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SIP at TVS Motor Co. 2011

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ACKNOWLEDGMENT

I would like to express my gratitude towards Mr Niraj Kumar (GM-Service TVS MotorsDelhi) who gave me the opportunity to work for TVS Motors as a summer intern.

This project has provided me with valuable insights in practical aspects of the two - wheeler marketing.

I take this opportunity to express my sincere gratitude to Mr Ravindra Chauhan (AreaManager, Rajasthan) and Mr Maninder Singh (Territory Manager, Jaipur) for their valuableinputs and guidance.

I hope that TVS motors and IMT Nagpur is benefited from the inferences, conclusions andrecommendations made by me in this report.

Prateek ChaturvediPGDM-2010295

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EXECUTIVE SUMMARY

The summer training that we do is to get an experience of how the corporate world functionsand how the theory is different from the practical aspects of the industry. For the same

purpose I got an opportunity for my training at TVS Motors in the Sales and ServiceDepartment.

TVS has been at the forefront in bringing a revolution in the way personal commutation washappening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching 7 new bikes in a single day (first time inthe history of the automotive industry in the world), TVS has often taken the unbeaten path toinnovation. With the customer being their main focus of all the activities my projects weremajorly concerned with the customer, having a direct interaction with them.

There were 3 projects that were completed by me:

1. Consideration and Non-Consideration analysis of TVS WEGO w.r.t. HERO HONDAPLEASURE and marketing activities of TVS WEGO.

2. Consideration analysis of TVS SCOOTY.3. Consideration and Non-Consideration analysis of TVS APACHE.

The first project was to find out the satisfaction level of the customers of WEGO and also to

find the competition of WEGO as perceived by the Customers. The second part of the studydeals with the customers who test-drove WEGO or enquired about the bike but bought someother vehicle. We were to find out which vehicle and why did they buy that particular vehicle. This would help the company to position the vehicle in a better manner.

Similarly second and third project dealt with the basics motives of buying SCOOTY and not buying APACHE by consumers. This will help us understand the thought process of our targeted customers and respective consumers.

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INTRODUCTION TO AUTOMOBILE INDUSTRY

Indian automobile industry has grown leaps and bounds since 1898, a time when a car hadtouched the Indian streets for the first time. At present it holds a promising tenth position inthe entire world with being number two in two wheelers and fourth in commercial vehicles.Withstanding a growth rate of 18% per annum and an annual production of more than 2million units, it may not be an exaggeration to say that this industry in the coming years willsoon touch a figure of 10 million units per year.

Besides a steady growth in India's fiscal system, the expansion of Indian middle class hasalso played a major role in drawing the attention of international auto manufacturers towardsthe Indian Automobile Market. Moreover, India is one nation which provides skilledworkforce at cut-throat prices making itself a preferable manufacturing centre. Themagnetism of the Indian markets and the decline of global auto industries such as Japan,Europe and US have triggered the influx of new conglomerates along with huge capital

investments in the sector. Overseas auto players like Suzuki, Hyundai, Honda, etc have their manufacturing units in India and are maximum utilization of their Indian functions to expandtheir business.

As per a recent research conducted by Deloitte, 2020 will witness the emergence of at leastone Indian auto firm that would not only feature among the best six car manufacturers butwould also dominate the international auto sector. Moreover, the global car sector wouldwitness an enormous competence building in low-priced nations like India and China as mostof the producers would alter base from industrial regions.

Domestic Automobile Market

As per statistics launched by Society of Indian Automobile Manufacturers (SIAM), the passenger car transactions in domestic market have surged to 145,905 units in January 2011against the 2010 sales of 110,300 units. This indirectly refers to the 32.28% growth in thedomestic car sales. In January 2010, the total sales of automobiles grew to 1,114,156 units ascompared to the previous fiscal year's 768,698 units sales.

Segments of Indian Automobile Market

Two-wheelers In this segment, motorcycles accounts for major Indian Automobile marketshare. The chief players in this segment is Hero Honda which delivers 50% motorbikes to the

Indian market besides sharing 46% in scooter market and TVS for 82% in moped market.Three-wheeler Around 41% of the three-wheelers in India is utilized for merchandise transfer purpose. In this segment Piaggio and Bajaj are the leading players with 40% and 68% of market share respectively. TVS motors is a new entrant in this segment.

Four-Wheelers

Accounting for 79% of total four-wheeler` industry, cars rule the passenger automobile inIndia. The chief players in this segment are Maruti Suzuki and Mahindra. While Maruti

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Suzuki enjoys full-fledged monopoly in multi-purpose automobiles sector with 52% of market share, Mahindra have 42% market share in utility vehicles. However in the area of commercial automobiles, Tata Motors rule the Automobile Industry of India with 60% of market share besides being the fifth biggest producer in the world of medium & heavymarketable vehicles.

