Analyzing the Impact of Car Features

on Price and Profitability

Preeti Desai
 Project Description
• The automotive industry has been rapidly evolving over the past few decades, with a growing focus on
fuel efficiency, environmental sustainability, and technological innovation. With increasing competition
among manufacturers and a changing consumer landscape, it has become more important than ever to
understand the factors that drive consumer demand for cars.
• In recent years, there has been a growing trend towards electric and hybrid vehicles and increased
interest in alternative fuel sources such as hydrogen and natural gas. At the same time, traditional
gasoline-powered cars remain dominant in the market, with varying fuel types and grades available to
consumers.
• It is important to know impact of car features on price and profitability in the automotive industry.
• This dataset includes variables such as car's make, model, year, fuel type, engine power, transmission,
wheels, number of doors, market category, size, style, estimated miles per gallon, popularity, and
manufacturer's suggested retail price (MSRP).

To address these problems, I will do various data analysis techniques in this dataset. This analysis will help
manufacturer to choose car feature which will give more profitability.

Software used: -
Microsoft Excel 2307
 Cleaning the Data
• First I will use = COUNTBLANK(A2:A11915) to count null values in each column.
• Then we will remove duplicate rows and use Median/Mode to remove null values.

Count of Null values

MSRP 0
Popularity 0
city mpg 0
highway MPG 0
Vehicle Style 0
Vehicle Size 0
Market Category 0
Driven_Wheels 0
Transmission Type 0
Year 0
Model 0
Make 0
Engine Fuel Type 3
Number of Doors 6
Engine Cylinders 30
Engine HP 69
0 10 20 30 40 50 60 70 80
 Analysis
Insight Required: How does the popularity of a car model vary across different market categories?
• Task 1.A: Create a pivot table that shows the number of car models in each market category and their
corresponding popularity scores.
• Task 1.B: Create a combo chart that visualizes the relationship between market category and popularity.
Average of Popularity Count of Model

6000
5000
4000
3000
2000
1000
0

Insights:- Flex Fuel, Diesel, Hatchback, Crossover, Performance are the most popular market category for car
models.
Insight Required: What is the relationship between a car's engine power and its price?
• Task 2: Create a scatter chart that plots engine power on the x-axis and price on the y-axis. Add a
trendline to the chart to visualize the relationship between these variables.

$25,00,000
Relationship between Engine HP and Price

$20,00,000

$15,00,000
Price

$10,00,000

$5,00,000

$0
0 200 400 600 800 1000 1200
-$5,00,000
Engine HP

Insights: - If Engine power increases Price will also increase. So, it’s positive relationship between both of them.
Insight Required: Which car features are most important in determining a car's price?
• Task 3: Use regression analysis to identify the variables that have the strongest relationship with a car's
price. Then create a bar chart that shows the coefficient values for each variable to visualize their relative
importance.

COEFFICIENTS OF VARIABLES

Popularity -3.464972476

city mpg 412.1513521

highway MPG 714.5316033

-4708.286008 Number of Doors

Engine Cylinders 6547.260446

Engine HP 316.8203366

Insights: - Engine Cylinders are the most important features in determining a car's price.
Insight Required: How does the average price of a car vary across different manufacturers?
• Task 4.A: Create a pivot table that shows the average price of cars for each manufacturer.
• Task 4.B: Create a bar chart or a horizontal stacked bar chart that visualizes the relationship between
manufacturer and average price.

Relationship between Manufacturer and Average Price

Pontiac
FIAT
Ki
a Ford
Buick
Acura
Genesis
Alfa
Romeo
Mercedes-
Benz Aston
Martin
Bentley
Bugatt
i
0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 1800000
Insights: - Bugatti has the highest Average price and Plymouth has the lowest average price.
 Insight Required: What is the relationship between fuel efficiency and the number of cylinders in a car's
engine?
• Task 5.A: Create a scatter plot with the number of cylinders on the x-axis and highway MPG on the y-
axis. Then create a trendline on the scatter plot to visually estimate the slope of the relationship and assess
its significance.
• Task 5.B: Calculate the correlation coefficient between the number of cylinders and highway MPG to
quantify the strength and direction of the relationship.

