INDIAN AUTO INDUSTRY

India is emerging as one of the worlds fastest growing passenger car markets and second
largest two wheeler manufacturer. According to the International Yearbook of Industrial
Statistics 2008 released by United Nations Industrial Development Organisation (UNIDO),
India ranks 12th in the list of the worldstop 15 automakers. It is home to the largest two
wheeler manufacturer and fifth largest commercialvehicle manufacturer in the world. The
industry is producing about 19 lakh passenger vehicles, 4.5 lakh commercial vehicles, 90 lakh
two wheelers and 5 lakh three wheelers per annum.

In order to make India a power to reckon with in the automotive sector the
government launched theAutomotive Mission Plan (AMP) 2006-2016. As per the
AMP, it is estimated that the total turnover of theautomotive industry in India would
be in the order of USD 122 billion - USD 159 billion in 2016. It isexpected that in real
terms, India would continue to enjoy its eminent position of being the largest
tractorand three-wheeler manufacturers in the world and the world's second largest
two-wheeler manufacturer.

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 By 2016, India will emerge as the world's seventh largest car producer (as compared
to the eleventhlargest currently) and retain the fourth largest position in world truck
manufacturing sector.
Further 2016, the automotive sector would double its contribution to the country's
GDP from current levels of five per cent to 10 per cent. The Indian automotive
industry consists of the following five segments

FIGURE 1: INDIAN AUTOMOBILE INDUSTRY

The total two-wheeler sales of the Indian industry accounts for around 77% of the total
vehicles sold inIndia. With 26,12,881 two wheelers already sold in India in the quarter from
Jun-Sep 2009, the Indianwheeler industry is poised for high growth In the coming years. In
terms of volume, about 6% of the two wheelers manufactured are exported.

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 FIGURE 2: DOMESTIC MARKET SHARE FOR 2008-09

TWO WHEELER INDUSTRY

TWO WHEELER SEGMENTAL CLASSIFICATION AND ITS GROWTH

The three main product segments in the two-wheeler category are scooters, motorcycles and
mopeds.However, in response to evolving demographics and various other factors, other
subsegments emerged,viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first
two emerged as a response todemographic changes, the introduction of 4-stroke scooters has
followed the imposition of stringent pollution control norms in the early 2000. Besides, these
prominent sub-segments, product groups within these sub-segments have gained importance in
the recent years.The two wheeler industry has been growing at a CAGR of 9.45% from 2004 to

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2009, with the productionbeing about 63 lakh vehicles in 2004 to an estimated 100 lakhs in 2009.
Motorcycles have always been the major contributor to the two wheeler industry in India. From a
share of about 77.39% in 2004, it hassteadily grown to about 80.38%. The share of scooters has
gone down from 16.63% in 2004 to 13.88% in2009. The following table gives the percentage
share of motorcycles, scooters and mopeds in the two wheeler industry in India

DEMAND DRIVERS

The demand for two-wheelers has been influenced by a number of factors over the past few
years. The key demand drivers for the growth of the two-wheeler industry are as follows:
Inadequate public transportation system, especially in the semi-urban and rural areas
Increased availability of cheap consumer financing in the past 3-4 years
Increasing availability of fuel-efficient and low-maintenance models
Increasing urbanisation, which creates a need for personal transportation
Changes in the demographic profile
Difference between two-wheeler and passenger car prices, which makes two wheelers
entrylevel vehicle
Steady increase in per capita income over the past few years
Increasing number of models with different features to satisfy diverse consumer needs.

INDIAN TWO WHEELER INDUSTRY SEGMENTS

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PREMIUM SEGMENT

If we analyze the motorcycle sub-segments then it would be visible that Bajaj Auto has a
significantpresence in the premium segment with a market share of ~55% followed by Hero
Honda (~22%), TVS
Motors (~13%) and HMSI (10%).

EXECUTIVE SEGMENT

Hero Honda dominates this segment with a market share of ~70% followed by Bajaj Auto
(20%), HMSI(~6%) and TVS Motors (1%). This segment retrieves higher revenues from the
rural areas, which are lessdependence on finance; therefore comparatively it is among the
best performing segments

ECONOMY SEGMENT

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This segment is a strong foothold for Bajaj Auto which has a market share of ~45% followed
by Hero Honda (~34%) and TVS Motors (~24%). This is the most competitive segment as all
the 3playersrelatively have a higher presence in the same. But this segment continues to be
the worst hit due to thecredit unavailability and global slowdown. The industry has shown a
CAGR of ~15% from FY04-FY07on account of finance availability from PSU Banks and
private banks like ICICI Bank. But from FY08 FY09 YTD the industry has shown shrinkage
as most of the banks reduced their exposure in the autofinance domain given the unfavorable
macro economic situation.

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 PLAYER ANALYSIS

Hero Honda :Largest two-wheeler manufacturer in the world

Hero Honda Largest two-wheeler manufacturer in the world

Bajaj Auto 2nd largest two-wheeler manufacturer in the world and the largest 3-
wheeler manufacturer

TVS Motors 3rd largest manufacturer with facilities in India & Indonesia

Honda Motors Recently entered the Indian market through its direct subsidiary (in
addition to its JV with Hero)

Suzuki Recently entered the Indian market through its direct subsidiary
(earlierJV with TVS was withdrawn)

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Industry present and future trends:-

Automobile is one of the largest industries in global market. Being the leader in
product and process technologies in the manufacturing sector, it has been recognised as one of
the drivers of economic growth. During the last decade, well-directed efforts have been made
to provide a new look to the automobile policy for realising the sector's full potential for the
economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to
bring the policy framework in consonance with WTO requirements have set the industry in a
progressive track. Removal of the restrictive environment has helped restructuring, and enabled
industry to absorb new technologies, aligning itself with the global development and also to
realise its potential in the country. The liberalisation policies have led to continuous increase in
competition which has ultimately resulted in modernisation in line with the global standards as
well as in substantial cut in prices. Aggressive marketing by the auto finance companies have
also played a significant role in boosting automobile demand, especially from the population in
the middle income grou

Evolution of Two-wheeler Industry in India:-

Two-wheeler segment is one of the most important components of the automobile

sector that has undergone significant changes due to shift in policy environment. The two-
wheeler industry has been in existence in the country since 1955. It consists of three segments
viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share
of two-wheelers in automobile sector in terms of units sold was about 80 per cent during
2003-04. This high figure itself is suggestive of the importance of the sector. In the initial
years, entry of firms, capacity expansion, choice of products including capacity mix and
technology, all critical areas of functioning of an industry, were effectively controlled by the
State machinery. The lapses in the system had invited fresh policy options that came into being
in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP)
and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and
foreign investment respectively. This controlling mechanism over the industry resulted in: (a)
several firms operating below minimum scale of efficiency; (b) under-utilisation of capacity;

