An Exploratory Study On “Second Hand Motor Bike Preference in Bangalore City”
Hanika V Raj
Sachin V Zingade
We are extremely great full to Dr Bislaiah, Professor
(MP Birla Institute Of Management) for permitting us to carry out this study.
We would like to express our profound gratitude to all those who have helped us directly or indirectly in the course of this study.
With per capita income in the country growing at a fair clip, growth prospects of the Indian auto industry appear to be quite encouraging. The population is moving towards the middle class or lower middle class this is resulting in the higher disposable income.
From the secondary data collected showing the growth rate in purchase of new first hand vehicles, thus the question arises, where does the used vehicle go?
The report has been drawn up with the objective of identifying and analyzing the key factors and attributes, which influence consumers while deciding to purchase a second hand motorbike. The category of motorbike chosen for the purpose of this study is fuel-efficient; four stroke motorbikes in the range of 95 to 115 cubic-capacity engines.
The study starts with a brief insight into the evolution of the Indian automobile industry, the two wheeler industry, motorbike industry and the present structure. As mentioned earlier the study is on Consumers preference towards second hand motorbikes, which includes the attributes that influence the consumers the most and the second hand motorbike that they prefer the most.
The methodology adopted for this study was conducted by interviewing 100 respondents through a questionnaire. The respondents were asked a series of questions through which an analysis has been made on the key factors and attributes that influence and drive the consumer’s preference towards a particular motorbike in their purchase decision process.
The motorbikes, which were chosen for the purpose of this study, as mentioned above are fuel-efficient, four-stroke bikes in the range of 95 to 115 cubic capacity engines. The bikes that fall in this category are Hero Honda Splendor, TVS Victor, Kawasaki Caliber, Yamaha Crux and Kinetic Boss. These bikes contribute to the highest sales in term of revenue and numbers (motorbikes), in their respective companies, regarding segments mentioned above.
Attributes that influence and drive the consumers purchase decisions and preferences towards second hand motorbikes.
The number of respondents for the purpose of this study is 100, of which, the majority have preference for a motorbike which gives good fuel mileage.
About 90% of the respondents feel that fuel mileage is a very important attribute that a motorbike should possess. Fuel Mileage, Pricing, Pre and After Sales Service. From the findings, majority of the respondents says that Hero Honda Splendor is the best fuel mileage motorbike due to the fact that it has been priced the best and is also considered the best regarding Pre and After – Sales service is considered.
Thus based on our analysis of qualitative data that have been discussed, we have arrived at precise conclusions at the end of each chapter, giving manufacturers, retailers clear insight into the customers perception on the preference of second hand motor bikes in the Bangalore city.
The attributes which have been mentioned play a very important role for a motorbike to be a success in this segment of second hand two wheelers, for example fuel, mileage, etc.
Hero Honda Splendor the motorbike from Hero Honda Motors Limited has turned out to be the most successful motorbike in this segment of second hand two wheelers as it satisfies the majority of important attributes that the consumer desires
2.11 BACKGROUND OF THE STUDY AUTOMOBILE INDUSTRY
Following India's growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.
Automobile Dealers Network in India
In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.
Major Manufacturers of Automobiles in India
Maruti Udyog Ltd.
General Motors India
Ford India Ltd.
Daewoo Motors India
Hyundai Motor India Ltd.
Royal Enfield Motors
Swaraj Mazda Ltd
Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2006-07. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.
THE KEY FACTORS BEHIND THESE UPSWINGS Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry.
As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies.