The Honda Insight in India - Research project on the hybrid car to be launched in India.
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Leeds University Business School
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MODULE TITLE: MARKETING RESEARCH
MODULE LECTURER: DR. DAYAN PALIHAWADANA
WORD COUNT:
5,062
FOR OFFICE USE ONLY [SCRIPT NO]
The Honda Insight in India
Research project on the hybrid car to be launched in India
Marketing Research - 5450
Final Group Project
December 12, 2003
Executive summary
This marketing research project aims to identify the potential market for the Honda Insight hybrid car in India. In this report, we identified the key research objective as:
To determine the Indian consumer's level of interest in the hybrid car, namely the Honda Insight, and his/her potential motivation for purchase of this type of automobile compared to a standard gasoline-powered vehicle.
In order to meet the objective, the report starts with a description of the hybrid car and the Honda Insight and follows with the methodology used to facilitate the research. Secondary data was gathered in regards to the current status of the Indian economy, the automobile market and environmental issues. The report then continues with the primary research conducted via a detailed questionnaire to a sample of 45 urban citizens in the Indian capital city of New Delhi. After analyzing the information gathered through the research, it continues with analysis and recommendations confirming the same.
Based upon the research findings detailed in this report, we identified that a potential market for the hybrid car does exist in India, particularly in the capital city of New Delhi; Honda is in fact a desired and trusted brand in the existing Indian automobile market; the most appropriate positioning statement is the dual positioning of the "cost-savings green car;" and the primary target consumer is the 20 - 29 year old, male, professional, urban citizen. In conclusion, it would be advantageous for Honda to launch the Insight in India, however, due to the limitations of the research, we recommend further research be conducted prior to making final recommendations.
Contents
. Introduction 4
2. Product and Industry Background 5
2.1 The Hybrid Car - What Is It?
2.2 The Hybrid Car Market - What's Available?
2.3 The Honda Insight - What's The Draw?
3. Research Problem Identification and Objectives 7
4. Research Design and Methodology 9
4.1 Secondary Data
4.2 Primary Data
4.3 Time Scale
4.4 Cost Estimates
5. Secondary Data Findings 15
5.1 The Indian Economy
5.2 The Indian Automobile Market
5.3 Environmental Issues in India
6. Primary Data Findings 20
6.1 Findings in regards to Car Ownership
6.2 Findings in regards to Car Use
6.3 Findings in regards to Petrol Use, Spending Habits and Cost Sensitivity
6.4 Findings in regards to Environmental Concerns and Conservation
6.5 Findings in regards to Future Car Purchases and the Hybrid Car
6.6 Findings in regards to Demographic Classification
7. Limitations 31
8. Data Analysis and Recommendation 32
References 35
Appendices 37
Appendix A - The Honda Insight Information
Appendix B - The Indian Economy Data Tables
Appendix C - Indian Car Market Data Tables
Appendix D - Research Questionnaire
Appendix E - Primary Data Tables
.
Introduction
The international marketing department at Honda, one of the world's leading automotive companies, is in the process of re-evaluating its marketing strategy and business plan for the company's recently launched series of hybrid cars and for one (1) model in particular, the Insight. Its strategy is multi-tiered and consists of exploring many new initiatives. The following are a few proposed initiatives: product line expansion, product feature enhancement, distribution expansion, and/or product repositioning.
We, as a team of Marketing Researchers, have been put to the task of aiding the marketing department in selecting one (1) specific decision-making problem, identifying the research problem and objectives, conducting a relevant research study, and recommending a viable strategy.
In this report, we will disclose research findings about the current state and future projections of the Indian economy, the automobile industry and market in India, and various environmental regulations and issues which are currently of importance in India. We will also report on automobile ownership trends, purchase behavior and usage habits, petrol consumption and cost sensitivity, environmental concerns and conservation, and future purchase interests.
2.
Product and Industry Background - The Hybrid Car, The Market and Honda
The Hybrid Car - What Is It?
Recent technological advances in the automotive industry have led to the creation and launch of a new breed of automobile - the hybrid car, also known as "the green car." This new automobile is a cross between a gasoline-powered car and an electric car (such as the Smart car which entered the market in the late 1990s). This vehicle runs on a gasoline-supplied engine and a battery-powered electric motor, at the same time. What are the benefits of such a complex sounding car? The answer is two-fold: to reduce environmentally-harmful tailpipe emissions and to improve gas/petrol mileage, both of which are gaining global recognition and importance.
Recent laws have been imposed in various areas of the world (i.e. - the US) dictating the allowance of particular pollutants that a car is allowed to emit, such as carbon dioxide (CO2), which scientists suspect contributes to global warming, which is in direct proportion to a car's fuel consumption. Thus, the demand and interest in this kind of car is rapidly increasing.
The Hybrid Car Market - What's Available?
The hybrid car market is very new, largely unsaturated and with relatively low competition. However, the competition is rapidly increasing, hence Honda's need to evaluate its current strategy and move forward. At present, there are only two key players: Honda and Toyota, although most automobile manufacturers have announced plans to manufacture their own versions. Both car manufacturers have launched their products in two (2) developed markets: Japan and the United States. Honda was first-to-market in the US with the launch of its two-door Insight in December 1999 and shortly after launched a four-door hybrid version of the very successful Civic. Toyota's four-door Prius launched in the US in Spring 2001.
Honda is the current industry leader in hybrid sales for 2003. It is also the only automobile manufacturer to offer two (2) hybrid models which achieve the highest fuel efficiency for a gasoline-powered vehicle in the market.
The Honda Insight - What's The Draw?
Since its launch, the Insight has received numerous industry awards [reference Appendix A, Table 1]. Its key features include:
* Subcompact, two-door vehicle class
* Powered on a combination of fuel and a self-charging electric power source
* Fuel efficiency: 61 mpg city / 70 mpg highway
* Acceleration from 0 - 60 mph in 10.6 seconds
* Owners receive $2,000 Clean-Fuel Vehicle Federal tax deduction in the US
* MSRP starting at $18,980
The 2004 Insight's design and specifications are sleek, unique, and top of the line [reference Appendix A, Table 1, Images 1 & 2].
3.
Research Problem Identification and Objectives
Upon review of the above gathered information concerning the brand, the product at hand, the market of interest and the local industry trends, the below stated Marketing Decision-Making Problem was identified by the Honda marketing division:
* In order to increase sales of the Insight, should Honda launch the Insight in the emerging market of India with its current "green car" US positioning?
Accordingly, our marketing research team has identified the below Marketing Research Problem to create the basis of this study and guide the process of data collection and analysis:
* To determine the Indian consumer's level of interest in the hybrid car, namely the Honda Insight, and his/her potential motivation for purchase of this type of automobile compared to a standard gasoline-powered vehicle.
Additionally, we have formulated the below stated hypothesis based on current economic, market and industry information as it pertains to India which this research aims to prove:
* A considerable demand for the Honda Insight hybrid car exists within the Indian automobile market as long as the product is priced competitively and positioned as "the cost-savings car."
Based on the above stated Marketing Research problem identification, the objectives, more specifically, for the study are as follows:
* To ensure that a market for the hybrid car exists in India;
* To confirm that Honda is a desired and trusted brand in the existing Indian automobile market; and
* To identify which of three (3) potential positioning statements resonates most strongly with consumers based on attitudes towards cost of living expenses (petrol prices) versus perceptions towards environmental protection.
* Specify, more precisely, the potential target consumer for the Honda Insight.
4.
Research Design And Methodology
In order to accomplish the previously listed research objectives, the following secondary and primary data was collected to gain knowledge and understanding of the various factors that will form the research recommendation and aid the decision-making process. Furthermore, the following design and methodology was followed:
Secondary Data:
To gain a significant understanding of our proposed launch market, we gathered secondary data covering the following areas concerning India, as reported in Section 5 of this report:
* The current state of the economy and various relevant economic factors
* The automobile market, the leaders and the competition, both past and present
* The state of the environment and relative environmental regulations
This data was collected from economic electronic databases, industry-related websites and on-line environmental journals.
Primary Data:
Research Approach
Our sole means of primary research collection was a detailed questionnaire in order to gather information on the Indian consumer, as reported in Section 6. The results were used to quantifiably substantiate our rationale, specify a target market and build a strategy for launching the Honda Insight in India.
Sampling
We surveyed a sample of forty-five (45) Indian car owners who are currently residents of the greater metropolitan New Delhi area. Our sample consisted of both men and women, single or married. The target was set as young professionals, between the ages of 20 - 40 with an education level of undergraduate or higher. Income level was middle class and above, with a monthly income greater than Rs 100,000. This demographic was/is seen as a potential consumer base that has significant purchasing power and modern consumption habits. In addition to sampling people within this age and income demographic, we also sampled people outside so as not to limit the targeting to the assumptions made.
The Questionnaire
The questionnaire consisted of 25 questions of various formats: dichotomous, multiple choice, multi-option, attitude scales and open-ended questions [reference Appendix D]. Question wording and format (measurements in kilometers and liters, financials punctuated appropriately) was tailored to the Indian market. The questionnaire was divided into the following five (5) sections, designed to gain significant insight and knowledge about various attitudes and perceptions of today's automobile consumers in India:
* Automobile Ownership and Usage
* Petrol Consumption and Household Expenditures
* The Environment
* Your Future Car Purchase
* Personal Information
Automobile Ownership and Usage: This section contained nine (9) questions in regards to current automobile ownership and consumer purchase behavior. The first two (2) questions were written to determine the percentage of the sample that currently owns a car and the range of preferred brands and competition in India. Questions 3 and 4 were asked to learn about purchase behavior, future intentions and spending. This enabled the research team to more clearly identify who is purchasing vehicles and potential plans to purchase a new vehicle in the next year along with how much people have spent in the past on his/her vehicle. The following five (5) questions intended to establish current usage trends, automobile attributes considered in the purchase process, and vehicle ownership lifetime (in years and kilometers) of the sample, all of which helped to evaluate whether or not the Honda Insight will meet the needs of the targeted Indian automobile consumer.
Petrol Consumption and Household Expenditures: Section B contained seven (7) questions aimed to learn about the sample's various consumption trends, spending habits and cost sensitivity. Questions 10 and 11 inquire about the type of petrol the sample's current vehicle uses and the amount of petrol consumption (in liters and percent to disposable income). Attitude scales were used in questions 12 and 13 to determine the relative level of consumption satisfaction and concern about the price of petrol. These questions were aimed to gain initial insight into attitudes in order to define whether or not the positioning of the Honda Insight as the "cost savings" car might be relevant. The remaining questions were created to gauge relative spending of petrol against income and household expenditures of groceries and electricity.
The Environment: The following five (5) questions in Section C of the questionnaire were used to understand the level of environmental awareness and concern that the sample currently possesses. The attitude scale in Question 17 was created to determine relative levels of concern across various environmental issues, and furthermore to gauge whether or not air pollution is a primary concern. Questions 18 through 22 were asked in order determine the level of active involvement and thought taken by the sample in regards to preventing or reducing harm to the environment. These questions intended to gain further insight into the sample's perception in order to define whether or not the positioning of the Honda Insight as the "environmentally friendly" car might be relevant.
Your Future Car Purchase: This section contained four (4) questions regarding future brand and attribute interest, purchase potential and premium pricing of automobiles or instruments that would a) reduce emissions, b) reduce petrol consumption and/or c) protect the environment. Again, these questions aimed to provide information that would be helpful in determining the positioning and pricing of the Honda Insight. Questions 23 and 25 pertain specifically to the Honda Insight: current awareness, purchase consideration and interest level. As an industry leader with the goal of launching a new product that would be first-to-market, responses to these questions provided ...
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Your Future Car Purchase: This section contained four (4) questions regarding future brand and attribute interest, purchase potential and premium pricing of automobiles or instruments that would a) reduce emissions, b) reduce petrol consumption and/or c) protect the environment. Again, these questions aimed to provide information that would be helpful in determining the positioning and pricing of the Honda Insight. Questions 23 and 25 pertain specifically to the Honda Insight: current awareness, purchase consideration and interest level. As an industry leader with the goal of launching a new product that would be first-to-market, responses to these questions provided insight into the current level of awareness and knowledge of the product and potential necessary future education investment.
Personal Information: The final section consisted of a series of questions in order to acquire demographic details of the sample. These details were used in order to cross-tabulate the gathered data by age, gender, etc.
Field Work
The field work was carried out on location in New Delhi between Thursday, November 6 and Friday, November 14 of 2003. Questionnaires were distributed in locations populated by our assumed target demographic such as through personal contacts and in business offices.
Analytical Issues
To effectively analyze the primary data findings, we used the following methods:
* Frequency tables to gauge percentages with respect to the total sample
* Cross-tabulation tables to determine gender and/or age preferences and trends in regards to environmental concerns and future purchase interests
* One-Sample tables to evaluate relative importance of the elements within scaled attitude questions
CAVEAT:
Due to the restraints of the research (small sample sizes, limited recruitment practices and time constraints), the findings should be considered relatively exploratory in nature.
Time Scale
Duration (wk)
Task
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1
Background Topic Research
Research Problem Identification
Research Objectives Definition
Questionnaire Completion
Secondary Data Collection
Primary Data Collection
Data Analysis & Evaluation
Recommendation Proposal
Draft Write-Up Preparation
Final Report Preparation
Submission
Cost Estimates
Due to the limitations and time constraints of the conducted research, no proposed budget exists, and thus costs are minimal to none.
5.
Secondary Data Findings
Subsequent to gathering secondary data concerning the aforementioned relevant factors, we have summarized the relevant issues and factors below:
The Indian Economy
Overview of India's Recent Past Economic State:
Due to the recent conversion to open trade, India's overall market has changed from a monopoly to a free market in 1990. Although the GDP was fluctuating from 1997 to 2000, having reached its low point at 4%, a graduate recovery and even rise has emerged post-2000 demonstrating that India's economy is contentiously developing. Moreover, a growth trend is apparent as private consumption has increased by 61% to 9,234 billion INR showing that the India's consumption rates have improved significantly [reference Appendix B, Table 1]. Furthermore, the rise in export and import rates means that international trade has become increasingly important and influential in the state of the economy of India, encouraging foreign companies to invest [reference Appendix B, Table 1].
Forecast of the Indian Economy for 2004-2005:
India's GDP is expected to grow by at least 6% in 2003 and a further 6.6% in 2004 - 2005. As agriculture accounts for one quarter (1/4) of India's gross domestic product and more than 60% of the country's one (1) billion citizens rely on farming for a living, a bountiful monsoon rainfall between June and August means good harvest, boosting farming incomes and supporting higher rates of private consumption. Additionally, the main engine of growth will continue to be the services sector, accounting for one half (1/2) of the GDP, which is anticipated to expand at an average rate of 7% in 2003 - 2004, and 8.5% in 2004 - 2005.
Other Economic Trends and Factors:
India has established a substantial import and export business. Japan is in the top five (5) trading partner for India showing and increase in demand and public awareness of Japanese products [reference Appendix B, Table 2]. Household incomes are increasing, and being that 34% of consumption comes from the highest 10%, consumption will continue to grow with economic growth. In addition, petrol prices have increased from Rs 2.5 per liter to Rs 2.75 per liter within the past year with continued increase expected.
The Indian Automobile Market
Overview of India's Automobile Industry during the Past Decade to Present:
Prior to the 1990s, the Indian automobile market was a virtual monopoly controlled by the Suzuki-Indian Government joint venture automobile manufacturer, Maruti Udyog Ltd. (MUL). Up until this time, India had been a protected market which forebode foreign investment, thus prohibiting foreign companies from selling within the country's borders. However, the borders opened in the early 1990s allowing market entrance by several global automobile manufacturers [reference Appendix C, Table 1]. Thus, a competitive market place began - one which is now in the top five (5) Asian car markets. Although the market leader remains to be Maruti, its market share is decreasing and the competition is rising.
As recent competition has changed the look of the market, so has it made a significant impact on consumer demand and consumer trends. Consumers today have many more options to choose from be it related to brand, product features or pricing, and are therefore forcing manufacturers to adhere to their demands. Additionally, individual incomes in India have been increasing and financing has become more readily available, increasing car purchases especially in the small car market. However, one thing remains constant: the Indian car consumer is very price sensitive and quality conscious. Thus, product positioning within the market has been the key: price and value justification.
Although entering the Indian market has been and continues to be a huge business opportunity, automobile manufacturers are constantly faced with extreme pricing and margin challenges. In order to be competitive within the Indian car market, manufacturers must adhere to specific local market segmentation and establish a severely reduced pricing scheme for their lines as compared to other, established markets [reference Appendix C, Table 2]. For example, models positioned as an economy car in Europe (i.e. - Opel Corsa priced around Rs 5 lakhs), fall within the bottom half of the premium segment in Europe. Those models in the small family car segment in the West (i.e. - Opel Astra and Mitsubishi Lancer priced around Rs 8-10 lakhs) have nearly priced themselves out of the market entirely. Thus, automobile manufacturers must significantly reduce costs in order to turn a profit. However, a number of required manufacturing and design alterations needed to meet variations in roads, fuel quality and price optimization have reduced economies of scale and tightened margins. In order to reduce manufacturing costs, many manufacturers have set up more cost efficient local manufacturing in India.
Despite pricing and margin challenges, foreign manufacturers have found that market growth, expected to stabilize between 10-15% annually, has been a strong reason for entering the Indian market; sales increased at a CAGR of 14.4% during the period of 1997-99. Demand for cars has increased more than 10-fold in the past two decades, from 30,989 units in 1980-81 to 409,627 units in 1999-2000 [reference Appendix C, Tables 3 & 4]. Upon the border opening, the first foreign manufacturer to enter was Daewoo. Ford and General Motors followed shortly after; then Hyundai, Honda, Toyota and Volkswagen. [Reference Appendix C for details on today's key players in the Indian automobile market.]
Environmental Issues in India
Air Pollution Severity in India:
Industrialization and urbanization have resulted in a profound deterioration of India's air quality. Of the 3 million premature deaths in the world that occur each year due to outdoor and indoor air pollution, the highest number are assessed to occur in India. According to the World Health Organization, the capital city of New Delhi is one of the top ten most polluted cities in the world. Surveys indicate that in New Delhi the incidence of respiratory diseases due to air pollution is about 12 times the national average.
According to another study, while India's gross domestic product has increased 2.5 times over the past two decades, vehicular pollution has increased eight times and pollution from industries has quadrupled. Sources of air pollution, India's most severe environmental problem, come in several forms, including vehicular emissions and untreated industrial smoke. Apart from rapid industrialization, urbanization has resulted in the emergence of industrial centers without a corresponding growth in civic amenities and pollution control mechanisms.
Current Regulatory Status:
Regulatory reforms aimed at improving the air pollution problem in cities such as New Delhi have been quite difficult to implement. For example, India's Supreme Court recently lifted a ruling that it imposed two years ago which required all public transport vehicles in New Delhi to use compressed natural gas (CNG) engines by April 1, 2001. This ruling led to the disappearance of some 15,000 taxis and 10,000 buses from the city creating public protests, riots and widespread "commuter chaos." The court was similarly unsuccessful in 2000, when it attempted to ban all public vehicles that were more than 15 years old and ordered the introduction of unleaded gasoline and CNG. India's high concentration of pollution is not due to a lack of effort in building a sound environmental legal regime, but rather to a lack of enforcement at the local level. Efforts are currently underway to change this as new specifications are being adopted for auto emissions, which currently account for approximately 70% of air pollution. In the absence of coordinated government efforts, including stricter enforcement, this figure is likely to rise in the coming years due to the sheer increase in vehicle ownership.
6.
Primary Data Findings
Subsequent to gathering primary data from the selected sample concerning the aforementioned relevant factors, detailed below are the key findings:
Findings in regards to car ownership:
* 93% of the sample currently owns a car, of which 48% own more than one car [reference Appendix E, tables 1 & 2].
* The top 3 brands of primary vehicles are Maruti (26%), Hyundai (19%) and Honda (14%). The most commonly owned brand for secondary vehicles is Honda (30%) [reference Appendix E, tables 3 & 4].
* 57% of the sample purchased his/her own car; 38% of cars were purchased by a parent [reference Appendix E, table 5].
* For 38% of the sample, the primary car cost was Rs 250,000 - 399,999. 48% of the sample purchased his/her primary car for more than Rs 400,000 with 31% having purchased luxury vehicles costing more than Rs 700,000 [reference Appendix E, table 6].
Findings in regards to car use:
* Of those sampled who own cars, the primary needs determined are as follows: 56% transportation to work, 30% for family use [reference Appendix E, table 7].
* 77% spend at least 1 hour per day in his/her vehicle, and 53% drive at least 25km per day [reference Appendix E, tables 8 & 9].
* Among a list of attributes of consideration taken into account when purchasing a car, those about which were considered the most important are: comfort (84%), price (65%), safety (63%), and petrol consumption (60%). [Percentage listed is the percent of the sample who noted this attribute as "very important;" reference Appendix E, Chart 1 & Tables 10a/b].
* 80% own the same car for more than 3 years, and 62% accumulate more than 75,000 km, with 21% accumulating more than 150,000 km, during the life of the car [reference Appendix E, tables 11 & 12].
Findings in regards to petrol use, spending habits and cost sensitivity:
* 84% of respondents' cars consume unleaded petrol, however, the rate of response for questions related to quantity of petrol consumption (liters per week and percent to weekly income) was too small, creating too high of a sampling error, to make any legitimate observations [reference Appendix E, tables 13, 14, & 15].
* In regards to household expenditures, 43% spend at least Rs 2500 on weekly groceries and Rs 4000 on monthly electricity [reference Appendix E, tables 16a/b/c].
* The price of petrol is of significant concern to the sample as 62% responded that he/she is very concerned and 31% moderately concerned [reference Appendix E, table 17].
Findings in regards to environmental concerns and conservation:
* 53% of the sample has donated to environmentally concerned charities in the past [reference Appendix E, Table 18].
* Among a list of environmental issues, those regarded as being of most concern are: air pollution (73%), water supply contamination (70%), global warming (49%) and depletion of the Ozone layer (47%). [Percentage listed is the percent of the sample who noted he/she is "very concerned" about the issue; reference Appendix E, Chart 2 & Tables 19a/b].
* Recycling programs exist in the communities of 52% of the sample. Of this 52%, 75% actively participate, recycling predominantly paper goods (58%) [reference Appendix E, Tables 20, 21 & 22]. Of the 25% who does not participate in the existing recycling program within his/her community, only two (2) responded to the open-ended question that he/she has never heard of such programs or has never thought about it.
* A large effort towards electricity and water conservation is made by the sample. As seen in the chart below, 14 respondents (31%) make a large effort and 24 (53%) make a moderate effort [reference Appendix E, Table 23].
* In regards to harmful car emissions, 93% believe that the government should impose regulations and/or tariffs to reduce car emission rates; 56% of the sample would consider purchasing an additional instrument to reduce harmful car emissions. Of the 56%, more than half are between the ages of 20 - 29 [reference Appendix E, Tables 24, 25a/b].
Findings in regards to future car purchases and the hybrid car:
* When asked about future car purchases, Honda was the top listed brand at 65% of respondents. Furthermore, 68% of the 20 - 29 year old respondents listed Honda as the brand he/she would consider for future purchase [reference Appendix E, Table 26].
* 84% of the sample said that he/she would pay a premium for a vehicle that would reduce petrol consumption in half, and 76% would pay a premium for a car that would help to protect the environment. The majority for both questions were 20 - 29 years old [reference Appendix E, Tables 27a/b, 28a/b].
* While 56% of the sample has heard of the hybrid car, at this time, only 9% have considered it as his/her next car purchase. However, of those who responded, 60% would like to learn more about it. 73% would be interested in attending a hybrid car exhibition if one was held in his/her city, and 64% of respondents between the ages of 20 - 29 responded yes [reference Appendix E, Tables 29a/b/c & 30a/b]. Information of interested recorded in the open-ended question is vehicle performance, specifications, technological details, functionality and usability.
Findings in regards to demographic classification:
* Within the sample of 45 people, 67% are male and 33% female. Age distribution is between 20-years-old and 59-years old with 56% being in the 20 - 29 year age group [reference Appendix E, Tables 31 & 32].
* A wide range of occupations are covered within the sample with the majority being in the professional sector [reference Appendix E, Table 33].
* The marital status of the sample covered married (56%), single (42%) and widowed (2%); 38% have children, primarily one (1) or two (2) [reference Appendix E, Tables 34, 35 & 36].
