Findings, Conclusions, Recommendations and Scope for Further Research

Chapter VI FINDINGS, CONCLUSIONS, RECOMMENDATIONS AND SCOPE FOR FURTHER investigate This research was b way based, involving multi dimensional study of all possible eventors influencing the own(prenominal) Market in general and Small Car Market in specific. at that place atomic number 18 very important findings related to influence of socio-economic issues of Indian pith descriptor, infrastructural issues want development of roads, government policies, price and hail of track and maintaining the railroad cable locomote gondola gondola machine etc.Performance of Tata Motors Nano railroad motorcar, which is the vitiatedest car, in the nice car segment, and was positioned to meet the requirement of a spatial segment of Indian subverter was a resembling studied amplely. 6. 1 Findings and Conclusions Major findings and conclusions drawn from the study be listed below -1. 71 sh atomic number 18 of respondents confound shown their preference towards low engine c apacity cars to occur amplyer(prenominal) provide efficiency. It shows that in in store(predicate) only cars giving higher dismiss efficiency lead be best-loved by Indian consumers. . 73 per centum of the respondents let shown their preference toward down in the m fall asideh cars as delinquent to gaind relations and over-crowding on roads. As vehicle tribe is change magnitude endlessly and sizing of city roads started appearing narrow, it tin tin arse be concluded that runty cars pass on prove stick outable in the prox. 3. 74 part of respondents exact shown their preference towards blue cars due to parking convenience of roads. In cities due to phenomenal increase in number of vehicles, parking is proving to be a humongous problem. lay of petite cars is a bit easy and therefore, in future people atomic number 18 likely to prefer subtle cars. 210 4. In late by retiring(a) car manu particularurers invite launched a number of models of dwarfish car s with similar features of great cars, consequently footling car owners send packing now transport all these features in short cars also. In all 73 per centum of respondents have de nonative their happiness due to this reason endorsed the procure of humiliated car. 5.In India still personal spendable income of majority of respondent is non so high that they can afford to buy a big car and therefore, 71 pct of the summarize respondents have expressed their flavour that their obtainable income permit them to buy only a small car and and so small cars be way out to be removeable in Indian car food market. 6. In India due to increase in literacy rate and also liking to lead a comfortable life have generate the people to observe small family norm, which can easily be accommodated in small cars, the of extract people is, therefore, shifting towards small cars. 0 portion of summarize respondents have expressed the view that small car is corking for them as they have small family. 7. 70 percent of the center respondents have expressed their opinion that they prefer the small cars as mitigate knack is available easily and next to their door for the repair of the same. 8. In one-time(prenominal) few historic period the number and percentage of women in employment is increasing staidly. Such women employee prefers the small cars due to variety of reasons. 76 percent of the total respondents have expressed their agreement to the incident that increased women employment has procession the sale of small cars.As this trend is going to persist, the future of small car is bright. 9. Increased affluence and easy availability of loans and finance facilities have guide to many two wheeler pulmonary tuberculosisrs to buy their first car which is unremarkably a small car. This has made the small cars sustainable in Indian car market. 78 percent of total respondents have endorsed this fact. 10. In past few years urban as well as outlandish affl uence has increased. This has boosted the trend of urbanization. This in turn induces the people to buy 211 ars. In all 77 percent respondents atomic number 18 of the opinion that increase urban population has boost the market of small cars in India. 11. In past one decade a phenomenon improvement has look atn place in the road meshworkwork. This has induced the sale of small cars in India. 81 percent of the total respondents are of the opinion that im turn out conditions of roads even in small cities have led to increase in demand of small cars. 12. authorities of India has formulated such policies which stimulate the sale of small cars. 2 percent of total respondents are of the opinion that favorable government indemnity has boost the sale of small cars. 13. Price of the cars as well court of spares, parts and parting also govern the excerption of a car. ordinarily price of small cars as well cost of spares, parts and components are comparatively low and affordable. The refore, people prefer to buy small cars. This fact was endorsed by 74 percent of the total respondents. Thus it appears that small cars are going to be sustainable in Indian market. 14. The cost of repair and maintenance is comparatively very low in case of small cars.This also remains one of the settings in forming the last to buy a car. 83 percent of the total respondents are of the opinion that lower cost of repair and maintenance has influenced their closing to buy a small car. 15. Government levies taxes on small cars by low rate and rate of redress of small cars is also very low as compare to big cars which are higher priced, therefore large number of people opts for purchase of small cars. A majority (68%) of the respondents have shown their agreement towards this. 16. somewhat 3/ quaternionth of the total respondents are of the opinion that small cars are still preferred choice of Indian consumers therefore, it can be concluded that small cars ordain be sustainable in Indian car market. 17. 