“A STUDY OF SALES PERFORMANCE OF CARDEKHO.

COM IN BADLAPUR” (WITH REFERENCE TO

RESPONDENTS FROM BADLAPUR)

PROJECT REPORT ON

“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN

BADLAPUR”
(WITH REFERENCE TO RESPONDENTS FROM BADLAPUR)

SUBMITTED BY
RAJ MORE
ROLL NO. 136
UNDER THE GUIDANCE OF
Ms. ROSHNI VLECHA
DEPARTMENT: BACHELOR OF MANAGEMENT STUDIES

SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE

OF ARTS, SCIENCE, COMMERCE & MANAGEMENT,
ULHASNAGAR – 421005 (EAST), MUMBAI
A PROJECT SUBMITTED TO UNIVERSITY OF MUMBAI FOR
COMPLETION OF BACHELOR OF MANAGEMENT STUDIES COURSE
UNDER THE FACULTY OF COMMERCE
ACADEMIC YEAR 2022-2023
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE

P.B. No 17, Opp. Railway Station, Smt. Chandibai Himathmal Mansukhani Road, Ulhasnagar- 421003
Dist. Thane, (MAHARASHTRA) Tel.: +91 251 273 4940 • Telefax + 91 251 273 1869 •
E-mail: [email protected] • Website: www.chm.edu

CERTIFICATE

This is to certify that Mr. RAJ MORE has worked and duly completed his
Project Work for the degree of Bachelor of Management Studies under the
Faculty of Commerce in the subject of Marketing and her project is entitled
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN
BADLAPUR” (WITH REFERENCE TO RESPONDENTS FROM
BADLAPUR) under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any other University. It is her own work and facts reported by her/his
personal findings and investigations.

Ms. Roshni Vlecha

Project Guide

Date of submission: 28th February, 2023

“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

DECLARATION

I the undersigned Mr. Raj More here by, declare that the work
embodied in this project work “A STUDY OF SALES PERFORMANCE OF
CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR) forms my own contribution to the
research work carried out under the guidance of Ms. ROSHNI VLECHA , is a
result of my own research work and has not been previously submitted to any
other University for any other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained
andpresented in accordance with academic rules and ethical conduct.

Mr. Raj More

(Roll No. 136)

Certified by,
Ms. Roshni Vlecha
Guiding Teacher
Date of Submission: 28th February, 2023
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

EVALUATION

This Research Project on “A STUDY OF SALES PERFORMANCE OF

CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR) submitted by Mr. Raj More of
TYBMS (Semester – VI) is evaluated as per guidelines of University of Mumbai,
of 2022-23 on Revised Syllabus - CBCS for the TYBMS (Semester – V and VI)
w.e.f. academic year 2022-23.

External Examiner:

Name : _____________________________________

Signature : _____________________________________

Place : Ulhasnagar Date: _______________

Internal Examiner:

Name : _____________________________________

Signature : _____________________________________

Place : Ulhasnagar Date: _______________

“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

ACKNOWLEDGEMENT

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance
to do this project. I would like to thank my Principal, Dr. Manju Pathak for
providing the necessary facilities required for completion of this project.

I am also thankful to Mr. Sunil Lalchandani, Head –Department of

Management Studies for his constant guidance and support during the entire
course of completing this research project.

I would also like to express my sincere gratitude towards my project guide Ms.
Roshni Vlecha whose guidance and care made the project successful.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my mother and Peers who
supported me throughout my project and helped me to complete the project within
the time frame.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

CHAPTER 1: INTRODUCTION

1.1 Company profile

1.2 Founder
1.3 Evolution
1.4 Mission and Vision
1.5 Growth and Revenue
1.6 Marketing Mix
1.7 Competitors
1.8 SWOT Analysis
1.9 Brand Ambassadors
1.10 Road Ahead
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1.1 Company profile

CarDekho.com is India's leading car search venture that helps users buy cars that are right for
them. Its website and app carry rich automotive content such as expert reviews, detailed specs
and prices, comparisons as well as videos and pictures of all car brands and models available
in India. The company has tie-ups with many auto manufacturers, more than 4000 car dealers
and numerous financial institutions to facilitate the purchase of vehicles.