* 91% of the sample has received at least an undergraduate diploma [reference Appendix E, Table 37].
7.
Limitations
In regards to information limitations, we found that there was a limited amount of factual data available about the state of the Indian car market today. Most information was dated 1999 - 2000. Therefore, brand statistics and sales figures are not as recent as anticipated. In addition, limited information was available concerning environmental regulation in India. Information concerning future regulations and policy is not available and cannot be assumed, leaving a gap in this portion of the secondary data.
In regards to time limitations, the short duration of the research period forced a limited sample to be tested. If more time was available, a larger sample would have been used, a more selective method of identification in forming the sample would have been implemented, and a pilot questionnaire would have been tested, allowing for revisions prior to use. Additionally, more and varied primary research methods would have been conducted, time permitting, such as in depth interviews and focus groups. Finally, through the primary analysis, very positive response was given by the 50 - 59 year old age group, but due to limitations, we were unable to pursue more in depth research among this age group.
In regards to cost constraints, the lack of budget for this research project led to a solitary primary research method used. Budget allowing, we would have invested resources into further primary research.
8.
Data Analysis and Recommendations
In conclusion to the research project, we have focused on the research objectives set and found the following:
* A potential market for the hybrid car does exist in India, particularly in the capital city of New Delhi;
* Honda is in fact a desired and trusted brand in the existing Indian automobile market;
* The most appropriate positioning statement is the dual positioning of the "cost-savings green car;" and
* The primary target consumer is the 20 - 29 year old, male, professional, urban citizen.
While it has been proven that a market for the Honda Insight does exist, further findings/recommendations are:
* These recommendations are based upon preliminary research conducted. We highly suggest that more in depth and broad research be conducted before launching this product.
* The situation is positive for Honda to introduce the new hybrid car into the Indian market. As the sample expressed strong concerns about rising petrol prices and environmental decay, showing prominence in this market, the cost-saving and environmentally friendly car fills a need gap in the local market which will be met by Honda.
* The leading cars in the Indian market today are economy-sized models such as Maruti 800, Zen and Omni, Hyundai Santro and Tata Indica. Additionally, among the sample, the top owned brands are Maruti and Hyundai. Therefore, the small size of the Insight, allowing it to be classed as economy-sized, will increase its competitiveness in the marketplace in comparison to other economy-sized cars.
* Honda currently is renown for its reputation for quality and customer satisfaction. The sample also showed a preference towards Honda for future car purchases listing it as the top choice. Both of these factors show positive future implications for Honda as a brand in India.
* Additionally, increasing trade with Japan shows strong county of origin preference and loyalty which will also be beneficial to Honda.
* While the primary positioning recommendation is the "cost-savings green car", other benefits that should be stressed are: the superior reliability, safety and comfort benefits in addition to its Euro II compliance. This is based upon responses about car usage in the primary research (i.e. - transportation to work, amount of time spent in car per pay, etc.).
* Being that the Indian consumer is very price sensitive, it is imperative that Honda price the Insight accordingly. As seen in the past with other car manufacturers, over-pricing is a serious issue that will lead to rapid price cuts. Fortunately, the positive economic outlook and increasing consumption rates in India will be beneficial to Honda.
* Accurate sales forecasting is necessary in order to insure that stock is available to meet consumer's demands. As seen in the case of the Hyundai Santro launch, the brand's reputation and image were damaged by consumer dissatisfaction when stock issues arose causing long delays.
* As the Insight will be first to market in India, Honda will need to leverage its image and reputation for quality and innovation in order to successfully launch this car. Additionally, as the sample expressed little knowledge to date about the hybrid car, thorough education to the target consumer will be needed. Honda will need to rely primarily upon exhibitions and the sales force in order to accomplish this.
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Anon. August 2000, Autocar India, p. 188.
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Central Pollution Control Board. (2003) Government of India, Ministry of Environment & Forest. Retrieved October 29, 2003 from http://www.cpcb.delhi.nic.in/index.php
Country Outlook: India (2003) EIU Country Data. The Economist Intelligence Unit Limited [online]. Retrieved October 21, 2003 from http://eiu.bvdep.com/cgi/ template.dll?product=101&checkathens=1&user=lee-bus3t2c&pw=%3CP8KPtAM5x%2BnLKuFMvg%3E
Cropper, Maureen L., Nathalie B. Simon, Anna Alberini, and PK Sharma. (December 1997) The Health Effects of Air Pollution in Delhi, India. Retrieved November 8, 2003 from http://www.worldbank.org/nipr/work_paper/1860
Executive Summary. (2001) Daewoo Motors Ltd, India Infoline.com. Retrieved October 21, 2003 from http://www.indiainfoline.com/comp/daew/mr01.html
Honda Homepage. (2003) American Honda Motor Co., Inc. Retrieved October 25, 2003, from http://www.hondacars.com
IndiaMART InterMESH Limited. (2003) Retrieved October 21, 2003 from http://www.auto.indiamart.com/cars/showroom.html
Indian Car Market - A Pandora of Paradox. (December 26, 2001) Indiacar.com. Retrieved October 21, 2003 from http://www.indiacar.net/news/n2455.htm
Marcelo, R. (2003) Indian Monsoon Raises Hopes for Rural Economy. Financial Times, London [online] p6, July 3, 2003. Retrieved November 11, 2003 from http://gateway.proquest.com/openurl?ctx_ver=z39.88-2003&res_id=xri:pqd&rft_val_fmt=ori:fmt:kev:mtx:journal&genre=article&rft_id=xri:pqd:did=000000354214431&svc_dat=xri:pqil:fmt=text&req_dat=xri:pqil:pq_clntid=29974
Nair, M. (n.d.) Retrieved October 20, 2003 from http://www.economictimes.com. 130601.13econ09.htm
Nice, Karim. (2003) How Hybrid Cars Work. Retrieved October 23, 2003, from http://www.auto.howstuffworks.com/hybrid-car.htm
Ratan Tata Keeps His Promise, Unveils World-Class Indian Car (January 16, 1998) Indian Express Newspapers (Bombay) Ltd. Retrieved October 21, 2003 from http://www.indianexpress.com/fe/daily/19980116/01655014.html
Sorabjee, Hormazd. (n.d.) The Right Indication. Retrieved October 23, 2003 from http://www.autocarindia.com/columns/hormazd/hormazd.asp?colid=23
The Indian Car Industry's Slow Journey. (June 11, 2002) Just-auto.com Editorial Team. Retrieved October 23, 2003 from http://www.just-auto.com/features_detail.asp? art=681&lk=nd02
United Nations Statistics Division. (2003) United Nations. Retrieved October 30, 2003 from http://unstats.un.org/unsd/methods/.htm
Appendices
Appendix A
Table 1 - Honda Insight Industry Awards:
Sierra Club
American Council for and Energy Efficient Economy (ACEEE)
Popular Mechanics
American Woman Motorscene Magazine
Automotive Market Environmental Sensitivity (AMES)
Automobile Magazine
Clean Air Coalition
Edmunds.com
Popular Science
"Environmental Engineering"
"Greatest Vehicles for 2001"
"Design & Engineering" Award
"Most Likely to Change the World"
"Preferred Subcompact"
"2000 Technology of the Year"
"Clean Car Salute"
"Most Significant New Vehicle"
"Best of What's New" Award
Source: www.hondacars.com
Image 1: 2004 Honda Insight Image & Advertisement
Source: www.hondacars.com
Image 2: 2004 Honda Insight Specifications and Features
Appendix B
Table 1 - India National Economy Data (1993 - 2003)
SERIES NAME
UNIT
993
994
995
996
997
998
999
2000
2001
2002
2003
GDP (real growth rate)
%
4.9
7.5
7.6
7.4
4.5
6.0
7.1
3.9
5.5
4.3
6.0
Real GDP
Billion INR
8,592
9,234
9,940
0,675
1,153
1,820
2,664
3,163
3,881
4,483
5,345
Private Cnsumption
Billion INR
5,748
6,015
6,389
6,896
7,073
7,524
7,977
8,186
8,669
8,852
9,234
Real Exports of G&S
Billion INR
862
974
,280
,361
,329
,514
,786
2,204
2,336
2,652
2,907
Real Imports of G&S
Billion INR
860
,056
,351
,318
,492
,803
,930
2,054
2,125
2,322
2,508
Exchange Rates
INR/per $
30.74
31.68
32.43
35.52
36.31
41.26
43.06
44.94
47.19
48.34
46.67
Source: EIU data services (http://eiu.bvdep.com)
Table 2 - Main Export & Import Partners of India
Exports - partners and % to total
Imports - partners and % to total
US
20.9%
UK
6.3%
UK
5.2%
US
6.0%
Germany
4.3%
Belgium
5.7%
Japan
4.0%
Japan
3.5%
Benelux
3.3%
Germany
3.5%
Source: http://www.referenceguides.com/cia_world_factbook
Appendix C
Indian Automobile Market - Today's Key Players:
As previously mentioned, the Indian car market has turned into a competitive arena with the entrance of leading global automobile companies from Japan, Korea, Western Europe and the US. They have gained significant position in the small and medium sized car market. Below are some learnings about the business of today's key players as of the past few years:
Maruti: Maruti remains the strong market leader. It held 52% market share in 2000, down from 64% in 1999. Its model, the Maruti 800, priced below any potential competitor, still dominates the small car market, however, its second model, Zen, faces competition from the Hyundai Santro, Daewoo Matiz and Tata Indica. These models are seeing higher growth than the Maruti 800. Maruti is currently looking to gain new consumers while maintaining its current consumer base with an expanded product line spanning across all segments.