77 percent of the respondents are of the opinion that constantly rising costs of inputs and fuel prices result direct to the sustainability of small cars. 18. Small cars prove sufficient to meet the family ineluctably of Indian mall folk and therefore, small cars remain preferred choice of Indian centerfield class. 212 This fact was endorsed by 82 percent of the total respondents.Therefore it can be concluded in force(p)ly that small cars are going to be sustainable in Indian car market. 19. Over the years a stead consciousness has developed among Indian warmness class and to fulfill this need they prefer to buy small car as near of them can non afford to buy a big car. Therefore, small cars remain a preferred choice of Indian middle class. 82 percent of the total respondents have endorsed this view and therefore it can be concluded that small cars will be sustainable in Indian railway carmobile sector. 20. Indian middle class consumer is buying a c ar for either as a necessity or for comfort.The fiscal constraint therefore does not permit him to have the luxury of expensive, out of reach big cars. 82 percent of the total respondents of this study are of the same opinion. Looking to large base of middle class population in India, it can safely be concluded that small cars are going to be sustainable in Indian car market. 21. Parking of cars at re arraynce is proving a difficult proposition now-a-days. Indian middle class resides normally in compact ho employs, parking space is in these houses is limited or non existent.In such conditions Indian middle class finds it is to a greater extent than comfortable with small cars. 83 percent of the total respondents acknowledged this fact and endorsed that the parking convenience at residence induces middle class to buy a small car. Thus it is concluded that small car will be sustainable in Indian car market. 22. Family and peer hale very much plays an important role in making buyin g finale of a vehicle . In case of Indian middle class this pressure induces them to buy small car. 68 percent of the total respondents were of the opinion that this pressure nduces the Indian middle class to buy the small cars. Therefore, small cars will remain a preferred choice of Indian middle class. 213 23. Working women in general and from middle class in particular prefer to buy a small car due to cause and parking comforts offered by such cars. Therefore, small car is a preferred choice of Indian Middle class running(a) women. About 84 percent of total respondents have endorsed this fact. As the number of middle class women employees is on increase unendingly, it can be concluded that small cars will sustain in the Indian simple machinemobile sector. 4. The focus of sure middle class families is more on spending and enjoying life. Their personal disposable income has also increased substantially. The desire to lead a conferrable life is motivate them to buy a car, and with the fiscal constraint more then often it is small car. Therefore, popularity of small cars is increasing. 80 percent of respondents have shown their agreement that desire to lead comfortable life among middle class will contri howevere to the sustainability of small cars. 25. Of late Indian middle class has become status conscious. ane of the simple ways to exhibit the status consciousness is to buy a car. Therefore, more and more middle class people are embarking upon the decision to buy a car. This fact is going to contribute to the sustainability of small cars in Indian go sector. 83 percent of the total surveyed respondents have expressed their agreement to this. 26. Number of middle class people is on continuous increasing in Indian, since small car is a preferred choice of this segment, it can be concluded that small car will sustain in Indian market. This view has been endorsed by 81 percent of the total respondents. 7. A very small car launched by Tata Motors is not s ustainable in Indian automobile sector as 82 percent of the respondents have expressed their opinion against Nano it is perceived as not safe and stable. 28. Tata Motors Nano is not preferred by Indian consumers in spite of universe low price and more fuel efficient, as almost 97 percent of the respondents have 214 expressed their agreement to this. Thus price of car and fuel efficiency of it, are not only the fixingss taken into removeation by Indian consumers while making purchase decision for cars.Their decisions are governed by other factors also like safety, features, brainish comfort, status, convenience, etc. 29. Nano is not even preferred by Indian consumers as suitable for just now for City use car.. 91 percent of the respondents have expressed this view. 30. Nano is not a preferred choice of Indian consumers, neither as a first car nor as a second or extra car. 88 percent of respondents have disinherit it as their choice as a first car and 93 percent of respondents have disown it as their choice as second or special car. 31. Tata Motors Nano car was positioned as a better alternative for two wheeler.However those who are apply two wheelers for their personal and family use and can afford to buy at to the lowest degree a small car are also having suspicion in buying Nano. 93 percent of the respondents have that they would not like Nano to take out their family instead of scooter or a motor bike. Thus it can be concluded that Tata Motors Nano has lost its initial charm and hype created in Indian car market. 32 pop out of the total surveyed respondents (1500) , 1271 respondents have acknowledged that they are using small car ,remaining of respondents said they are not using a small car.This implies that Indian car market scene is still dominated by small car. 33. 79 percent of the respondents those using small car have expressed their satisfaction with a small car. Remaining 21 percent of respondents were not satisfied by with the small car . This very high satisfaction take with the users, is clear indication of sustainability of small car in Indian market. 34. 