CarDekho.com has launched many innovative features to ensure that users get an immersive
experience of the car model before visiting a dealer showroom. These include a Feel The Car
tool that gives 360-degree interior/exterior views with sounds of the car and explanations of
features with videos; search and comparison by make, model, price, features; and live offers
and promotions in all cities. The platform also has used car classifieds wherein users can
upload their cars for sale, and find used cars for buying from individuals and used car dealers.

Besides the above consumer product features, CarDekho.com provides a rich array of tech-
enabled tools to OE manufacturers and car dealers. These include apps for dealer sales
executives to manage leads, cloud services for tracking sales performance, call tracker
solution, digital marketing support, virtual online showroom and outsourced lead
management operational process for taking consumers from enquiry to sale.
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RESPONDENTS FROM BADLAPUR)

Our vision is to construct a complete ecosystem for consumers and car manufacturers, dealers
and related businesses such that consumers have easy and complete access to not only buying
and selling cars, but also manage their entire ownership experience, be it accessories, tyres,
batteries, insurance or roadside assistance.

The company has expanded to Southeast Asia with the launch

of Zigwheels.ph, Zigwheels.my and Oto.com. It also has a presence in the UAE
with Zigwheels.ae

To diversify our product offering we have ventured into car insurance business
through InsuranceDekho.Com.

1.2 Founders
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

CarDekho - Founders and team

Amit Jain and Anurag Jain are the founders of CarDekho. Amit Jain is the CEO and Co-
Founder while Anurag Jain acts as the COO and Co-Founder at CarDekho. Umang Kumar
has also been the co-founder of the company since CarDekho acquired Gaadi.com.

AMIT JAIN

Amit Jain is an IIT Delhi alumnus from where he obtained a B Tech degree before going on
to join Tata Consultancy Services. Leaving TCS after serving the company for a little more
than a year, Amit joined Trilogy where he went to be a Product Manager. Jain next started
with GirnarSoft as the CEO and Co-founder of the company, which he is still serving at the
present. Amit Jain is also the CEO and Co-founder of CarDekho.

ANURAG JAIN
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Anurag Jain is also an IIT Delhi alumnus who has obtained an Integrated Master of
Technology in Mathematics and Computing. Jain was a Senior Systems Consultant at i2
Technologies after which he joined Sabre Holdings as a Senior Operations Research Analyst.
Anurag is currently serving as the COO and Co-founder at GirnarSoft.

The founder and brother duo were both born on November 12th and completed their
schooling at St Xavier’s School, Jaipur. Both of them later went on to IIT Delhi, where Amit
opted for Civil Engineering whereas Anurag studied Mathematics and Computer Sciences.
They had spent around 8 years working in the corporate sector with companies like TCS &
Trilogy and that’s how Amit developed a liking for products and technology-related things.
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UMANG KUMAR

Umang Kumar was earlier the co-founder of Gaadi.com but ever since the latter has been
acquired by CarDekho, Kumar has been associated with the team, where he has been serving
as the Co-founder and President at CarDekho. Umang Kumar is an alumnus of Visvesvaraya
Technological University, from where he obtained a BE degree in Computers. Kumar next
went on to pursue a Post Graduate Diploma in Management from the Indian School of
Business and then joined the Harvard Business School for the Naspers program in General
Management, Strategy & Leadership. Before joining Gaadi Web as the co-founder and CEO,
Umang founded another company, Accentium Web. During his career, Umang served a
couple of other companies - 9.9 Mediaworx and ABP, where he served in key leadership
positions.

Along with them, the others in CarDekho's management include Mayank Gupta (CFO),
Umesh Hora (SLT Member, South East Asia), Manish Wadhwa (CPO), Mayank Jain (CEO,
New Auto), Ankit Agarwal (CEO, Insurance), Namit Jain (CEO Financial Services ), and
Sharad Saxena (CEO, Used Cars).
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1.3 Evolution

How was CarDekho Started?

All of this started when due to some personal reasons, these brothers left their jobs and came
back to their hometown. And instead of getting into their family business, this duo thought of
starting their enterprise. Eventually, the founder duo concluded doing what they were best at.
And this led them to launch GirnarSoft, an IT outsourcing company.

They started by shooting emails to get bigger clients on board. But obviously, this was a
tedious task and tested their perseverance. And after shooting billions of emails and making
thousands of calls, they finally got on board their first client! Though this project didn’t pay
them that much, it led to another project and building a chain of references. Following this,
they started hiring and accumulating funds to start their project, and thus, CarDekho was
born.

Startup Launch

A lot of thought and conceptualizing went into building CarDekho after its launch. Even
though the company had been launched, they kept their IT consultancy services ongoing
because the founders wanted the primary income to keep flowing. CarDekho is one of those
companies that take the consumer through the whole process, from the start to the end and
during the process, to make sure that the customer is satisfied.
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Like all the other entrepreneurial ventures, this company too was a little slow in the
beginning, but when it geared up the pace, the founders never looked back. And soon enough,
its numbers did the talking when they roared success out loud to the world.

USP and Innovation

CarDekho.com has launched many innovative features to ensure that users get an immersive
experience of the car model before visiting a dealer showroom. These include a Feel The Car
tool that gives 360-degree interior/exterior views with the sounds of the car and explanations
of features with videos. It also offers features for searching and comparing cars by the makes,
models, prices, features, and more. Furthermore, it also provides live offers and promotions
in all cities.

The platform also has used car classifieds wherein users can upload their cars for sale, and
find used cars for buying from individuals and used car dealers.

Along with the above consumer product features, CarDekho.com provides a rich array of
tech-enabled tools to OE manufacturers and car dealers. These include apps for dealer sales
executives to manage leads, cloud services for tracking sales performance, call tracker
solutions, digital marketing support, a virtual online showroom, and outsourced lead
management operational processes for taking consumers from inquiry to sale.
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RESPONDENTS FROM BADLAPUR)

1.4 Mission and Vision

CarDekho's mission is to digitize the auto ecosystem and make the vehicle ownership journey
easy for customers. CarDekho envisions to become the largest personal mobility player in the
Indian market.

CarDekho - Name, Logo and Tagline

The naming of CarDekho has been done because the website aims to help users to browse
through cars and car-related information. The tagline of CarDekho says, "Bharosa Kar Ke
Dekho."
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1.5 Growth and Revenue

By January 2012, CarDekho had served 3.4 crore unique visitors being in the 4th year of its
journey. By the end of 2012, the company had covered 2.5 crores, of unique visitors, in just
one year, which came to be their all-time high. Within no time, CarDekho was at the top of
the game when the portal scored a record 1.7 lakh used car sales across all the cities of India.

CarDekho launched its iOS application, a month after the Android application was launched,
which scored to attain 100,000 downloads in just one month. In 2014, its unique visitors on
the web portal doubled and the revenues increased by 3x.

By 2014, they were ruling the segment with pride and had a team of more than 600
employees! Following this, CarDekho launched BikeDekho, PriceDekho, MobileDekho, and
many other similar portals under its umbrella

CarDekho claimed that it works actively with over 4,000 new auto dealerships and 3,000
used car dealers across India. In addition, it also stated that it has collaborated with more than
10 financial institutions and 18 insurance companies across the country to facilitate used car
financing and insurance to provide a seamless experience for both buyers and sellers.
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CarDekho launched Gaadi by CarDekho in January 2019 after it acqui-hired Carbiqi when it
forayed into the auction model. It started with the opening of about 8-10 Gaadi by CarDekho
stores across the National Capital Region (NCR). CarDekho's stores had increased to around
60 operational stores across the country throughout the next year and a half.

However, the company has now decided to move towards purchasing cars only after a home
inspection, as of September 10, 2021. For this reason, CarDekho eventually closed more than
20 of its stores across the country.

