TVS MOTOR COMPANY

A study on
Customer Preferences and satisfaction level towards Tvs Motors
Submitted to Sanskrithi School of Business, Puttaparthi,
An Affiliated Institution under JNTU-A, in Partial Fulfillment
of Master of Business ADMINISTRATION.

SANSKRITHI SCHOOL OF BUSINES

AFFILIATED TO J.N.T.UNIVERSITY, ANANTAPURAMU

PUTTAPARTHI
Submitted by
P.NAGA SAI SNEHA

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TVS MOTOR COMPANY

PROJECT REPORT
ON
CUSTOMER PREFERNCES AND SATISFACTION
LEVELS TOWARDS TVS MOTORS
IN
ESWAR TVS MOTORS
BY
P.NAGA SAI SNEHA
H.T. NO: 14HX1E0049
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE
MASTERS DEGREE IN BUSINESS ADMINISTRATION
(2014-2016)

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TVS MOTOR COMPANY

Ref: TVS/PROJ-MARKETING/2016
Date:6/04/2016
Project Completion certificate
This is to certify that Ms. P. Naga Sai Sneha, (Regd. No. 14HX1E0049), of
SANSKRITHI SCHOOL OF BUSINESS, PRASHANTHI GRAM, PUTTAPARTHI,
ANATAPURAMU DT., A.P, has successfully completed the project titled Customer
Preferences and Satisfaction Level towards their expectations at TVS MOTORS,
HINDUPUR, Anantapuramu Dist., for partial fulfillment of her MBA from
22/02/2016 to 06/04/2016.
During this period she was given hands on exposure for 45 days.
Her conduct is good.
We wish her good luck and all the best in his future endeavors.

SANTHOSH

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TVS MOTOR COMPANY

CERTICATE FROM GUIDE

This is to certify that the project entitled Customer Preferences and Satisfaction
Level

towards

their

expectations

at

TVS

MOTORS,

HINDUPUR,

ANANTAPURAMU Dist., is a bonifide work of P. Naga Sai Sneha, a student

SANSKRITHI SCHOOL OF BUSINESS bearing Roll No.14HX1E0049, and was
successfully completed at TVS MOTORS, semesterIV, of MBA 2014-2016
Academic year for the partial fulfillment of the award of MASTER OF
BUSINESS ADMINISTRATION to the best of my knowledge it is an original
piece of work and it has not been previously submitted as a part of other degree
or diploma of any other business school or university.

I wish her all the best in her career endeavors.

KARIMULLA BASHA
(H.O.D)

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TVS MOTOR COMPANY

DECLARATION
I here by the declare that this project report entitled Customer
Preferences and Satisfaction Level towards their expectations at TVS MOTORS
, HINDUPUR, has been prepared by me during the months of 45 days to be
submitted to SANSKRITHI SCHOOL OF BUSINESS, Puttaparthi in practical
fulfillment

for

the

awarded

degree

MASTER

OF

BUSINESS

ADMINISTRATION prescribed by JAWAHARLAL NEHURU TECHNOLOGY

UNIVERSITY, Anantapuramu. Under the guidance of Karimulla Basha Head of
the Department, SANSKRITHI SCHOOL OF BUSINESS, Puttaparthi.
I also declare that this project report is the result of my own effort and that
has not been copied from any of the earlier reports submitted by anybody to
JAWAHARLAL NEHURU TECHNOLOGY UNIVERSITY for the award of
any degree in diploma.
I also assert that the information collected by me for TVS MOTORS,
HINDUPUR, ANANTAPURAMU District., A.P. will be kept confidential.

(P.Naga Sai Sneha)

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Acknowledgement
My profound thanks and deep sense of gratitude are due to authorities of TVS
MOTORS who gave me the opportunity for doing this project work at
HINDUPUR.
Its my primary duty to express my humble thanks and deep sense of
gratitude to SANTHOSH for giving me this opportunity, also who acted as a
source of inspiration in completing my work by constantly enlightening me with
his valuable guidance and suggestions during the period of this project .
I also thank the staff for providing me all help and facilities in carrying
out my project and making me feel at home.
I also express my gratitude towards the help rendered by KARIM sir
faculty & HOD, SANSKRITHI SCHOOL OF BUSINESS, Puttaparthi in
completing this project work.
Finally I thank all my friends for spending their valuable time providing
their valuable suggestions in successful completing of this project.

(P.NAGA SAI SNEHA)

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TVS MOTOR COMPANY

INDEX
S.NO

CONTENTS

PAGE NO

CHAPTER-1

INTRODUCTION

CHAPTER-2

THE STUDY DESIGN

13

CHAPTER-3

PROFILE OF THE COMPANY

19

CHAPTER-4

DATA ANALYSIS AND

INTERPRETATION

CHAPTER-5

51
72-81

FINDINGS

73

SUGGESTIONS

75

CONCLUSION

76

QUESTIONNAIRE

77

BIBLOGRAPHY

81

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TVS MOTOR COMPANY

INTRODUCTION
It gives me an immense pleasure to present you this entire project. The
topic is A STUDY REPORT ON CUSTOMER PREFERENCE AND
SATISFACTION LEVEL TOWARDS TVS MOTORS IN HINDUPUR

the

study is undergone at ESWAR TVS.

The project report

focuses on customer satisfaction and post-sale

services, of ESWAR TVS motors. A two wheeler showroom in HINDUPUR.

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TVS MOTOR COMPANY

CHAPTER - 1
INTRODUCTION

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TVS MOTOR COMPANY

EXECUTIVE SUMMARY
Topic of the study: A study report on Customer Preferences and Satisfaction level
towards ESWAR TVS MOTORS in HINDUPUR.
Need for study:
To understand the Customer Preferences and satisfaction level towards of the
customer regarding the service provided by ESWAR TVS, to understand what are the
customer requirement and improvement required by them in service.
Objective of the study:
To knows the customer satisfaction level towards services of ESWAR TVS.
To knows the problems presently faced by the customers at ESWAR TVS.
To study the post sales service performance.
To know the new area of improvement. To study the pre-purchase and post-

purchase behavior of customers of TVS Motors in Anantapuramu.

To study the factors affecting the purchase behavior of customers.
To study the satisfaction level of customers towards various attributes /
features of TVS Motors.

ABSTRACT:
This research is outcome of the study conducted on Pre-purchase and Postpurchase Behaviour of Customers with reference to TVS Motors in Erode
District. This study was carried out for a period of 9 Months from in Hindupur.
The objective of conducting this project work is to identify the attitude of twowheeler owners towards TVS Motors.
For this purpose 300 two-wheeler owners/customers were taken as sample for
the study in order to get the needed information. The study is a descriptive
type and convenient sampling is used. The data are collected from survey
using questionnaire through interview schedule.

