HISTORY OF AUTOMOBILES

By definition an automobile or car is a wheeled vehicle that carries its own motor and transports passengers. The automobile as we know it was not invented in a single day by a single inventor. The history of the automobile reflects an evolution that took place worldwide. It is estimated that over 100,000 patents created the modern automobile.

The history of the automobile begins as early as 1769, with the creation of steam engine automobiles capable of human transport. In 1806, the first cars powered by an internal combustion engine running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered by electric power briefly appeared at the turn of the 20th century, but largely disappeared from use until the turn of the 21st century. The need to reduce the amount of air pollution generated by transportation has raised new interest in electric and hybrid vehicles. The early history of the automobile can be divided into a number of eras, based on the prevalent method of automotive propulsion during that time. Later periods were defined by trends in exterior styling, and size and utility preferences.

Fig: The design of the Cugnot Steam Trolley (Jonathan Holguinisburg) (1769)

Pioneer inventors

German engineer Karl Benz, the inventor of numerous car-related technologies, is generally regarded as the inventor of the modern automobile, and received a German patent in 1886. The American George B. Selden filed for a patent on May 8, 1879. His application included not only the engine but its use in a 4-wheeled car. Mr. Selden filed a series of amendments to his application which stretched out the legal process, resulting in a delay of 16 years before the  US 549160 [2]  was granted on November 5, 1895. The four-stroke petrol (gasoline) internal combustion engine that constitutes the most prevalent form of modern automotive propulsion is a creation of German inventor Nikolaus Otto. The similar four-stroke diesel engine was also invented by a German, Rudolf Diesel. The hydrogen fuel cell, one of the technologies hailed as a replacement for gasoline as an energy source for cars, was discovered in principle by yet another German, Christian Friedrich Schönbein, in 1838. The battery electric car owes its beginnings to Hungarian Ányos Jedlik, one of the inventors of the electric motor, and Gaston Planté, who invented the lead-acid battery in 1859.

Early automobiles1

Steam automobiles

Ferdinand Verbiest, a member of a Jesuit mission in China, built the first steam-powered vehicle around 1672, designed as a toy for the Chinese Emperor, it being of small scale and unable to carry a driver or passenger but, quite possibly, the first working steam-powered vehicle ('auto-mobile').

Fig : A replica of Richard Trevithick's 1801 road locomotive 'Puffing Devil'

Steam-powered self-propelled vehicles are thought to have been devised in the late-18th century. Nicolas-Joseph Cugnot demonstrated his fardier à vapeur, an experimental steam-driven artillery tractor, in 1770 and 1771. As Cugnot's design proved to be impractical, his invention was not developed in his native France. The centre of innovation shifted to Great Britain. By 1784, William Murdoch had built a working model of a steam carriage in Redruth, and in 1801 Richard Trevithick was running a full-sized vehicle on the road in Camborne. Such vehicles were in vogue for a time, and over the next decades such innovations as handbrakes, multi-speed transmissions, and better steeringdeveloped. Some were commercially successful in providing mass transit, until a backlash against these large speedy vehicles resulted in the passage of the Locomotive Act (1865), which required self-propelled vehicles on public roads in the United Kingdom to be preceded by a man on foot waving a red flag and blowing a horn. This effectively killed road auto development in the UK for most of the rest of the 19th century; inventors and engineers shifted their efforts to improvements in railway locomotives. The law was not repealed until 1896, although the need for the red flag was removed in 1878.

In Russia in the 1780s, Ivan Kulibin started working on a human-pedalled carriage with a steam engine. He finished working on it in 1791. Some of its features included a flywheel, brake, gearbox, and bearing, which are also the features of a modern automobile. His design had three roadwheels. The Czarist government failed to see the potential market, there was little private development, and the vehicle was not developed further.

2

The first automobile patent in the United States was granted to Oliver Evans in 1789. In 1805, Evans demonstrated his first successful self-propelled vehicle, which not only was the first automobile in the USA, but was also the first amphibious vehicle. His steam-powered vehicle was able to travel on roadwheels on land, and via a paddle wheel in the water.

The first carriage sized automobile in the United States was a steam powered vehicle invented in 1871, by Dr. J.W. Carhart, a minister of the Methodist Episcopal Church, in Racine, Wisconsin. It induced the State of Wisconsin in 1875, to offer a $10,000 award to the first to produce a practical substitute for the use of horses and other animals. They stipulated that the vehicle would have to maintain an average speed of more than five miles per hour over a 200 mile course. The offer led to the first city to city automobile race in the United States, starting on July 16, 1878, in Green Bay, Wisconsin, and ending in Madison, via Appleton, Oshkosh, Waupun, Watertown, Fort Atkinson, and Janesville. While seven vehicles were registered, only two started to compete: the entries from Green Bay and Oshkosh. The vehicle from Green Bay was faster, but broke down before completing the race. The Oshkosh finished the 201 mile course in 33 hours and 27 minutes, and posted an average speed of six miles per hour. In 1879, the legislature awarded half the prize.

Among other efforts, in 1815, a professor at Prague Polytechnich, Josef Bozek, built an oil-fired steam car. Walter Hancock, builder and operator of London steam buses, in 1838 built a four-seat steam phaeton. Steam-car development continued, leading to significant advances by the early 1900s .

Electric automobiles

In 1828, Ányos Jedlik, a Hungarian who invented an early type of electric motor, created a tiny model car powered by his new motor. In 1834, Vermont blacksmith Thomas Davenport, the inventor of the first American DC electrical motor, installed his motor in a small model car, which he operated on a short circular electrified track. In 1835, Professor Sibrandus Stratingh of Groningen, the Netherlands and his assistant Christopher Becker created a small-scale electrical car, powered by non-rechargeable primary cells. In 1838, Scotsman Robert Davidson built an electric locomotive that attained a speed of 4 miles per hour (6 km/h). In England, a patent was granted in 1840 for the use of rail tracks as conductors of electric current, and similar American patents were issued to Lilley and Colten in 1847. Between 1832 and 1839 (the exact year is uncertain), Robert Anderson of Scotland invented the first crude electric carriage, powered by non-rechargeable primary cells.

3

Internal combustion engines

Fig: 1885-built Benz Patent Motorwagen, the first car to go into production with an internal combustion engine

Fig: 1870, Vienna, Austria: world's first gasoline-run vehicle, the 'first Marcus car'

Fig: The second Marcus car of 1888 (Technical Museum Vienna)

4

Early attempts at making and using internal combustion engines were hampered by the lack of suitable fuels, particularly liquids, and the earliest engines used gas mixtures.

Early experimenters using gases included, in 1806, Swiss engineer François Isaac de Rivaz who built an internal combustion engine powered by a hydrogen and oxygen mixture, and in 1826,Englishman Samuel Brown who tested his hydrogen-fuelled internal combustion engine by using it to propel a vehicle up Shooter's Hill in south-east London. Belgian-born Etienne Lenoir's Hippomobile with a hydrogen-gas-fuelledone-cylinder internal combustion engine made a test drive from Paris to Joinville-le-Pont in 1860, covering some nine kilometres in about three hours.[14] A later version was propelled by coal gas. A Delamare-Deboutteville vehicle was patented and trialled in 1884.

About 1870, in Vienna, Austria (then the Austro-Hungarian Empire), inventor Siegfried Marcus put a liquid-fuelled internal combustion engine on a simple handcart which made him the first man to propel a vehicle by means of gasoline. Today, this car is known as "the first Marcus car". In 1883, Marcus secured a German patent for a low-voltage ignition system of the magneto type; this was his only automotive patent. This design was used for all further engines, and the four-seat "second Marcus car" of 1888/89. This ignition, in conjunction with the "rotating-brush carburetor", made the second car's design very innovative.

It is generally acknowledged that the first really practical automobiles with petrol/gasoline-powered internal combustion engines were completed almost simultaneously by several German inventors working independently: Karl Benz built his first automobile in 1885 in Mannheim. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved - with the first long-distance trip in August 1888, from Mannheim to Pforzheim and back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.

Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited with invention of the first motorcycle in 1886, but Italy's Enrico Bernardi of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle. Bernardi enlarged the tricycle in 1892 to carry two adults.

One of the first four-wheeled petrol-driven automobiles in Britain was built in Birmingham in 1895 by Frederick William Lanchester, who also patented the disc brake; and the first electric starter was installed on an Arnold, an adaptation of the Benz Velo, built between 1895 and 1898.

In all the turmoil, many early pioneers are nearly forgotten. In 1891, John William Lambert built a three-wheeler in Ohio City, Ohio, which was destroyed in a fire the same year, while Henry Nadig constructed a four-wheeler in Allentown, Pennsylvania. It is likely they were not the only ones.

5

Veteran era

The first production of automobiles was by Karl Benz in 1888 in Germany and, under license from Benz, in France by Emile Roger. There were numerous others, including tricycle builders Rudolf Egg, Edward Butler, and Léon Bollée. Bollée, using a 650 cc (40 cu in) engine of his own design, enabled his driver, Jamin, to average 45 kilometers (28.0 mph) in the 1897 Paris-Tourville rally. By 1900, mass production of automobiles had begun in France and the United States. The first company formed exclusively to build automobiles was Panhard et Levassor in France, which also introduced the first four-cylinder engine. Formed in 1889, Panhard was quickly followed by Peugeot two years later. By the start of the 20th century, the automobile industry was beginning to take off in western Europe, especially in France, where 30,204 were produced in 1903, representing 48.8% of world automobile production that year.

Brass or Edwardian era

Named for the widespread use of brass in the United States, the Brass (or Edwardian) Era lasted from roughly 1905 through to the beginning of World War I in 1914. 1905 was about the time when sales began shifting from the hobbyist and enthusiast to the average user.