Hyundai: After the successful launch and strong sales growth of its small car model, Santro, Hyundai launched its second model in the upmarket, Accent. However, Hyundai faced several challenges upon these launches which damaged its image and reputation: in order to meet the Euro II environmental compliance, it had to increase prices; due to a demand underestimation for the Santro, orders were three (3) months delayed. Currently, Hyundai is concerned about its small product line and is looking into entering luxury models although low sales are inevitable.
Telco (Tata): One of today's market leaders, Tata was originally a commercial and large consumer vehicles manufacturer. It has since shifted its strategy and entered into the small car market. The Italian designed Indica, offering value for money, is the forerunner in Maruti competition. Within its price segment (approx. Rs 3 lakhs), it holds 21% market share. However, as other manufacturers have found, Tata needs to expand its product line to maintain its competitive position.
Daewoo: Daewoo entered the market in 1995 with the Cielo and expanded its line in 1998 with the launch of its second small car model, Matiz. Shortly after the launches, sales dropped with the newly entering competition, and Daewoo immediately reduced prices leading to a significant depreciation of its brand image. Daewoo is currently competitively priced and rebuilding its image. Daewoo, like many other manufacturers, is considering launching two (2) luxury models although any solid launch plans have been postponed.
Fiat: Fiat is the only foreign manufacturer that has had market presence in India since the 1950s through link to a leading Indian business group. Its original small car, Uno, underperformed leading to the launch of its luxury model, Sienna, to compete directly with Maruti Esteem. It is also looking to launch the Palio to compete with Maruti Zen. Despite its long term market presence, Fiat is currently a marginal player in market and looking is to improve its position.
Ford: Ford entered the market with the Escort and immediately solidified its reputation for quality. While positioned as a family car in most countries, Escort was considered a luxury car in India and was overpriced (Rs 7-8 lakhs) for its intended segment. Ford then launched a lower-priced model, Ikon (Rs 5.25-6 lakhs), however, it too was too high priced to move volumes. While its potential to become a key playing in the market has been recognized, Ford will remain marginal player unless it can achieve competitive pricing.
Toyota: As of 2000, Toyota had only entered the Indian market with a multi-utility vehicle. Toyota is taking a very cautious approach before penetrating the Indian market and demands a clear understanding of the market before launching a conventional passenger car. Toyota learned from its strategic late entrance into the Indonesian and Thai markets that it can become the market leader in India, as it has in these markets, with a flawless strategy.
General Motors - Opel: GM entered the market with the Opel-branded Astra, positioned as a "luxurious, elegant, safe, premium offering which reflects the excellence of German engineering." Priced between Rs 7-10 lakhs, it failed to sell large volumes. Subsequently, it launched a lower priced model (between Rs 5-7 lakhs), the Corsa, which is facing the same problems. As per Ford, GM must achieve competitive pricing if it intends to become a significant market share holder.
Honda: Honda, known for quality and customer satisfaction, has not been able to gain significant market position to date due to pricing challenges. It entered the market with its medium-sized model, City, however, priced between Rs 6-9 lakhs, it was priced out of range for the Indian consumer. While Honda has been looking to launch the Accord, it also needs to consider a model to compete in the small car segment.
Table 1 - Top 10 Manufacturers (Apr. 99 - March 00)
Rank
Company
Production (Units)
Sales (Units)
Maruti Udyog Ltd.
398,669
397,586
2
Hyundai Motors India Ltd.
75,306
75,895
3
TELCO (Tata)
56,926
55,776
4
Daewoo Motors India Ltd.
n/a
40,217
5
Hindustan Motors Ltd.
26,673
26,860
6
Fiat India Automobiles Ltd.
6,039
20,751
7
Honda Siel Cars India Ltd.
n/a
9,698
8
Ford India Ltd.
n/a
8,023
9
General Motors India Ltd.
3,108
3,047
0
Mercedes Benz India Ltd.
436
893
Table 2 - Segmentation of Indian Automobile Industry
Category
Models
Price Range (Rs)
Economy
Maruti 800, Omni
0 - 300,000
Mid-Sized
Fiat Uno
Maruti Zen, 1000
Hyundai Santro
Daewoo Matiz
Tata Indica
HM Contessa
350,000 - 500,000
Luxury
Tata Estate, Sierra
Honda City
Mitsubishi Lancer
Ford Ikon
Opel Astra, Corsa
Fiat Sienna
Daewoo Nexia
550,000 - 1,000,000
Super Luxury
Mercedez-Benz
Other Imports
,000,000 +
Table 3 - Sales of Major Players 1998-1999 (units)
Manufacturer
Model
July-June '99-'00
July-June '98-'99
% ?
Economy Segment Cars
Maruti
800
73,721
68,260
3
Maruti
Zen
80,372
67,960
8
Maruti
Omni
77,896
64,538
21
Hyundai
Santro
73,240
31,128
35
Tata
Indica
61,505
9,787
528
Daewoo
Matiz
47,336
0,385
356
Hindustan Motors
Ambassador
8,258
6,054
4
Fiat
Uno
4,637
2,855
4
Maruti
WagonR
1,665
-
-
PAL
Padmini
6
,766
-99
PAL-Peugeot
18 NE
6
21
-95
Total
558,652
382,854
46
Mid-Size and Luxury Cars
Maruti
Esteem
4,937
6,248
-8
Ford
Ikon
1,299
0
-
Hyundai
Accent
0,727
0
-
Honda
City
0,136
8,968
3
Mitsubishi
Lancer
8,457
4,769
77
Fiat
Siena
4,565
751
508
Maruti
Baleno
3,256
0
-
Opel
Astra
2,772
3,000
-8
Daewoo
Cielo
2,621
3,550
-26
Opel
Corsa
,392
0
-
Ford
Escort
,102
3,022
-64
M-Benz
E-class
593
430
38
Maruti
000
343
495
-31
Hindustan Motors
Contessa
228
395
-42
Tata
Estate
5
79
-81
Total
72,443
41,708
74
Source: Autocar India, August 2000, p 188.
Table 4 - Total Car Sales, Production & Growth in India (1993 - 2000)
Year
Sales Volume
Sales Growth
Production Volume
Production Growth
993-94
209,203
27%
207,658
27.2%
994-95
264,822
26.6%
264,468
27.4%
995-96
345,486
30.5%
348,146
31.6%
996-97
410,992
9%
407,539
7.1%
997-98
417,736
.6%
401,002
-1.6%
998-99
409,627
-1.9%
390,709
-2.7%
999-00
638,815
56%
557,243
47.7%
Appendix D
THE AUTOMOBILE, THE ENVIRONMENT AND THE FUTURE
QUESTIONNAIRE
Dear Sir or Madam,
I am a postgraduate student at the University of Leeds working on a group Marketing Research project concerning the automobile industry, cost concerns and environmental awareness in India. With this survey, my group intends to gain a better understanding of attitudes and preferences towards the purchase of automobiles. Your help in completing this questionnaire is greatly appreciated, and all answers will be kept completely confidential.
Thank you.