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and (c) usage of outdated technology. Recognition of the damaging effects of licensing and
fettering policies led to initiation of reforms, which ultimately took a more prominent shape
with the introduction of the New Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in response to the
major macroeconomic crisis faced by the economy. The industrial policies shifted from a
regime of regulation and tight control to a more liberalised and competitive era. Two major
results of policy changes during these years in two-wheeler industry were that the, weaker
players died out giving way to the new entrants and superior products and a sizeable increase in
number of brands entered the market that compelled the firms to compete on the basis of
product attributes. Finally, the two-wheeler industry in the country has been able to witness a
proliferation of brands with introduction of new technology as well as increase in number of
players. However, with various policy measures undertaken in order to increase the
competition, though the degree of concentration has been lessened over time, deregulation of
the industry has not really resulted in higher level of competition.

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 A Growth Perspective:-

The composition of the two-wheeler industry has witnessed sea changes in the post-reform
period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the
Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the
total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the
total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per
cent respectively. A clear picture of the motorcycle segment's gaining importance during this
period is exhibited by the Figures 1, 2 and 3 depicting total sales, share and annual growth during
the period 1993-94 through 2003-04.

National Council of Applied Economic Research (NCAER) had forecast two-wheeler

demand during the period 2002-03 through 2011-12. The forecasts had been made using
econometric technique along with inputs obtained from a primary survey conducted at 14 prime
cities in the country. Estimations were based on Panel Regression, which takes into account both
time series and cross section variation in data. A panel data of 16 major states over a period of 5
years ending 1999 was used for the estimation of parameters. The models considered a large
number of macro-economic, demographic and socio-economic variables to arrive at the best
estimations for different two-wheeler segments. The projections have been made at all India and
regional levels. Different scenarios have been presented based on different assumptions regarding
the demand drivers of the two-wheeler industry. The most likely scenario assumed annual growth
rate of Gross Domestic Product (GDP) to be 5.5 per cent during 2002-03 and was anticipated to
increase gradually to 6.5 per cent during 2011-12. The all-India and region-wise projected
growth trends for the motorcycles and scooters are presented in Table 1. The demand for mopeds
is not presented in this analysis due to its already shrinking status compared to' motorcycles and
scooters.

It is important to remember that the above-mentioned forecast presents a long-term growth

for a period of 10 years. The high growth rate in motorcycle segment at present will stabilise after
a certain point beyond which a condition of equilibrium will set the growth path. Another
important thing to keep in mind while interpreting these growth rates is that the forecast could
consider the trend till 1999 and the model could not capture the recent developments that have

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taken place in last few years. However, this will not alter the regional distribution to a significant
extent.

Table 1 suggests two important dimensions for the two-wheeler industry. The region-wise
numbers of motorcycle and scooter suggest the future market for these segments. At the all India
level, the demand for motorcycles will be almost 10 times of that of the scooters. The same in the
western region will be almost 20 times. It is also evident from the table that motorcycle will find
its major market in the western region of the country, which will account for more than 40 per
cent of its total demand. The south and the north-central region will follow this. The demand for
scooters will be the maximum in the northern region, which will account for more than 50 per
cent of the demand for scooters in 2011-12.

The present economic situation of the country makes the scenario brighter for short-term
demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004.
Both industry and the service sectors have shown high growth during this period at the rates of
8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP growth
to some extent. Taking into account all these factors along with other leading indicators including
government spending, foreign investment, inflation and export growth, NCAER has projected an
average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast
suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very recently,
IMF has portrayed a sustained global recovery in World Economic Outlook. A significant shift
has also been observed in Indian households from the lower income group to the middle income
group in recent years. The finance companies are also more aggressive in their marketing
compared to previous years. Combining all these factors, one may visualise a higher growth rate
in two-wheeler demand than presented in Table 1, particularly for the motorcycle segment.There
is a large untapped market in semi-urban and rural areas of the country. Any strategic planning
for the two-wheeler industry needs to identify these markets with the help of available statistical
techniques. Potential markets can be identified as well as prioritised using these techniques with
the help of secondary data on socio-economic parameters. For the two-wheeler industry, it is also
important to identify the target groups for various categories of motorcycles and scooters. With
the formal introduction of secondhand car market by the reputed car manufacturers and easy loan
availability for new as well as used cars, the two-wheeler industry needs to upgrade its market
information system to capture the new market and to maintain its already existing markets.
Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more

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focussed attention. It is also imperative to initiate measures to make the presence of Indian two-
wheeler industry felt in the global market. Adequate incentives for promoting exports and setting
up of institutional mechanism such as Automobile Export Promotion Council would be of great
help for further surge in demand for the Indian two-wheeler industry.

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 INTRODUCTION
The TVS Group is one of India's largest industrial conglomerates. TV Sundram Iyengar and
Sons Limited, established in 1911, is the parent and holding company of the TVS Group.

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among
the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and
is the flagship company of the USD 4 billion TVS Group. With a workforce of over 5000, the
company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh,
North India and one at Indonesia. The company has a production capacity of 300 thousand
units a year.

TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It represents
premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., Fiat and
Honda. It also distributes automotive spare parts for several leading manufacturers.

TVS & Sons has grown into a leading logistics solution provider and has set up state-of-the-
art warehouses all over the country. It has also diversified into distributing Garage equipment
that ranges from paint booths to engine analyzers and industrial equipment products.

GROUP COMPANIES
With steady growth, expansion and diversification, today TVS commands a strong presence
in various fields-two-wheelers, automotive components, automotive spares, computer
peripherals and finance.

Lakshmi Auto Components Limited - Large OE supplier of two wheeler gears and
camshafts.
Lucas Indian Service Limited (www.lucasindia.com) - Company looks after the

distribution of auto electrical components all over India.

Axles India Limited - A joint venture with Eaton Limited, U.K. Manufactures axle housings
and drive heads for heavy and light commercial vehicles

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COMPANY AT PRESENT & IN FUTURE

Successfully launched the Victor and Fiero-F 2 models after parting ways with

Suzuki.

Two wheeler markets show sign of revival after a lackluster first half.

The company is suffering a decline in volumes due to poor response of its two strokes

Max motorcycles.