1.6 Marketing Mix

“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

P1: Product

P2: Place

P3: Price

P4: Promotion

CarDekho is India’s leading car search platform offering extensive content to help the
customers make an informed decision. The brand takes pride in it’s new & used car catalogue
that allows the visitors to buy and sell top pre-owned cars anywhere in India for the best
price. Armed with tech-enhanced tools, CarDekho users get an immersive experience which
makes buying and selling cars a small adventure and aid the company into fulfilling its vision
to construct a complete ecosystem for everyone related to cars.
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Product in the Marketing Mix Of Cardekho :

Cardekho is a web company that connects like-minded people with intention of buying and
selling vehicles. It is the first automotive website in India. Its product kit includes numerous
services, tools and information that its company provides through their official website. In the
year 2009, it launched the program Car Research on its website for every popular car in India.

It displays owner reviews, expert reviews, comparisons between vehicles and their detailed
specifications. It also offers on-road-prices to its customers. One of the most visited pages of
this portal is Recommend-me-a-car. Carwale is a consumer-focussed site that has detailed
information that helps in making best possible decisions about the relevant automobile.
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Place in the Marketing Mix Of Carwale :

Cardekho is one of the largest companies in India dealing with auto-media

vehicles. The company is determined to serve both owners and prospective
buyers with equal efficiency and honesty. The company provides a platform
where both parties come together and arrive at a satisfactory result in terms of
buying and selling. It is actually a stage where a comprehensive discussion about
cars is possible by talking and discussing.

The company has its official website which provides detailed information about
every vehicle. Its network is spread over two hundred cities and towns in India.
In the year 2010, Cardekho became the single-largest cause of car sales in India.
Presently it is the first website for cars in India that has its own editorial team and
several types of equipment for testing various categories. It also publishes all its
findings in its columns on its portal.
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Price in the Marketing Mix Of Carwale :

In the year 2006, Carwale came up with one of its innovative schemes and
introduced price guide for used cars. It was for the first time that both seller and
buyer could know the market value of concerned vehicle depending on mileage,
condition, age, variant and model of the car. This guide has now become a
credible information source for used cars and company now provides estimated
offer prices for most of the popular cars sold in the Indian market. Their revenues
are mostly earned from advertisements and tie-ups with dealers. As this portal is
one of the most visited ones in India, it generates huge revenues for the company.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

Promotions in the Marketing Mix Of Carwale :

The mission of company Cardekho is to bring happiness for both owners and prospective
owners. They have attempted a comprehensive marketing plan to create a positive awareness
program about their company. Advertising policies of this company are unique and innovative.
One of their promotional strategies includes voting for best car in consumer choice category.
Nearly 1.6 lakh people voted to make the site visible in the online market.

In the year 2011, Cardekho launched various schemes to increase its brand value. They offered
a free consultation to buyers, provided dealers with apt quotations and offered test drives to
interested parties at their doorstep. They also brought together insurance option and loan
processing option so that a buyer could get the desired car with minimum insurance and
cheapest loan and that too with a single click of his/her mouse. Cardekho also launched a two-
week exhibition to be held annually for vintage cars. This event was known as Vintage Wheels
and became very popular amongst enthusiasts.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

1.7 Competitors

1. Droom is India’s first and only online marketplace for buying and selling new and
used automobiles. At over 65% of the automobile transactions market share online,
Droom is the largest auto portal in India. Droom is the only fully transactional online
platform enabling end-to-end transaction between buyer and seller.

2. Part of CarTrade Tech, CarWale's mission is to bring delight in car buying, we offer a
bouquet of reliable tools and services to help car consumers decide on buying the
right car, at the right price and from the right partner.
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3. CARS24 is a next generation ecommerce platform for pre-owned cars. We provide

the best experience for car buyers by offering a wide assortment of certified cars that
are home delivered in a click of a button while sellers get the best price of their
vehicles in less than 1 hour.