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Consumers make three types of purchases: trial purchases, repeat purchases
and long term commitment purchases. When a consumer purchases a product
(or brand) for the first time and buys a smaller quantity than usual, this
purchase would be considered a trial. Thus, a trial is the exploratory phase of
purchase behavior in which consumers attempt to evaluate a product through
direct use.
The collected data were consolidated and interpreted by using statistical tools
like percentage analysis, weighted average ranking method and chi-square
test. Tables and charts are used for representation purpose. From this survey, it
was found that TVS vehicles are mainly preferred for its Power & Pickup,
Safety & Comfort and Design. Performance is a major factor for purchasing
TVS brand. TVS motors has to update its technology to meet the changing
customer needs and preference to cope up with the competitions in the market
and adequate steps should be made to increase the quality in their services for
better customer satisfaction.
A search for information before making a purchase decision is known as prepurchase behavior. Purchasing is a dynamic science and also most important
function of every family. A home maker must devote time, attention and
energy to it. It is influenced by certain considerations which lead the
consumers to select a particular brand of products. Besides, the availability of
wide.
To study the buyers opinion about the services rendered by dealers in
Hindupur.

A search for information before making a purchase decision is known as prepurchase behavior. Purchasing is a dynamic science and also most important
function of every family. A home maker must devote time, attention and
energy to it. It is influenced by certain considerations which lead the
consumers to select a particular brand of products. Besides, the availability of
wide varieties of brands aggregates and complicates the act of purchasing.
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TVS MOTOR COMPANY

Purchasing is complicated involving many decisions as each family differs
widely. The stages are,

1. Problem Recognition
2. Information Search and
3. Evaluation of Alternatives.

The buyers satisfaction is a function of the closeness between the buyers

expectations and the products perceived performance. If performance falls
short of expectations, the customer is disappointed, if it meets expectations,
the customer is satisfied, if it exceeds expectations, and the customer is
delighted.
The larger the gap is between expectations and performance, the greater the
consumers dissatisfaction.
Satisfaction or dissatisfaction with the product will influence a consumers
subsequent behavior. If the consumer is satisfied, he or she will exhibit a
higher probability of purchasing the product again. The satisfied customer will
also tend to say good things about the brand to others. Marketers say Our best
advertisement is a satisfied customer. Dissatisfied consumers may abandon or
return the product. They may seek information that confirms its high value.

LIMITATIONS:
To offer suggestions based on the result of the study.
This study is applicable only to TVS Motor Industry (P) Limited, Hindupur.
Time duration for this study is limited for nine months from Nov-2011 to July2012.
The study does not include comparison between two Wheeler brands.

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TVS MOTOR COMPANY

CHAPTER-2
STUDY OF THE DESIGN

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TVS MOTOR COMPANY

Research Design:
Primary Source: Questionnaire & Personal interaction.
Secondary Source: Company data through Internet.
Sample Size: 100 customers
Location: Hindupur.

RESEARCH METHODOLOGY
A research design is the specification of methods and procedures for
acquiring the information needed. In this study, researcher used Descriptive Research.
A research design thus specifies, the type of information required the sources of the
information and the methods or techniques of data collection.

SAMPLE DESIGN:
The study uses primary data collected from customers using TVS vehicle. 300
customers were selected for the study in Hindupur as sample area. In this research,
convenience sampling was adopted. Convenience sampling refers to the collection of
information from members of the population who are conveniently available to
provide it. Convenience sampling is most often used forgetting some basic
information quickly and efficiently.
Outcome & Benefits of the study:
The outcomes of this project would give the Organization a clear understanding about
the customer feedback as well as their satisfaction level and also to understand what
the problems faced at the time of service. With the help of this study report the
organization come to know the customer feedback and make improvements in the
required area.
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TVS MOTOR COMPANY

LITERATURE REVIEW:
About Customer Preference
Customer preference occurs when the experience obtained from transaction match
expectation. Customer may forget experience that match expectation although,
customers will generally notice and also remember those experience that deviated
from expectation.
This stage is particularly known as dissatisfaction results in to a feeling of dissonance
in case where an experience obtains from product/sender falls short of expectations.
In opposite situation i.e. state of satisfaction it may result in to repurchase of product/
service as case may be.
One has to accept the fact that people i.e., employee in an organization play a crucial
role in determining, and delivering of the level of service quality and ultimately
consumers satisfaction. It has been observed that even manufacturing organization
have gradually realized the fact that along with tangible offering, intangible customer
services the only possible distinct way to create a point of differentiation and
positioning in to the competitors. It is needless to state companies need to manage
customer contact effectively where the desired outcome is a satisfied customer.
Customer's satisfaction data customer data provides early warning sign of problems
before they show up in revenue and down in profit.
Customer satisfaction
Customer satisfaction is to the success. Getting your customer to tell you whats good
about your products or services, and where you need improvement helps you to
ensure that your business measures up to their expectations. The Attached file
contains a customer satisfaction survey form designed to help gather. This important
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TVS MOTOR COMPANY

information .it was designed to make it easy for customer to fill out and to make it
easy for you to quickly customize to exactly match your company activities.
It also includes suggestion for distributing the form. Ensuring that customer
that will be return in the form and following up on comments.
Here are a few principles given by Steve smith.
The goal is to exceed customer expectation.
The more the employee satisfaction, the more the customer satisfaction.
Customer satisfaction is necessary, but not sufficient how many times do
Satisfied customer switch brands? Answer, a lot.
All initiative must be derived from defined problems. For instance ,
Dissatisfied customers dont buy. Thats an example of a clear problem.
Initiative must produce either measurable or conceptual benefits. Distinguish
between the two benefits types.
The plan must be clear and congruent.
The plan must be resonate with the VP and at least a minority of managers
who agree with the objective and initiative.
The following items amplify customer satisfaction given by Steve smith

Quality of a companys product and service.

Quality of the relationship between the co agent the customer.

Responsiveness
Thoroughness
Creativity

MANAGEMENT PROBLEM:
Through this project, the sales and operation manager want to know the post and pre
sales service performance and to analyze the satisfaction level by the feedback of the
customers. To know the quality of service and improvement to be made in the service
provided by ESWAR TVS.
STATEMENT OF THE PROBLEM:
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TVS MOTOR COMPANY

There are many two wheeler brands available in the market but customers go only for
a selected brand. This highly depends on the behavior of customers during the
purchase of vehicle. The customer preference may vary from each other, depending
on the factors like after sales service rendered by the dealers, brand name, price,
performance, mileage, etc. during the purchase of vehicle. These factors in two wheelers play a key role in ensuring the brand image and long term credibility of the
company. The behavior of customer changes rapidly before and after the purchase of
vehicle.
The researcher through this study has aimed to find out the factors affecting the prepurchase and post-purchase behavior of the customers and customers satisfaction on
various factors.
Research problem:
To find the problems faced by the customers and to know the new area of
improvement with the help of customer feedback.
Through this project, the sales and operation manager want to know the post sales
service performance and feedback of the consumers, Organization want to know the
quality of service and improvement to be made in the service provided by ESWAR
TVS.
Purpose of the Study:
To understand the Customer Preferences and satisfaction level regarding the service
provided by ESWAR TVS, to understand what are the customer requirement and
improvement required by them in service.
Scope of the study: Hindupur
The Scope is very limited because attitude of the people change according to the time.
The study is restricted to HINDUPUR and ANANTAPURAMU Dist and that to
among 100 respondents
The study is conducted for 45 days.
The study is restricted to certain area .so it could not give an accurate picture about
Andhra Prasad.
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TVS MOTOR COMPANY

Objectives of the study:

To study the pre-purchase and post-purchase behavior of customers of TVS

Motors in ANANTAPURAMU.