Traditional coach-style vehicles were rapidly abandoned, and buckboard slot favour with the introduction of tonneaus and other less-expensive touring bodies.

By 1906, steam car development had advanced, and they were among the fastest road vehicles in that period.

6

Fig: A Stanley Steamer racecar in 1903. In 1906, a similar Stanley Rocket set the world land speed record at 205.5km/h at Daytona Beach Road .

Throughout this era, development of automotive technology was rapid, due in part to hundreds of small manufacturers competing to gain the world's attention. Key developments included the electric ignition system (by dynamotor on the Arnold in 1898, though Robert Bosch, 1903, tends to get the credit), independent suspension (actually conceived by Bollée in 1873), and four-wheel brakes (by the Arrol-Johnston Company of Scotland in 1909).

Some examples of cars of the period included

1908–1927 Ford Model T — the most widely produced and available car of the era. It used a planetary transmission, and had a pedal-based control system.

1910 Mercer Raceabout — regarded as one of the first sports cars, the Raceabout expressed the exuberance of the driving public, as did the similarly-conceived American Underslung and Hispano-Suiza Alphonso.

1910–1920 Bugatti Type 13 — a notable racing and touring model with advanced engineering anddesign. Similar models were the Types 15, 17, 22, and 23.

Vintage era

1926 Austin 7 Box saloon

7

The vintage era lasted from the end of World War I (1919), through the Wall Street Crash at the end of 1929. During this period, the front-engined car came to dominate, with closed bodies and standardized controls becoming the norm. In 1919, 90% of cars sold were open; by 1929, 90% were closed. Development of the internal combustion engine continued at a rapid pace, with multi-valve and overhead camshaft engines produced at the high end, andV8, V12, and even V16 engines conceived for the ultra-rich. Also in 1919, hydraulic brakes were invented by Malcolm Loughead (co-founder of Lockheed); they were adopted by Duesenberg for their 1921 Model A. Three years later, Hermann Rieseler of Vulcan Motor invented the first automatic transmission, which had two-speed planetary gearbox, torque converter, and lockup clutch; it never entered production. (Its like would only become an available option in 1940.) Just at the end of the vintage era, tempered glass (now standard equipment in side windows) was invented in France.

Exemplary vintage vehicles:

1922–1939 Austin 7 — the Austin Seven was one of the most widely copied vehicles ever, serving as a template for cars around the world, from BMW to Nissan.

1924–1929 Bugatti Type 35 — the Type 35 was one of the most successful racing cars of all time, with over 1,000 victories in five years.

1922–1931 Lancia Lambda — very advanced car for the time, first car to feature a load-bearing monocoque-type body and independent front suspension.

1925–1928 Hanomag 2 / 10 PS — early example of ponton styling, without fully articulated fendersand running boards.

1927–1931 Ford Model A (1927-1931) — after keeping the brass era Model T in production for too long, Ford broke from the past by restarting its model series with the 1927 Model A. More than 4 million were produced, making it the best-selling model of the era.

1930 Cadillac V-16 — developed at the height of the vintage era, the V16-powered Cadillac would join Bugatti's Royale as the most legendary ultra-luxury cars of the era.

Pre-WWII era

8

Citroën Traction Avant

The pre-war part of the classic era began with the Great Depression in 1930, and ended with the recovery after World War II, commonly placed at 1948. It was in this period that integrated fenders and fully-closed bodies began to dominate sales, with the new saloon/sedan body style even incorporating a trunk or boot at the rear for storage. The old open-top runabouts, phaetons, and touring cars were phased out by the end of the classic era as wings, running boards, and headlights were gradually integrated with the body of the car.

By the 1930s, most of the mechanical technology used in today's automobiles had been invented, although some things were later "re-invented", and credited to someone else. For example, front-wheel drive was re-introduced by André Citroën with the launch of the Traction Avant in 1934, though it had appeared several years earlier in road cars made by Alvis and Cord, and in racing cars by Miller (and may have appeared as early as 1897). In the same vein, independent suspension was originally conceived by Amédée Bollée in 1873, but not put in production until appearing on the low-volume Mercedes-Benz 380 in 1933, which prodded American makers to use it more widely. In 1930, the number of auto manufacturers declined sharply as the industry consolidated and matured, thanks in part to the effects of the Great Depression.

Exemplary pre-war automobiles:

1932–1939 Alvis Speed 20 and Speed 25 — the first cars with all-synchromesh gearbox.

1932–1948 Ford V-8 — introduction of the powerful flathead V8 in mainstream vehicles, setting new performance and efficiency standards.

1934–1940 Bugatti Type 57 — a singular refined automobile for the wealthy.

1934–1956 Citroën Traction Avant — the first mass-produced front-wheel drive car, built with monocoque chassis.

1936–1955 MG T series — sports cars with youth appeal at an affordable price.

1938–2003 Volkswagen Beetle — a design for efficiency and low price, which progressed over 60 years with minimal basic change.

1936–1939 Rolls-Royce Phantom III — V12 engined pinnacle of pre-war engineering, with technological advances not seen in most other manufacturers until the 1960s. Superior performance and quality.

Post-war era

9

1953 Morris Minor Series II

Jaguar E-type coupe

1985 Mini

Automobile design finally emerged from the shadow of World War II in 1949, the year that in the United States saw the introduction of high-compression V8 engines and modern bodies from General Motors' Oldsmobile and Cadillac brands. The unibody/strut-suspended 1951 Ford Consul joined the 1948 Morris Minor and 1949 Rover P4 in waking up the automobile market in the United Kingdom. InItaly, Enzo Ferrari was beginning his 250 series, just asLancia introduced the revolutionary V6-powered Aurelia.

Throughout the 1950s, engine power and vehicle speeds rose, designs became more integrated and artful, and cars spread across the world. Alec Issigonis' Mini and Fiat's 500diminutive cars swept Europe, while the similar kei car class put Japan on wheels for the first time. The legendary Volkswagen Beetle survived Hitler's Germany to shake up the small-car market in the Americas. Ultra luxury, exemplified in America by the Cadillac Eldorado Brougham, reappeared after a long absence, and grand tourers (GT), like the Ferrari Americas, swept across Europe.

10

The market changed somewhat in the 1960s, as Detroit began to worry about foreign competition, the European makers adopted ever-higher technology, and Japan appeared as a serious car-producing nation. General Motors, Chrysler, and Ford tried radical small cars, like the GM A-bodies, but had little success. Captive imports and badge engineering swept through the US and UK as amalgamated groups like the British Motor Corporation consolidated the market. BMC's revolutionary space-saving Mini, which first appeared in 1959, captured large sales worldwide. Minis were marketed under the Austin and Morris names, until Mini became a marque in its own right in 1969. The trend for corporate consolidation reached Italy as niche makers like Maserati, Ferrari, and Lancia were acquired by larger companies. By the end of the decade, the number of automobile marques had been greatly reduced.

In America, performance became a prime focus of marketing, exemplified by pony cars and muscle cars. In 1964 the popular Ford Mustang appeared. In 1967, Chevrolet released the Camaro to compete with the Mustang. But everything changed in the 1970s as the 1973 oil crisis, automobile emissions control rules, Japanese and European imports, and stagnant innovation wreaked havoc on the American industry. Though somewhat ironically, full-size sedans staged a major comeback in the years between the energy crisis, with makes such as Cadillac and Lincoln staging their best sales years ever in the late 70s. Small performance cars from BMW, Toyota, and Nissan took the place of big-engined cars from America and Italy.

On the technology front, the biggest developments of the era were the widespread use of independent suspensions, wider application of fuel injection, and an increasing focus on safety in the design of automobiles. The hottest technologies of the 1960s were NSU's "Wankel engine", the gas turbine, and the turbocharger. Of these, only the last, pioneered by General Motors but popularized by BMW and Saab, was to see widespread use. Mazda had much success with its "Rotary" engine which, however, acquired a reputation as a polluting gas-guzzler. Other Wankel licensees, including Mercedes-Benzand General Motors, never put their designs into production after the 1973 oil crisis. (Mazda's hydrogen-fuelled successor was later to demonstrate potential as an "ultimate eco-car".[30]) Rover and Chrysler both produced experimental gas turbine cars to no effect.

A so-called yank tank in Havana, Cuba

11

Cuba is famous for retaining its pre-1959 cars, known asyank tanks or maquinas, which have been kept since the Cuban revolution when the influx of new cars slowed because of a US trade embargo.

Exemplary post-war cars:

1948–1971 Morris Minor — a popular, and typical post-war car exported around the world.

1959–2000 Mini — this quintessential small car lasted for four decades, and is one of the most famous cars of all time.

1961–1975 Jaguar E-type — the E-type saved Jaguar on the track and in the showroom, and was a standard for design and innovation in the 1960s.

1964–present Ford Mustang — the pony car that became one of the best-selling and most-collected cars of the era.

1969 Datsun 240Z — one of the first Japanese sports cars to be a smash hit with the North American public, it paved the way for future decades of Japanese strength in the automotive industry. It was affordable,[citation needed] well built,[citation needed] and had great success both on the track and in the showroom.

Modern era

The wedge profile of the 1967 NSU Ro 80was often copied in subsequent decades[citation needed]

The modern era is normally defined as the 25 years preceding the current year. However, there are some technical and design aspects that differentiate modern cars from antiques. Without considering the future of the car, the modern era has been one of increasing standardization, platform sharing, and computer-aided design.

