Automobile industry is a type of industry, which will include different types of designs, manufacturing methods, marketing strategies and the sales of vehicles. Because of the huge customer interest in the cars and motor vehicles the automobile industry has gained more importance in the market and it is facing heavy competition. Customers are very important to any type of business and especially in the automobile industry (Adam, Dunn & Hall, 2005).

Companies are facing many problems in understanding the changing behavior of the customers. This research will provide the detailed information on the consumer behavior while buying a car in India, like in which aspects the customers are concentrating more.

For example whether they are concentrating on fuel efficiency of the car or whether they are looking at the cost of the car or they are looking for the luxury and good-looking cars etc. To explain these aspects in this research, researcher is using the Tata Nano car that is the world’s cheapest car as an example along with its success stories, threats and problems.