Analyzing the Impact of Car Features on Price and Profitability

BY SHIVAM MAURYA

• The automotive industry has been rapidly evolving over the past few decades with a growing focus on fuel efficiency, environmental sustainability, and technology innovation. With increasing competition in the market, manufacturers want to change the consumer landscape.
• This project objective is to analyze the car features that affect the manufacturers’ car prices. As a Data Analyst, the client has asked how can a car manufacturer optimize pricing and product development decisions to maximize profitability while meeting consumer demand.
• Dataset contains information on various car models and their applications. The dataset is available on Kaggle by Cooper College, New York City.
• Total number of observations:- 11,813
• File type:- CSV

​

PROJECT DESCRIPTION

TECH STACK USED

LINK TO EXCEL WORKBOOK

• For analysis I used descriptive statistics, regression analysis, and visualization to visualize the charts and graphs.
• The reason behind using descriptive analysis was to find out the mean of the car’s features variable and then visualize them in the form of charts and graphs.
• Regression Analysis told the dependency of independent variables to dependent variables i.e., the specific features of the car impact the car’s price.
• While creating the charts it was difficult to summarize the values of variables in sum or average.

APPROACH

• INSIGHT : Combined Hactchback , Flex Fuel Car models are very popular. And Crossover car models have highest number of Cars.
• Conclusion : Cars with Hatchback,Flex Fuel will bring more profit to business because of their popularity.

• INSIGHT : Car’s with greater engine power have higher prices, Trendline also describes the same.
• Conclusion : Manufacturing car’s with higher engine power will result in more profit to business (May be not for all customers but for selective customers)

• INSIGHT : Engine Cylinders are the most important feature in determining Cars prices.
• CONCLUSION : More cylinders generally mean more power and smoother operation, which can improve a car's acceleration, top speed, and overall performance. This increased performance often justifies a higher price. That means more profit to business.

• INSIGHT : Bugatti has the highest Average price of car.
• CONCLUSION : Not every person can buy cars like Bugatti which makes cheaper cars more viable options.

• INSIGHT : 4 number of cylinders in cars have greater fuel efficiency.
• CONCLUSION : Greater fuel efficiency is best for customers and in this case what’s best for customer is best for business , manufacturing cars with 4 cylinders will be more preferred by dealers.

BUILDING THE DASHBOARD

• INSIGHT : Chevrolet and Mercedes-Benz have the highest contribution to the car’s price.
• RECOMMENDATIONS : Chevrolet and Mercedes-Benz should continue to emphasize their value propositions, highlighting the balance between affordability, performance, and brand prestige to attract consumers.

• INSIGHT 1: Bugatti has the highest Average price of car with its only body style i.e. Coupe .
• CONSLUSION : Bugatti is positioned as a luxury, niche brand targeting high-net-worth individuals seeking exclusivity and performance.
• INSIGHT 2 : Plymouth has the lowest Average price of car with 5 different body styles.
• CONCLUSION : Plymouth caters to a broader, more price-sensitive market, emphasizing variety and affordability.

• INSIGHT : Automated_manual couple are highly contributing in car prices.
• RECOMMENDATIONS : Continue investing in research and development to further refine and enhance automated manual transmission technology, ensuring it remains a desirable feature that justifies its contribution to car prices.

• INSIGHT : BRANDS have improved fuel efficiency of cars as time goes by.
• RECOMMENDATIONS : Invest in research and development to continue improving fuel efficiency.

• INSIGHT : If engine hp increase, highway mpg will decrease and the price will also increase.

CONCLUSIONS & RECOMMENDATIONS

• Cars with Hatchback , Flex Fuel models will bring more profit to business because of their popularity.
• Manufacturing car’s with higher engine power will result in more profit to business (May be not for all customers but for selective customers)
• More cylinders generally mean more power and smoother operation, which can improve a car's acceleration, top speed, and overall performance. This increased performance often justifies a higher price. That means more profit to business.
• Greater fuel efficiency is best for customers and in this case what’s best for customer is best for business , manufacturing cars with 4 cylinders will be more preferred by dealers.
• Chevrolet and Mercedes-Benz should continue to emphasize their value propositions, highlighting the balance between affordability, performance, and brand prestige to attract consumers.
• Bugatti is positioned as a luxury, niche brand targeting high-net-worth individuals seeking exclusivity and performance. Plymouth caters to a broader, more price-sensitive market, emphasizing variety and affordability.
• Continue investing in research and development to further refine and enhance automated manual transmission technology, ensuring it remains a desirable feature that justifies its contribution to car prices.
• Invest in research and development to continue improving fuel efficiency.

​