Some particularly notable advances in modern times are the widespread of front-wheel drive and all-wheel drive, the adoption of the diesel engine, and the ubiquity of fuel injection. While all of these advances were first attempted in earlier eras, they so dominate the market today that it is easy to overlook their significance. Nearly all modern passenger cars are front-

12

wheel drive monocoque / unibody designs, with transversely-mounted engines, but this design was considered radical as late as the 1960s.

Body styles have changed as well in the modern era. Three types, the hatchback, sedan, and sport utility vehicle, dominate today's market,[citation needed] yet are relatively recent concepts. All originally emphasized practicality, but have mutated into today's high-powered luxury crossover SUV and sports wagon. The rise of pickup trucks in the United States, and SUVs worldwide has changed the face of motoring, with these "trucks" coming to command more than half of the world automobile market.

The modern era has also seen rapidly rising fuel efficiency and engine output. Once the automobile emissions concerns of the 1970s were conquered with computerized engine management systems, power began to rise rapidly. In the 1980s, a powerful sports car might have produced 200 horse power(150 kW) – just 20 years later, average passenger cars have engines that powerful, and some performance models offer three times as much power.

Exemplary modern cars:

1966–present Toyota Corolla — a simple small Japanese saloon/sedan that has come to be the best-selling car of all time.

1967 NSU Ro 80 — the basic wedge profile of this design was much emulated in subsequent decades.[31]

1970–present Range Rover — the first take on the combination of luxury and four-wheel drive utility, the original 'SUV'. Such was the popularity of the original Range Rover Classic that a new model was not brought out until 1994.[32]

1973–present Mercedes-Benz S-Class — electronic Anti-lock Braking System, supplemental restraint airbags, seat belt pretensioners, and electronic traction control systems all made their debut on the S-Class. These features would later become standard throughout the car industry.

1975–present BMW 3 Series — the 3 Series has been on Car and Driver magazine's annual Ten Best list 17 times, making it the longest running entry in the list.

1977–present Honda Accord saloon/sedan — this Japanese sedan became the most popular car in the United States in the 1990s, pushing the Ford Taurus aside, and setting the stage for today's upscale Asian sedans.

13

Tata Nano Inexpensive car

1981–1989 Dodge Aries and Plymouth Reliant — the "K-cars" that saved Chrysler as a major manufacturer. These models were some of the first successful American front-wheel drive, fuel-efficient compact cars.

1983–present Chrysler minivans — the two-box mini van design nearly pushed the station wagon out of the market, and presaged today's crossover SUVs.

1986–present Ford Taurus — this mid-sized front-wheel drive sedan with modern computer-assisted design dominated the American market in the late 1980s, and created a design revolution in North America.

1998–present Ford Focus — one of the most popular hatchbacks across the globe, that is also one of Ford's best selling world cars.

Automobile Industry In India

INTRODUCTION

Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898, the Indian automobile industry has demonstrated a phenomenal growth to this day. Today, the Indian automobile industry presents a galaxy of varieties and models meeting all possible expectations and globally established industry standards. Some of the leading names echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of others.

During the early stages of its development, Indian automobile industry heavily depended on foreign technologies. However, over the years, the manufacturers in India have started using their own technology evolved in the native soil. The thriving market place in the country has

14

attracted a number of automobile manufacturers including some of the reputed global leaders to set their foot in the soil looking forward to enhance their profile and prospects to new heights. Following a temporary setback on account of the global economic recession, the Indian automobile market has once again picked up a remarkable momentum witnessing a buoyant sale for the first time in its history in the month of September 2009.

The automobile sector of India is the seventh largest in the world. In a year, the country manufactures about 2.6 million cars making up an identifiable chunk in the world’s annual production of about 73 million cars in a year. The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts have visualized an unbelievably huge increase in these figures over the immediate future. The figures published by the Asia Economic Institute indicate that the Indian automobile sector is set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the year 2050, India will top the car volumes of all the nations of the world with about 611 million cars running on its roads.

At present, about 75 percent of India’s automobile industry is made up by small cars, with the figure ranking the nation on top of any other country on the globe. Over the next two or three years, the country is expecting the arrival of more than a dozen new brands making compact car models.

Recently, the automotive giants of India including General Motors (GM), Volkswagen, Honda, and Hyundai, have declared significant expansion plans. On account of its huge market potential, a very low base of car ownership in the country estimated at about 25 per 1,000 people, and a rapidly surging economy, the nation is firmly set on its way to become an outsourcing platform for a number of global auto companies. Some of the upcoming cars in the India soil comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition to several others.

History of Automobile Industry In India

The economic liberalization that dawned in India in the year 1991 has succeeded in bringing about a sustained growth in the automotive production sector triggered by enhanced competitiveness and relaxed restrictions prevailing in the Indian soil. A number of Indian automobile manufacturers including Tata Motors, Maruti Suzuki and Mahindra and Mahindra, have dramatically expanded both their domestic and international operations. The country’s active economic growth has paved a solid road to the further expansion of its domestic automobile market. This segment has in fact invited a huge amount of India-specific investment by a number of multinational automobile manufacturers. As a significant milestone in its progress, the monthly sales of passenger cars in India exceeded 100,000 units in February 2009.

15

The beginnings of automotive industry in India can be traced during 1940s. After the nation became independent in the year 1947, the Indian Government and the private sector launched their efforts to establish an automotive component manufacturing industry to meet the needs of the automobile industry. The growth of this segment was however not so encouraging in the initial stage and through the 1950s and 1960s on account of nationalization combined with the license raj that was hampering the private sector in the country. However, the period that followed 1970s, witnessed a sizeable growth contributed by tractors, scooters and commercial vehicles. Even till those days, cars were something of a sort of a major luxury. Eventually, the country saw the entry of Japanese manufacturers establishing Maruti Udyog. During the period that followed, several foreign based companies started joint ventures with Indian companies.

During 1980s, several Japanese manufacturers started joint-ventures for manufacturing motorcycles and light commercial-vehicles. During this time, that the Indian government selected Suzuki for a joint-venture to produce small cars. Following the economic liberalization in 1991 and the weakening of the license raj, several Indian and multi-national car companies launched their operations on the soil. After this, automotive component and automobile manufacturing growth remarkably speeded up to meet the demands of domestic and export needs.

Experts have an opinion that during the early stages the policies and the treatment by the Indian government were not favorable to the development of the automobile industry. However, the liberalization policy and various tax reliefs announced by the Indian government over the recent past have pronounced a significantly encouraging impact on this industry segment. Estimates reveal that owing to several boosting factors, Indian automobile industry has been growing at a pace of about 18% per year. Therefore, global automobile giants like Volvo, General Motors and Ford have started looking at India as a prospective hot destination to establish and expand their operations.

Like many other nations India’s highly developed transportation system has played a very important role in the development of the country’s economy over the past to this day. One can say that the automobile industry in the country has occupied a solid space in the platform of Indian economy. Empowered by its present growth, today the automobile industry in the country can produce a diverse range of vehicles under three broad categories namely cars, two-wheelers and heavy vehicles.

Supply chain of automobile industry

The supply chain of automotive industry in India is very similar to the supply chain of the automotive industry in Europe and America. The orders of the industry arise from the bottom of the supply chain i. e., from the consumers and goes through the automakers and climbs up until the third tier suppliers. However the products, as channeled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers.

16

Automakers in India are the key to the supply chain and are responsible for the products and innovation in the industry.

The description and the role of each of the contributors to the supply chain are discussed below.

Third Tier Suppliers: These companies provide basic products like rubber, glass, steel, plastic and aluminium to the second tier suppliers.

Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs. They also provide engineering resources for detailed designs. Some of their services may include welding, fabrication, shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly to assemblers. These companies have global coverage, in order to follow their customers to various locations around the world. They design and innovate in order to provide “black-box” solutions for the requirements of their customers. Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers.

First tier suppliers are responsible not only for the assembly of parts into complete units like dashboard, breaks-axel-suspension, seats, or cockpit but also for the management of second-tier suppliers.

Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After researching consumers’ wants and needs, automakers begin designing models which are tailored to consumers’ demands. The design process normally takes five years. These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry. Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main focus of these companies.

Dealers: Once the vehicles are ready they are shipped to the regional branch and from there, to the authorised dealers of the companies. The dealers then sell the vehicles to the end customers.

Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers.

Service Providers: Some of the services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers.

17

Government Policies on Indian Automobile Industry

The Indian Automobile Industry plays a major role in the economic scenario of the country. The automobile sector in India, record sales of more than one million passenger cars per year. The percentage of automobile exports has risen significantly during the last few years. The government policies on Indian automobile industry have been framed in order to aid in the expansion of the automobiles sector in India.

During the early stages, the automobile industry was not accorded much importance by the Indian Government. However, the attitude changed during the 1990's. A number of reforms were initiated in 1991. Liberal policies affected during this period, proved to be beneficial to the automobile industry. The fiscal measures, tax reliefs and reforms in equity regulations and foreign exchange led to significant growth in the automobile sector. A reduction in the percentage of tariffs imposed on exports and a change in the banking policies was instrumental in the expansion and growth of the banking sector.

Prior to the mid 1990's, the Indian automobile sector comprised of indigenous companies. The automobile market in India was however, opened up to foreign investors in 1996. International names like Ford, Hyundai, Toyota, Volvo, Daimler Chrysler and GM Honda were thus, able to make their foray into the Indian automobile sector. Furthermore, the auto emission rules issued by the government in recent years ensured that the vehicles manufactured in India, catered to international standards. At present, the automobiles sector contributes 4 % to the GDP. About 9.7 million automobiles were manufactured in 2005-2006. Export figures had crossed the magic figure of one billion during 2003-2004.