Please check or fill in the appropriate information as it pertains to you:
(Please ignore the numbers next to the boxes as they are for office use only.)
SECTION A: AUTOMOBILE OWNERSHIP AND USAGE:
. Do you currently own a car? Yes ?1 No ?2 ?
If yes, how many? _______ ??
2. a. What is the brand, model & year of the car(s) that you own?
Brand Model Year
Primary vehicle: _____________ ______________ _______
Secondary vehicle: _____________ ______________ _______
b. What brands & models of cars have you owned in the past?
Brand Model Year
Vehicle 1: _____________ ______________ _______
Vehicle 2: _____________ ______________ _______
Vehicle 3: _____________ ______________ _______
3. a. Who purchased your primary car?
You ?1 Parent ?2 ?
Spouse ?3 Other______ ?4
b. Have you ever purchased a car for someone else? Yes ?1 No ?2 ?
If yes, for whom? _______________________
c. Do you plan to purchase a new car in the next year?
Yes ?1 No ?2 Don't know ?3 ?
4. How much did your primary car cost (Rs)?
less than 1,00,000 ?1 1,00,000 - 2,49,999 ?2 ?
2,50,000 - 3,99,999 ?3 4,00,000 - 6,99,999 ?4
7,00,000 - 9,99,999 ?5 10,00,000 + ?6
5. Your primary need for having a car is:
Transport to school ?1 Transport to work ?2 ?
Leisure ?3 Family use ?4
Other _____________ ?5
6. How much time per day do you spend in your car?
Less than 1/2 hour ?1 1/2 hour - 1 hour ?2 ?
1 hour - 1 1/2 hours ?3 1 1/2 hours - 2 hours ?4
2 hours + ?5
7. How many kilometers per day do you drive?
Less than 10 ?1 10 - 24 ?2 ?
25 - 49 ?3 50 - 74 ?4
75 - 99 ?5 100+ ?6
8. The following are the key criteria that car buyers take into account when purchasing a new car. Please indicate how important they are to you by checking the appropriate boxes.
Very Moderately Neutral Not Not At Al
Important Important Important Important
Price ?1 ?2 ?3 ?4 ?5 ?
Appearance ?1 ?2 ?3 ?4 ?5 ?
Frequency of Maintenance ?1 ?2 ?3 ?4 ?5 ?
Safety ?1 ?2 ?3 ?4 ?5 ?
Comfort ?1 ?2 ?3 ?4 ?5 ?
Petrol Consumption ?1 ?2 ?3 ?4 ?5 ?
Brand Name ?1 ?2 ?3 ?4 ?5 ?
Country of Origin ?1 ?2 ?3 ?4 ?5 ?
Environmental Protection ?1 ?2 ?3 ?4 ?5 ?
Warranty ?1 ?2 ?3 ?4 ?5 ?
Post-Purchase Service Plan ?1 ?2 ?3 ?4 ?5 ?
Other __________________ ?1 ?2 ?3 ?4 ?5 ?
9. a. On average, for how many years do you keep the same car? __________ ??
b. On average, how many kilometers do you accumulate during the life of your car(s)?
less than 25,000 ?1 25,000 - 49,999 ?2 ?
50,000 - 74,999 ?3 75,000 - 99,999 ?4
100,000 - 149,999 ?5 150,000 + ?6
SECTION B: PETROL CONSUMPTION AND HOUSEHOLD EXPENDITURES:
If you do not own a car, please proceed to question number 14.
0. What kind of petrol does your primary car use?
Diesel ?1 ?
Leaded ?2
Unleaded ?3
1. a. How many liters of petrol do you purchase per week? _______ ?
b. What percent of your weekly disposable income do you spend on petrol? ________ ??
2. How satisfied are you with your car's petrol consumption?
Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied
?1 ?2 ?3 ?4 ?5 ?
3. How much are you concerned about the price of petrol?
Very Concerned Moderately Concerned Not Concerned Not At All Concerned
?1 ?2 ?3 ?4 ?
4. What is your monthly household income (Rs)?
less than 60,000 ?1 60,000 - 79,999 ?2 ?
80,000 - 99,999 ?3 1,00,000 - 1,49,999 ?4
1,50,000 + ?5
5. How much do you spend per week on household groceries (Rs)?
less than 1,000 ?1 1,000 - 1,499 ?2 ?
,500 - 1,999 ?3 2,000 - 2,499 ?4
2,500 - 2,999 ?5 3,000 + ?6
6. How much does your household spend per month on electricity (Rs)?
less than 1,000 ?1 1,000 - 1,999 ?2 ?
2,000 - 2,999 ?3 3,000 - 3,999 ?4
4,000 - 4,999 ?5 5,000 + ?6
SECTION C: THE ENVIRONMENT:
7. Following is a list of environmental issues. Please indicate how much of a concern they are to you by checking the appropriate boxes.
Very Moderately Neutral Not Not At All Concerned Concerned Concerned Concerned
Air Pollution ?1 ?2 ?3 ?4 ?5 ?
Global Warming ?1 ?2 ?3 ?4 ?5 ?
Depletion of Fossil Fuels ?1 ?2 ?3 ?4 ?5 ?
Greenhouse Effect ?1 ?2 ?3 ?4 ?5 ?
Acid Rain ?1 ?2 ?3 ?4 ?5 ?
Water Supply Contamination ?1 ?2 ?3 ?4 ?5 ?
Depletion of Ozone Layer ?1 ?2 ?3 ?4 ?5 ?
Other __________________ ?1 ?2 ?3 ?4 ?5 ?
8. a. Do recycling programs exist in your community? Yes ?1 No ?2 ?
If yes, do you recycle? Yes ?1 No ?2 ?
If yes, what items/materials? _________________________________________________________
If no, why not? ____________________________________________________________________
________________________________________________________________________________
9. How much of an effort do you make to conserve energy and/or water in your home?
Large Effort Moderate Effort Slight Effort No Effort
?1 ?2 ?3 ?4 ?
20. Do you / have you ever donated to an environmentally concerned charity (ie - Greenpeace)?
Yes ?1 No ?2 ?
21. Do you believe the government should impose regulations and/or tariffs to reduce car emission rates?
Yes ?1 No ?2 ?
SECTION D: YOUR FUTURE CAR PURCHASE:
22. a. Would you consider purchasing an additional instrument for your car in order to reduce harmful emissions? Yes ?1 No ?2 ?
b. Would you pay a premium for a car that would reduce you car's petrol consumption in half?
Yes ?1 No ?2 ?
If yes, how much? ______ ??????
c. Would you pay a premium for a car that would help to protect the environment?
Yes ?1 No ?2 ?
If yes, how much? ______ ??????
23. a. Have you heard of the hybrid car which runs on a combination of petrol and electricity?
Yes ?1 No ?2 ?
b. If yes, have you considered one for your next vehicle purchase?
Yes ?1 No ?2 ?
c. If no, would you like to learn more about it?
Yes ?1 No ?2 ?
If yes, what kind of information would you like to know? _________________________________ _____________________________________________________________________________
_____________________________________________________________________________
24. Which brands would you consider buying in the future?
Please circle your top 3 choices.
Honda ?1 Ford ?2 ??
GM ?3 Nissan ?4 ??
Opel ?5 Toyota ?6 ??
Mercedes ?7 Maruti ?8 ??
Hyundai ?9 Mitsubishi ?10 ??
Others ___________ ?11 ??
25. Would you be interested in attending a hybrid car exhibition if one is held in your city?
Yes ?1 No ?2 ?
SECTION E: PERSONAL INFORMATION:
Please fill in the appropriate information about yourself:
Office Use Only
Sex:
Age:
Occupation:
Marital status:
Do you have children?
What is the highest level of education that you have received?
Male ?1 Female ?2 ?
20 - 29 ?1 30 - 39 ?2 ?
40 - 49 ?3 50 - 59 ?4
60+ ?5
_______________________________________
Single ?1 Married ?2 ?
Divorced ?3 Widowed ?4
Yes ?1 No ?2 ?
If yes, how many? ______ ??
Graduation from elementary school ?1 ?
High school diploma ?2
Undergraduate (Bachelors) ?3
Post-Graduate (Masters, MD, PhD) ?4
We sincerely thank you for your time and consideration.