Recently launched the TVS Centra and 125 cc TVS Victor GLX and four stroke Max

in the pipeline, which would be launched later this year.

Plans major foray into three-wheeler and quadricycles market through fresh

investments of Rs 500 crore.

Actively looking to set up manufacturing unit in Indonesia or Vietnam.

Strong focus on R&D and product development.

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Apache the Savior
TVS launched Apache RTR 160 cc model in September 2008, with its ultra modern
technology for Indian bikes has proved to be a big success. The success of TVS Apache is
especially significant because it was developed with indigenous technology.

Two stroke Max Range On the way out

The company is currently looking forward to phase out its two stroke Max range, which is
perceived to be less fuel efficient with a new four stroke range. The changeover is expected to
take place by the end of June 2009.

Two new launches could out TVS on a high growth trajectory

TVS Centra
TVS Centra a new 100 cc model has recently been launched and the company has set
ambitions targets of achieving monthly sales in the range of 15000-20000 bikes per month.
Also, a new upgraded 125 cc TVS Victor has been launched which will improve the
trajectory of the company.

Three wheeler project- entering a new market

TVS Motor has set the stage for entry into the three-wheeler markets with the setting up of a
new plant at Nanjangud, near Mysore in Karnataka. We understand that the company would
be targeting the sub-one ton passenger and goods carriers segment of the market.
With an investment of about Rs 50 crore in phase-1, it will cater to both passenger and cargo
segments. The total investments for the three wheeler and four-wheeler quardricycle project
are expected to be in the range of Rs 500 crore in the next two-three years. It plans to go with
petrol version of three wheelers and expects higher demand to come from B class towns. The
company expects higher margin and low competition in three-wheeler business as compared
to its two-wheeler business. Three wheeler sales have grown at a CAGR of 7% over the last 9
years to 2.26 lakh units FY 03, and are expected to grow at the same rate for the next five
years. TVS is expected to roll out its first three-wheeler by the end of FY05 to garner a 30%
market share with around 100,000 unit sales by the end of FY08.

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Three-wheeler market scenario

These are two main segments in the Indian passenger three -wheeler markets are:
Number of seats, including driver, not exceeding 4 and maximum mass not exceeding 1
tonne.
Number of seats including driver excluding 4 but not exceeding 7 max mass not exceeding
1.5 tonnes.
The three-wheeler goods carrier segments are:
Maximum mass not exceeding 1 tonne
Others.
Around 95% of the three-wheeler sold in India belongs to the smaller vehicles category in
which Bajaj Auto is the major player and has around 90% market share. The other players in
the segment are Atul Auto and Piaggio group, Italy.

Similarly, in the three-wheeler segment, domestic sales of the goods carrying variety grew a
whopping 46.95%. This growth in 2002-03 could have possibly come from two factors.
1) The increasing number of cities whose corporations have legislated that larger goods
carrier, like trucks be kept out for logistics purpose.
2) The increase in the number of offerings in this category, especially from companies
such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Quardricycle-A new introduction in the Indian market

There is a new challenger emerging in the Quardricycle segment. These new vehicles could
impact on the entry level sales. These new vehicle could impact on the entry level sales.
Quardricycles are three wheelers converted into four wheelers by using, a column axle. All
the major three-wheeler units have prepared Quardricycles prototypes.

Merger of engine components Division of Lakshmi Auto components with TVS Motor:

TVS motor would merge engine component division of Lakshmi Auto Component Ltd.
(LAC) and investments and other assets with itself and the dwap ratio has been fixed at once
phase of TVS motor for every seven share held as consideration for the merger. Presently
TVS motor holds 66.5% of equity capital of LAC, which would be cancelled. Around 66% of

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LACs sales come from the engine components division, mode of which is currently being
sold to TVS motor. LACs total net sales in HI FY 04 were Rs. 69 crore and made a net profit
of Rs. 10.5 crore..

The Plastics and Rubber components division of LAC will be transferred to the wholly
owned subsidiary company, Sundaram Auto Components Ltd. The total consideration on
slump sale based is Rs. 12.25 crore.

Strong focus on R&D

The company has put in place a strong R & D team consisting 400 engineers & is spending
about 3% of its turnover on R & D every year and has in the process setup a strong world
class facility for product design and development. During 2002-03, the company applied for
16 patents & published five technical research papers in international conference. Modified
research projects are carried in association with leading international research labs and Indian
institutes. R & D as percentage of sales in expected to increase from 1.5% in FY o2 to 3.2%
in FY 04.

Valuation

The companys valuations are dependent on five events:

Current four businesses grow at the normal industry growth rates.

New product launches achieve their targets and are well accepted by the market.
Three wheeler foray achieve targeted volume in the desired rates of return on capital
employed.
Quadricycle foray achieve the desired rate of return on the capital employed.
Overall investment returns

TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-wheeler
manufacturers. With a turnover of over Rs.2700 crores, the Company manufactures a wide
range of motorcycles, scooters, mopeds and scooterettes. Little wonder, it boasts of more than
7 million happy customers.
The chapter called two wheelers in India begins..
The year was 1980. And it is a year to remember for the Indian two-wheeler industry. For it
was this year that saw India's first two-seater moped, TVS 50, rolling out on the Indian roads.

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For some it was freedom to move. For some, shorter distances to span. For the Indian
Automobile sector, a breakthrough to be etched in history.

With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the first
Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984. Through
an amicable agreement the two companies parted ways in September 2001.

Unmatched Performance
Today TVS Motor Company has the largest market share in the moped category with a
whopping 65.3% and is also the undisputed leader in the scooterette segment with 34.3%
share. It also holds 18.3% market share in motorcycles. Graph

Wide Network
With a strong sales and service network of 500 Authorized Dealerships, 1018 Authorized
Service Centres and over 864 Certified Service Points, TVS is growing from strength to
strength.

World Class Facilities

The company manufactures its motorcycles, scooterettes and mopeds at its state-of-the-art
factories in Mysore and Hosur.

Product Range
TVS offers a wide range of two-wheelers
- Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100/ TVS Max 100 R
- Scooterettes - TVS Scooty Pep/ TVS Scooty 2S
- Mopeds - TVS XL Super/ TVS XL Super HD

VISION
TVS Motor - Driven by the customer

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

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TVS Motor - The Industry Leader

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

TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing
on the expertise developed in the areas of manufacturing, technology and marketing. The
thrust 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 benchmarking
against international leaders.

TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting

TQM 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 on
the commitment and growth of its people. There will be a sustained effort through systematic
training and planning career growth to develop employees' talents and enhance job
satisfaction. TVS Motor will create an enabling ambience where the maximum self-
actualization 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.

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TVS Motor - Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects
with 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 inter- dependence with its customers, employees, dealers and suppliers.

MILESTONES

TECHNOLOGY
TVS Motor Company's R&D division has an imposing pool of talent and one of the most
contemporary labs, capable of developing innovative designs.
Committed to achieving total customer satisfaction through Total Quality Control (TQC), the
Company continuously strives to give the customer, the best value for money.

ECO-FRIENDLY
TVS is committed to protecting the environment. The company's manufacturing facilities at
Mysore & Hosur have state-of-the-art facilities & air pollution control measures. Even the
suppliers are encouraged to ensure that their products meet eco-friendly norms.
ALWAYS FIRST

-Launched TVS 50, India's first 2-seater, 50cc moped in Aug 1980.
-First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.
Launched India's first indigenous Scooterette, TVS Scooty in June 1994.
- Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in Dec
1996.
-Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.
- Launched India's first high performance moped - the XL Super, with a 70 cc engine in Nov
1997.
-Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.

World-class 4-stroke 100 cc motorcycle with VT-i Engines for best-in-class mileage.

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AWARDS Deming Award

TVS Motor is the third Indian company to win the Deming Prize. Only two other
TVS companies have managed this before.

It's been a long time since the Union of Japanese Scientists and Engineers instituted the
Deming Prize. But very, very few organizations outside Japan have had the honor of
receiving it. In fact, the TVS Motor Company is the world's first motorcycle company to
be awarded the prize.

As for the TVS Group, it's a third. Sundaram-Clayton Ltd. (Brakes Division) and
Sundaram Brake Linings Ltd. have already won it. The Deming Prize is the ultimate
confirmation of our commitment to quality control. A confirmation known to every TVS rider
across the country.

TVS Motor Company unveils TVS Centra with 'VT-i Engines'

Creates History in the Technology Frontier of the

Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark in 40
days

Hosur, March 6, 2004: TVS Motor Company today announced that the sales of TVS Centra,
powered by the indigenously developed Variable Timing Intelligent (VT-i) engine technology
crossed 20,000 units in just 40 days since its launch in mid January 2004, the best ever
clocked by any new product from the TVS Motor Company stable. This achievement is
expected to spiral the overall growth of TVS Motorcycles sales in the coming months.
The impressive sales figures reflect the customer's faith in the technological capability of
TVS Motor Company to fully live up to its promise of delivering a world-class product at an
affordable price. Due to excellent customer feedback across the country, TVS dealers are
being pressurized with enquiries on the new 100 CC 4 Stroke Centra and its revolutionary
VT-i engine technology. Having caught the public's imagination, TVS Centra has fully lived
up to its promise of a 'Fill it Once a Month Bike' where a full tank of petrol lasts for a month
based on the average use of motorcycle customers.

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A panel of leading auto experts in India, after having tested TVS Centra, have endorsed the
fact that it was the 'best in its class' and also commended TVS Motor Company on its
technology prowess and innovation.
TVS Centra is powered by VT-i engines which are designed to deliver superb performance on
fuel efficiency and torque delivery based on three fundamental actions namely variable
ignition timing and superior combustion of fuel, friction reduction and fuel wastage
reduction.

Added to its technological edge are features that include attractive price, fuel efficiency, low
maintenance, contemporary style, ride comfort and backed by TVS Motor Company's
reliability, making it truly the preferred two-wheeler in its class.
Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor Company's
commitment to produce the best technology in its products for its customers has led to the
launch of TVS Centra with Variable Timing intelligent engines
(VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment.

This revolutionary new VT-i engine technology, developed indigenously by TVS Motor
Company, inbuilt into TVS Centra will make it the most fuel-efficient motorcycle in the
Country. It will be rightfully called as the 'Fill it Once a Month Bike' where a full tank of
petrol will last for a month based on the average use of motorcycle customers.

The VT-i Engines by TVS Motor Company will go down in the history of the Automobile
Industry in India as one of the most innovative technology
developed indigenously. The VT-i engines are designed to deliver superb performance on fuel
efficiency and torque delivery based on three fundamental actions namely variable ignition
timing and superior combustion of fuel, friction reduction and fuel wastage reduction. This
action facilitates deceleration fuel cut off, faster warm up of the Engine and has four curve
ignition mapping

Like all TVS Motor Company products, TVS Centra too has been engineered and designed
keeping in mind extensive customer feedback and changing customer needs. TVS Centra will
be the first motorcycle in India that will bundle price, mileage, maintenance, style, reliability,
power, ruggedness and ride comfort making it truly a value for money personal transportation

22
two-wheeler. Those who want all these performance attributes in a commuter motorcycle at a
great price; nothing will beat the TVS Centra for all the advantages it offers.

TVS Centra is built around to give a mileage that will offer atleast 10 per cent more than any
other motorcycle in the country, today. It will be powered by 7.5 Brake Horse Power (Bhp) at
7250 RPM making it the most powerful motorcycle in its class. TVS Centra will also be
known for its nimble handling and riding comfort enabling easy maneuvering even in busy
city traffic. Its contemporary style with big muscular tank and well-rounded looks with a
horizontal engine and superior ergonomics will mark a new standard in the popular segment
of two wheelers. It will come with Econometer to keep a check on the mileage / power ratio,
wide and skid free seat and Utility space.

TVS Motor Company posts 117,101 two wheeler sales in October 2008; Exports up by 30%

Hosur November 1, 2008 : TVS Motor Company has registered total two wheeler sales of
117,101 units in October 2008 against 129,614 units in the corresponding period of the previous
year.

This year, both the important festivals of Dussera and Deepavali were celebrated in October and
consequently, placement of stocks with the dealers for the festival season was effected in
September. Restricted availability of retail finance, high liquidity and general inflationary trends
witnessed by the market also affected sales. However, the cumulative sales of September 2008
and October 2008, show a growth of 4% when compared to the same period of the previous year.

The company's motorcycle sales stood at 59,217 units in comparison with 67,752 units recorded
in October 2007. Scooters recorded 23,487 units as against 28,119 units during the same period
of the previous year
.

During the month, the company won two prestigious IT Awards, namely the SAP ACE 2008
award and the 2008 Symantec South Asia Visionary Award. While the company won the SAP
ACE Award for digitization of new product development process in SAP by implementing PLM

23
(Product Lifecycle Management), the Symantec South Asia Visionary Award was conferred for
the way the company secured and managed systems and information.