Facts and Figures on different segments of Indian Automobile Market

y Within the two-wheelers segment, motorcycles accounts for 80% of the sector volume.

y Cars rule the Indian passenger automobiles with 79% of market sharey More than half of the auto parts output is consumed by OEMs.y India stands at the first rank in three-wheeler and two-wheeler markets, second

in tractor segment, fifth in commercial vehicles and first in motorcyclemanufacturing

y In the entire Asia, India stands at the fourth position of car manufacturers bysuperseding the benchmark of 1 million sales.

Future of Indian Automobile Market

In the financial year 2010, Automobile Industry of India is expected to witness a 10 to 12%of massive growth in its vehicles sales. As per a research conducted by Indian Auto Sector Outlook, rivalry in the nation's Automobile sector is anticipated to grow due to escalatinginflux of international original equipment manufacturers (OEM).

Indian Two-Wheeler Industry

India is the second largest producer and manufacturer of two-wheelers in the world. Indiantwo-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API)started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being scooters andmopeds. Indian companies are among the largest two-wheeler manufacturers in the world.Hero Honda and Bajaj Auto are two of the Indian companies that top the list of worldcompanies manufacturing two-wheelers.

Foreign collaborations have been playing a major role in the growth of the Indian two-wheeler market, and most of them are Japanese firms. The modern two-wheeler firms in Indiahave been manufacturing new categories of two wheelers such as Step-Throughs andScooterettes. These have been produced by combining two or more two-wheeler segments.Foreign firms have already taken initiatives to own their two-wheeler subsidiaries in India.

The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies led to the arrival of new models of two-wheelers intoIndia. Easy availability of loans from the banks, relatively low rate of interest and thediscount

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of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This led to the strong growth of Indian automobile industry.

Kinetic Honda was introduced in the Indian market during the mid 80s. The main feature of Kinetic Honda was its ease of use. This helped the youngsters and the women to buy

scooters.

Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj AutoLtd (Bajaj Auto) and TVS Motor Company Ltd (TVS). The other key players in the two-wheeler industry are Yamaha Motors India Ltd (Yamaha), Royal Enfield Ltd (REL) andHonda Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India There are mainly three types of two-wheelers available inIndia. They are

y Motorcyclesy

Scootersy Scooterettes/Mopeds.

Among the three segments of the Indian two wheeler market, major growth trends have beenseen in the motorcycle segment over the last four to five years. One good reason for suchincrease in demand for motorcycles is due to its resistance and balance even on bad roadconditions. Most of the rural areas in India do not have decent roads and hence the need for good, shock-resistant, and steady two-wheelers such as motorcycles had been felt. Thefollowing are the main factors that affect two-wheeler sales in India:

y Increase in credit and financing for auto vehicles - Two-wheeler loans and financing

has been on the rise.y Increase in consumer's salary - Due to opportunities offered by multinationals the

disposable incomes of salaried individuals have increase manifold.y Constant petrol prices - Today, the government of India has been working on reducing

subsidies on kerosene and diesel which will keep petrol prices at more or less thesame level.

y Delay in initiation of Mass Transport System - Probably a future threat to the two-wheeler market, the implementation of the mass transport system has been delayed.

However, the two-wheeler market in India is a fast growing market due to its technologicaladvancements in product manufacturing and emphasis on design innovation.

Performance in 10-11

Passenger Vehicles segment in April 2011 grew at 33.93 percent over same month last year.Passenger Cars grew by 39.48 percent, Utility Vehicles grew by 11.50 percent and MultiPurpose Vehicles grew by 27.10 percent in April 2011 over April 2010.

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S IP t S Mo t o r Co. 2011

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The overa ll domes ti sa le of Commerc ial Veh icles segmen t reg istered grow th a t 64.49 percen t in the mon th of Apr il 2011 as compared to the same mon th las t year. Medi m &Heavy Commerc ial Veh icles ( M&H CVs) registered grow th a t 102.55 percen t and L ight Commerc ial Veh icles grew a t 42.19 percen t.

Three Whee lers sa les recorded a grow th ra te of 20.41 percen t in Apr il 2011. Wh ile Passenger Carr iers grew by 20.55 percen t and Goods Carr iers grew a t 19.94 percen t in themon th of Apr il 2011.

Two Whee lers reg istered a grow th of 22.07 percen t in Apr il 2011. Mopeds, Scoo ters andMotorcyc les grew by 25.39 percen t, 52.63 percen t and 16.67 percen t respec tively. On a y-o-y

bas is the two whee lers grew a t a ra te of 26.00 %.