Appendix E
Table 1: Do you currently own a car?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
42
93.3
93.3
93.3
no
3
6.7
6.7
00.0
Total
45
00.0
00.0
Table 2: If yes, how many?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
3
6.7
6.7
6.7
.00
22
48.9
48.9
55.6
2.00
7
5.6
5.6
71.1
3.00
9
20.0
20.0
91.1
4.00
2
4.4
4.4
95.6
6.00
2.2
2.2
97.8
23.00
2.2
2.2
00.0
Total
45
00.0
00.0
Table 3: What is the brand of your primary vehicle?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
HONDA
6
3.3
4.3
4.3
FORD
2.2
2.4
6.7
GM
2.2
2.4
9.0
FIAT
2
4.4
4.8
23.8
TOYOTA
2.2
2.4
26.2
MERCEDES
4
8.9
9.5
35.7
MARUTI
1
24.4
26.2
61.9
HYUNDAI
8
7.8
9.0
81.0
MISTSUBISHI
3
6.7
7.1
88.1
DAEWOO
4
8.9
9.5
97.6
OTHERS
2.2
2.4
00.0
Total
42
93.3
00.0
Missing
System
3
6.7
Total
45
00.0
Table 4: What is the brand of your secondary vehicle?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
HONDA
6
3.3
30.0
30.0
FIAT
2.2
5.0
35.0
OPEL
2.2
5.0
40.0
TOYOTA
3
6.7
5.0
55.0
MERCEDES
2.2
5.0
60.0
MARUTI
5
1.1
25.0
85.0
HYUNDAI
2
4.4
0.0
95.0
MISTSUBISHI
2.2
5.0
00.0
Total
20
44.4
00.0
Missing
System
25
55.6
Total
45
00.0
Table 5: Who purchased your primary car?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
you
24
53.3
57.1
57.1
parent
6
35.6
38.1
95.2
spouse
2
4.4
4.8
00.0
Total
42
93.3
00.0
Missing
System
3
6.7
Total
45
00.0
Table 6: How much did your primary car cost (Rs)?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
less than 100,000
2
4.4
4.8
4.8
00,000-249,999
4
8.9
9.5
4.3
250,000-399,999
6
35.6
38.1
52.4
400,000-699,999
7
5.6
6.7
69.0
700,000-999,999
5
1.1
1.9
81.0
,000,000+
8
7.8
9.0
00.0
Total
42
93.3
00.0
Missing
System
3
6.7
Total
45
00.0
Table 7: Your primary need for having a car is:
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
transport to school
2.2
2.3
2.3
transport to work
24
53.3
55.8
58.1
leisure
5
1.1
1.6
69.8
family use
3
28.9
30.2
00.0
Total
43
95.6
00.0
Missing
System
2
4.4
Total
45
00.0
Table 8: How much time per day do you spend in your car?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
less than 0.5 hour
3
6.7
7.0
7.0
0.5hour-1hour
7
5.6
6.3
23.3
hour-1.5hour
9
20.0
20.9
44.2
.5hour-2hour
8
40.0
41.9
86.0
2hour+
6
3.3
4.0
00.0
Total
43
95.6
00.0
Missing
System
2
4.4
Total
45
00.0
Table 9: How many kilometers per day do you drive?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
less than 10
5
1.1
1.6
1.6
0-24
5
33.3
34.9
46.5
25-49
3
28.9
30.2
76.7
50-74
9
20.0
20.9
97.7
75-99
2.2
2.3
00.0
Total
43
95.6
00.0
Missing
System
2
4.4
Total
45
00.0
Chart 1: The following are the key criteria that car buyers take into account when purchasing a new car. Please indicate how important they are to you.
Table 10a (for above question): One-Sample Statistics
N
Mean
Std. Deviation
Std. Error Mean
price
45
.4222
.83907
.12508
appearance
45
.3111
.59628
.08889
frequency of maintenance
45
.4000
.78044
.11634
safety
45
.3778
.71633
.10678
comfort
45
.1333
.50452
.07521
petrol consumption
45
.4889
.84267
.12562
brand name
45
.6000
.80904
.12060
country of origin
45
2.2889
.32497
.19752
environmental protection
45
.8444
.10691
.16501
warranty
45
.5111
.75745
.11291
post-purchase service plan
45
.4222
.81153
.12098
Table 10b: One-Sample Test
Test Value = 0
t
df
Sig. (2-tailed)
Mean Difference
95% Confidence Interval of the Difference
Lower
Upper
price
1.370
44
.000
.4222
.1701
.6743
appearance
4.750
44
.000
.3111
.1320
.4903
frequency of maintenance
2.034
44
.000
.4000
.1655
.6345
safety
2.902
44
.000
.3778
.1626
.5930
comfort
5.069
44
.000
.1333
.9818
.2849
petrol consumption
1.852
44
.000
.4889
.2357
.7421
brand name
3.266
44
.000
.6000
.3569
.8431
country of origin
1.588
44
.000
2.2889
.8908
2.6870
environmental protection
1.178
44
.000
.8444
.5119
2.1770
warranty
3.383
44
.000
.5111
.2835
.7387
post-purchase service plan
1.756
44
.000
.4222
.1784
.6660
Table 11: On average, for how many years do you keep the same car?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
less than 2 years
8
7.8
20.5
20.5
3-5 years
25
55.6
64.1
84.6
6-9 years
6
3.3
5.4
00.0
Total
39
86.7
00.0
Missing
System
6
3.3
Total
45
00.0
Table 12: On average, how many km do you accumulate during the life of your car(s)?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
25,000-49,999
5
1.1
1.9
1.9
50,000-74,999
1
24.4
26.2
38.1
75,000-99,999
2
26.7
28.6
66.7
00,000-149,999
5
1.1
1.9
78.6
50,000+
9
20.0
21.4
00.0
Total
42
93.3
00.0
Missing
System
3
6.7
Total
45
00.0
Table 13: What kind of petrol does your primary car use?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
diesel
2.2
2.5
2.5
leaded
3
6.7
7.5
0.0
unleaded
36
80.0
90.0
00.0
Total
40
88.9
00.0
Missing
System
5
1.1
Total
45
00.0
Table 14: How many liters of petrol do you purchase per week?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
9
20.0
20.0
20.0
less than 10
2
4.4
4.4
24.4
0-19
8
7.8
7.8
42.2
20-29
1
24.4
24.4
66.7
30-49
1
24.4
24.4
91.1
50+
4
8.9
8.9
00.0
Total
45
00.0
00.0
Table 15: What percent of your weekly disposable income do you spend on petrol?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
21
46.7
46.7
46.7
less than 5%
4
8.9
8.9
55.6
5%-14%
2
26.7
26.7
82.2
5%-24%
4
8.9
8.9
91.1
25%-34%
4
8.9
8.9
00.0
Total
45
00.0
00.0
Table 16a: How much do you spend per week on household groceries (Rs)?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
less than 1,000
7
5.6
5.9
5.9
,000-1,499
0
22.2
22.7
38.6
,500-1,999
6
3.3
3.6
52.3
2,000-2,499
2
4.4
4.5
56.8
2,500-2,999
9
20.0
20.5
77.3
3000+
0
22.2
22.7
00.0
Total
44
97.8
00.0
Missing
System
2.2
Total
45
00.0
Table 16b: How much does your household spend per month on electricity (Rs)?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
less than 1,000
3
6.7
6.8
6.8
,000-1,999
7
5.6
5.9
22.7
2,000-2,999
1
24.4
25.0
47.7
3,000-3,999
4
8.9
9.1
56.8
4,000-4,999
9
20.0
20.5
77.3
5,000+
0
22.2
22.7
00.0
Total
44
97.8
00.0
Missing
System
2.2
Total
45
00.0
Table 16c: Descriptive Statistics for Above Two Questions
N
Minimum
Maximum
Mean
Std. Deviation
how much do you spend per week on household groceries (Rs)?
44
.00
6.00
3.5909
.87168
how much does your household spend per month on electricity (Rs)?
44
.00
6.00
3.8864
.63132
Valid N (listwise)
44
Table 17: How much are you concerned about the price of petrol?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
very concerned
26
57.8
61.9
61.9
moderately concerned
3
28.9
31.0
92.9
not concerned
2
4.4
4.8
97.6
not at all concerned
2.2
2.4
00.0
Total
42
93.3
00.0
Missing
System
3
6.7
Total
45
00.0
Table 18: Do you / have you ever donated to an environmentally concerned charity?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
24
53.3
53.3
53.3
no
21
46.7
46.7
00.0
Total
45
00.0
00.0
Chart 2: Following is a list of environmental issues. Please indicate how much of a concern they are to you.