4. Part of CarTrade Tech, CarTrade's mission is to bring delight in car buying, we offer a
bouquet of reliable tools and services to help car consumers decide on buying the
right car, at the right price and from the right partner.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

1.8 SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
analysis is a technique for assessing these four aspects of your business. SWOT Analysis is a
tool that can help you to analyse what your company does best right now, and to devise a
successful strategy for the future. In a SWOT analysis - strengths and weaknesses are within
the organisation (internal), whilst opportunities and threats are outside the organisation
(external). Management should be able to identify and list the strengths, weaknesses,
opportunities and threats seen within the internal and external of the business. A SWOT
analysis of the company should be conducted within every 3-6 months in order for the
business to know who their competitors are, what their strengths and weaknesses of the
business are in order to strengthen those weaknesses and use their strengths to their
advantage. As well as updating the products and the company as a whole in order for it to be
successful.

It is recommended that a SWOT is conducted every 3-6 months and this will not only benefit
the business in a more efficient way, but the business will find it easier to target the strengths,
weaknesses, opportunities and threats and will be able to act on them quicker.
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STRENGTHS

1.Quality Meals & Product Innovation

Cardekho Com Driven By Success is a fast-growing business and has actually constantly
valued their consumers by supplying them quality meals. These venture are also customized
and there are varieties of Cardekho Com Driven By Success tastes used by Cardekho Com
Driven By Success. In the last 50 years they have produced various types of Cardekho Com
Driven By Success like hand-tossed venture, potato wedges, cheesy-garlic breads and
parmesan bread.

2.Reliable Suppliers

The suppliers of Cardekho Com Driven By Success are reliable and trustworthy. They supply
the raw products and active ingredients to them on time which secures the supply chain
management procedure.

4.Quick & Fast Delivery System

Cardekho Com Driven By Success is very popular for its quick delivery. They supply
delivery in 30 minutes precisely, if the consumer will not get it within 30 minutes then they
will provide "complimentary corp". Hence, they never ever get late.

5.Pricing Range

All of Cardekho Com Driven By Success products are provided to clients in reasonable and
budget-friendly rates. The customers can get various sizes and offers of the corporation of
various flavors.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

WEAKNESSES

1. Low Number Of Outlets

Weaknesses SWOT AnalysisCardekho Com Driven By Success have high number of

franchisees for order taking but there are no appropriate dine-in restaurants of Cardekho Com
Driven By Success all over.

2. Franchise Related Issue

Cardekho Com Driven By Success is facing concerns because of dis-loyalty of its franchise
workers. As there are number of franchise and it becomes tough to manage each worker who
cheats.

3.Operational Difficulties

As the franchisees are located in every corner of the city, it becomes very hard for Cardekho
Com Driven By Success to handle its operations.

4. Need Of High Technology

The company visions not meet with the technology they are using now. They need to invest
more in their technologies to standout in competitive market.

5.Net Income

Cardekho Com Driven By Success have actually examined that their net incomes are not
matching to its actually monetary estimations and predictions. The business has to work on
its sales to increase its net efficiency and earnings.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

OPPORTUNITIES

1. New Environment Policies

OPPORTUNITIES SWOT AnalysisThe brand-new environment policies can produce

fantastic OPPORTUNITIES for Cardekho Com Driven By Success. With the smooth
environment policies they can acquire more benefit from innovation.

2.Low-Calorie Menu

If Cardekho Com Driven By Success will add low-calorie meals in their menu, it will
increase the clients. They can use low-fat items and less starch to make their items low
calories meals.

3.Cardekho Com Driven By Success

Cardekho Com Driven By Success has expanded its market globally. There are more than 85
nations according to analytical information having Cardekho Com Driven By Success outlets
and franchisees. They prepare nearly 1.5 billion business on day-to-day basis for several
outlets.

4.Demographic Changes

The middle class consumers can also manage Cardekho Com Driven By Success. They have
segmented their market according to demographical segmentation.