To study the factors affecting the purchase behavior of customers

To study the satisfaction level of customers towards various attributes /

features of TVS Motors

To study the buyers opinion about the services rendered by dealers in

Hindupur.

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TVS MOTOR COMPANY

CHAPTER-3
PROFILE OF THE COMPANY

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TVS MOTOR COMPANY

ORGANIZATION CHART
Chairman

Managing Director

Director

TVS Sales

Sales Manager

TVS Service

Office executive

Supervision

Mechanics
Sales Executive

Supervisor

Mechanics

Sales Executive

RTO Co-coordinator

Assistant

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TVS MOTOR COMPANY

ORGANISATION PROFILE
Name of the Organization

: Eswar TVS

Address of the company

: Eswar TVS Motors,

Penugonda Road,
Hindupur.

ESWAR TVS MOTORS

Eswar TVS motors is a part of Eswar Motors is one of the major automobile dealers
in Hindupur, which is spread into various diversified. Though the people of Hindupur
may know it just in the name of dealer of automobiles but it has spread it net into
various business units. So let me tell its profile right from beginning of its inception if
the foundation of the business it started with.

The History:
1920:
1950:
1951:
1954:
1958:

The business stared with the landmark if mill and oil mill.
One of partners being educated in the field of engineering with
mechanical and electrical stated with the business in automobiles.
Manic bag automobile came into light, know for dealers in
automobile
TVS Motors got the dealership of MICO and PERKINGS ENGINES
TVS Motors came the big screen by getting the dealership of Ashok
Leyland (heavy commercial vehicles) from Hinduja groups. Along
with the dealership of Ashok Leyland, Manic bag even stepped in the

dealership of international tractors.

1959-60 Started with machine shop in the name of Manic bag garage and
industries.

1983-84 Got the dealership of two wheelers from TVS automobiles and started
with dealership of TVS mopeds, later with motorbike-IND SUZUKI,
and finally also with dealership scooterettes TVS Scooty, Suzuki

1992

Fiero, Victor.
Gave up the dealership of Ashok Leyland (heavy commercial
vehicles) of the Hinduja group and diverting towards TATA
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MOTORS. Where it had the various types of vehicles to the customer,
LCV-light commercial vehicle, HVC-Heavy commercial vehicles,
MUV-Multi Utility Vehicles, PCD-Passenger Car Division, since
from the year 1998.
It has the unique distinction of having sold nearly 4 million the

highest ever in India. It exports its range of products to 17 countries

worldwide. Its unrelenting pursuit of customer satisfaction in all
aspects if manufacturing of 2-wheeler is reflected in over 6 million
satisfied owners of mopeds, motorcycles and scooters. Its 4000 highly
motivated employees manufacture high quality vehicles from two
manufacturing plants in Hosur and Mysore, with a wide dealer
network of around 410.
Apart from the above-mentioned business diversified taken up by

TVS Motors. It also

has the dealership of BOSCH, Mico

Blaupaunkta (Car stereo) also runs a pollution check center approved

by the government of Karnataka and RTO.
Head office of Manic bag automobile if situated in Hubli where it

again deals with TATA vehicles (LCV, HCV, MUV, PCD). Apart from
having the Head Office, TVS Motors has it branch office at Ankola
and Bijapur also..

TVS GROUP:

TVS Group was established in 1911 by Shri. T.V.Sundaram Iyenger. As one if

Indias largest industrial entities it epitomizes Trust, Value and Service.

TVS Motor Company Limited, the third largest two-wheeler manufacture. In

India and among the top ten in the world, with an annual turnover of over
USD 650 million.

The year 1980 is one to be remembered for the Indian two-wheeler industry,
with the roll out of TVS 50, Indias first two-seater moped that ushered in an
era of affordable personal transportation. For the Indian Automobile sector, it
was a break through to be etched in history.

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TVS Motor Company is the first two-wheeler manufacture in the world to be

honored with the hallmark of Japanese Quality The Deming Prize for Total
Quality Management.

TVS Motor Company Limited is one of the largest two-wheeler manufactures

and also among the fastest growing companies in the country. It is the largest
manufacturer of sub 100cc (50cc, 60cc & 70cc category) 2-wheeler in the
world.

It has the unique distinction of having sold nearly 4 million the highest ever in
India. It exports its range of products to 17 countries worldwide. Its
unrelenting pursuit of customer satisfaction in all aspects if manufacturing of
2-wheeler is reflected in over 6 million satisfied owners of mopeds,
motorcycles and scooters. Its 4000 highly motivated employees manufacture
high quality vehicles from two manufacturing plants in Hosur and Mysore,
with a wide dealer network of around 410.

Products:
Two Wheelers in India was set up as a joint venture between TVS and Dunlop, UK in
1960. The company supplies wheels as Original Equipment to all major vehicle
manufacturers in the country. Wheels India is entering into collaboration with Titan,
the world leader in off-highway vehicle wheels relating to earthmoving, construction
and agricultural equipment. Manufacturing Plants are located at Chennai, Tamil Nadu,
Rampur, UP and Ranjangaon, Maharashtra. Wheels India has a workforce of 100.
Products and Service
Wheels for commercial vehicle, cars, jeeps, tractors construction equipment / earth
mover and defense vehicle, wire wheels for export and air suspension systems for
commercial vehicle.

Launched Models:
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1. Indias first 2 seater 50cc Moped TVS 50, launched in Aug 1980.
2. First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept
1984.
3. Launched Indias first indigenous Scooterette (sub-100 cc variomatic
scooters), TVS Scooty in June 1994.
4. Introduced Indias first catalytic converter enabled motorcycle, the 110cc
Shogun in Dec 1996.
5. Launched Indias first 5-speed motorcycle, the Shaolin in Oct 1997.
6. Launched TVS Fiero, Indias first 150 cc, 4 stroke motorcycle, in April 2000.
TVS has Launched TVS Victor, 4-Stroke 100CC motorcycle, in august 2001;
Indias first fully indigenously designed and manufactured motorcycle.
7. Launched TVS Centra in January 2004, a world-class 4-stroke 100CC
motorcycle with the revolutionary VT-I Engines for best-in-class mileage.
8. Launched TVS Star in Sept 2004, a 100 a motorcycle which is ideal for rough
terrain.
Products:
TVS Victor: 4-Stroke, 125cc, performance motorcycle with VT-I technology.

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TVS Apache: 4-Stroke, 150cc high performance motorcycle.

TVS Scooty : 4-Stroke, 90cc scooterette for the new generation.

TVS Centra: 4-Stroke, 150cc premium performance motorcycle.

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TVS Star: 4-Stroke, 100cc value for money economy motorcycle for good
mileage and rugged terrain.