Table 19a (for above question): One-Sample Statistics
N
Mean
Std. Deviation
Std. Error Mean
air pollution
45
.3333
.60302
.08989
global warming
45
.6889
.82082
.12236
depletion of fossil fuels
45
2.0000
.06600
.15891
greenhouse effect
45
.8222
.96032
.14316
acid rain
45
2.1111
.11237
.16582
water supply contamination
45
.3333
.63960
.09535
depletion of Ozone Layer
45
.7778
.99747
.14869
Table 19b: One-Sample Test
Test Value = 0
t
df
Sig. (2-tailed)
Mean Difference
95% Confidence Interval of the Difference
Lower
Upper
air pollution
4.832
44
.000
.3333
.1522
.5145
global warming
3.803
44
.000
.6889
.4423
.9355
depletion of fossil fuels
2.586
44
.000
2.0000
.6797
2.3203
greenhouse effect
2.729
44
.000
.8222
.5337
2.1107
acid rain
2.731
44
.000
2.1111
.7769
2.4453
water supply contamination
3.984
44
.000
.3333
.1412
.5255
depletion of Ozone Layer
1.956
44
.000
.7778
.4781
2.0775
Table 20: Do recycling programs exist in your community?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
23
51.1
52.3
52.3
no
21
46.7
47.7
00.0
Total
44
97.8
00.0
Missing
System
2.2
Total
45
00.0
Table 21: If yes, do you recycle?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
20
44.4
44.4
44.4
yes
9
42.2
42.2
86.7
no
6
3.3
3.3
00.0
Total
45
00.0
00.0
Table 22: If yes, what items/materials?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
28
62.2
62.2
62.2
plastic
3
6.7
6.7
68.9
paper
0
22.2
22.2
91.1
cans
3
6.7
6.7
97.8
other
2.2
2.2
00.0
Total
45
00.0
00.0
Table 23: How much of an effort do you make to conserve energy/water in your home?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
large effort
4
31.1
31.1
31.1
moderate effort
24
53.3
53.3
84.4
slight effort
6
3.3
3.3
97.8
no effort
2.2
2.2
00.0
Total
45
00.0
00.0
Table 24: Do you believe the government should impose regulations and/or tariffs to reduce car emission rates?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
42
93.3
93.3
93.3
no
3
6.7
6.7
00.0
Total
45
00.0
00.0
Table 25a: Would you consider purchasing an additional instrument for your car in order to reduce harmful emissions?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
25
55.6
55.6
55.6
no
20
44.4
44.4
00.0
Total
45
00.0
00.0
Table 25b: Cross-Tabulation by Age for above question.
age
Total
20-29
30-29
40-49
50-59
Would you consider purchasing an additional instrument for your car in order to reduce harmful emissions?
yes
Count
4
6
4
25
% within age
56.0%
66.7%
6.7%
80.0%
55.6%
no
Count
1
3
5
20
% within age
44.0%
33.3%
83.3%
20.0%
44.4%
Total
Count
25
9
6
5
45
% within age
00.0%
00.0%
00.0%
00.0%
00.0%
Table 26: Cross-Tabulation by Age for respondents who listed Honda a brand for future purchase consideration.
age
Total
20-29
30-29
40-49
50-59
CHOOSE
HONDA
yes
Count
7
5
3
3
28
% within age
68.0%
55.6%
50.0%
60.0%
62.2%
no
Count
8
4
3
2
7
% within age
32.0%
44.4%
50.0%
40.0%
37.8%
Total
Count
25
9
6
5
45
% within age
00.0%
00.0%
00.0%
00.0%
00.0%
Table 27a: Would you pay a premium for a car that would reduce you car's petrol consumption in half?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
38
84.4
84.4
84.4
no
7
5.6
5.6
00.0
Total
45
00.0
00.0
Table 27b: Cross-Tabulation by Age for above question.
age
Total
20-29
30-29
40-49
50-59
Would you pay a premium for a car that would reduce you car's petrol consumption in half?
yes
Count
23
5
5
5
38
% within age
92.0%
55.6%
83.3%
00.0%
84.4%
no
Count
2
4
0
7
% within age
8.0%
44.4%
6.7%
.0%
5.6%
Total
Count
25
9
6
5
45
% within age
00.0%
00.0%
00.0%
00.0%
00.0%
Table 28a: Would you pay a premium for a car that would help to protect the environment?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
34
75.6
75.6
75.6
no
1
24.4
24.4
00.0
Total
45
00.0
00.0
Table 28b: Cross-Tabulation by Age for above question.
age
Total
20-29
30-29
40-49
50-59
Would you pay a premium for a car that would help to protect the environment?
yes
Count
9
7
3
5
34
% within age
76.0%
77.8%
50.0%
00.0%
75.6%
no
Count
6
2
3
0
1
% within age
24.0%
22.2%
50.0%
.0%
24.4%
Total
Count
25
9
6
5
45
% within age
00.0%
00.0%
00.0%
00.0%
00.0%
Table 29a: Have you heard of the hybrid car?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
25
55.6
58.1
58.1
no
8
40.0
41.9
00.0
Total
43
95.6
00.0
Missing
System
2
4.4
Total
45
00.0
Table 29b: If yes, have you considered one for your next vehicle purchase?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
0
22.2
22.2
22.2
yes
4
8.9
8.9
31.1
no
31
68.9
68.9
00.0
Total
45
00.0
00.0
Table 29c: If no, would you like to learn more about it?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
0
22.2
22.2
22.2
yes
21
46.7
46.7
68.9
no
4
31.1
31.1
00.0
Total
45
00.0
00.0
Table 30a: Would you be interested in attending a hybrid car exhibition?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
27
60.0
73.0
73.0
no
0
22.2
27.0
00.0
Total
37
82.2
00.0
Missing
System
8
7.8
Total
45
00.0
Table 30b: Cross-Tabulation by Age for above question.
age
Total
20-29
30-29
40-49
50-59
Would you be interested in attending a hybrid car exhibition if one is held in your city?
do not know
Count
5
2
0
8
% within age
20.0%
22.2%
6.7%
.0%
7.8%
yes
Count
6
4
3
4
27
% within age
64.0%
44.4%
50.0%
80.0%
60.0%
no
Count
4
3
2
0
% within age
6.0%
33.3%
33.3%
20.0%
22.2%
Total
Count
25
9
6
5
45
% within age
00.0%
00.0%
00.0%
00.0%
00.0%
Table 31: Gender
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
male
30
66.7
66.7
66.7
female
5
33.3
33.3
00.0
Total
45
00.0
00.0
Table 32: Age
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
20-29
25
55.6
55.6
55.6
30-29
9
20.0
20.0
75.6
40-49
6
3.3
3.3
88.9
50-59
5
1.1
1.1
00.0
Total
45
00.0
00.0
Table 33: Occupation
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
student
5
1.1
2.5
2.5
business
2
26.7
30.0
42.5
consultant
1
24.4
27.5
70.0
service
7
5.6
7.5
87.5
doctor
2.2
2.5
90.0
teacher
2.2
2.5
92.5
other
3
6.7
7.5
00.0
Total
40
88.9
00.0
Missing
System
5
1.1
Total
45
00.0
Table 34: Marital Status
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
single
25
55.6
55.6
55.6
married
9
42.2
42.2
97.8
widowed
2.2
2.2
00.0
Total
45
00.0
00.0
Table 35: Do you have children?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
yes
7
37.8
37.8
37.8
no
28
62.2
62.2
00.0
Total
45
00.0
00.0
Table 36: If yes, how many?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
.00
28
62.2
62.2
62.2
.00
8
7.8
7.8
80.0
2.00
8
7.8
7.8
97.8
4.00
2.2
2.2
00.0
Total
45
00.0
00.0
Table 37: What's the highest level of education that you have received?
Frequency
Percent
Valid Percent
Cumulative Percent
Valid
elementary school
3
6.7
6.7
6.7
high school diploma
2.2
2.2
8.9
undergraduate (bachelors)
5
33.3
33.3
42.2
post-graduate (Master, MD, PhD)
26
57.8
57.8
00.0
Total
45
00.0
00.0