5. Population Of Asian Countries

Countries like India, Pakistan and China have high demands for Cardekho Com Driven By
Success. They admired the quality of their tastes and spices they used. They enjoyed their
hand made venture and the components they use like cheese and meatballs.
“A STUDY OF SALES PERFORMANCE OF CARDEKHO.COM IN BADLAPUR” (WITH REFERENCE TO
RESPONDENTS FROM BADLAPUR)

THREATS

1. Direct And Indirect Competition

THREATS SWOT AnalysisCardekho Com Driven By Success have THREATS of

competitors. Its instructions competitors there consists of only company manufacturing
sectors where as in-direct competition consists of several fast-food chains.

2. Cardekho Com Driven By Success Main Competitive Advantage Over Cardekho Com
Driven By Success Is Dine-In Facility Cardekho Com Driven By Success have dine-in areas
in Middle East, Europe and Asian countries. Whereas, Cardekho Com Driven By Success
have little counters and in some places there no counters at all.

3. Regulated Pressures

Each year the federal government executes brand-new laws and policies.

• Cardekho Com Driven By Success has actually dealt with regulated pressures in supplying
wages to their staff members and workers.

• There are 13800 outlets, and their license are restore on annual basis according to the laws
and guidelines of the federal governments authorities who made these execution.

4. High Cost

Cardekho Com Driven By Success present operations and productions includes numerous
functions which are costly. They don't have any estimates or ways to manage their expenses.
The labor expense and basic material expense is increasing day by day. However, they can
deal with cost-minimizing strategies to prevent this danger.
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RESPONDENTS FROM BADLAPUR)

1.8 Brand Ambassadors

Auto-tech company CarDekho has launched its new ad campaign with the tagline ‘bharosa
kar ke dekho’. The campaign features brand ambassador Akshay Kumar and is
conceptualised by Leo Burnett. It will go live on March 26, during the inauguration of the
Indian Premier League (IPL) 2022. The campaign will be promoted across national and
regional television channels, OTT platforms and the company’s digital media platforms.

Through the TVC, the company highlights the importance of trust and convenience of selling
one’s car from their home. In the campaign, the actor dons the role of a father, who is selling
his car without missing out on life’s precious moments. The TVC shows that the company
helps people sell their cars from home, ensuring that they don’t skip quality time with their
loved ones. The brand aims to strengthen its connection with audiences, through the
campaign, as the world is getting back to normalcy after the pandemic. The TVC touches
upon the value system of an average Indian family and strikes a chord with the audience
through the actor’s appeal across the country.
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RESPONDENTS FROM BADLAPUR)

1.9 Road Ahead

Auto sales in India is soon expected to have a bumpy ride down the hill after having speeded
on a smooth flat road for the last two years. Inflation and the rise in the cost of ownership of
a car are forcing customers to postpone car purchases.

According to an estimate car sales in India may go down by ten percent this year as there is a
significant decline in the number of walk-ins and customer queries witnessed by some of the
prominent car makers in the past two months, sources said. Primary reasons attributed to such
a downturn in car sakes are climbing interest rates and rising fuel prices which are forcing
customers to think twice before they even dream to purchase a car. And those who are really
interested in owning a car are probing hard to find the best deals and interest rates available
in the market, sources add.

In the year 2010-11, India witnessed a sharp uptrend in car sales by thirty percent leaving
behind China in car sales. Soon, inspired by such huge inflow, major car makers such as
Mercedes, BMW, Volkswagen, Toyota, Maruti, and Tata Motors pumped their resources into
production and sales to meet the rising demand.

However, eyeing the trend in the last two months, auto majors have started responding and
are busy preparing strategies to combat it. Some car makers are spotting and exploring new
markets in India by expanding their dealerships. Experts believe that the increase in the
interest rate from 11 to 15 percent in the past one year is the primary cause that is dampening
car sales besides rise in fuel prices. It is also believed that prices of petrol and diesel may also
go up further in the coming months following increase in crude oil prices and the coming
assembly elections in West Bengal, Tamil Nadu, Assam, Kerala and Puducherry. It is also
believed that such a decline in sales is an obvious reaction once the interest rate touches 15
percent mark and the car sales will normalize once the interest rates comes to an affordable
level.