In the Ind ian marke t the fo llow ing was the segmen t wise breakdown of the au tomob ileindus try

Grow th

The two whee lers be ing a ma jor par t of the indus try are grow ing s trong ly w ith the grow th of Ind ia. The reasons for the s trong grow th are Econom ic li bera li ation, increase in per cap itaincome, var ious tax re lief po licies, easy access i bility of f inance, launch of new mode ls andexc iting d iscoun t offers made by dea lers

Marke t share

In the two whee lers segmen t Hero Honda is the ma jor company w ith over 50% of the marke t share (by vo lume). A d istan t second is Ba ja j with abou t 25.65 % of the marke t share and TVSmo tors is third in the race w ith jus t over 18 % marke t share. Toge ther the top three compan iescons titute for more than 93 % of the total sa les in the indus try o ther m inor p layers be ingHonda and Yamaha.

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TVS Motors Ltd.

Introduction of the Company

Founder : T V Sundaram Iyengar

Date of Establishment: 1982

Revenue: 791.649 ( USD in Millions)

Market Cap: 27816.3505247 ( Rs. in Millions )

Corporate Address: Jayalakshmi Estates,29 (Old No.8) Haddows Road, Chennai-600006, Tamil Nadu www.tvsmotor.co.in

Management DetailsChairperson - Venu Srinivasan

MD - Venu Srinivasan

Directors - C R Dua, H Lakshmanan, K S Bajpai, Prince Asirvatham, R Ramakrishnan, TKannan, T S Rajagopalan, Venu Srinivasan

Business Operation

Background

TVS Motor Company was incorporated in 1982. It is third largest two-wheeler manufacturer in India and one among the top ten in the world. TVS Motor is the flagship company of the$4 billion TVS Group.

The company manufactures a wide range of two wheelers such as mopeds, scooters andmotorcycles.

It has four manufacturing facilities located at Hosur, Mysore, Himachal Pradesh andIndonesia and a production capacity of 300 thousand units a year.

Financials

Total Income - Rs. 37507.8 Million ( year ending Mar 2010)

Net Profit - Rs. 310.8 Million ( year ending Mar 2010)

Company Secretary: T S Rajagopalan

Auditors: Sundaram & Srinivasan

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Background

TVS Motor Company has its origin in Sundaram Clayton Limited, Moped Division, started in1980. The factory was started in Hosur, Tamil Nadu in southern India. The first productlaunched was a 50 cc moped, which appealed to the masses because of its capability to carrytwo people. In the same location, the same promotors started another company in 1984, incollaboration with Suzuki Motor Corporation of Japan, for the manufacture of 100 ccmotorcycles under the brand name of Ind-Suzuki Motorcycles. Subsequently in the mopeddivision was bought by Ind Suzuki Motorcycles in 1987 and the company changed its nameto TVS Suzuki Ltd. Even though the company started producing all kinds of two wheelerslike mopeds, scooters and motorcycles, the collaboration with Suzuki continued for themotorcycles only. The collaboration with Suzuki Motor Corporation ended in 2001 and since

then the name of the company changed to TVS Motor Company. The company now developsall types of two-wheelers through its own in house R&D facility and manufactures in threelocations in India, Hosur in Tamil Nadu, Mysore in Karnataka and Baddi in HimachalPradesh. It has recently started a new manufacturing plant in Indonesia to cater to the Southeast Asian market. The Chairman and Managing Director of the Company is Mr. Venu whois the grandson of TV Sundaram Iyengar.

It is the only automotive manufacturer in India to get the prestigious Deming Prize. One of itssubsidiaries Sundaram Clayton was the first company in India to receive the Demingfollowed by Sundaram Brake Linings also getting the Deming Prize. This prize is given toorganizations or divisions of organizations that have achieved distinctive performanceimprovement through the application of TQM in a designated year. Sundaram Clayton wenton to be awarded the Japan Quality Medal.

TVS Motor is the third largest two-wheeler manufacturer in India and ranks among the topten globally. It is the first company in the world to be honored with The Deming Prize for Total Quality Management. The company was the first in India to launch 2-seater 50ccmoped and 100cc Indo-Japanese motorcycles.

Mission Statement

Commitment to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation productsunder the TVS brand, for customers predominantly in Asian markets and to providefulfillment and prosperity for employees, dealers and suppliers.

Vision Statement

TVS Motor : Driven by the customer

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TVS Motor will be responsive to customer requirements consonant with its core competenceand profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time.

TVS Motor : The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and oneamong the top five two-wheeler manufacturers in Asia.

TVS Motor : Global overview

TVS Motor will have profitable operations overseas especially in Asian markets, capitalizingon the expertise developed in the areas of manufacturing, technology and marketing. Thethrust will be to achieve a significant share for international business in the total turnover.

TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant benchmarkingagainst international leaders.

TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adoptingTQM as a way of life. TVS Motor believes in the importance of the process. People and

projects will be evaluated both by their end results and the process adopted.

TVS Motor - The Human Factor

TVS Motor believes that people make an organization and that its well-being is dependent onthe commitment and growth of its people. There will be a sustained effort through systematictraining and planning career growth to develop employees. talents and enhance jobsatisfaction. TVS Motor will create an enabling ambience where the maximum self-actualisation of every employee is achieved. TVS Motor will support and encourage the

process of self-renewal /in all its employees and nurture their sense of self worth.

TVS Motor - Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental aspectswith all business activities and ensures protection of employees and environment including

development of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers.

Heritage

TVS Group - 100 years young

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The TVS group has always been inspired by a century long mission and vision of its owndestiny. It is not just a business but a way of doing business, which sets TVS apart fromothers.

Back in 1911, to the founder of the company, the ordinary ambitions of a bus fleet operator or a vehicle servicing business would not suffice. Rather, he wanted to create an enduring

business led by a family of like minded workers and managers united by a set of shared high principles. Driven by this inspiration, the TVS group has today emerged as India's leadingsupplier of automotive components. Today the TVS Group is the largest automotivecomponent manufacturer in India, with annual turnover of more than USD 4 billion.

The group has over 30 companies employing a work- force of 40,000 people.

Underlying the success of the group is its philosophy of commitment to the cherished valuesof promoting trust, value and customer service. This was the personal philosophy of theGroup's Founder Mr T V Sundaram lyengar, and it remains the overarching code by whichthe Group functions. Market leadership and rewards of business have followed naturally.

The inspirational heritage

Although the letters TVS represent the initials of the founder, T V Sundaram lyengar, withinTVS they have always stood for Trust, Value and Service. The founder of the companyembodied these values and set an example for all employees to emulate.

TVS believes that the success of any enterprise is built on the solid foundation of customer satisfaction.

Continuous innovation and close customer interaction have enabled TVS companies to stayahead of competition. Quality at TVS determines not only the end product but the systems,

processes and operations at all levels. The first four companies in India, which have won thecoveted Deming Prize, are from the TVS group.

The business ranges across automobile component manufacturing, components distribution,manufacturing of powered two-wheelers, computer peripherals, financial services, contractmanufacturing services and software development.

TVS Motor company Ltd (TVS Motor)- member of the TVS group is the largest company of

the group in terms of size and turnover.

Manufacturing Excellence

Launch of 7 vehicles on the same day - Manufacturing Excellence makes this feasible At theheart of the new product launches is the Production Team, setting to motion the dream putforward by the R&D.

Driven by the Five Pillars of TQM

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The management philosophy is based on five pillars of TQM (Total Quality Management)which rests on the foundation of Total Employee Involvement, daily management and Kaizen(Continuous improvement).

The Total Employee Involvement

The Total Employee Involvement program ensures that responsibility for the company's performance is the shared responsibility of all levels of employees. It provides all employeeswith the opportunity to be involved in breakthrough activities and other improvements, over and above their daily routine. Daily work management

Daily work management consists of defining and monitoring key processes, ensuring thatthey meet set targets, detecting abnormalities and preventing their recurrence. TVS Motor encourages continuous improvement in all aspects of work, using Cross Functional Teams(CFT), Supervisory Improvement Teams (SIT) Quality Control Circles (QCC) andsuggestion schemes

The five pillars start with policy management, which is used to arrive at the annual breakthrough objectives. There are generally not more than three company objectives, arrivedat after a detailed exercise, which are deployed and reviewed periodically. The companyconducts an exhaustive range of training programs, utilising both in-house skills andconsultants from all over the world. The programs are conducted for all employees, at alllevels.

The Inspiration Moment

When we won the Deming Prize in Quality in 2002, we were the only two wheeler manufacturer in the world to have won the award. However, our penchant for qualitycontinues as we work in line with the principles of Kaizen (Japanese for Continuousimprovement) and TQM (Total Quality Management). TVS Motor company Ltd (TVSMotor) - member of the TVS group is the largest company of the group in terms of size andturnover.

Many firsts to the Automotive Industry in India

TVS has been at the forefront in bringing a revolution in the way personal commutation washappening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching 7 new bikes in a single day (first time inthe history of the automotive industry in the world), TVS has often taken the unbeaten path toinnovation.

Ushering in the personal transportation revolution :

1980: Launched TVS 50, India's first 2 seater 50 cc moped

1984: First Indian company to introduce 100 cc Indo - Japanese motorcycles

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1994: Launched India's First indigenous scooterette (sub - 100 cc variomatic) - TVS Scooty

1996: Introduced India's first catalytic converter enabled motorcycle, the 110 cc Shogun

1997: Introduced India's first 5 speed motorcycle, Shaolin

2000: Launched India's first 150 cc, 4 stroke motorcycle - The Fiero

2001: Launched India's first fully indigenously designed and manufactured motorcycle.

