Quality circles is the extent to which a product’s perceived performance matches buyer’s expectations. If the product’s performance falls short of expectations, the customer is dissatisfied. If it matches expectations, the customer is satisfied. If it exceeds expectations, the customer is highly satisfied or delighted. The marketing companies, who want to be successful in the long run go out of the way to keep their customers satisfied and delighted. They strive to match customer expectations with company performance. Some companies aim to delight customers by promising only what they can deliver, than delivering more than they promise. This paper aims to emphasize the Relationship between satisfaction and loyalty of customers with specific reference to small passenger car brands like the Maruti, Hyundai and Chevrolet. To succeed in the business and to compete effectively, the firms must build long lasting relations with customers and also aim to create superior customer value. Loyalty comes out of satisfaction and loyal customers are likely to patronize a company’s products and services for a long time. Therefore to attract and retain customers, an organization should constantly seek ways to deliver superior customer value and satisfaction. Finally the paper concludes the relationship between Customer satisfaction and loyalty.