A reduction in the tariff imposed on car exports has been effected by the Indian government. There has also been a removal of the minimum capital investment required from new investors. The new policy is also in favor of reduction in excise duty for small automobiles and low emission and multi utility cars. The tariff policy is also to be reviewed on a regular basis in order to affect a balance between domestic industry and international trade. There has also been a proposal for tax relaxation on investment of more than Rs. 500 Crore.

The government has recently proposed for an infrastructure that will provide one stop clearance for any kind of proposal for foreign direct investment in the automotive sector. This will include the local clearance system also for the same purpose. There are also plans for imposing a 100 % tax deduction on export profits. The government has also proposed for a concession in import duty for the establishment of new manufacturing units and industrial holdings.

18

The Indian government is also urging the state governments to ensure continuous power supply to the automotive manufacturing units as well as granting them with the preferred plots of land. Captive Generation for the automobile sector has also been proposed. The auto policy of the Indian government also includes the promotion of vehicles which are run on alternative energy resources. Talks are also on for extensive research, development and designing facilities that would effect modernization in the automotive sector.

The policies adopted by the Indian government for the growth and development of the automobile sector, has led to a large number of foreign investments. It has also given rise to an increased sales rate for two wheelers and other automobiles. India is also becoming the ultimate outsourcing destination for global automobile companies like Ford, Mitsubishi, Toyota, Hyundai etc.

Major PlayersBajaj Tempo Limited, DaimlerChrysler India Private Limited, Fiat India Automotive Private Limited, Ford India Limited, General Motors India Limited, Hindustan Motors Limited, Honda Siel Cars India Limited, Hyundai Motor India Limited, Mahindra & Mahindra Limited, Maruti Udyog Limited, Skoda Auto India Limited, Tata Motors Limited, Toyota Kirloskar Motors Limited ,Audi, BMW etc.

Current scenario in Passenger Car CategoryThe dominant basis of competition in the Indian passenger car industry has changed from price to price-value, especially in the passenger car segment. While the Indian market remains price sensitive, the stranglehold of Economy models has been slackening, giving way to higher-priced products that better meet customer needs. Additionally, a dominant trend in the Indian passenger car segment is the increasing fragmentation of the market into sub-segments, reflecting the increasing sophistication of the Indian consumer.  With the launch of new models from FY2000 onwards, the market for MUVs has been redefined in India, especially at the upper-end. Currently, the higher-end MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a niche in the urban market, having successfully shaken off the tag of commercial vehicles attached to all MUVs till recently. Domestic car manufacturers are now venturing into areas such as car financing, leasing and fleet management, and used-car reconditioning/sales, to complement their mainstay-business of selling new car.

COMPETITIVE FORCES IN INDIAN PASSENGER CAR MARKETCritical Issues and Future TrendsThe critical issue facing the Indian passenger car industry is the attainment of break-even volumes. This is related to the quantum of investments made by the players in capacity creation and the selling price of the car. The amount of investment in capacities by passenger car manufacturers in turn depends on the production

Threat from the new players: Increasing

19

Most of the major global players are present in the Indian market; few more are expected to enter.

Financial strength assumes importance as high are required for building capacity and maintaining adequacy of working capital.

Access to distribution network is important.

Lower tariffs in post WTO may expose Indian companies to threat of imports.

Rivalry within the industry: High There is keen competition in select segments. (compact and mid size segments).

New multinational players may enter the market.

Market strength of suppliers: Low A large number of automotive components suppliers.

Automotive players are rationalizing their vendor base to achieve consistency in quality.

Market strength of consumers: Increasing Increased awareness among consumers has increased expectations. Thus the ability to

innovate is critical.

Product differentiation via new features, improved performance and after-sales support is critical.

Increased competitive intensity has limited the pricing power of manufacturers.

Threat from substitutes: Low to medium         With consumer preferences changing, inter product substitution is taking place (Mini cars are being replaced by compact or mid sized cars).Setting up integrated manufacturing facilities may require higher capital investments than establishing assembly facilities for semi knocked down kits or complete knocked down kits. In recent years, even though the ratio of sales to capacity (an important indicator of the ability to reach break-even volumes) of the domestic car manufacturers have improved, it is still low for quite a few car manufacturers in India. India is also likely to increasingly serve as the sourcing base for global automotive companies, and automotive exports are likely to gain increasing importance over the medium term. However, the growth rates are likely to vary across segments. Although the Mini segment is expected to sustain volumes, it is likely to continue losing market share; growth in the medium term is expected to be led largely by the Compact and Mid-range segments. Additionally, in terms of engine capacity, the Indian passenger car market is moving towards cars of higher capacity. This apart, competition is likely to intensify in the SUV segment in India following the launch of new models at competitive prices.

20

Ford MOTOR COMPANY

Ford Motor Company (NYSE: F) is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand at the end of 2010.

Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914.

Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-based company in the 2010Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide. During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billion. Starting in 2007, Ford received more initial quality survey awards from J. D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the top three.

Ford World Headquarters in Dearborn, Michigan, known as the Glass House.

MARKET DEVELOPMENTSDuring the mid to late 1990s, Ford sold large numbers of vehicles, in a booming American economy with soaring stock market and low fuel prices. With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and sliding profit margins. Most of the corporate profits came from financing consumer automobile loans through Ford Motor Credit Company.

By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk status, citing high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market share, and dependence on declining SUV sales for revenues. Profit margins decreased on large vehicles due to increased "incentives" (in the form of rebates or low interest financing) to offset declining demand.

In the face of demand for higher fuel efficiency and falling sales of minivans, Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built on unibody car platforms,

21

rather than morebody-on-frame chassis. In developing the hybrid electric power train technologies for the Ford Escape Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent infringements. Ford announced that it will team up with electricity supply company Southern California Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings," according to Ford.

In December 2006, the company raised its borrowing capacity to about $25 billion, placing substantially all corporate assets as collateral to secure the line of credit.  Chairman Bill Ford has stated that "bankruptcy is not an option". In order to control its skyrocketing labor costs (the most expensive in the world), the company and the United Auto Workers, representing approximately 46,000 hourly workers in North America, agreed to a historic contract settlement in November 2007 giving the company a substantial break in terms of its ongoing retiree health care costs and other economic issues. The agreement includes the establishment of a company-funded, independently run Voluntary (VEBA) trust to shift the burden of retiree health care from the company's books, thereby improving its balance sheet. This arrangement took effect on January 1, 2010. As a sign of its currently strong cash position, Ford contributed its entire current liability (estimated at approximately US$5.5 Billion as of December 31, 2009) to the VEBA in cash, and also pre-paid US$500 Million of its future liabilities to the fund. The agreement also gives hourly workers the job security they were seeking by having the company commit to substantial investments in most of its factories.

The automaker reported the largest annual loss in company history in 2006 of $12.7 billion, and estimated that it would not return to profitability until 2009. However, Ford surprised Wall Street in the second quarter of 2007 by posting a $750 million profit. Despite the gains, the company finished the year with a $2.7 billion loss, largely attributed to finance restructuring at Volvo.

On June 2, 2008, Ford sold its Jaguar and Land Rover operations to Tata Motors for $2.3 billion.

In January 2008, Ford launched a website listing the ten Built Ford Tough rules as well as a series of webisodes that parodied the TV show COPS.

During November 2008, Ford, together with Chrysler and General Motors, sought financial aid at Congressional hearings in Washington D.C. in the face of worsening conditions caused by the automotive industry crisis. The three companies presented action plans for the sustainability of the industry. The Detroit based automakers were unsuccessful at obtaining assistance through Congressional legislation. GM and Chrysler later received assistance through the Executive Branch from the T.A.R.P. funding provisions. On December 19, the cost of credit default swaps to insure the debt of Ford was 68 percent the sum insured for five years in addition to annual payments of 5 percent. That means it costs $6.8 million paid upfront to insure $10 million in debt, in addition to payments of $500,000 per year. In January 2009, Ford announced a $14.6

22

billion loss in the preceding year, making 2008 its worst year in history. Still, the company claimed to have sufficient liquidity to fund its business plans and thus, did not ask for government aid. Through April 2009, Ford's strategy of debt for equity exchanges, erased $9.9 B in liabilities (28% of its total), in order to leverage its cash position. These actions yielded Ford a $2.7 billion profit in fiscal year 2009, the company's first full-year profit in four years.

23

FORD INDIA PRIVATE LIMITED

Type Subsidiary

Industry Automotive

FoundedOctober 1995 (as Mahindra Ford India Limited)

Headquarters Chennai, Tamil Nadu

Key peopleMr. Michael Boneham,President and MD

Products Automobiles

Employees 10,000

Parent Ford Motor Company

Website www.india.ford.com

Ford India Private Limited is a wholly owned subsidiary of the Ford Motor Company in India. Ford India Private Limited's head quarters are located in Chengalpattu, Chennai, Tamil Nadu. It currently is the 6th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra and Chevrolet.

24

HISTORY

The modern Ford India Private Limited began production in 1996, although the roots trace back to 1907 when the Model A was launched. Its manufacturing facilities are in Maraimalai Nagar near Chennai. Ford India Private Limited began production in 1926, but was shut down in 1954. Production began again with the joint venture Mahindra Ford India Limited (MFIL) in October 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford Motor Company increased its interest to 72% in March 1998 and renamed the company Ford India Private Limited. TOGETHER with tie up with Mahindra ford developed ford escort in 1996.But due to poor marketing it was a failure.

Models manufactured by Ford Motor India Pvt ltd are:

Ford Escort, Ford Ikon Ford Fusion, Ford Fiesta, Ford Mondeo and Ford Endeavour

Ford Ikon: Ford ikon has managed to make its mark on the Indian market. This ford car successfully competed against cars like Opel Astra and also ousted them. Although most of the ford Ikon models have been discontinued the ford ikon Flair 1.3 is still carrying the Ford Ikon

tradition forward.