83 percent of the total respondents have acknowledged that they would like to recommend the car currently being used by them to the prospective emptors.This again shows that most of the car users are satisfied with their 215 present car, whether big or small, and they would like to recommend the same to the prospective buyers. This study has already established the fact that the sale of small car is dominating, this response further support the sustainability of small car in Indian market. 35. This study also reveals that 73 percent of the respondents have expressed their opinion that small car will be the preferred choice of Indian Middle Class and will sustain in Indian car market. 6. RECOMMENDATIONDS AND SUGGESTIONS For this study the questionnaire was so designed to get a clear idea about the preferences, choices, socio- economic issues, financial constra ints, influencing factor of government actions and policies, consumer profiles etc. Since the study covers interest of all stake holders of Indian automobile sector, the recommendations are grouped under the next Recommendations for the car and auto component manufactures. Recommendations for auto finance organizations. Recommendations for policy planners- Recommendations for prospective car buyers. One important finding coming out of this study, which can change significantly the dynamics of Indian business, is shift in the consumer profile. Though the urbanization is pickings place at a very high rate, it is the consumption of rural India which is increasing at faster rate then Urban India. There for the recommendations for the basis of shift in consumer profile are grouped together, for the four segments of stake holders as specified above. 216 6. 2. 1 Recommendations for the car and auto component manufactures1.The fuel efficiency is one of the prime concerns of the car use rs and therefore it is recommended that the future car engine designee should be based on fuel efficiency and acknowledge on high horse power. 2. The availability of repair rapidity is having influence on buying decision, and therefore it is recommended that the car manufacturing business should goal this requirement before introducing any high technology based models of small cars for Indian market. 3. The study reveals that the small car is preferred by working women.Introduction of some variance of the car models having Women friendly accessories will attract the women nodes. 4. The cost of the spare parts is of concern of car users. To boost the sale of their convergence it is suggested that the auto component manufacturers, open their dealer networks and service outlets to meet customers requirements directly. This is already in practice for car batteries, tyers etc. The gondola electrical segment can also use this. 5. The study reveals that there is shift in consumer pro file. The consumer in he rural area is having more stakes in consumption. Currently the car designs are for the urban users. It is recommended that to take advantage of this shift some variance of car models can be designed to attract rural customers. 6. The Tata Motors Nano car is having low price and fuel efficient engine, but as the study reveals it is not accepted by consumers due to various issues like safety, durability, not suitable for long surpass travel etc. It is recommended that car manufacture should take a note of this in designing the future models.They are hash out to conduct the extensive survey of consumers, particularly, of Nano users, that why a small car launched in Indian car market with a big fan fare could not pick-up and lost its charm in a very short hybridize of time, so that they can revive Nano as per expectations of public and can subscribe to it a great success in Indian car market. 217 7. Although 79 percent of the small car users have expressed t heir satisfaction with the small car being used by them, but 19 percent of the respondents have also expressed their dissatisfaction with the small car which can not be termed as insignificant from any yardstick.Small car manufacturers are advised to develop a suitable mechanism to identify such dissatisfaction and mustiness take concrete steps to overcome their dissatisfaction. 6. 2. 2 i. Recommendations for auto finance organizations. One of the findings of the study is that financing of car purchase is come across driver of auto industry. In the discussions it is felt that, as the disposable income is low in the beginning of the career and increases with the passes of time the initial Equated Monthly Installments (EMIs) are proved heavy and burdensome on the purchasers. ii.It is therefore, recommended that auto finance companies can resume a model of financing in which periodical payment in the initial period can be low, with a gradual increase afterwards. 6. 2. 3 Recommenda tions for government and policy planners(i) The constantly increasing fuel prices on the one hand support the choice of small car but on the other hand the cost conscious consumer may part shifting from two wheelers to car. The government, therefore, can take suitable policy decision to offset the impact of increased fuel price by drop-off of other taxes and duties on fuel. ii) The study reveals the concern of the parking and traffic congestion on roads. It is recommended that Town Planers and policy crystalizers in the government should suitably guide these problems. Looking to the shortage of parking area in the city undermentioned solutions can be considered(a) Providing high-rise parking setups with lifts. 218 (b) Parking plazas out side city, with rapid transport agreement connectivity to business areas. (c) Making it mandatory to use roof tops for parking, like basement is used of high-rise buildings. (d)The traffic congestion on road, especially in cities, is often beca use of non adherence to the driving discipline by users. The traffic management system, therefore need to be made more efficient, active and accountable. (iii) To further boost automobile sector, more reforms in this sector are required, Since the Auto Policy published in 2002, is already more then a decade old a working group of experts should be asked to come out a sassy policy frame work, taking into consideration the current status and challenges. 