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HISTORY OF TWO- WHEELER INDUSTRY IN INDIA

According to a study conducted by global consulting firm Frost and Sullivan, the twowheeler industry will be the fastest-growing segment of the Indian automobile
industry.
The study said that of all personal transportation vehicles, the motorcycle segment
will grow the fastest, followed by passenger cars.
Automotive sales in the country will get a boost from cuts in the excise duty, new
model launches, higher disposable incomes and a changing consumer mindset. The
Indian automotive market is now a buyers market and the general economic
slowdown makes it imperative for industry participants to stay ahead of demand
trends, said the firm.
TWOWHEELER INDUSTRY IN INDIA:
The origin of Indian two-wheeler industry can be tracked back to 1948, when Bajaj
Auto Ltd., Started importing and marketing Vespa scooters in India. Shortly
afterwards, Enfield India Ltd.,
(Manufacturer of the famous Bullet motor bike) started its manufacturing
operations in India. This was followed by Ideal Jawa and Escorts Ltd., in 1960s. The
motorcycle segment registered a healthy upward trend during the 1960s and in the
early 1970s, it accounted for 36% of the entire two-wheeler market.
However, the motorcycle market in the 1960s and 1970s was largely seller dominated.

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TVS MOTORS PROFILE:

The TVS group was established in 1911 by Shri. T.V. Sundaram Iyengar. As one of
Indias largest industrial entities it epitomizes Trust, Value and Service. Today, there
are over thirty companies in the TVS Group, employing more than 40,000 people
worldwide and with a turnover in excess of USD 2.2 billion. With steady growth,
expansion and diversification, TVS commands a strong presence in manufacturing of
two-wheelers, auto components and computer peripherals. TVS Motor Company
Limited is the third largest two-wheeler manufacturer in India and among the top ten
in the world. It has profitable operations overseas, especially in Asian markets,
capitalizing on our expertise in the areas of manufacturing, technology and marketing.
The company will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Tw o w heelers

Passenger vehicles

Comercial vehicles

Two wheelers
Passenger vehicles
Commercial vehicles
Three wheelers

Three w heelers

78.63%
10.44%
4.03%
3.90%

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Two-wheelers: Market Size & Growth
In terms of volume, 4,613,436 units of two-wheelers were sold in the country in
9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian
industry accounted for around 77.5% of the total vehicles sold in the period
mentioned.
Segmental Growth of the Indian Two Wheeler Industry
After facing its worst recession during the early 1990s, the industry bounced back
with a 25% increase in volume sales in FY 1995. However, the momentum could not
be sustained and sales growth dipped to 20% in FY 1996 and further down to 12% in
FY 1997. The economic slowdown in FY 1998 took a heavy toll of two-wheeler sales,
with the year-on-year sales (volume) growth rate declining to 3% of that year.
However, sales picked up thereafter mainly on the strength of an increase in the
disposable income of middle-income salaried people (following the implementation
of the Fifth Pay Commission's recommendations), higher access to relatively
inexpensive financing, and increasing availability of fuel efficient two-wheeler
models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales
declined marginally in FY2001. This was followed by a revival in sales growth for the
industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the
scooter and moped segments faced de-growth. FY2003 also witnessed a healthy
growth in overall two-wheeler sales led by higher growth in motorcycles even as the
sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler
sales during FY2004 was led by growth in motorcycles even as the scooters segment
posted healthy growth while the mopeds continued to decline. Figure-1 presents the
variations across various product sub-segments of the two-wheeler industry between
FY1995 and FY2004.

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Demand drivers
The demand for two-wheelers has been influenced by a number of factors over the
past five 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 urbanization, which creates a need for personal transportation;
Changes in the demographic profile;

Difference between two-wheeler and passenger car prices, which makes

two-wheeler the entry level vehicles;

Steady increase in the per capita income over the past five years; and
Increasing

number of models with different features to satisfy diverse

consumer needs.
With the demand drivers listed here operate at the broad level, segmental
demand is influenced by segment- specific factors.
MARKET CHARACTERSTICS
DEMAND
Segmental classification and Characteristics
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 sub-segment emerged, viz scooterettes, gearless scooters,
and 4-stroke scooters. While the first two emerged as response to response
demographic changes, the introduction or 4-stroke scooters has followed the
imposition of stringent pollution controls norms in the early 2000, Besides, these
prominent sub- segments, product group within these sub- segments have gained
importance in the recent years. Examples include 125CC motorcycles, 100-125CC
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gearless scooters, etc. The characteristics of each of the three broad segments are
discussed.
Two-Wheeler: Comparative Characteristics
Scooter

Motorcycle

Moped

>22,000

>30,000

>12,000

2-stroke,4- Stroke

Mainly 4-stroke

2-stroke

90-150

100, 125, >125

50,60

Kick/electronic

Kick/Electronic

Kick/Electronic

6.5-9

7-8 and above

2-3

90-100

>100

60-70

50-75

50-80+

70-80

High

Highest

Low

Price* (Rs. as in
January 2005)
Stroke
Engine
Capacity(cc)
Ignition
Engine Power
(bph)
Weight(Kg)
Fuel Efficiency
(kms Per liter)
Load carrying
Lowest
Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the past 10
years with the preference changing from scooters and mopeds to motorcycles. The
scooters segment was the largest till FY 1998, accounting for around 42% of the twowheeler sales (motorcycles and mopeds accounted for 37%) and 21% of the market
respectively, that year). However, the motorcycles segment that had witnessed high
growth (since FY1994) became larger than the scooter segment in terms of market
share for the. first time in FY1999. Between FY1996 and 9MFY2005, the motorcycles
segment more than doubled its share of the two-wheeler industry to 79% even as the
market shares of scooters and mopeds stood lower at 16%> and 5%, respectively.
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Trends in Segmental Share in Industry Sales (FY1996-9MFY2005)

While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a
healthy growth of 20%), indicating a clear shift in consumer preference. This shift,
which continues, has been prompted by two major factors: change in the country's
demographic profile, and technological advancements.
Over the past 10-15 years the demographic profile of the typical two-wheeler
customer has changed. The customer is likely to be salaried and in the first job. With a
younger audience, the attributes that are sought of a two-wheeler have also changed.
Following the opening up of the economy and the increasing exposure levels of this
new target audience, power and styling are now as important as comfort and utility.
The marketing pitch of scooters has typically emphasized reliability, price, comfort
and utility across various applications. Motorcycles, on the other hand, have been
traditionally positioned as vehicles of power and style, which are rugged and more
durable. These features have now been complemented by the availability of new
designs and technological innovations. Moreover, higher mileage offered by the
executive and entry-level models has also attracted interest of two-wheeler customer.
Given this market positioning of scooters and motorcycles, it is not surprising that the
new set of customers has preferred motorcycles to scooters. With better ground
clearance, larger wheels and better suspension offered by motorcycles, they are well
positioned to capture the rising demand in rural areas where these characteristics
matter most.
Scooters are perceived to be family vehicles, which offer more functional value such
as broader seat, bigger storage space and easier ride. However, with the second-hand
car market developing, a preference for used cars to new two-wheelers among vehicle
buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in
preference towards gearless scooters (that are popular among women) within the
scooters segment. Motorcycles, offer higher fuel efficiency, greater acceleration and
more environment-friendliness. Given the declining difference in prices of scooters
and motorcycles in the past few years, the preference has shifted towards motorcycles.
Besides a change in demographic profile, technology and reduction in the price
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TVS MOTOR COMPANY