Ford Fiesta (Sedan): The Ford Fiesta a luxury car exudes exuberance with its dynamic interiors and contemporary style. Guaranteed to grip glances this car is a traffic stopper for the sheer look

of the car.

Ford Endeavour (SUV): Ford Endeavour is a larger than life SUV with spacious interiors and gracious looks. This is a sure hot cake for big families.

25

List of latest models launched by ford:

Model Price Mileage Tech Spec

Endeavour 3.0L 4x4

Starting from Rs. 18.69 Lakhs

Excellent mileage

3-litre Duratorq TDCi engine, delivering 380 Nm of earth biting torque and 156 PS of raw power to give the true 4x4 experience.

Endeavour 2.5L 4x2

Starting from Rs. 16.25 Lakhs

Excellent mileage

2.5 litre Duratorq TDCi engine that delivers 143 PS of power and 330 Nm torque

Ikon 1.3 RocamStarting from Rs. 4.92 Lakhs

Excellent mileage

new suspension setup, a new low friction steering system , improved NVH

Ikon 1.4 Dura Torq DTCi

Starting from Rs. 5.53 Lakhs

Excellent mileage

1.4L DuraTorq engine, a state-of-the-art, fuel efficient and turbo charged

Fiesta 1.6 Duratec EXI

Starting from Rs. 6.23 Lakhs

Less petrol consumtion

4 cylinder, 16 Valve, DOHC, 1.6 litre Duratec engine

Fiesta 1.6 Duratec ZXI

Starting from Rs. 6.57 Lakhs

Less petrol consumtion

4 cylinder, 16 Valve, DOHC, 1.6 litre Duratec engine

Fiesta Limited Edition 2010

Starting from Rs. 5.73 Lakhs

Offers superior mileage

1.6 litre Duratec engine with best in class acceleration

Fiesta 1.6Duratec SXI

Starting from Rs. 7.18 Lakhs

Offers superior mileage

1.6 litre Duratec Petrol,4 cylinders, 16 valves, DOHC, 1.6 litre engine

CORPORATE GOVERNANCE26

The management team of Ford India comprises of Michael Boneham (President & Managing Director), Sandip Sanyal (Executive Director - Operations), Nigel E. Wark (Executive Director, Marketing, Sales and Service), Kuljit Rana (Vice President, Finance & Whole time Director) Vairamani Pandiyan (Vice President, HR).

MANUFACTURING FACILITIES

FIPL's main manufacturing plant has a capacity of 100,000 vehicles annually and is located in Maraimalai Nagar, 45 km from Chennai. As its new hatchback Figo was launched in March 2010,[2]Ford Motor Company has invested $500 million to double capacity of the plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines annually. The new engine plant is more than 40,000 square metres and will quadruple production capacity of the engine manufacturing facility. Currently, a single production line produces approximately 60,000 diesel engines a year.

Part of Ford Motor Company's US$500-million investment at the Maraimalai Nagar site, the new engine plant is designed to meet the growing needs of the Indian vehicle market and is an advanced manufacturing centre that has been created with the world's best practices for engine manufacturing.

MODELS

Current

1. Ford Endeavour (Launched 2004)

2. Ford Fiesta(Launched 2005)

3. Ford Figo (Launched 2010)

Discontinued

1. Ford Ikon (1999-2010)

2. Ford Escort (1996–2001)

3. Ford Mondeo (2001–2006)

4. Ford Fusion (2004–2010)

COMPETITORS IN INDIATata Motors:Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus

27

manufacturer. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India – Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nationwide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a strong auto finance operation, TML Financial Services Limited, supporting customers to purchase Tata Motors vehicles. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo CommercialVehicles Company has launched several new products in the Korean market, while alsoexporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial jointventure at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata cars and Fiat power trains for the Indian and overseas markets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat name plate at Fiat Group Automobiles' Plant at Córdoba, Argentina. The pick-up will be sold in South and Central America and select European markets. These linkages will further extend Tata Motors' international footprint, established through exports since 1961. While currently about 18% of its revenues are from international business, the company's objective is to expand its international business, both through organic and inorganic growth routes. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. The R&D establishment includes a team of 1400 scientists and engineers. The company's Engineering Research Centre was established in 1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering technologies and products. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch Tata Indica became India's largest selling car in its segment. The ERC in Pune, among whose facilities are India's

28

only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration, has received several awards from the Government of India. Some of the more prominent amongst them are the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in 1999, the National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in 2004. The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. TMETC is engaged in design engineering and development of products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain. The pace of new product development has quickened through an organisation-wide structured New Product Introduction (NPI) process. The process with its formal structure for introducing new vehicles in the market, brings in greater discipline in project execution. The NPI process helped Tata Motors create a new segment, in 2005, by launching the Tata Ace, India’s first indigenously developed mini-truck. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle component manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.Hyundai Motor India Limited (HMIL):Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 20 variants of passenger cars in six segments, Santro in the B segment, Getz Prime in the B+ segment, Accent and Verna in the C segment, Elantra in the D segment, Sonata Embera in the E segment and Tucson in the SUV segment. Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In Continuation of its investment in providing the Indian customer global technology, HMIL is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum by end of 2007. HMIL is investing to expand capacity in line with its positioning as HMC’s global export Hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 183 to 250 this year. And with the company’s greater focus on the quality of its after-sales service, HMIL’s service network will be expanded to around 1,000 in 2007.The year 2006 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to over 65 countries

29

globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. The year just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna and yet another path-breaking record in its young journey by rolling out the fastest 10,00,000th car. The Hyundai Verna has bagged some of the most prestigious awards starting with the title of "Car of the Year 2007" by India's leading automotive publication – Overdrive, the “Best Mid-size Car of the Year” award by the NDTV Profit C&B Awards 2007, the “Best Value for Money Car” by the CNBC Autocar Auto awards and ‘Performance Car of the Year 2007’ from Business Standard Motoring. Last Year Sonata Embera won the ‘Executive Car of The Year 2006’ award from Business Standard Motoring Magazine and NDTV Profit – Car & Bike declared the Tucson as the ‘SUV of The Year 2006’.HMIL has also been awarded the benchmark ISO 14001 certification for its sustainable environment management practices.

Maruti Suzuki (MUL):

MUL was the result of the joint venture created in February 1981 between Japan's Suzuki Motor Company and the Indian Government when the latter decided to produce small, economical cars for the masses.The intention of the venture was to produce a 'people's car'. To get the project off the ground MUL took over the assets of the erstwhile Maruti Ltd., which was set up in 1971 and closed in 1978.It was on December 14, 1983 that MUL launched the first Maruti vehicle - the Maruti 800. The first model was the SS80, a 796cc hatchback car priced at Rs. 47,500.Subsequently, in spite of price hikes, the car has remained within the reach of the Indian middle class and has been a runaway success. Available in vibrant colors when India's passenger car population comprised mainly Ambassadors and Fiats in black and white, M800 gave Indians the first taste of global quality and reliability. In late1980s, Suzuki increased its equity stake in MUL from 26% to 40% and further to 50% in 1992, converting Maruti into a non-government company. In the years that followed, MUL consolidated its position with a line of Indian classics, such as the eight-seat Omni, the rough-terrain Gypsy, and, in October 1990, a 3-box Maruti 1000. MUL took the lead in the green drive by launching its CNG-run Omni and Maruti 800 in 1999.MUL redefined the premium compact segment with the launch of the Zen in October 1993. It was the company's first 'world car, selling across multiple markets. A year later, the Zen had won several awards, including 'No. 1 car in Europe' (Auto Week, 1994), 'No.1 import in Europe' (1997) and 'most fuel-efficient car' (ADAC).In 1999, MUL launched Baleno and Wagon-R. Baleno targeted the premium mid-segment while Wagon-R was positioned as a multi-activity vehicle. In1999, to improve customer satisfaction, it even established a chain of model workshops and soon after, set up customer call centers in the metros. In 2000, Maruti Suzuki introduced Alto - a premium small car targeting the export market - and in October 2001, Versa, a multipurpose vehicle. In May 2002, Suzuki took management control of Maruti.In April 2003, MUL rolled out its latest offering, the Grand Vitara XL-7, a luxury SUV imported from Suzuki Motor Corporation. The Grand Vitara was a concept that was radically different from the models that comprised the bulk of MUL's sales.

30

FIAT India:

The F.I.A.T. Company was founded on July 11, 1899 in Turin, with Ludovico Scarfiottias Chairman. Giovanni Agnelli, a former cavalry officer who was later to become Managing Director and then Chairman, was the Secretary to the Board. The Company's first factory was inaugurated in Turin in 1900. It employed 35 people, and had an annual production capacity of 24 cars. In 1908, The Fiat Automobile Company was incorporated in the US, and in 1909, a factory was set up in New York State to produce cars under licence. At the end of its first decade, Fiat had a workforce of 2500, and an output of 1215 cars per year. In 1916, work began on the Lingotto Factory, the biggest factory in Europe at the time. The Lingotto factory started production of Fiat cars in 1923. In 1937, work began on the new factory at Mirafiori, which began production two years later. During the Second World War, drastic cuts in car production were compensated by a five-fold increase in the production of commercial vehicles. Although carpet bombing had damaged many factories, it did not paralyse production. In 1951, a contract was signed with Premier Automobiles, Bombay, for a licence to produce the Fiat 1100 and to provide technical assistance. Fiat commenced production of diesel engine cars in 1953. The Fiat 127, launched in 1971, was Fiat's first front wheel drive car, and was hugely innovative for its time. By late 1974, the millionth 174 rolled off the production line. During the 1970s, Fiat layed great emphasis on automated manufacturing processes, and many of its factories were robotized during this period. The Fiat Uno was launched in 1982. This symbolized a new era for Fiat Auto. The model was radically innovative in its use of electronics and alternative materials. It used the new 'clean' engine, the FIRE 1000. 1997 saw the launch of the Fiat Palio, a multipurpose world car. Today, the Fiat Group is an industrial company that is both Italian and International, well established in world markets, and sustained by a century old inheritance of experience and innovativeness. In 2007, the company has announced a joint venture with Tata Motors in India. The Joint venture has set up a plant at Ranjangaon, near Pune that will have annual production capacity of 1 Lac cars, 2 Lac Engines and 2 Lac Transmissions to cater Indian as well as overseas markets. Fiat also has announced the launch of Grande Punto and Linea Sedan in India by year 2008.