Exports continued its upward growth trend, posting an increase of 30%; registering 17,013 units
of two wheelers in October 2008 as against 13,042 units in the corresponding period of the
previous year.

TVS Motor revenues grow at 23.2% in Q2 exports up 52%

Bangalore, October 30, 2008: TVS Motor Company today reported a 23.2 % increase in
revenues, registering Rs. 1034 crores for the quarter ended September 2008 of the financial year
2008-09, when compared to Rs. 839 crores in the corresponding quarter of the previous year.
Despite the challenging environment caused by increasing input material costs, general
inflationary trends and lack of availability of retail finance, the company has posted Profit before
Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4 crores when compared to Rs. 16.9 crores
and Rs. 11.9 crores in the corresponding period of the previous year. The last year's September
Quarter had the benefit of Rs. 10.2 crore (net) on account of exceptional items. Profit before
exceptional items for the quarter is higher at Rs. 13.9 crore in comparison with Rs. 6.7 crores of
the corresponding quarter of last year.
The company has recorded growth in sales despite adverse retail financing. Motorcycles
witnessed higher sales at 1.81 lakh during the quarter compared to 1.44 lakh units over the
previous period. Scooters clocked sales of 0.77 lakh in comparison to 0.76 lakh units during the
corresponding quarter of the previous year.

During the quarter, the company crossed yet another milestone when it reached two million units
of TVS Scooty in July 2008. Indian Tennis star, Sania Mirza became the new Brand Ambassador
for the Scooty brand. The company chose to associate with Sania as brand ambassador since she
emanates the brand qualities of independence, progress and accomplishment.

During the quarter, the company further broadened the horizons of its TVS Scooty brand with the
launch of Balancing Wheels, a unique and innovative product engineered specifically for the
TVS Scooty, addressing a never-before segment, who do not know how to ride, even a bicycle.

In June 2008, the company unveiled its feature rich TVS Apache RTR FI offering riders the

24
instant thrill and superior performance of a fuel injected 160cc engine. The second quarter also
witnessed the commemoration of the first anniversary of the Apache RTR brand while the
company crossed yet another landmark delivering the 2,50,000thApache.

Exports

Exports continued the upward growth path registering a total number of 0.55 lakh units during
the quarter ended September 2008, recording a growth of 52% over the same period last year.
The company has expanded its footprint to more than 54 countries across the globe.

Future Outlook

The global financial crisis, the consequent serious liquidity issues and higher financing costs are
likely to impact the growth prospects of the two-wheeler industry. Retail finance has become
even more difficult. The tight liquidity will affect the ability of dealers to stock two-wheelers.
The drop in the commodity prices, however, is a welcome break.

The company will continue the vigorous implementation of its improved value-engineering
program to reduce costs. The company continues to maintain the highest quality standards of all
its products.

SUB DIVISION OF SHARES

25
In order to improve the shareholder value and to facilitate greater liquidity in its equity
shares, TVS Motor Company recently subdivided the face value of its shares to Re. 1/- each.
Earlier the face value of the shares was Rs. 10/-

MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTOR COMPANY

The Shareholders of TVS Motor Company and Lakshmi Auto Components (LAC) have on
19th January 2004 approved the merger of Engine Division of LAC with TVS Motor
Company and transfer of Rubber and Plastics division of LAC to Sundaram Auto
Components Limited, a wholly owned subsidiary of TVS Motor Company. The company
expects to obtain the approval of High Court of Tamil Nadu and complete other statutory
formalities in the next few months. This merger is expected to improve the overall
profitability of TVS Motor Company.

PRODUCT PROFILE

TVS APACHE (RTR)

The recently launched TVS Apache RTR FI 160 has added an another stunner on the roads.

Stylish alloys, unique grab rails, classy silencer, larger & sharp lined fuel tank, all these

elements combine perfectly to give TVS Apache RTR 160 a sporty eye-catching looks.

The Apache RTR 160 has been upgraded with electronic fuel injection (EFI) and becomes

Apache RTR 160 Fi. The EFI technology has enabled TVS to boost peak power of this bike.

TVS has priced the new model at Rs. 65000.

TVS SCOOTY PEP First Love

A sleek duo-tone body. Body colored coordinated mirrors. A smiley headlamp. Winky
indicators. Looks even better with you on it.
POWER
75cc 4stroke engine to pep up your ride. A bigger, more comfortable seat for two and
strong hydraulic shock absorbers for a smoother ride.
TECHNOLOGY

26
A unique power/economy mode for extra mileage. An auto reserve fuel tap. No more turning
knob from main to reserve. Auto chokes for instant starts. Every time.

SAFETY
Puncture Resistant Tyres that come with a special sealant inside, minimizing chances of a
flat. A side stand alarm that beeps if you forget to take off the stand. Multi focal reflector
headlamp and side reflectors for enhanced visibility. Now all you need is an equally funky
helmet and you re all set to pep.

27
 INTRODUCTION OF THE PROJECT

Someone has rightly said that practical knowledge is far better than classroom teaching.
During this project I fully realized this and I came to know about how a consumer chooses
among a varied range of products available to him.

The subject of my study is market survey of customer buying behavior in bikes taking TVS
for comparison, which has slowly but steadily evolved, from a beginner to a corporate giant
earning laurels and kudos throughout.

The report contains first of all brief introduction about the company. Finally there comes data
presentation and analysis in the end of my report. I also put forward some of my suggestion
hoping that they help TVS Motor Company move a step forward to being the very best.

SCOPE OF THE STUDY

The scope of the study is to study the customer buying behavior of the respondents in New
Delhi and attain the awareness level of the customers. The scope is that the services of the
dealer, advertising media as well as celebrity has made an effect on the customer or not and
how much.
This study also allows knowing the future prospects of the company and where it is at present
in the market.

OBJECTIVE OF THE STUDY

The objective of the study is to analyze the customer buying behavior of the respondents
in motorbikes of different brands .
To study the future prospects of TVS motorbikes.
To provide a fair picture of technology used by TVS motors.
To study the sales trends of tvs motors.
To analyze the quality of after sales services being provided by tvs motors.

28
SAMPLE SIZE AND LOCATION

The data has been extracted mainly from questionnaires filled up by respondents from New
Delhi, Noida and Ghaziabad.
Rest of the information has been collected through internet surveys and social networking
communities on websites.

The questionnaire was filled up by 50 respondents scattered at different places and many
more respondents provided valuable information through the internet.