difference between motorcycles and scooters, another factor that has weighed in
favour of motorcycles is the high re-sale value they offer. Thus, the customer is
willing to pay an up-front premium while purchasing a motorcycle in exchange for
lower maintenance and a relatively higher resale value.
Supply
Manufacturers
As the following graph indicates, the Indian two-wheeler industry is highly
concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd
(Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the
industry sales as in 9MFY2005. The other key players in the two-wheeler industry are
Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd
(LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto),
Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).
Although the three players have dominated the market for a relative long
period of time, their individual market shares have undergone a major change. Bajaj
Auto was the undisputed market leader till FY2000, accounting for 32% of the twowheeler industry volumes in the country that year. Bajaj Auto dominance arose from
its complete hold over the scooter market. However, as the demand started shifting
towards motorcycles, the company witnessed a gradual erosion of its market share.
HHML, which had concentrated on the motorcycle segment, was the main
beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in
9MFY2005 to emerge as the market leader TVS. On the other hand, witnessed an
overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The
share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it
changed its product mix but has declined since then.
Impact Analysis - Two wheelers
Robust demand to continue
After an 11.4 per cent growth in 2003-04, two-wheeler sales surged by over 17 per
cent year-on-year (Y-o-Y) for the first 10 months of 2004-05. Sales growth, led by the
sales of motorcycles, escalated consistently during the April to January period due to

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TVS MOTOR COMPANY

increasing household incomes, easy availability of finance, and the success of certain
new models launched during the period.
Two-wheeler demand is expected to grow at a healthy rate of 11-12 per cent from
2004-05 to 2005-06. Rising household incomes, frequent new model launches and the
increasing penetration of finance and distribution will act as key growth drivers.
The motorcycle segment witnessed stupendous growth in 2004-05 (20.3% Y-o-Y)
after a moderate performance (growth of 13.7% Y-o-Y) in 2003-04. The buoyant
growth in this segment will be maintained on account of the entry of global players
like Honda Motors and Suzuki (entry expected in 2005) and the domestic players'
growing focus on motorcycles. The segment is expected to grow by 12-13% in 200506.
Led by the ungraded segment, scooter sales are likely to grow by 8%, while moped
Sales are expected to stagnate or decline marginally in 2005-06.
Budget Impact
Neutral impact on the two-wheeler segment
A. The reduction in the import duty on used two-wheelers will not affect the

industry...
B. The hike in the excise duty on steel will not affect the industry, as Cenvat Credit

can be availed for the same.

C. The extension up to March 2007 of 150 per cent deduction on R&D expenditure
will marginally benefit domestic two-wheeler players, such as TVS Motors, Bajaj
Auto and Kinetic.
D. The reduction in personal tax rates will increase household disposable income,
which is a positive for two-wheeler demand.

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TVS MOTOR COMPANY

Prices and Duties.

Two wheelers Tariffs

Percentage

Customs

Excise

2004-05

2005-06

2004-05

2005-06

Two wheelers

61.2

61.2

16.3

16.3

Steel items

5.1

5.1

12.2

16.3

Engines and engine parts

20.4

15.3

16.3

16.3

Other components

20.4

15.3

16.3

16.3

Secure: CRIS INFAC

Major Players
Company name

Impact

Impact factors

Bajaj Auto Ltd.

Neutral

A,B,C,D

Hero Honda Motors Ltd.

Neutral

A,B,C,D

TVS Motors Company Ltd.

Neutral

A,B,C,D

Company Network:
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TVS MOTOR COMPANY

TVS Motor Company has one of the most extensive networks with over 500 dealers
and 2500 Customer touch points.
We are the first in the two-wheeler industry to measure customer satisfaction,
audited by external consultants of international repute.
We have taken care to standardize facilities across all customer touch points.
Up gradation of faculties and continuous improvement in all processes is given
importance. The company also takes an active part in imparting training and
capability building in all areas including sales, service and business management. All
our dealers are connected through the extended network of SAP, ensuring operational
efficiency.

Supply Chain Management

Forming the inner of the extended TVS family; our suppliers are involved at every
stage of product development.
We extend core values and best practices to all our suppliers. Through
continuous training forums we impart TPM (Total Productivity Maintenance) and JIT
(Just in Time) practices.
TVS suppliers are committed to quality through continuous improvement and
up gradation of processes. This has helped them obtain prestigious international
certifications like ISO 9000, QS 9000 & TS 16949.
The TVS Motor Company R&D team has a strong pool of technical talent
supported by state-of-the-art infrastructure capable of developing new and innovative
designs. Currently, more than 400 engineers work on developing radically new
products and cutting edge engine technologies. Our R&D team has developed the
revolutionary Variable Timing Intelligent (VT-i) Engines, one of the most innovative
technologies developed in the two wheeler industry.
TVS R&D Engineers have published multiple technical papers in international
conferences on engine and vehicle technologies. They also have a number of patents
to their credit.

Quality is the way of life

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TVS MOTOR COMPANY

At TVS Motor Company, every department works in tandem to produce quality

product. The people from the pillars of the support, strengthening the overall quality
standards and moving towards total customer satisfaction.
In our quest to achieves world class levels in quality as well as improvements in
design and processes, the company has formed special task forces to monitor quality
related performance. The basis tents of TQM, including daily work management,
Policy management, Kaizen (continuous improvement), training and standardization
are followed across our organization.
Acknowledges by the Japanese for Quality. We at TVS Motor Company are proud to
have been awarded the prestigious and coveted Deming Prize, instituted by JUSE
(Union of Japanese Scientists and Engineers). TVS Motor Company in the only 2wheeler company in the world to have received this award.
TVS Motor Company was also awarded the prestigious TPM Excellence award First
category by Japan Institute of Plant Maintenance (JIPM), rated as the benchmark in
TPM excellence in India.

Social responsibility
This extended arm of the company believes in social responsibility and has involved
itself in several community development initiatives that have significantly improved
the standard of living of the people in 51 villages across the country.

Economic development
The program enables people below the poverty line these adopted villages to earn
their livelihood by involving them in activities that generate income.

Health
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TVS MOTOR COMPANY

Health is one of the main focus areas of the Srinivasan Service Trust. Dental care
camps; eye camps, health check-up and nutrition programs are conducted. The
initiative also focuses on primary health, maternal health, child-care and leprosy
eradication.

Infrastructure Development
The Company is actively in the community development of the villages by providing
infrastructure facilities such as housing, sanitation, roads drains, bus shelters, medial
centres and natural resources management.

Rebuilding Quake Hit Villages

Suppurated by Rural Research & Development Society and Kutch Nav Nirman
Abhiyan, the Company has rebuilt Goyersama a village in the District of Gujarat,
which was hit by an earthquake of unprecedented scale and magnitude on 26 th Jan
2001.

Education and literacy

In addition to providing infrastructure facilities like new building for school,

the Company helps establish computer education programs for school
children. The Srinivasan Service Trust has successfully achieved 98% primary
school enrollment in the adopted villages.

The performance in January 2006 represents the shape of things to come in the
coming months. While the performance of new brands launched last year, in
particular, Star City continue to beat expectations, TVS Apache, the new 150
cc motorcycle in the premium segment promises to be a winner as it has
already won several coveted awards for its overall performance and style.