2004: Launched the revolutionary VT-I engine for the best in class mileage in TVS Centra

2006: Launched TVS Apache - first bike to win 6 awards in a row

2007: Apache RTR - first two wheeler in India to have racing inspired engine and features.

2008: TVS Flame, TVS Scooty Electric Vehicle and Three wheeler TVS King launched.

2009: TVS Apache RTR 180 and TVS Streak launched.2010: TVS JIVE the auto clutch bike launched

PRODUCT LINE

TVS motors have a range of two-wheelers under all the categories and it is the only Indiantwo-wheeler manufacturer that has a product line of moped to a premium segment bike.

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It manufactures moped (XL Super/Heavy Duty) and scooterettes (Scooty pep+/Streak). Theentry/economy segment bikes are the Star duo (City/Sport/JIVE) while Flame is in theexecutive segment and Apache RTR (160/Fi-160/180/ABS) in the premium segment. Their latest launch WEGO is a unisex scooterette.

TVS is also venturing in the three-wheeler market with King which was launched in 2008

Apache RTR 180/160 /ABS

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TVS motors have come up with another variant of apache the RTR 180 ABS. Apache RTR has been very well received by bike enthusiasts and the new RTR 180 is going to take a stepfurther with more powerful engine and some interesting additions in design. The bike retainsthe basic lines of the current RTR & comes with all the high tech features: digitalspeedometer with top speed, 0-60 timer, trips, and other extra functionality plus stunninglooks. Apache RTR looks best in its class and has been priced very competitively incomparison to other bikes in its segment.

The Apache RTR 180 is powered by a 177.4cc engine which generates 17 Bhp of maximum power with 15.5 Nm of maximum torque. The new 177.4cc mill is a bored out variation of the 160cc mill, and has a longer stroke too. The new engine still remains an oversquare unit,

but not so much so as the 160. Power is up by 1.3 Bhp to 17 Bhp and the new engine produces 2.4 more units of twisting force at 15.5Nm. The peak power is produced at 8500rpm, similar to RTR 160, though the peak torque is now produced at 6500 revs.

The aerodynamic air scoops add to the design plus it ensures air is directed towards theengine unit to help better cooling efficiency. TVS claims the new apache RTR 180 to reach60kmph from standstill in 4.15 seconds and top speed as 125kph.

J IVE

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TVS India has tapped the market of gearless bikes with the launch of TVS Jive. It is the first

Indian two-wheeler to feature automatic transmission. Jive comes with 4-speed transmission but features a hand-free gearshift and it comes with T-matic technology. TVS Jive comeswith gear Indicator and under seat space which can accommodate a bottle, umbrella or anydocuments.

In terms of design and styling TVS Jive looks very balanced and simple, as it is a commuter bike, the buyers don't expect lot of styling. TVS has kept it very basic and it looks like theTVS Star City from many angles. The only change is the spruced-up tank which bringscharacter to the Jive.

Jive is powered by a new 110cc engine which also powers the TVS Wego. The 110cc engine

of TVS Jive generates maximum power of 8.1 Bhp at 7500 rpm with 8.1 Nm of torque at5500 rpm. TVS has good experience in manufacturing bikes with automatic clutch as they areselling TVS Neo in Indonesia and it is selling in good numbers.

The TVS Jive features a rotary gear technology and two clutches. One of the two is a normalmultiplate job while the other one is a automatic centrifugal clutch that prevents the enginefrom stalling. There is an anti-stall mechanism to boot which means that even when you tryto ride along in a high gear at low speeds, the motorcycle does not sputter and stall. Also, therotary gear system means that you can shift directly from a high gear to neutral.Convenience-wise, the Jive is going to please a lot of new riders or people have to ride a lotin heavy traffic.

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FLAME

Flame sports a new design and embraces the contemporary black theme. Flame borrows theheadlamp, front fender, attractive rear view mirrors, body colored shock absorber springs andspecial engine cowl from its big brother apache.Flame is packed with exciting features like attractive body graphics, alloy wheels, disc brakeat the front, electric start and handle bar weights to control vibrations. It has been designed tocapture attention in one go. The bike has been given a contemporary urban look by having a

black theme.The Flame is technologically the most advanced motorcycle in the country with a 3-valve125cc engine and sports the Indias first three-valve CC VTi (controlled combustion variabletiming intelligent) engine.The engine produces maximum power of 10.5 bhp at 8,250 rpm. TVS has patented the CC-VTi technology in Austria and rest of the world. It has sporty delta-edge exhaust that is not

just a styling element but also to deliver the smoothest of sounds, lowest emissions andexcellent performance.The engine has two different in take ports, swirl and power port. A swirl motion is created of the intake air-fuel mixture in the combustion chamber, which leads to efficient burning of lean air-fuel mixture and helps improve the bikes fuel efficiency.