The aforementioned questionnaire has been attached at the end of the project.

RESEARCH AND DATA TYPES

The purpose of methodology section in the report making is to describe the research process
that is followed while doing the main part. The research design plays a pivotal role in the
quality and content of the data in making of any project report. The type of research design
chosen is seen to have a bearing on all the aspects of report writing.

Research Design: Descriptive Research design

The research design undertaken for the study was Descriptive one. The reason for using a
descriptive research method was to obtain qualitative data and also since the nature of study
is as such that it required the exploration of various aspects within and outside the company.

In order to carry out a well researched analysis efforts were taken to collect enough
information from the respondents. For this purpose various primary and secondary sources
were used. This would however include the research design, the sampling procedure, and the
data collection method. This section is perhaps difficult to write as it would also involve
some technical terms and may be much of the audience will not be able to understand the
terminology used. The methodology followed by the researcher, during the preparation of the
report was:

Source of Data Collection

a) SECONDRY DATA b) PRIMARY DATA

29
SECONDRY DATA - When an investigator uses the data that has been already collected by
others is called secondary data. The secondary data could be collected from Journals,
Reports, and various publications. The advantages of the secondary data can be It is
economical, both in terms of money and time spent .The researcher of the report also did the
same and collected secondary data from various internet sites like Google.com, altavista.com
and many more. The researcher of the report also visited various libraries for collection of the
introduction part.

PRIMARY DATA - Primary data is that kind of data that is collected by the investigator
himself for the purpose of the specific study. The data such collected is original in character.
The advantage of this method of collection is the authentic. A Set Of Questions Were Put
Together In The Form Of Questionnaire With 13 Questions. The method of sampling was the
Random.

INSTRUMENTS for Data Collection

The instruments used for collection of data were mainly questionnaires, internet surveys and
personal visits to the respondents.

Tools Used for Analysis

Bar Diagram

Pie Diagram

Tables

30
ANALYSIS OF CUSTOMER BUYING BEHAVIOUR
NEW DELHI

31
 QUE-1

INTERPRETATION

I
n this question particular question it is found that 93% of respondents are having motorbike
and 7% are either having scooter or moped. On the basis of the above pie-chart it is clear that
more people own bike.

32
 QUE-2

INTERPRETATION

The above bar-graph shows the brand awareness of bikes among the respondents. In the
above bar-graph it is clear that HERO HONDA is the most popular brand in New Delhi
whereas BAJAJ and YAMAHA follow 2nd and 3rd place. TVS comes at 4th place taking lead
from LML, KINETIC and ENFIELD BULLET.

33
 QUE-3

INTERPRETATION

The above Bar-Graph shows that in New Delhi area HERO HONDA has scored the
maximum number of points with BAJAJ and TVS on 2 nd and 3rd spot. TVS has scored 9
points out of the sample size of hundred and has taken lead from LML, KINETIC and
ENFIELD BULLET.

34
 QUE-4

Which factors do you consider while purchasing a Bike?

WHICH FACTORS DO YOU CONSIDER WHILE PURCHASING A BIKE?

Statistics

SPARE AFTER SALE

MILEAGE STYLE POWER PRICE BRAND PARTS SERVICE FINANCING
N Valid 100 100 100 100 100 100 100 100
Missing 0 0 0 0 0 0 0 0

Frequency Distribution
MILEAGE

Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 58 58.0 58.0 58.0
2.00 19 19.0 19.0 77.0
3.00 15 15.0 15.0 92.0
4.00 3 3.0 3.0 95.0
5.00 2 2.0 2.0 97.0
6.00 2 2.0 2.0 99.0
8.00 1 1.0 1.0 100.0
Total 100 100.0 100.0

STYLE

Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 12 12.0 12.0 12.0
2.00 30 30.0 30.0 42.0
3.00 31 31.0 31.0 73.0
4.00 16 16.0 16.0 89.0
5.00 8 8.0 8.0 97.0
6.00 2 2.0 2.0 99.0
7.00 1 1.0 1.0 100.0
Total 100 100.0 100.0

35
 POWER

Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 25 25.0 25.0 25.0
2.00 27 27.0 27.0 52.0
3.00 18 18.0 18.0 70.0
4.00 9 9.0 9.0 79.0
5.00 8 8.0 8.0 87.0
6.00 5 5.0 5.0 92.0
7.00 5 5.0 5.0 97.0
8.00 3 3.0 3.0 100.0
Total 100 100.0 100.0

PRICE

Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 2 2.0 2.0 2.0
2.00 17 17.0 17.0 19.0
3.00 16 16.0 16.0 35.0
4.00 39 39.0 39.0 74.0
5.00 17 17.0 17.0 91.0
6.00 7 7.0 7.0 98.0
7.00 2 2.0 2.0 100.0
Total 100 100.0 100.0

BRAND

Cumulative
Frequency Percent Valid Percent Percent
Valid 2.00 3 3.0 3.0 3.0
3.00 11 11.0 11.0 14.0
4.00 23 23.0 23.0 37.0
5.00 37 37.0 37.0 74.0
6.00 16 16.0 16.0 90.0
7.00 9 9.0 9.0 99.0
8.00 1 1.0 1.0 100.0
Total 100 100.0 100.0

36
 SPARE PARTS

Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 1 1.0 1.0 1.0
2.00 3 3.0 3.0 4.0
3.00 5 5.0 5.0 9.0
4.00 5 5.0 5.0 14.0
5.00 8 8.0 8.0 22.0
6.00 28 28.0 28.0 50.0
7.00 35 35.0 35.0 85.0
8.00 15 15.0 15.0 100.0
Total 100 100.0 100.0

AFTER SALE SERVICE

Cumulative
Frequency Percent Valid Percent Percent
Valid 1.00 1 1.0 1.0 1.0
2.00 1 1.0 1.0 2.0
3.00 3 3.0 3.0 5.0
4.00 4 4.0 4.0 9.0
5.00 20 20.0 20.0 29.0
6.00 30 30.0 30.0 59.0
7.00 18 18.0 18.0 77.0
8.00 23 23.0 23.0 100.0
Total 100 100.0 100.0

FINANCING

Cumulative
Frequency Percent Valid Percent Percent
Valid 3.00 1 1.0 1.0 1.0
4.00 2 2.0 2.0 3.0
6.00 10 10.0 10.0 13.0
7.00 30 30.0 30.0 43.0
8.00 57 57.0 57.0 100.0
Total 100 100.0 100.0