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TVS MOTOR COMPANY

TVS Star City is amongst the few bikes that have crossed the sale of 50,000
units per month Star City has enabled the company to make significant inroads
in the economy segment of the motorcycle market.

TVS Scooty recorded 17,957 units in January 2006 compared to 14,724 units
in the same period last year recording a growth of 22% Scooty Pep+ won the
best Scooter of the year award 2006 by OVERDRIVE and it continues to be
a dominant player in the ungraded scooter category.

In the export front, TVS Motor Company continued its robust performance
having exported 6,374 units in January 2006. Exports recorded a growth of
147% compared to the same period last year.

Milestones:

1980 TVS Motor launched Indias first twoseater 50cc moped TVS 50.

1984 The twowheeler major became the first Indian company to introduce
100cc IndoJapanese motorcycles.

1994 It launched Indias first indigenous scooterette TVS Scooty, a 100cc

model.

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TVS MOTOR COMPANY

199697 Introduced Indias first catalytic converterenabled motorcycle, the

110cc Shogun. Launched Indias first 5 speed motorcycle, the Shaolin.

2000 Launched TVS Fiero, Indias first 150cc, 4stroke motorcycle.

2001 Launched TVS Victor, 4stroke 110cc motorcycle, Indias first fully
indigenously designed and manufactured motorcycle.

2002 TVS becomes the worlds first twowheeler company to win the worlds
most prestigious recognition in Total Quality Management the Deming
Award 2002. TVS wins the Technology Award from Ministry of Science,
Government of India for successful commercialization of indigenous
technology.

2004 Launched TVS Center, a world class 4stroke 100cc motorcycle with
revolutionary VT I engine for best in class mileage. Launched TVS Star, a
100cc motorcycle ideal for the rough terrain. TVS wins TPM Excellence
award from Japan Institute of Plant Maintenance (JIPM). TVS wins
Outstanding design Excellence Award for TVS Scooty Pep.

2005 06 TVS launches its Indonesian plant. Launched TVS Apache, which
set the youths imagination on fire. Apache went on to be the Bike of the year
for 2006, winning six prestigious awards.

2007 TVS Motor Company rolls out seven new products. TVS launches its
Himachal Pradesh Plant at Nalagarh.

2008 09 Apache Refresh with Rear Disc Brakes was launched in December
2008. TVS Motor company bags two coveted IT awards in September 2008
SAP ACE 2008 Award and 2008 Symantec South Asia Visionary Award.
Scooty Pep was launched with balancing wheels in August 2008. Scooty
Wimbledon Collection launched in June 2008.

Apache RTR FI was launched June 2008.

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TVS MOTOR COMPANY

TVS Motor Company launched the revolutionary 125cc Flame in March 2008.
TVS made by its foray into the threewheeler market with TVS King in
March 2008.

2009 TVS unveils High performance with Apache RTR 180 in June 2009.
TVS scooty Streak was launched. TVS Flame SR 125 launched was June
2009.

TVS Brands:

TVS Apache

TVS Apache RTR FI 160

TVS Centra TVS Fiero FX

TVS Flame TVS Scooty

TVS Star TVS Victor

TVS Victor GLX 125

TVS XL Super

Group companies:

TV Sundram Iyengar and Sons

Lakshmi Auto Components

Lucas Indian Service

Axles India

Brakes India

HaritaGrammer

India Motor Parts and Accessories

India Nippon Electricals

Lucas TVS Limited

Madras Auto Service

Southern Roadways

Sundaram Brake Linings

Sundaram Fasteners

Sundaram Finance

Sundaram Industries
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TVS MOTOR COMPANY

Sundaram Motors

Sundaram Clayton

SundaramClayton

Srinivasan Services Trust

Awards and Achievements:

2012 CIIITC Sustainability Awards 2012

The Deming Prize TVS Motor Company is the only twowheeler

company in the world to be awarded the world's most prestigious and
coveted recognition in Total Quality Management.

Technology Award 2002 from the Ministry of Science, Government of

India for the successful commercialization of indigenous technology
for TVS Victor.

Asian Network for Quality Award 2004 TVS Scooty Pep won the
prestigious 'Outstanding Design Excellence Award' from Business
World and National Institute of Design.

Progressive Manufacturer 100 Award TVS wins coveted 2009

Progressive Manufacturer 100 Award for endtoend automation of the
entire business process of its lubricant brand, TVS TRU4.

TPM Excellence Award 2008 First category by Japan Institute of

Plant Maintenance (JiPm). Most Investor friendly company by
Business Today, one of India's leading business.

The 'Good Advertising' award by Auto India Best Brand Awards 2009.

SAP ACE AWARD 2007 The company won the SAP ACE 2007
Award for Customer Excellence in the Most Innovative Netweaver
Category.

TEAM TECH 2007 Award TVS Motor Company bagged the TEAM
TECH 2007 Award of Excellence for Integrated use of Computer
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TVS MOTOR COMPANY

Aided Engineering Technologies.TVS APACHE bages 5 coveted
awards by leading Auto Magazines.

Bike of the Year

CNBC-TC18 AUTOCAR AWARDS 2006

Bike of the Year

OVERDRIVE Awards 2006

Bike of the Year

Business Standard Motoring Awards 2006

Indigenous design of the year

OVERDRIVE Awards 2006

Design of The year 2006-Two wheeler

BBC Top Gear design awards 2006

SCOOTY PEP PLUS

Scooter of the year

OVERDRIVE Awards 2006

ISOTOPE 200 (CONCEPT BIKE FROM TVS motor Company )

Design of the Year- Concept Vehicles

Top Gear design awards 2006

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TVS MOTOR COMPANY

Strategy:

CONSOLIDATION is the current theme at TVS Motor. In the intervening

period that is, before new models are rolled out the company seems to be
trying to refocus and offer potential customers more choice with the launch of
new variants under the existing badges.

The new variants have been fine-tuned based on customer feedback. They will
attempt to offer more value to the customer, even as competitors have been
nibbling away at the companys market share.

The new variants are basically spruced up versions of bikes that have either
been performing below expectations or attracting customers only in specific
markets.

So, the obvious two to get the cosmetologist treatment are the TVS Victor GX
and the Star.

The 110cc Victor GX was not finding many takers from either the 100cc or the
125cc segments. Designed to attract the entry-level bike buyer interested in a
bit more of power and style, the Victor GX (and for that matter the GLX) has
not been able to stir up the same level of interest among potential customers
that the original Victor had managed to do.

Now, TVS is replacing the Victor GX with newly developed Victor Edge, and
the principal change is the heart transplant. The old 110cc engine has been
hauled out and a slightly tweaked version of the GLXs 125cc engine has been
in its place.

The new, fine-tuned 125cc engine delivers a higher 9.2 bhp of peak power
against the 8.1 bhp that the earlier 110cc engine managed.
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TVS MOTOR COMPANY

The extra power should give the Edge an advantage in the premium entrylevel bikes category. However, TVS has not chosen to replace the four-speed
gearbox with a Five-speed shifter, a feature that more bikes in this segment
want as part of the package.

The Victor Edges engine performance has been aided by a roller cam follower
for reducing friction losses, and this is expected to improve fuel-efficiency.
The engine also features larger valves and a reworked air-box for better sir
induction.