Relationship between highway MPG and Engine Cylinders

400
350
Insights: - Number of Cylinders
300 will increase then highway
250 MPG will
decrease. It’s negative relationship
200
between both of them.
150
100
50
0
0 5 10 15 20
-50
 Building the Dashboard
Task 1: How does the distribution of car prices vary by brand and body style?
35000000
Wago
30000000 n
Sedan
25000000 Regular Cab Pickup
Passenger Van
20000000 Passenger Minivan
Extended Cab Pickup
15000000
Crew Cab Pickup
Coupe
10000000
Convertible
5000000 SUV
Convertible
0 Cargo Van
GMC
Acura

Ferrari
Ford

Oldsmobile
Bentley
Bugatti

HUMMER

Rolls-Royce

Tesla
Aston Martin

Volkswagen
Cadillac

Maybach
Lamborghini
Lexus
Lotus

McLaren
Mitsubishi
Chrysler

Pontiac

Scion
Subaru
Infiniti

Cargo Minivan
4dr SUV
4dr Hatchback
2dr SUV
2dr Hatchback

Insights: - Chevrolet has the highest price distribution by body style.

Task 2: Which car brands have the highest and lowest average MSRPs, and how does this vary by body style?

2000000
2dr Hatchback
1800000
2dr SUV
1600000 4dr Hatchback
1400000 4dr SUV
Cargo Minivan
1200000
Cargo Van
1000000 Convertible
Convertible
800000
SUV Coupe
600000 Crew Cab Pickup
Extended Cab
400000
Pickup Passenger
200000 Minivan Passenger
Van Regular Cab
0
Pickup Sedan
Wagon

Insights: - Bugatti has the highest average MSRPs and Plymouth has the lowest average MSRPs by body style.
Task 3: How do the different feature such as transmission type affect the MSRP, and how does this vary by body
style?

300000
2dr
Hatchback
250000 2dr SUV
4dr Hatchback
4dr SUV
200000
Cargo Minivan
Cargo Van
150000 Convertible
Convertible
SUV Coupe
100000 Crew Cab Pickup
Extended Cab
Pickup Passenger
50000
Minivan Passenger
Van Regular Cab
0 Pickup Sedan
Wagon
0 1 2 3 4 5 6

Insights: - AUTOMATED_MANUAL with Coupe body style is the most expensive transmission.
Task 4: How does the fuel efficiency of cars vary across different body styles and model years?

Fuel efficiency (MPG) over time for each body

450 style
Wago
400 n
Sedan
350
Regular Cab Pickup
300 Passenger Van
Passenger Minivan
250 Extended Cab Pickup
Crew Cab Pickup
200
Coupe
150 Convertible
SUV
100 Convertible
Cargo Van
50
Cargo Minivan
0 4dr SUV
4dr Hatchback
2dr SUV

Insights: - Fuel efficiency of cars increased across different body styles and model years. Wagon body style has
the highest fuel efficiency in 2017.
Task 5: How does the car's horsepower, MPG, and price vary across different Brands?

Average of highway
120 MPG
244.9634146
237
100 85255.55556
483.7582418
80 280
533.8513514
HIGHWAY MPG

60 329.6203704
1001
40 22670.24194 220.0105263
61600
192298625513.75546 396275.855.5124278891 332.7954545
2 4 2 2 4 4 9 0 2 6
. 6 .
7 2 25437462 2745.5478467.281126125.55864
3291628.2180012741238319642682.343.209762.192670829528679.370298259497240
6522.941876
.5.92
80
4 43
.087
3.656197 6 90 .7450167
85
5274.21 45466
23698663681.12.066156.616082562
20 815147.3.3408024676508437
2284532444.6088056076.08633 8 72.27.3971
2057619113684.4909
35
.42786 239805 249.4256694
36464.41176 214990139581238218.845046221.875
11232304.476614165592.3331567.3077
243
1757223.667
229.1390374
0 254.3534972
-200 0 200 400 600 800 1000 1200 511.9565217
-20 148.1774194
ENGINE
HP

Insights: - If Engine HP goes up, Highway MPG goes down but price increases.