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STAR CITY/SPORT

CITY

TVS India launched the upgraded and refreshed Star City in 2007. The graphic design on thefuel tank was replaced by new graphic pattern. A new colour option had been added and itnow came with a 12V mobile charger socket, placed just behind the front left indicator. Thismade the Star City the first motorcycle in India to have this feature.

TVS Star city sports a new 110cc CVTi engine with VTi technology consisting of fuel cut-off on deceleration and significantly reduced friction to improve the overall fuel efficiency. TVS

bikes have always been known to be tidy handlers, and the Star City is no different, offeringamong the better handling traits and ride character within its segment. Riders will find the

bike moulding them into an upright and commuter-friendly posture. The frame skeleton is asingle down-tube with the engine bolted on and offers just the right rigidity.

The Star City continues with a rectangular section swing arm. Star City also allows riders toadjust the rear shock absorbers via a convenient lever with no additional tools required for the

job. Additionally, it has the option of an electric start and alloy wheels and comes with

standard features like backlit speedo with fuel gauge, econometer for better mileage and rideswitch shocks for a truly smooth ride.

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SPORT

TVS expanded its economy segment offering with the launch of, 'Sport' - a stylish, compact

and affordable 100 cc motorcycle, aimed at discerning urban motorcycle customers who areon the look-out for a sleek and compact style.

TVS Sport looks more or less same like the Star City. Body panels and tail lamps receivedsome tweaking to give sleeker and elegant appearance overall from rear. The fuel tank issleek and the dual toned side panel makes it attractive. TVS Sport is fitted with alloy wheels,

broad tyres and a shoetype seat which gives it a sporty look. TVS Sport is a bike good for average users who are looking for a bike which offers good features along with decentmileage.

TVS Sport is powered by a 99.7cc engine which generates maximum power of 7.5 Bhp @

7500 rpm with maximum torque of 7.5 Nm @ 5000 rpm. The engine is mated to 4 speedgearbox. The suspension has the same looks as that of the Star City, but the rear one comeswith 5 steps adjustable stroke that is just a little longer than the Star City.

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SCOOTY PEP+/STREAK

The Pep+ retains the familiar face with its friendly expression but gets a tangy new set of graphics. The grab-rail also now matches its body colour. Dual-tone shades spruce up the

scooter with a racy chequered look on the front apron and rear panels. Grips, levers,switchgear and mirrors are top-notch. In a smart move, the key slot itself is fluorescent, so asto allow grope-free access in the dark. There's also a new cell phone-charging point.

Pep+ lights up its lockable underseat storage bay and offers yet another smart feature thatwould do well on any such scooterette, a spring at the mounting pivot prevents the seat fromaccidentally closing at a fuel station and crushing unsuspecting fingers. It retains its qualityfeel in offering alloy rims, both front and rear. The Plus not only feels meaty where it mattersmost in its low- and midrange punch, but does manage a relatively respectable top speed of 71kph delivered with refinement. The Scooty was always bold offering twin telescopic forksas front suspension. While the rest of the industry sticks with diminutive and far less effectivefront dampers, the Pep Plus carries forward this handling-enhancing theme. At the rear, thereis a single shock absorber doing duty in conjunction with its hinged engine.

STREAK

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TVS after enjoying huge success with its scooty pep has now come up with a scooter calledScooty streak.. Scooty streak is the TVS second attempt to conquer the 100cc plus scooter customer, after its first attempt in 1999 with 150cc four stroke Spectra. The geared scooter spectra failed to take off in the market and it was withdrawn. Scooty streak is a 100cc plusfour-stroke scooter which is positioned above the scooty and it targets urban customers.

With the scooty streak, TVS hopes to widen its customer base. The 90cc TVS Scooty has

always been associated with women and the 100cc plus scooty streak could bring in malecustomers into the fold. It inherits the styling of the popular scooty which means the Scootystreak will not be a full- bodied scooter.

Scooty streak is a typical gearless scooter with a prominent snout, handlebar mountedheadlamp, multi-purpose die-cast rear grab rail and contoured seats. TVS Scooty Streak comes with a razor sharp, sleek unisex styling features sharp head lamps and LED tail-lamps.

Scooty streak also comes with broad anti-skid tires that provide enhanced wet brakingstability and is equipped with an external fuel fill at the rear for refueling. Mobile charger anda lockable front glove box are the other usable features in the new scooty streak.