General Motors India: General Motors India, incorporated in 1994 as a 50-50 joint venture

company with the C.K. Birla Group of Companies, became a fully owned subsidiary of GM in 1999 when GMOC bought the remaining shares. The company was restructured in 1999 and was converted from a Public Limited company to a Private Limited company. GM APH LLC currently holds 86 percent of voting shares, and Holden (Australia) holds 14 percent. The SPO business was integrated with the main business in the same company in 2000. In India, GM strengthened its presence with new product launches Chevrolet Optra in 2003 and Chevrolet Tavera (Multi Utility Vehicle) in 2004. The existing GM India plant was originally built by Hindustan Motors. In 1994, GM India entered into a 50% Joint Venture partnership with Hindustan Motors and modernized the 45,000-square-meter plant near Halol, 45 kilometers

31

northwest of Vadodara, in the western state of Gujarat. In February, 1999, GM bought the holdings of Hindutan Motors and GM India became a 100% subsidiary of General Motors Corporation of USA. The plant produces the Opel Corsa, Corsa Sail, Chevrolet Optra, and Chevrolet Tavera, U-VA, Aveo, Spark and Beat. The Chevrolet Forester and Opel Vectra are sold as CBUs (Completely Built in Units) and as imported from Japan and Germany respectively.Honda Siel Cars India Ltd.:

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda's latest passenger car models and technologies, to the Indian customers. The total investment made by the company in India till date is over Rs. 800 crores. While the company sold its first 50,000 units in nearly five years, it is today geared to sell more than 50,000 units in a single year. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market and has ever since been recognized as an engineering marvel in the Indian automobile industry. Thereafter, HSCI launched its high-end models the Accord and the SUV, CRV. The City ZX, introduced in its new avatar in 2003, replicated the success of the earlier car. The Honda Civic, launched in India in July 2006, too has matched the success of other Honda models and has proved an instant hit with Indian customers. HSCI's state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs. 450 crore. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The initial installed capacity of the plant was 30,000 cars per annum, which was recently increased to 50,000 cars on a two-shift basis. The capacity expansion was necessitated by the excellent performance of all the Honda models in India. The expansion process involved an investment of Rs.150 crores, with the covered area increasing from 55,000 sq. m. to 1,07,000 sq. m. The covered area now constitutes 17 per cent of the total land area of the plant. The enhanced production facility of Honda Siel Cars India accommodates the Honda Civic, which was launched in India in July 2006, this was followed by CR-V launched in Nov and Accord launched in Jan 2007. The company plans to further raise its capacity to 100,000 units per annum by the end of 2007 and 150,000 units per annum by 2010. HSCI currently produces the Honda City, Civic and Accord models in India and the CRV is sold as a full import from Japan. The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management. HSCI, registered all-time high sales of 61,327 units in the financial year 2006-07. This translates to a phenomenal growth of 43.5% over the last fiscal year where the company sold a total of 42,727 units. HSCI also closed the financial year on an upbeat note with record sales in March 2007. The company sold 8,489 units in the month- an increase of 38.7% over March 2006 where it sold 6,120 units. India in July 2006. Honda City ZX, accounted for 40,464 units in the year. Total Accord and CR-V sales for 2006-07 stood at 2,728 and 1,873 units respectively.

Marketing strategies of FORDProduct differentiation based on operational efficiency:

32

FORD EXCELLING THROUGH SERVICE:Ford tries to differentiate its offer onthe plank of service.It has gone in for a new norm in customer service:“fix it right-thefirst time-on time”.Ford is also supplying videotapes showing how repairs have to bedone.Adopting Offer to Suit Target Segment:Fordmodifies its models for India:Ford modified its models for the Indian target segments as shown below:➢ Higher ground clearance to make the car more compatible to the rougher road surface in India.➢ Stiffer rear springs to enable negotiating the ubiquitous patholes on Indian roads.➢ Changes in cooling requirement, with greater airflow to the rear.➢ Higher resistance to dust.➢ Compatibility of engine with the quality of fuel available in India.➢ Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe.)

Strategic segmentation of cars:The Ford in India has launched the car only for few segment of people.The segmentation of car buyers based on price preferences areFamily car segment: These cars forms a reasonably sizeable segment of the market(around 15 percent).Preferred price range is from 5 lakh to 6 lakh.‘FORD IKON’ AND ‘FORD FUSION’ come under this type of segment.Premium car segment: This segment represents buyers who need a real world-class carand are willing to pay the due price.Preferred price range starts from 8 lakh to 12 lakh.‘FORD FIESTA’, ‘FORD MONDEO’ come under this segment of cars.

SUV segment : The buyers of this segment like to have a big vehicles.And these cars are also useful for sport riding and even on hill areas. There body is designedsimilar to offroad vehicles, which can withstand to Indian roads.‘FORD ENDEAVOUR’occupies this segment.Strategic Promotions by FORD:Ford follows the promotions at two levels, they a1)Promotions of product directly by the manufacturer.2)Promotions at dealer level.In the first step the products of vehicles manufactured by the Ford Automotives are directlypromoted by the manufacturer by himself. He follows many promotional strategies like1.Advertising through television and newspaper.2.Internet or interactive marketing.3.Direct marketing

33

In the second step the dealer of the vehicles promotes the vehicles.The various promotional strategies followed by the Fortune Ford at dealer are1. Advertising though news papers, radios, palm plates. In this all the features of theproduct and its prices are given in detail to the customer.2. In televisions the scrolling are given about the product and its features.Hoardings:A heavy picture of the product which comprises of its attributes and special features aredisplayed on the roadsides in the form of hoardings. It is a bit expensive strategy but attractsmany people who pass by that roadside.This type of advertisement is prepared for those segments of people who cannotafford their time in reading newspapers and watching televisions. While travelling from theirhome to office, moving on their business activities they may watch these hoardings. Thesehoarding are especially setup at the road signal stops.Maintaining Data Bank:In this the dealer collects personal/bio-data(address and contact number) of manypeople from various organizations and different sector who are ready to buy the vehicles andwho change the vehicles regularly.These people are met-in person or contacted through their contact number. Thevarious new features and new offers regarding the vehicles are advocated to them and aregiven discounts on group purchase of vehicles, i.e. if 5 or more friends in the group purchasethe cars at a time then they are given special discounts on the vehicles.

Free Insurance:The Fortune Ford gives a special offer of free insurance on the purchase of eachvehicle to its new customers.Relationship Marketing:Ford pays a special attention towards its old customers. To retain the old and existing customers it conducts a corporate meet at a luxurious hotel. The event aims atknowing the problems of the customers regarding the vehicles and also service feedback. In this way it maintains an effective relationship with the customers and gains the reputation and goodwill in the minds of the customers.Sales Promotion:The sales promotion is done in the fortune ford at three levels:1. Showroom sales:In this the customers walk in to the showrooms to know about thedetails of the product. Specially trained sales executives who are present in theshowrooms give a detailed explanation about the product to the customers.Sales executives give a detailed note on the products features, various offersgivenby the manufacturer and also by the dealer to the customer and enhancesthe sales of the vehicles.2. Corporate sales: A special team of sales executives are sent to some big corporatesectors and there they personally meet the heads of the organizations like C.E.O’s,Managers etc., and explain about the vehicles and the offers and special schemes

34

provided by the dealer to them on bulk purchase of the vehicles and try to promote thesales of the vehicles.3. Field sales: The sales executives conduct some events with the corporate workingpeople and try to demonstrate the product features and its benefits and try to promote theproduct and increase its sales.

THE FORD FIGO

35

The Ford Figo is a subcompact automobile manufactured by Ford India Private Limited in Chennai, India; based on the fourth generation Ford Fiesta hatchback to be sold in developing countries, it went on sale on 10 March 2010.[1] In its primary market, India, it is the third-largest selling B-segment hatchback car. It is also India's most awarded car ever. The Ford Figo is

36

available in both petrol and diesel versions, all with five speed manual transmissions and power steering as standard:

A four cylinder 1196cc 16V DOHC Petrol engine, rated at 71 PS (52 kW; 70 bhp) @6250rpm with 102 N·m (75 ft.lbf) @4000rpm maximum torque.

A four cylinder 1399cc 8V SOHC Diesel engine, rated at 69 PS (51 kW; 68 bhp) @4000rpm with 160 N·m (120 ft·lbf) @2000rpm maximum torque.[5]

The petrol version is the all new 1.2 liter, SEFI petrol engine with five speed manual transmission. The petrol variant gives a mileage of around 12.5 kmpl mileage in the city while on the highway it offers mileage around 15.5 kmpl. The engine also meets with BS-IV (Bharat Stage - IV) emission norms. Diesel variants of the Figo are powered by Ford’s 1.4 liter Duratorq diesel engine. This engine also currently powers Ford Ikon and Ford Fiesta. This engine too, satisfies the BS-IV emission norms. It offers a mileage of around 16 kmpl in the city while on the highway it delivers a mileage of 19 kmpl. The Figo also offers the 'Distance to Empty' feature, informing how many km one can go with the available petrol/diesel in the tank.

he Ford Figo was designed taking the clues from Fiesta, what was needed at the time was a up to date grill and light set-up. The old gen Fiesta was used for some cosmetic features but not all. The result was a car that looked like a cross between the two.