Overall, the changes boost peak torque to a high 10 Nm at a low 4,000 rpm.

The Edge also features changes to the chassis, including an increased

wheelbase and a new box section swing arm for greater stability and better
maneuverability, handling and ride. The Edges wheelbase has been increased
from 1,200mm to 1,240mm, and comes with gas filled shock absorber at the
rear.

The other additions are optional alloy wheels and disc brakes, new dual tone
side panel stickers with five colour theme options, enhanced grip levers for
better feel, and slightly reworked switchgear that feels more study and
reliable.

The Edge is priced at Rs. 40,990 (ex-showroom, Channai).

Along with the launch of the Victor edge, TVS has unveiled a new version of
the companys barebones, entry-level 100cc bike.

The Star (spelt as StaR) had replaced TVS long standing two-stroke entrylevel bike series the erstwhile Max 100 and Max 100R last year.

After the launch of the Star DLX, the slightly jazzed-up version of the basic
stripped down model, the TVS Star City, launched earlier this month, will now
attempt to offer the entry-level biker who wants to continue to stick within the
bounds of this segment, a bit more style and finish.
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TVS MOTOR COMPANY

The Star City will target potential, fuel-efficiency conscious 100cc bike buyers
who live in the city and will be willing to pay a marginally higher price for
more features and better looks and finish quality.

With that target audience, the bike is being offered with a new headlamp
fairing and halogen bulb combo, easy-to-read instrumentation with a new blue
backlight, push-cancel indicator switches, new spring shock absorbers with a
hand-operated pre-load adjustment lever and a new sporty silencer and heat
shield combo that feature the same diagonally chopped-off design that Yamaha
first brought to the market.

Seat width on the Star City has also been increased slightly to improve ride
comfort for long distance travel. The roller cam follower technology that TVS
first adopted in the Center has been inducted into the Star City for friction
reduction and increased mileage.

The bike will also sport a new, more rigid, reinforced chassis frame and wider
three-inch tires at the rear for improved stability and road holding.

Dual tone colours are also being offered and TVS will soon launch a new
advertising campaign for all its three new variants-Sciity Pep+, Victor Edge
and the Star City.

There was a time, not long ago, when a two-wheeler meant a Bajaj Chetak or
an LML Vespa. In the past five years or so, sales of motorcycles have
outstripped sales of nearly all other two-wheelers.

Consumer preferences have shifted in favour of motorbikes and though this is

partly related to price factors, it is also due to the fact that motorcycles are
actually being seen as better vehicles than the heavy and unwieldy geared
scooters.

The sales tax rationalization that took place in the 2001 budget resulted in
scooters becoming more expensive than before. In addition the government
began to enforce strict Euro-emission norms which forced scooter
manufacturers to install catalytic converters in existing vehicles or to go in for
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TVS MOTOR COMPANY

four-stroke engines to reduce pollution, thus adding to the costs of scooters.
But, fortuitously, motorcycles were already in tandem with these new norms.

Motorcycle, being more suited for commuting than any other vehicle,
combines a variety of factors such as comfort, ability to handle bad roads and
intrinsic stability. All this makes it extremely suitable for the Indian market.

Here comes gearless but, curiously enough, in the past one year the scooter
has not only back, but is surging ahead in sales-and this time it is sleeker,
lighter and, most importantly, without gears. Indeed, in a number of B and C
cities

and small towns across India, women and teenagers are taking to

gearless scooters like ducks to water.

Its easy to see why. Gearless scooters are light and easy to handle, have
sufficient compartments to carry goods and go easy on fuel, much like
mopeds, with their almost legendary fuel-saving ability.

In fact, in recent times, auto industry experts say there has been a discernible
shift of buyers from mopeds to gearless scooters as the latter cost just a coupe
of thousand more and come with sturdier bodies and better looks.

Around two year ago when sales of geared scooters started falling, a number
of companies led by Honda Motor and Scooters India, which did not have a
motorbike model in the market, launched gearless scooters in an effort to grow
this segment.

The gearless scoters segment (75-125 cc) comprises four major players:
Honda with the Active and the Dio; Kinetic with the Zoom and the Nova;
Bajaj with the Sunny and the Saffire; and TVS with the Scooty.

The Honda Actives fast growth has encouraged other players to come out
with new offerings to increase the market shar. One example is Kinetic
Engineering; wit sister company Hinetic Motor, who are the pioneers in the
gearless scooters segment and the largest manufacturer of gearless scooters in
India starting from humble beginnings with the Luna moped in 1970.
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Kinetic energy:

In the past one year the Kinetic group has launched a number of automatic
scooter models in the domestic market, which has helped it to get customers
who might have otherwise opted for motorcycles. The company is focusing on
designing scooter models specifically suited for Indian conditions.

For instance, its 115-cc four-stroke Kinetic Nova is designed for Indian
conditions in its styling and utility. Its success has encouraged the company
launch new variants with special features. The company has also come out
with a two-year warranty for its Nova, launched last year, as an added
attraction to foster customer retention.

In January 2003 the Kinetic group launched the premium Nova DLX priced at
Rs. 35,576 ex-showroom price Delhi, and announced that it would launch
another gearless scooter by the end of the year.

Also recently, the Nova DLX launched the Mileage Expert, an electronic
device, which keeps the rider informed of fuel efficiency during the ride and
the company claims it improves efficiency by 10 percent.

Southern spirit:

The South-based TVS Motor is another major player in the gearless scooters
market It is also aspiring to become a leadership position in the gearless
scoters segment.

TVS is planning a new Scooty with a 100-plus cc engine and as part of the
flexible and low-cost product development strategy, the new Scooty is
expected to share the engine with the TVS Victor, which comes with a 110 cc
four-stroke engine. Company sources say the Victor engine can be easily fitted
into the new Scooty with minor modification.

Currently, the Scooty is available in the sub-75cc scooterette segment where it

competes against Bajaj Autos Sprit and Sunny. While the lower-priced variant
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TVS MOTOR COMPANY

comes with a 60cc engine, the launched Scooty Pep has 75cc four-stroke
engine.

TVS is also a major in the mopeds segment with its TVS Champ and hopes to
replicate its success with gearless scooters as well. The new Scooty launch is
part of TVS larger plan to beef up its product portfolio.

In all, TVS plans to roll out six new models of scooters and motorcycles next
fiscal with a total investment of Rs. 600 corer during the next three years to
expand its product range in the domestic market.

India is the second largest manufacturer and producer of two-wheeler in the

world. It stands next only to Japan and China in terms of the number of twowheelers produced and domestic sales respectively.

Two Wheeler segment as a whole during the year 2004-05 grew by over 15%
Backed by Governments initiative on rural roads and better connectivity with
major towns and cities, improved agricultural performance, upward trend of
purchasing power in the hands of rural people, the two wheeler industry was
able to achieve the record performance of crossing 6 million two wheelers
with exact sales standing at 6,208,860 during the year 2004-05.

Hero Honda

47%

Bajaj Auto

30%

TVS Motors 17%

Future Focus

In the future TVS Motor Company will be one among the top two 2 wheeler
companies in India and one among the top five 2-wheeler companies in Asia.