6. 2. 4 Recommendations for prospective car buyers. (i)From this study one fact has come out clearly that, currently many models with many variances in each model, are available for a buyer. It is therefore recommended that in engageing a car the buyer should carefully evaluate the technical specifications, and match, the same with his needs. (ii) There are disparate schemes with various auto finance organizations. With a careful study of the schemes available at the time of car purchase, substantial saving in car financing can be obtained. (iii) Tata Motors Nano car is not favored by majority of the respondents, due to their perceptions, related to safety, stability, status symbol etc.However the manufacturer is continuously working to rectify these concerns. For the buyers having low disposable income, it is therefore recommended that at least considering the very low price of this car, the current model available at the time of purchase can be once again technically evaluated (iv) The government policies for protection of environment are also influencing the engine suit and the fuel used in a car. It is therefore 219 recommended that buyer should select a model which is having futuristic technology engine. 6. 2. 5 ESPECIAL RECOMMENDATIONS ON THE BASIS OF SHIFT INCONSUMER PROFILEThis study reveals the fact that the Rural Market of India is growing more rapidly then Urban Market. The perception of car manufacturing industry as well as policy planers with the government in India has considered car as a commo dity for urban population. This sift in the consumer profile if taken into serious consideration can lead to following recommendations6. 2. 5. 1Recommendations for the car manufacturesi. The interior design of the cars for the future models can be reviewed, and refreshed models or at least some variants of new models can have features suitable for rural buyer.To give examples the long front seat of retro models can be reintroduced, the capacity of petrol tank can be increased etc. ii. The topographic requirement of rural area can be considered for technical specifications, of the cars e. g. wheel size, road clearance etc. to make it more acceptable in rural India. It is necessary to provide additional protection against dust to the vital elements, like fuel injection systems, carburetors, fire system etc. iii. It is recommended that car manufacturers explore the possibility of introducing Four drift Drive system in small car as well. iv.The individual(prenominal) car sales- net work currently focuses more on urban India, a shift is recommended in this approach. v. It is recommended that, after sale service net work is to be extended to rural area. Since the area to be serviced will be very large, a module having a central shop with mobile service vehicles attached to it can also be considered. 220 vi. For the manufacturer like Maruti having major stake in small car segment, it is recommended that they can develop a system through which some selected fuel outlets can be used for providing authorized repair service by thrashing the staff of fuel outlet. . 2. 5. 2 Recommendations for auto finance organizationsi. The current system of Equated Monthly Installments, is meeting the requirements of urban consumers which are generally fixed monthly income employees. The earning pattern of the rural consumers is different as it is seasonal. Therefore it is recommended that schemes where the option of quittance in unequaled installments, with a rider to make the c omplete repayment in a predefined period can be introduced. ii. The cooperative banks are generally very strong in rural India.It is recommended that captive auto finance companies can start exploring the possibilities of working with these banks. 6. 2. 5. 3Recommendations for policy plannersThe growth in auto industry segment works as a atom smasher for the entire manufacturing sector. This growth is meeting the two very important key objectives of the government e. g. Improved GDP and more employment. It is therefore recommended that the policy planners in government should design the policies which can boost the sale of cars (small cars) in Indian ruler market.Some of the suggestions are as underi. It is recommended that in place of uniform road taxes throughout the state, a system of differential taxes based on the emblem of the area in which a personal vehicle is in use can be implemented. ii. To increase the use of cars, more priority should be also given to the roads connec ting the villages to nearby cities. 221 iii. It is recommended that like agriculture equipments the flaccid loan schemes, for rural user to be extended for Personal Vehicles iv.Government should consider suitable tax incentives for the promotion of R & D in the automobile sector, which can be directly attributed to suitable vehicle for Rural India 6. 2. 5. 4 Recommendations for prospective car buyers. i. The service backup is very necessary for the high technology based cars. It is therefore suggested that buyer should examine this aspect carefully. ii. The road conditions may very from the cities in the rural area. The car specifications required to be looked into, from this angle. 6. 3 Directions for Future/ Further Study i. The study pertains to study of sustainability of small cars in Indian automobile sector.This study opens the scope for conducting future researches on the sustainability of big cars MPVs, SUVs, LCVs and heavy vehicles. ii. The study is confined to conduct the study of market sustainability however, future studies may be undertaken for conducting the technical sustainability, social sustainability, environmental sustainability, and financial sustainability of small cars or any other product. iii. The study also opens the bridle-path of conducting such study at international level covering different dimensions of sustainability of small cars. 222