respondents in Indian brand cars are measured by summing up the
ratings given by the respondents for 13 statements at three - point scale. The mean ratings have been
assigned as 3 for ‘Always’, 2 for ‘Sometimes’, and 1 for ‘Never’. High score indicates the technology which
has been used always.
The highest mean score 3.00 has been found for ‘rear power windows’, ‘rear wipers’, ‘reverse
parking sensor’ and ‘remote locking’ with a standard deviation of 0.00.
Hence, the respondents are mostly using rear power windows, rear wipers, reverse parking sensor
and remote locking in Indian brand cars. The lowest mean score 1.51 has been found for ‘airbags’ with the
standard deviation of .501.
TABLE 4 - PRICE RANGE OF INDIAN BRAND CARS OWNED
Price range of Indian brand cars owned Respondents Percent
Less than Rs.5,00,000 11 7.3

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Rs.5,00,000 to Rs.10,00,000 57 38
Above Rs.10,00,000 82 54.7
Total 150 100.0
Source: Primary data
The above table indicates that, 7.3 per cent of the respondents own Indian brand cars priced less
than Rs.5,00,000, 38 per cent own priced between Rs.5,00,000 to Rs.10,00,000, 54.7 per cent own priced
above Rs.10,00,000. 54.7per cent of the respondentsown Indian brand cars priced above
Rs.10,00,000.
TABLE 5 - TYPE OF INDIAN BRAND CARS OWNED
Type of Indian brand car Respondents Percent
Mini car 32 21.3
Macro car 35 23.3
Compact car 34 22.7
Hatchback car 12 8.0
Sports utility car 10 6.7
Luxury car 27 18.0
Total 150 100.0
Source: Primary data

The above table indicates that, 21.3 per cent of the respondents own Indian brandmini cars, 23.3
per cent own Indian branded macro cars, 22.7 per cent own Indian brand compact cars, 8 per cent own
Indian brand hatchback cars, 3.7 per cent own Indian brand sports utility cars, 18 per cent are owning
Luxury cars. 23.3 per cent of the respondents own Indian brand macro car.
TABLE 6 - PERCENTAGE ANALYSIS FOR FACTORS INFLUENCING THE SELECTION OF INDIAN BRAND
CARS
Factors Highly Moderately Not
influence influenced influenced influenced
No. % No. % No. %
Brand name 150 100 - - - -
Nationality of 31 20.7 79 52.7 40 26.7
brand
Quality of car 150 100 - - - -
Price of car 12 8 95 63.3 43 28.7
Size of car 90 60 45 30 15 10
Technical 118 78.7 29 19.3 3 2
features
Design and 125 83.3 25 16.7 - -
appearance
Comfort and 145 96.7 4 3.3 - -
convenience
Facilities 145 96.7 5 3.3 - -
Safety and reliable 94 27.3 56 72.7 - -
Engine performance 90 60 60 40 - -
Mileage 99 66 51 34 - -
Luxury 12 8 19 12.7 119 79.3
Family size 64 42.7 86 57.3 - -
Life style suitability 121 80.7 29 19.3 - -
Finance scheme 131 87.3 19 12.7 - -
Interior space 95 65 55 35 - -
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Exchange offers 2 2 37 24 111 74
Durability 104 69.3 46 30.7 - -
After sale service 150 100 - - - -
Source: Primary data

100 per cent of the respondents are highly influenced by the brand name, quality of car and after
sale service.72.7 per cent of the respondents are moderately influenced by safety and reliability.79.3 per
cent of the respondents are not influenced by luxury features in Indian brand cars.
ANOVA AND T – TEST FOR FACTORS INFLUENCING THE PURCHASE OF INDIAN BRAND CARS
H0: There is no significant difference in the factors influencing the purchase of Indian brand cars based on
demographic factors.
TABLE 7 - ANOVA FOR DEMOGRAPHIC FACTORS VS FACTORS INFLUENCING THE PURCHASE OF
INDIAN BRAND CARS
Particulars No. Mean Std. T F Sig S/NS
Deviation
Age 18 -25 years 51 2.3647 .06655 6.815 .000 S
26 -35 years 52 2.4183 .10050 -
36 -45 years 30 2.4200 .05960
Above 45 years 17 2.4500 .08292
Gender Male 60 2.3808 .09961 11.162 - .001 S
Female 90 2.4194 .07059
Educational School level 38 2.3974 .10777 3.062 .030 S
qualification -
UG level 35 2.3714 .08684
PG level 65 2.4215 .07124
Professional 12 2.4250 .02611
Occupation Student 35 2.3400 .05116 19.555 .000 S
Self employed 33 2.4742 .06389 -
Business 33 2.3667 .08898
Profession 11 2.4273 .02611
Homemaker 38 2.4276 .07772
Marital Single 56 2.3518 .08032 .048 - .827 NS
status Married 94 2.4351 .07215
Type of Joint family 64 2.4086 .07213 3.775 - .054 S
family Nuclear family 86 2.4006 .09409
Number of 1 79 2.3791 .08305 - 12.561 .000 S
earning
2 43 2.4093 .08256
members
More than 2 28 2.4661 .06094
Monthly Less 20 2.3450 .04560 4.839 .003 S
family than Rs.30,000
income Rs.30,001 31 2.4000 .05627 -
to Rs.60,000
Rs.60,001 66 2.4098 .10856
to Rs.1,00,000
Above 33 2.4318 .05126
Rs.1,00,000
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Price range Less 11 2.3091 .04369 25.530 .000 S

than
Rs.5,00,000
Rs.5,00,000 57 2.3693 .05650
to Rs.10,00,000
Above 82 2.4409 .08647
Rs.10,00,000
Source: Computed
The ANOVA results indicate that there is significant difference in the factors influencing the
purchase of Indian brand cars based on demographic factors except marital status. Hence, the hypothesis is
rejected except in case of marital status.The paired t-test result shows that there is significant difference in
gender and the hypothesis is rejected with respect to gender.

SUGGESTIONS
After analysing the findings, the following suggestions have been made.
 The factors influencing towards Indian brand cars are brand name, quality of car and after sale
service. Hence, manufacturers are suggested to maintain these aspects.
 Consumers having more number of family members are highly influenced by Indian brand cars.
Customized production and marketing strategies of the manufacturers and marketers of Indian
brand cars could be the reason to strongly position their brands in consumer’s mind. This is
recommended to be enhancedto maintainbrand recognition among the consumers.
CONCLUSION
The Indian car makers have shown remarkable agility to cope with global players. The expected rise
in income levels, wide choice of models and easy availability of finance at lower interest rates has driven the
growth of car industry. The future scope also looks even better. The Indian Automobile Industry has seen a
lot of international car manufacturer’s entering India. The Indian road has seen the change with new
technology cars coming in with more luxury and affordability. The value of possessing a car has changed
from time to time. Understanding the fact, the car manufacturing companies realized to tap the untapped
potential in the Indian car markets. In the current study it has been understood that th e macro cars have
attracted a large user with the ruggedness and with multi utility features of the car, it has attracted the
customers who were having large family size.

REFERENCES
Sakthivel (2017), “Consumer behaviour on Automobile Passenger Car”, International Journal of Marketing and
Finance Management, vol. 5, No.4, 28-36.
VasanthaShanmugam (2016), “Antecedents of social media information search towards purchase decision”,
International Journal of Civil Engineering and Technology, vol. 2, No.4, 18-26.

640 IJRAR- International Journal of Research and Analytical Reviews Research Paper