FeaturesA light and precise steering delivers superb control and an optimised suspension for a comfortable ride without compromising on body roll and handlingFigo’s headlight cluster is big and bold with fog lamps that are fitted in round shape in U with such a sparkling look.The Duratorq motor is extremely responsive at low speeds and highly economical which should suit the city driving conditions with safe

SpecificationDimensionLength 3795mmWidth 1680mmHeight 1427mmWheelbase 2489mmEngines1.2L In-line 4, 70 bhp PetrolMaximum Power 71 PS @ 6250 RPM power PetrolMaximum Torque 102 NM @4000 RPM torque Petrol1.4L In-line 4, 68 bhp DieselMaximum Power 69 PS @ 4000 RPM power DieselMaximum Torque 160 NM @ 2000 RPM torque Diesel

37

Fuel Economy10.9/15.4 (city/highway), 1.2L Dura tec Petrol14.1/18.5 (city/highway), 1.4L Dura Torq DieselTransmissions5-speed Manual Transmission (MT)Brakes and SuspensionFront Disk brakesRear Disk BrakesFront Suspension McPherson StrutRear Suspension Multiple Link Twist BeamSteering Type PowerTurning Radius (wheel base) 4.9 MetersTyresTyre Size 175/65 R14Tyre Type Tubeless Radial Tire

Initial launchThe great American automaker, Ford, is invading their competitor’s markets by introducing the new Figo into the Indian market. The Figo is part of Fords ‘One Vision’ and ‘One Team’ and ‘One World’ project. The launch of Ford Figo is all set in the first week of February.The Figo is based on Ford’s Global-B platform and promises to offer, economy, safety, driving dynamics, value for money and hopes to establish new benchmarks as the vehicle goes on sale next year. The Figo – roughly Polo sized – will be powered by a 1.2 litre petrol and a 1.5 litre diesel engine.

Design and trim options

Figo's exterior styling follows the global kinetic design elements that help harmonize the car with other models in the Ford global line-up, including Focus and Mondeo

The interior of the Figo features five-passenger seating and provides some of the best interior ergonomics and proportions in its class

Four trim levels will be offered for Figo, with exclusive features at every level on both the inside and outside

NEW DELHI, India, March 9, 2010  – Say goodbye to the two-box design strategy for economy cars and hello to kinetic design with the new Ford Figo.

When the design team for the new Figo met with the marketing team from India, the direction was clear: ''we want more''.  After deciding on packaging objectives that needed to be met, such as reducing the overall length of the car to suit the Indian market, the designers were given the go-ahead to apply a near-clean sheet approach to both the interior and exterior.

Driving impressions

The new Ford Figo is available with either a 1,4-litre Duratec petrol engine, or a 1,4-litre Duratorq diesel. The petrol engine produces 62 kW and 127 N.m of torque, while the diesel has

38

maximum power outputs of 51 kW and 160 N.m. Fuel consumption for the petrol engine is rated at 6.6 l/100km, while the diesel requires just 5.3 l/100km. CO2 emissions are 156 g/km and 139 g/km respectively.

Unlike the Vivo, the Figo is available exclusively in a 5-door body style and, instead of an options list, has just two specification levels for buyers to choose from. The base spec is known as the ‘Ambiente’, which is available in both petrol and diesel guise, while the ‘Trend’ is the higher spec model and is only available with the petrol engine.However, Ford’s Ambiente base spec is streets ahead of its Vivo rival, offering ABS, air-con and radio/CD/MP3-player as standard – options that would set you back a hefty R12 000 on VW’s 1.4 Vivo. The Figo Trend model includes a few extra luxuries, such as a height adjustable driver’s seat, body colour exterior mirrors (electronically adjustable), front fog lamps and alloy wheels. All Figo’s are equipped with driver and passenger front airbags.The interior plastics and mouldings feel substantial for a car in this segment, something which can be said for the Figo overall construction too. Ford say they paid close attention to noise/vibration/harshness (NVH) levels to deliver a car that is quieter than its competitors.

Ford Figo Specifications

Specification of Ford Figo Petrol includes: 1.2 Liter DuraTec MPFI Petrol Engine Max Power 70 BHP @6250 RPM Max Torque 104 Nm @ 4000 RPM  5 Speed Manual Transmission Huge luggage space Length : 3795mm,  Width 1680mm and  Height 1427mm Long Wheelbase of 2489mm 14 Inch Wheel Front Disk brakes Rear Disk Brakes Front Suspension – McPherson Strut Rear Suspension – Multiple Link Twist Beam 45 Liter Fuel Tank

Specification of Ford Figo Diesel includes: 1.4 Liter DuraTorq CRDI Diesel Engine Max Power 68 BHP @4000 RPM Max Torque 160 Nm @ 2000 RPM 5 Speed Manual Transmission Huge luggage space Length : 3795mm,  Width 1680mm and  Height 1427mm Long Wheelbase of 2489mm 14 Inch Wheel Front Disk brakes

39

Rear Disk Brakes Front Suspension – McPherson Strut Rear Suspension – Multiple Link Twist Beam 45 Liter Fuel Tank

VariantsVariants Ex-showroom Price( )(Delhi) Engine

Ford Figo 1.2 Duratec LXI  3,59,500 1196 cc

Ford Figo 1.2 Duratec Exi  4,06,400 1196 cc

Ford Figo 1.2 Duratec Zxi  4,29,000 1196 cc

Ford Figo 1.2 Duratec Titanium  4,62,400 1196 cc

Ford Figo 1.4 DuraTorq Lxi  4,58,500 1399 cc

Ford Figo 1.4 Duratorq Exi  4,93,700 1399 cc

Ford Figo 1.4 Duratorq Zxi  5,17,000 1399 cc

Ford Figo 1.4 Duratorq Titanium  5,48,900 1399 cc

Customer breakup

40

The above figure shows the internet habits of Ford Figo customers. These figures are goodindicators of where on the net we should put advertisements for Ford Figo.

41

42

43

COMPETITOR ANALYSISWith the B-segment flooding with offerings from various manufacturers, a war of hatchbacks to capture the market is just about to begin…

Never before in the Indian car industry have we seen such carnage in a segment. The B-segment is suddenly loaded with quality contenders which not only boast great engineering and features, but incredible pricing as well. The Swift has been ruling this segment ever since it emerged on the horizon. The car has never failed its fans, both in terms of ownership cost and the fun to drive factor.The Fiat Grande Punto, the Volkwagen Polo and the Ford Figo are three new generation cars which pose a serious challenge to the Swift’s supremacy in the Indian market. Let’s see where each of these cars stand.

Maruti swift

It’s been about 5 years since the Swift made its appearance in India. While the radical, oddball looks have grown onto most of us Indians now, there are people who don’t like this Maruti’s unconventional lines. Owing to its distinctive style, it wouldn’t be entirely right to say that the Swift’s is an ageing design. It still looks aggressive and appealing, it’s just that it’s been around for a long time, and we would rather see something fresher. That said, the design revolution that the Swift brought about would be quite a difficult act to follow. A new Swift is on the cards, and from what we have heard, it’s not going to look much different from its current version.

The Swift’s 1.3 petrol engine was a joy to drive with its rev-happy nature, but wasn’t best suited for the stop start city traffic with its rather peakish power delivery. The new 1.2 K-series engine in the car has more grunt at the bottom end, making it more convenient to be driven in the city, but doesn’t quite like to be pushed too hard. The fuel efficiency has improved a bit and so have the emissions but the car has lost a bit of its enthusiast appeal. Mind you, it still has the best in class power for the petrol variant, but the revvy 1.3 was a different experience altogether.Fret not though; the diesel variant of the Swift is at your service if you wish to enthral yourself.   With an addictive power surge from as low as 1200 rpm, the Swift DDiS is simply a delight to drive. The smooth and punchy engine is the best that there is in the small car segment and with its amazing fuel efficiency, has made its place in the hearts of enthusiasts and economy conscious alike. The engine options on the Swift are definitely one of the best, and address the segment brilliantly .

The Swift’s exterior may still hold its own against the competition, but the interiors of the car have started looking dated. Its time Suzuki refreshed the in-cabin appeal of this baby. The ergonomics are spot on, but the quality of materials and the overall feel of the cabin leave a lot to be desired, especially in the light of newer cars featuring better cabins. The backseat comfort is still a bit of an issue with the Swift, as neither the legspace, nor the suspension is anything great to write home about. ABS, air-bags, climate control, alloys etc. are options which are available in variants higher up the order.

44

Volkswagen Polo

The Polo, one of the most anticipated cars in India until its recent launch, boasts of a very refined and evolved exterior design. It’s got bold, muscular lines, which make it look imposing even with its diminutive B-segment dimensions. The flared wheel arches, the angular headlights, the perfectly balanced proportions – the Polo looks just right no matter whichever angle you look at it from. The beauty of its form is that it breaks convention in the most unconventional manner. It’s bold without losing out on subtlety. It’s aggressive without being offensive. As a new car, the Polo impresses with its exteriors, it’s the epitome of European excellence in designing day-to-day cars with flair.