WEGO

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TVS India launched all new gearless scooter - The Wego in Nov2009. It is powered by a new110cc engine. TVS has good experience in manufacturing scooterettes with automatic

transmission as they are selling TVS Scooty Variants in good numbers. But Scooty isgenerally considered by only female buyers and TVS wants to capture the market of SuzukiAccess & Honda Aviator which are unisex scooter. Though Wego is not too unique anddifferent in terms of style and technology in comparison to its rivals but it can be verysuccessful as it has been priced very competitively.

TVS has made use of vehicle simulation models, computational fluid dynamics andfrequency response analysis techniques to ensure smooth and noise-free engine and best-in-class ride comfort and handling. The all aluminum low-friction engine ensures best-in-classmileage. Multi-reflector halogen headlamps and LED tail lamp with optical guides give thescooter dynamic styling better described as urban dynamism.

One of the unique features of TVS Wego is its Body Balance Technology that enables lower steering effort, better control and maneuverability through optimum vehicle mass and massdistribution, making it the best scooter to handle in city traffic conditions. Other innovationsthat are first in its category are twelve inch alloy wheels, sleek contour body, LED Tail lampwith optical guides, external fuel fill with hinged cap, an integrated glove box, twin citylamps, maintenance free battery, gas filled rear shock absorber, under seat combo charger tocharge the vehicle battery as well as a cell phone and patented EZ center stand. The scootersunder seat storage space that can hold a full face helmet.

XL HEAVY DUTY/SUPER

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Its 70 cc engine provides easy kick start for smarter beginning. Reliability of this two-wheeler is assured by its auto wet clutch system, wheel removal with QD wheel system, safer suspension.

The only difference between the two variants is of 9 kg weight more of TVS XL Super HD.Its bold tubular frame gives proper support to the rider's to ride it any road condition. Nightriding becomes safer due to the presence of powerful 12V electrical system. It has detachableseat and load carrier keeping in mind its passengers.

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PRO J ECT 1: Consideration and Non-Consideration analysis of TVS WEGO w.r.t. HERO HONDA PLEASURE and marketing

activities of TVS WEGO.

The questionnaire designed is given below. It was designed in simplest way sothat consumers can fill it without any hesitation and also it led us to manydriving conclusions. The questionnaire given below was used to surveyPLEASURE consumers to perform leakage analysis of TVS WEGO. Thesurvey was conducted on 37 consumers.

1: Which vehicle do you own?

____Pleasure ____Wego ____Scooty ____Active ____Deo ____others ()

2: When did you bought the vehicle?

5 - before 6 months 7- 6 months to 1 yr. 25- 1 yr and above

3: Did you visit the TVS showroom?

5- yes 32- no

4: Which TVS product did you enquired?

0- Wego 5- Scooty(streak, pep+, teenz)

5: What features do you know about the product you enquired?

5

7

2 5

1

2

5

3 2

1

2

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Colours, design, Charging point, fuel inlet outside seat

6: Why didnt you buy?/ What did you like in pleasure?/ what you didnt like inscooty/wego?

Main reason being BRAND HERO HONDA and RESALE.

7:Do you know about TVS Wego?

22- yes 15- no

8: What do you know about TVS Wego?

All they were about to recall that it is a new scooter launched by TVS motor co.

9: How do you know?

Maximum they know about it was through television and hoardings.

Consideration analysis of WEGO:

1. How did you came to know about WEGO?

1

2

2

37

4

3

2

3

4

0 10 20 3 0 40

1

Series9

Series8

Series 7

Series6

Series 5

Series4

Series 3

Series2

Series1

22

00

1 5

1

2

3

4

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14- TV ad 4- Newspaper 12- friends/relatives

2. what do you like in WEGO?25- drive smooth 12- big seat 2- storage space

3. who uses WEGO?13-daughter 7- wife 4- sister 4-dad 2-self

4. If not WEGO?21- activa 7- pleasure 2- scooty

5. Other brands considered?19- activa 15- pleasure 5-scooty

14

4

121

2

3

2 5

12

0 0

2

1

2

3

4

5

1 3

1 3

7

4

42

1

2

3

4

5

19

1 5

51

2

3

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6. would you recommend WEGO?23- yes 7- no

7. why wouldn't?3--lack of service station satisfaction

1--service people's attitude and behaviour

3--not satisfaied with vehicle's performance

CONCLUSION:

The company will have to make some necessary changes in the design of WEGO for eg., the basket in leg space area is a hurdle to comfort. Also

TVS should work on dealer satisfaction and dealers commitmenttowards TVS Motor Co.

19

1 5

5 1

2

3

2 3

71

2

3

1

31

2

3

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Marketing activities of WEGO and other TVS products:

We participated in AUTO fair held in City Mall , Kota. Following are the

photographs of the event.

