Abstract: The purpose of this study is to find out if there is a relationship between parameter of segmentation and customer satisfaction, in order to find out the current parameter of segmentation in automobile industries. In India researcher has gone through several published journal, books, magazines and companies data. The result shows that the most important factor for segmentation of automobile industries in India in the segmentation process is done largely on the bases of the product type or the price range the product fits into. Considering this researcher did pilot study in order to find out the real parameter of segmentation, the result shows that 13 parameters of segmentation has most effect on customer satisfaction, they are :fuel efficiency, convenience, After sale service, durability, value for money, style, number of seats, brand name, recommended, previous experience , parking (size of vehicle), advertising (TV, radio, newspaper, etc.) and price. Based on the purpose of this study researcher gone to find out whether there is any relationship between these 13 parameter of segmentation and their effect on customer satisfaction, considering this, sample has been collected from 100 managers and 200 customers of automobile industries in Pune, during the month of February-June 2012. The result shows that there is a significant relationship between most of the parameter of segmentation and customer satisfaction, however, the test further shows some of the parameters on the segmentation does not have effective relationship with customer satisfaction. Managerial implications of these findings are briefly discussed.