37
 Graphical Representation

70

60

50

40

30

20

10
Count

0
1.00 2.00 3.00 4.00 5.00 6.00 8.00

MILEAGE

38
 40

30

20

10
Count

0
1.00 2.00 3.00 4.00 5.00 6.00 7.00

STYLE

30

20

10
Count

0
1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

POWER

39
 50

40

30

20

10
Count

0
1.00 2.00 3.00 4.00 5.00 6.00 7.00

PRICE

40

30

20

10
Count

0
2.00 3.00 4.00 5.00 6.00 7.00 8.00

BRAND

40
 40

30

20

10
Count

0
1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

SPARE PARTS

40

30

20

10
Count

0
1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

AFTER SALE SERVICE

41
 60

50

40

30

20

10
Count

0
3.00 4.00 6.00 7.00 8.00

FINANCING

INTERPRETATION

From the above mentioned tables and graphs we can see that parameters like mileage, power
and style holds an upper edge over the other parameters which affect the purchase decision of
bike. Thus customers are more likely to see the mileage aspect before actually buying a
product.

42
 QUE-5

INTERPRETATION

From the above graph it is clear that FAMILY plays a major role in the purchase of bike and
the reference and suggestions of FRIENDS come at the second place. Whereas MEDIA factor
comes at third place with DEALER making no promising affect on the purchase of bike.

QUE-6

43
INTERPRETATION

As shown in the above PIE CHART, the percentage of respondents who have visited the TVS
SHOWROOM is more than those respondents who have not visited the TVS SHOWROOM.
Thus the interest of customers in TVS product can relate to 62% among 100 respondents.

QUE-7

44
INTERPRETATION

As shown in the above graph there are four FACTORS, which show the experience of the
respondents after visiting the TVS showroom. It is clear that most of the respondents had
GOOD experience with 22 respondents having average experience. Only 8 respondents are
having a bad experience, which shows the quality of the TVS showroom.

45
 QUE-8

INTERPRETATION

As shown in the above PIE-CHART 89% of the respondents are not interested in TVS
products and 11% of them are not satisfied with TVS bikes. This was an open ended question
therefore most of the answers were in account to the satisfaction level and interest in the TVS
BIKES.

46
 QUE-9A

INTERPRETATION

As given in the PIE CHART above 91% of the respondents know about TVS motorbike and
only 9% of the respondents are unaware about the TVS motorbike. This question is based on
the awareness as well as past usage of the TVS motorbike.

47
 QUE-9B

INTERPRETATION

As shown in the above BAR GRAPH it is clear that TVS-VICTOR is the most popular bike
in New Delhi as 100 respondents are aware of TVS-VICTOR. Second most popular bike is
TVS-FIERO F-2, which is known by 35% of the respondents and has taken lead from TVS-
CENTRA BY 8% which is on the 3rd spot. TVS-MAX-R is on the 4th place with 26% share
and has taken lead from TVS-FIERO-FX by 17%.

48
 QUE-9C

INTERPRETATION

In the PIE CHART given above it is clear that out of 100 respondents 68% of them have
visited the TVS DEALERSHIP and only 38% have not visited the TVS DEALERSHIP. By
the chart given above it makes clear that the TVS DEALERSHIP has attracted more number
of respondents

49
 QUE-10

INTERPRETATION

As shown in the BAR-GRAPH it is clear that 21% of the respondents are not satisfied with
the service facilities and 20% are satisfied with the service facilities which comes to equal
ratio.10% of the respondents liked the staff and 4% are not satisfied with the staff. Interesting
part is that 7% of the respondents wanted more space at the TVS-DEALERSHIP.

50
 QUE-11

INTERPRETATION

In the given PIE CHART 66% of the respondents have no affect with the celebrity
endorsement during the purchase of the bike. Whereas 34% of the respondents agreed that
celebrity endorsement do make an effect on the purchase decision of the bike.

51
 QUE-12

INTERPRETATION

As shown in the BAR DIAGRAM it is clear that HERO HONDA is the most popular bike in
New Delhi with BAJAJ taking the 2nd place with 32%. TVS is the 3rd most popular bike in
New Delhi taking lead from YAMAHA, BULLET, LML and KINETIC.

52
 QUE-13

INTERPRETATION

In the BAR-CHART it is clear that with no price consideration HERO Honda will be the first
choice following with BAJAJ and ENFIELD BULLET as 2 nd and 3rd choice. Whereas TVS
will be the 4th choice which is taking lead over YAMAHA, LML and KINETIC as 5th, 6th and
7th choice.

53
RECOMMENDATIONS

In the analysis the respondents have shown that they consider TVS motor company
after HERO HONDA and BAJAJ and this is a major concern for the company. TVS
motor company has to make some arrangements to increase the awareness level
among the prospects through media.

The company should also emphasize on other bikes excluding TVS VICTOR and
TVS CENTRA because some of the bikes in TVS like Apache RTR are more popular
than these bikes in the surveyed area.

In New Delhi the respondents who have visited the dealership are not satisfied with
the service facilities which can be improved by regular visit of the service managers
as well as providing regular training to the staff as well as the owner.

The dealership in New Delhi also lacks in space, which is a major concern because
the first impression on the mind of the customer is about the window display, which
can be improved with the help of the professionals.

The buying behavior of the customers in New Delhi is not focused on the celebrity
endorsement but they want a product which should contain all the factors and at an
affordable price.

The customers in New Delhi want more number of dealers in their area so as to have
more options in visiting the dealership. Every

dealership should have the same services and excellent window display so as to attract
more customers.

As in the demographic phase of the respondents the younger generation wants to have
a bike with lot of power and style which TVS should come within future .As TVS has
launched its new bike VICTOR GLX in the market.

54
LIMITATIONS
This report incorporates sincere efforts to submit the best possible dossier on the topic
assigned because no study can be perfect. There are bound to be limitations that I faced
and within which I had to work.

The data used in most part of the report is secondary data, it has inherent discrepancy.

As TVS is still not a household brand name, some of the respondents were not completely
aware of its products and track record.

SUMMARY

Ever since man evolved into social animal he felt the need for Transportation. As he
formed a civilization he felt the need for Better Transportation. Today on the threshold
of exploring the universe he feels the need of Best Transportation.

Truly the modern world relies on transportation which can be airways, roadways,
railways and on water. Bicycle was the most important part of road transportation in early
days and as the scenario changed bicycle was transformed into a fast, stylish and trendy
mode of transport known as Motorcycle nowadays known as Motorbike.

Each human being that is living in this social world knows the importance of bikes
because it serves the purpose in any kind of situation and in any part of this world.