The Polo is a totally new entrant in the arena and comes with two engine options. A 1.2-litre petrol and a 1.4-litre turbo diesel  (to be available from May). The petrol powered Polo produces 75 horses, 10 less than the Swift’s 85, but doesn’t lack power. It pulls reassuringly from the bottom till 4000 rpm, after which the engine, once shown the highway tends to show its limitations. The three pot engine makes a lot of noise and isn’t quite as refined as its 4-pot rivals. It’s fairly punchy though, and is complemented well by a 5-speed short throw stick that slots in a rather slick fashion. The ratios are well-sorted and the appreciable low end grunt of the engine along with nicely spaced ratios allows crawling speeds in third gear. Overall, an average package – nothing that should excite you.

The Polo’s interior, even after it being a new car seems familiar, thanks to the component sharing strategy of Volkwagen across platforms and brands (yes, a few bits are clearly Skoda). Which is not a bad thing, as most of these items are very high-quality, but having seen these materials and that layout for a long enough period, the Polo’s cabin fails to excite. Sure, everything is built to last a century, and then some, but it’s beginning to get a tad mundane now. That apart, there’s nothing to worry about – ergonomics are bang on the money, nothing ever makes as much as a squeak and the seats are pretty comfortable too. The suspension is pliant, definitely better than the slightly bouncy Swift. The backseat space, however isn’t any better here than its Japanese counterpart.

Fiat Punto

If the Polo is an exponent of sophisticated, neat and sufficiently aggressive design, the Punto is the metallic incarnation of lust. It’s draped in clothes that are meant to arouse you. The Punto is the tightest slap a mainstream car could ever deliver on the cheeks of someone who ever disputed the Italian flamboyance for automotive design. There are hardly any creases, the whole surface is wrapped in clean, organic curves – it exemplifies that a car can look hot without any ‘flames’. If you think you’re cool and fashionable, and looks matter more to you than anything else, then reading the rest of the comparo doesn’t make sense. Go buy the Punto for its sex-appeal alone.

45

The Grande Punto comes with the options of three engines – 1.2 and 1.4 petrols and a 1.3 turbo diesel.  Comparing apples with apples, the 1.2 litre petrol mill of the Punto is the least powerful of the lot on paper, but makes up for its low power output with a reasonably good low and mid-range. There isn’t anything much left once you go above the 120km/h mark, making the 1.2 petrol Punto strictly a city car. The 1.4 with 90PS of power has more power, better acceleration and better top whack, but it comes for a premium. The 1.3-litre turbo diesel mill is the same engine as in the Swift DDiS albeit with a slightly different state of tune. It’s as delightful and frugal on the move as on the swift though.

The Punto’s interior is an aberration from your usual cabin styling. The buttons on the centre console are done in silverish grey and people have mixed opinion whether they like them or not.  The instrumentation binnacle is done up in white dials with retro style font and looks really cool. The seats of the Punto aren’t the most comfortable, and could have done with a bit more back and thigh support. Long drives invariably end up hurting your backs. The suspension is well sorted out though for a good mix of driving dynamism and comfort, and backseat space too is better than the rest of the two cars discussed earlier.

46

Compare Cars

Polo Figo Grande Punto Swift

 1.2L Trendline

(Petrol)1.2 Titanium Petrol 1.4 Emotion Petrol

VXi - Metallic with ABS

 

Ex-Showroom Price (Delhi):

Rs 4,34,000/-Get On Road Price

Rs 4,51,025/-Get On Road Price

Rs 5,43,553/-Get On Road Price

Rs 4,77,831/-Get On Road Price

EMI: - - - -

 

Vital Features

Polo 1.2L Trendline (Petrol)

Figo 1.2 Titanium Petrol

Grande Punto 1.4 Emotion Petrol

Swift VXi - Metallic with ABS

Air Conditioning:

Power Steering:

Power Windows:

Central Locking:

ABS:

 

Safety & Security

Polo 1.2L Trendline (Petrol)

Figo 1.2 Titanium Petrol

Grande Punto 1.4 Emotion Petrol

Swift VXi - Metallic with ABS

Driver Airbag: optional

Passenger Airbag:

optional

Child Safety Lock:

Immobilizer:

47

 

InteriorsPolo 1.2L Trendline

(Petrol)Figo 1.2 Titanium

PetrolGrande Punto 1.4

Emotion PetrolSwift VXi - Metallic

with ABS

CD Changer: -

Stereo/CD Player:

- -

Electric Adj Seats:

Leather Seats:

Adj Steering Column:

-

Foldable rear seats:

Boot Capacity: - 284 280 232

Seating Capacity:

5 5 5 5

 

ExteriorsPolo 1.2L Trendline

(Petrol)Figo 1.2 Titanium

PetrolGrande Punto 1.4

Emotion PetrolSwift VXi - Metallic

with ABS

Fog Lights (front):

-

Fog Lights (rear):

-

Rear Wiper:

Rear Window De-Mister:

Adjustable ORV-Mirrors:

Electrical ORV-Mirrors:

Sun Roof:

 

Tyres & Wheels

Polo 1.2L Trendline (Petrol)

Figo 1.2 Titanium Petrol

Grande Punto 1.4 Emotion Petrol

Swift VXi - Metallic with ABS

48

Disk Brake (front):

Disk Brake (rear):

Alloy Wheels:

Tubeless Tyres:

-

Track Front: 1463 - - 1470

Track Rear: 1463 - - 1480

Wheel Base: 2456 2489 2510 2390

 

Engine, Fuel & Perf

Polo 1.2L Trendline (Petrol)

Figo 1.2 Titanium Petrol

Grande Punto 1.4 Emotion Petrol

Swift VXi - Metallic with ABS

Engine CC: 1198 1196 1368 1298

Cylinders: 3 - 4 4

Bore & Stroke: - - - 74.0 x 75.5

Eng Compression ratio:

- - - 9.0:1

Fuel Type: Petrol Petrol Petrol Petrol

Fuel Efficiency:

- - - 11.5

Fuel Tank Capacity:

- 45 45 43

Max Speed: - - - 160

0-100 Kmph: - - - 12.9

Automatic Transmission:

 

FeaturesPolo 1.2L Trendline

(Petrol)Figo 1.2 Titanium

PetrolGrande Punto 1.4

Emotion PetrolSwift VXi - Metallic

with ABS

Traction Control:

-

Height: 1453 1427 1495 1530

49

Width: 1682 1680 1687 1690

Length: 3970 3795 3987 3695

Gross Weight: - - - 1415

Kerb Weight: - 1090 1145 1000

50

APPENDIX

Survey results

Q. How did you know about Ford Figo?

Most number of people buys the car due to the experience of their friends with the car. In the survey I found that majority of the people bought the car as it was recommended by their friends. Advertisement shown in visual media also contributed to it.

51

Q. Why did you opt for Ford Figo?

As the figure tells most people opted for Figo since it has the brand value. From this we can clearly understand the image created by Ford in the minds of Indian people.

52

Q. Cause for increase in sales?

People give credit to performance delivered by the car as the main reason for the increase sales of Figo. Also people are attracted by the option of the diesel version which is more economical

than other hatchbacks. Its one of a kind and they have designed an eye catching one.

53

Conclusion

Based on the above analysis the following conclusions could be made:

The highest selling variant is diesel version.

Mileage of petrol variant is very low compared to other hatchbacks.

According to the 80% of the surveyed ford dealers the most preferred feature in figo is

its “performance” followed by “Cost” then the “ Service networks and others

According to the 90% of the surveyed ford dealers the most disliked feature in figo is its

“poor mileage in city” followed by expensive spare parts.

54

REFERENCES

www.carsinindia.com

http://en.wikipedia.org/wiki/Ford_Figo

 Ford India Private Ltd, Ford Cars India, Ford Motors India, Ford Fiesta India, Ford in India

www.hondacarindia.com

www.fordindia.com

http://www.carsalesindia.com/articles/Comparison_FordFigo_VWPolo_FiatPunto_MarutiSwift.jsp

www.surfindia.com

55

QUESTIONNAIRE

Dear Sir/Madam,

This is a survey conducted as part of my MBA program to study the customer

preferences for Ford Figo Please tick your preference of choice and provide me with your

valuable information.

1. NAME:

2. AGE: a) 18-30 yrs b) 30-40 yrs c) 40-50 yrs d) above 50

3. OCCUPATION : a) Business Man b) Govt Servant c) Private Service d) Other

4. STATUS : Single / Married

5. How did you know about Ford Figo?

a) News Paper b) T.V c) Seen on Road d) Recommended by Friends

e) Display in Show Room.

6. Is this your first car? a) Yes b) No

7. If no what car do you earlier have?

8. Did you take a test drive before buying the car?

a) Yes b) No

9. Which Version do you have? a) Petrol b) Diesel 10. What features do you like most in Figo?

a) Price b) Quality c) Services d) other11. What you will say about after sales services of company?

a) Excellent b) Very Good c) Good d) Poor 12. Mode of purchase?

a) Private Finance b) Loan from National Bank c) Others13. How would you rate the over all performance of the car?

a) Excellent b) Very Good C) Good d) Fair e) Poor/ Needs Improvement14. Whether the car has a bright future?

a) Yes b) No

15. When did you buy your Ford Figo?16. 16.Are you satisfied with your purchase? a) Yes b)No

56

17. If not satisfied, why?

18. Which other models were you looking at when buying a car for you?a) Punto b)polo c) swift d)others

19. Why did you narrow down your choice to Ford Figo? Reasons:

20. Is it more of city driving or highway?a) City and Highway both b) Highway c) City

21. Mileage obtained from your Ford Figo?

22. What else could have been done to make your Ford Figo experience better?

57