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Project 2: Consideration analysis of TVS SCOOTY

The consideration analysis with survey results are shown as below. Thesurvey was conducted on 20 consumers.

1- How did you come to know about scooty?7- Newspaper 4- friends/relatives 9-market visibility

2- What do you like in scooty?13- Lightweight 2- design 5- kids drive it slow

3- who uses scooty?10- daughter 3- wife 5- sister 2- self(senior citizens)

4- Other brands considered?6activa 13- pleasure rodeo-1

7

4

9

1

2

3

1 32

5 1

2

3

10

3

5

2 1

2

3

4

6

1 3

11

2

3

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5- If not scooty?6activa 13- pleasure rodeo-1

6- Would you recommend scooty?17- yes 3-no

7- Why wouldnt you recommend?Due to low mileage.

CONCLUSION:

The product is well versed in target market and it is well renownedtoo. TVS Motor Co. should be working to improve its fuel efficiency.

Project 3: Consideration and Non Consideration Analysisof TVS APACHE w.r.t BA J AJ PULSAR and HERO

HONDA HUNK

6

1 3

11

2

3

1 7

3

1

2

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The consideration analysis with survey results are shown as below. Thesurvey was conducted on 20 consumers of APACHE and 10 each of PULSAR and HUNK.

Consideration analysis of APACHE

1- How did you came to know about TVS apache?15- TV 10- Newspaper 14- Market visibility

2- What did you like in TVS Apache?4-power 7-speed 13-pick up 12-design ncolour(white)

3- Who uses TVS APACHE?All respondents said they uses it self.

4- Which other brands did you consider before buying TVS Apache?20-pulsar 7-CBZ 2-yamaha FZ 1-discover

1 5

10

14

0

1 2

3 4

4

7

1 3

12

1

2

3

4

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5- If not APACHE then Which Vehicle?19-Pulsar 1-CBZ

6- Would you recommend Apache to others?The responses were all positive for us.

Leakage analysis w.r.t. PULSAR

1- How did you come to know about Pulsar?All said that they know because of its market visibility.

2- What did you like in Pulsar?9-design 7-balancing 10-power

20

7

2

1

1

2

3

4

19

1

1

2

9

7

10

01

2

3

4

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3- Who else uses Pulsar other than you?All respondents said that they uses it themselves.

4- Would you recommend Pulsar to others?Yes for all of them.

5- Which other brands did you consider before buying Pulsar?7-Apache 3-CBZ

6- If not Pulsar, then which product you would have bought?Responses were not quantifiable eg. We would have bought your company's vehicle.

7- Are you aware of TVS Apache?All of them were aware of TVS APACHE.

8- Which other two wheeler you had at home before Pulsar?8first vehicle 2- Discover

Leakage analysis w.r.t. HUNK

1- How did you come to know about Hunk?All of the responses were market visibility, TV and friends.

2- What did you like in Hunk?9Hero Honda 3- Design 1- TV ad

5

21

2

1

2

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3- Who else uses Hunk other than you?Self-use vehicle.

4- Would you recommend Hunk to others?2- Yes 8- no(poor mileage)

5- Which other brands did you consider before buying Hunk?All said PULSAR.

6- Are you aware of TVS Apache?Yes, all of the respondents.

7- Why didnt you consider TVS Apache before buying Hunk?Because it is TVS .

8- Which other two wheeler you had at home before Hunk?First vehicle.

CONCLUSION:

The company should work on promotional activities, for eg., duringthe summers when results of competitive exams are expected andreleased, we should promote our vehicle on local grounds in deeper

9

3

1 1

2

3

2

8

1

2

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approach to consumer. It will help us to place our product better in themarket share.

LEARNINGS

y I got an insight about the two wheeler automotive industry in India. TheInformation is also valid for any automotive industry as most of the

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companies follow a similar pattern of dealership model with ASCssupport for servicing.

y The learning that a product with a new technology is perceived withapprehension by the public provided with an opportunity to think

differently and come up with a solution of conditional sale.y Word of mouth publicity is a much more powerful tool than any other

medium of promotion because there is a lot of trust involved and becauseits coming from a person who is using the product right now. The first-hand experience of this was a great learning experience.

BIBLIOGRAPHY:

y http://en.wikipedia.org/wiki/TVS_Motors

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y http://www.tvsmotor.in/

y http://business.mapsofindia.com/automobile/

y http://en.wikipedia.org/wiki/Automobile_industry_in_India

y http://living.oneindia.in/automobiles/auto-news/2010/indian-automobile-market-growth-200510.html

y http://business.mapsofindia.com/automobile/market/two -wheeler.html

y http://www.fadaweb.com/two_wheeler_industry.htm

y http://www.fadaweb.com/itw_industry.htm

y http://autos.maxabout.com/

y http://www.siamindia.com/Default.asp x

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