The topic of the project is Customer Buying Behavior taking TVS for comparison. TVS
motor company is one of the leading bike manufacturers in India. The analysis of the
project was based on customers point of view. For the study, both primary data and
secondary data were required. The primary data was collected

based on a survey research, using a structured questionnaire with both open ended and
closed-ended questions.

55
The sampling procedure used was random sampling for the 1 st objective i.e. to understand
consumer needs on motorbikes. For the 2nd objective i.e. to understand the awareness
levels of TVS I went to the prospects and met the respondents to fill the questionnaire.
The mode of survey was of personal interview, where the respondents filled up the
questionnaires. The secondary data was collected from business newspapers, magazines,
Company brochures, journals and the Internet. The major conclusion from this study was
that TVS has to improve itself to gain the 1st position in the market as it is doing well to
maintain its 3rd position in the market.

In terms of competition TVS has neck-to-neck competition with Hero Honda and Bajaj.
TVS has a lot of work to do if it has to take lead and remain the leading manufacturer in
India.

56
CONCLUSION

The facts and figures shown in the analysis is correct and the survey has been done in
a good faith and responsibility
As HERO HONDA, BAJAJ and YAMAHA have taken the 1 st, 2nd and 3rd position.
Thus TVS motor co. has to make some more efforts to increase the awareness among
the people in the context of bikes.
The respondents have been asked about the most effective slogan in different brands
of bikes in which again HONDA and BAJAJ have taken the lead. TVS motor co. has
emphasized only on VICTOR and not on other bikes, thus people only know about
VICTOR and not other bikes. Print media and different types of media should be used
to make people know about the slogan.
The respondents in the factors, which they consider while purchasing a bike, have
done the ranking. MILEAGE is the first factor following with POWER and STYLE
and also with an adaptable PRICE. The company has to make efforts for making a
product that should have all these three factors with considerable price.
The most influencing factor in purchasing decision of the bike is FAMILY and after
that FRIENDS which is not at all linked with

the company investment. The company generally invests in Dealer promotion and
Media, which is not appropriate as analyzed in this question. Awareness level through
Media and dealer should be increased.
When asked about the experience at the TVS dealership most of the respondents had a
good and average experience with a small number having bad experience. The small
number of bad experience can be avoided by giving warm welcome and good
behavior by the staff.
The respondents who have not visited the TVS dealership are either not interested in
TVS bikes or they are not satisfied with TVS products. In this matter the dealer
should increase the road shows as well as arrange regular customers meeting which
will create interests in other prospects.
Most of the respondents had knowledge about the TVS bikes, which is a good sign for
the TVS motor company.

57
 In TVS motor company VICTOR is the most popular bike and very interestingly
without any media interaction FIERO F2 has taken the 2nd spot with CENTRA on the
3rd spot which has taken a lead with only one place from MAX-R .It is recommended
that FIERO F2 should be given equal sales promotion than CENTRA because of its
popularity has come through people network and not through channel media.

The respondents have liked the service facility and the staff but the important factor is
the lack of space. The dealership in New Delhi has to improve the staff as well as the
after sales services and the customer relations.
Celebrity endorsement does not affect most of the respondents whereas only 34% of
the respondents have an affect over the purchasing decision of bike. Company should
give more importance to the product so as to give the best in quality to the customer.
In context to popularity TVS ranks 3rd according to this sample size and thus the
company should introduce new products as well as reposition its product according to
the demand in the market.
In the case of no price consideration TVS ranks 4 th and according to survey analysis
the respondent wants to purchase his dream bike which TVS Company has to make in
comparison with HERO HONDA, BAJAJ and ENFIELD BULLET.

58
BIBLIOGRAPHY

WEB SITE
Google.com,www.tvsmotor.com

TEXT BOOKS
Marketing Research, Test and cases, Richard D. Irwin, Linois
C.R Kothari, Research Methodology

NEWS PAPER
Times Auto
The Economic Times

MAGAZINES
Auto Sports
Business Outlook

59
TVS MOTOR COMPANY
CUSTOMER BUYING BEHAVIOUR (NEW DELHI)
QUESTIONNAIRE

1) Which two wheeler motor cycle company you aware that presently available in the
Market?

a) b) c)
d) e) f)

2) Will you /Do you want to purchase any TVS Bike?

Yes
No

3) If yes, than which model do you purchase?

VICTOR APACHE STAR CITY

STAR SPORTS PHOENIX MAX4R
OTHER

4) Have you planed to purchase any other Bike?

Yes
Please Mentioned Company name

No then planning for four wheeler

5) How did you come to know about this TVS Bike?

News paper Hoarding Magazine

Advertising Television Showroom banner
On road Friend/Relative

6) On which specific occasion did you purchase TVS two-wheeler Bike?

On festival Get promotion Bike required

On birthday When you start job when you go married

7) Who promotes you to purchase this TVS Bike?

Family member Relative

Friend For other

60
8) Do you considered any consumer incentive before purchasing TVS Bike?

Yes No

9) What important criteria you considered while purchasing the TVS Bike? (Multi tick mark)

Price Average Pick up

Design Company image Maintenance
CC of engine

10) Main reason for you to selecting this particular model?

(Rank any five in ascending order)

Good looks/ stylish Reasonable price

Low maintenance cost Auto Start
Fuel efficiency Engine capacity
Pick up

11) You had to purchase your Bike on?

Cash basis Corporate buying

Loan from bank Loan from financial institute

12) You will use this Bike mainly for? (Multiple Tick mark)

Going with family Going to college

Travelling for field work Community work

13) Which slogan of Bike affects you the most and of which brand?
Specify___________________________________

14) Which factors do you consider while purchasing a Bike? [Rank]

MILEAGE
STYLE
PRICE
BRAND
SPARE PARTS
AFTER SALE SERVICE

15) Who influenced you while purchasing the Bike?

FRIENDS
DEALER

61
 FAMILY
MEDIA
16) Have You Visited Any TVS Showroom?
Yes
No
17) If yes, what was the Experience?
VERY GOOD
GOOD
AVERAGE
BAD

18) If No, why you have not visited the TVS Showroom?
Please Specify______________________________

19) If you have a Motorcycle other than TVS?

Do you know about TVS Motor bike?

Yes
No

If yes which Brand of TVS Motor bike?

Specify ___________________________________

Have you visited TVS DEALERSHIP?

Yes
No

20)What have you liked OR Disliked at TVS DEALERSHIP?

Specify____________________________________

62