We will have profitable operations overseas, especially in Asian markets,

capitalizing on our expertise in the areas of manufacturing, technology and
marketing. The Company will hone and sustain its cutting edge of technology
by constant benchmarking against international leaders. TQM will be a way of
life and guide all our endeavors.
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Performance vis-a-vic competitors:

With rise in per capita income, lowering of interest rates, changes in consumer
preference towards trendier two-wheelers, there was a conscious shift in the
composition of two wheeler industry led by increase in the demand of
motorcycle as against scooters and moped. In FY04 out of the total twowheeler industry of 506 m units, the share of motorcycle was 77% as against
42% in FY99. During the period FY97 to FY04, while two-wheeler industry
grew CAGR of 10% the demand for motorcycle grew at 27% CAGR.
However, TVS managed to achieve a CAGR of 11%. Thus while competitors
were cashing on this boom, TVS market share was declining due to lack of a
4 stroke model in its stable. This fall has been somewhat restricted with the
introduction of Victor in 2003.

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TVS MOTOR COMPANY

CHAPTER - 4
DATA ANALYSIS
AND INTERPRETATION
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TVS MOTOR COMPANY

ANALYSIS AND INTERPRETATION

1

Are you belonging to which age group in the following?

Response

No of Customers

Below 20

21-30

40

31-40

25

41-50

17

Above 50

10

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TVS MOTOR COMPANY

No of Customers
45
40
35
30

No of Customers

25
20
15
10
5
0
Below 20 21-30

31-40

41-50 Above 50

Interpretation:
The highest number of respondents falls in the age group 20-40. The rest of the
population under study can be listed in the following descending order of distribution
the working age group, the older age group, the middle age group, and senior
citizens

Will you prefer which following model of TVS model?

Response

No of Customers

TVS XL

48

SCOOTY SERIES

PEP SERIES

10

VICTOR SERIES

15

STAR CITY SERIES

12

APACHI SERIES

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No of Customers
60
50
40
30
20
10
0
SE
RI
ES
CI
TY

SE
RI
ES
ST
AR

PE
P

TV
S

XL

No of Customers

Interpretation:
In the TVS bikes the customers are giving more preference to TVS XL , Star
city series & Victor series rather than Scooty series, Apachi and PEP series.

Are you belonging to which income level respondent?

Response

No of Customers

Below 3000

19

3001-6000

39

6001-8000

11

8001-10000

Above 10,000

22

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TVS MOTOR COMPANY

No of Customers
45
40
35
30
25
20
15
10
5
0
10
,0
00

Ab
ov
e

10
00
0

80
01
-

80
00
60
01
-

60
00
30
01
-

Be
lo
w

30
00

No of Customers

Interpretation:
In the base of economically, It is used in the base of income i.e. 19% income
group below 30000, 39% of 3001-6000, 11% of 8001-10000 and rest of used in the
rarely above income 10,000.

4. What type of occupation does the consumer belonging?

Response

No of Customers

Farmer

20

Private employee

34

Government employee

10

Student

Business

29
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TVS MOTOR COMPANY

No of Customers
40
35
30
25
20
15
10
5
0
Bu
si
ne
ss

pl
oy
ee
en
te
m
G
ov
er
nm

Fa
rm

er

No of Customers

Interpretation:
Occupationally and professional the motor bike has been used i.e. 20%
preferred by farmers, 34% preferred by private employees and 10% preferred by
government employees & 7% preferred by students and remaining 29% preferred by
business people.

5. Mostly on what type of purpose respondent use vehicles?

Response

No of Customers

Personal use

83

Official use

17

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TVS MOTOR COMPANY

No of Customers
90
80
70
60

No of Customers

50
40
30
20
10
0
Personal use

Official use

Interpretation:
With the above analysis, from the 100 respondents, 83% are using for the
purpose of personal , and the remaining 13% of respondents are using for official .

6. What type of purchase mode of the bike does respondent prefer?

Response

No of Customers

Reddy cash

58

Bank loan

24

Private loan

18
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TVS MOTOR COMPANY

No of Customers
70
60
50
No of Customers

40
30
20
10
0
Reddy cash

Bank loan

Private loan

Interpretation:
With the above analysis, from the 100 respondents, 58% people are prefer to
buy in ready cash mode & 24% people are prefer to buy using bank loan and
remaining 18% people are prefer to busy using private loan.

7. What type of opinion does respondent see on price?

Response

No of Customers

Highly satisfied

10

Satisfied

60
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TVS MOTOR COMPANY

Neutrally satisfied

10

Not satisfied

12

Highly not satisfied

No of Customers
70
60
50
40
30
20
10
0
at
is
fe
d
H
ig
hl
y

no
ts

sa
tis
fe
d
eu
tr
al
ly
N

H
ig
hl
y

sa
tis
fe
d

No of Customers

Interpretation:
Out of the responses obtained from 100 customers 10% said that they highly
satisfied regarding price, 60% said that they satisfied, 22% said that they not satisfied
and 8% said that they highly not satisfied.

8. How customer preferences before purchasing the bike?

Response

No of Customers

Brand Name

15
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TVS MOTOR COMPANY

Price

19

Performance

28

Mileage

21

After sale service

17

No of Customers
30
25
20
15
10
5
0
se
rv
ic
e
Af
te
rs

al
e

an
ce
Pe
rfo
rm

Br
an
d

am

No of Customers

Interpretation:
From the above it can be stated that general normally any one while
purchasing a four wheeler most of the members are seeing 28% of members are
seeing performance and 21 % of members are seeing Mileage And 19% of members
are seeing PRICE and 17% of members are seeing after sale services and 17% of
members are seeing Brand Image.

9. What education qualification of respondent belonging?

Response

No of Customers

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TVS MOTOR COMPANY

Illiterate

20

School level

College level

35

Others

43

No of Customers
50
45
40
35
30
25
20
15
10
5
0
O
th
er
s

le
ve
l
Co
lle
ge

Sc
ho
ol
le
ve
l

Illi
te
ra
te

No of Customers

Interpretation:
In the base of education qualification, with the above analysis, from the 100
respondents, 20% of the people are illiterate and 2% of the people are school level &
35% of the people are college level and remaining 43% of the people are others.

10 What are the opinions does the respondent have after sale services?

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TVS MOTOR COMPANY

Response

No of Customers

Highly satisfied

14

Satisfied

45

Neutrally satisfied

32

Not satisfied

Highly not satisfied

No of Customers
50
45
40
35
30
25
20
15
10
5
0
at
is
fe
d
no
ts
H
ig
hl
y

sa
tis
fe
d
eu
tr
al
ly
N

H
ig
hl
y

sa
tis
fe
d

No of Customers

Interpretation:
Out of the responses obtained from 100 customers 14% said that they highly
satisfied after sale service, 45% said that they satisfied, 32% said that they neutrally
satisfied and 8% said that they not satisfied and remaining 1% people are said that
highly not satisfied after sale service provided by TVS motors.

11

About convenience does the respondent are satisfying when the delivered as
per the allotment times?
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TVS MOTOR COMPANY

Response

No of Customers

Highly satisfied

25

Satisfied

40

Neutrally satisfied

15

Not satisfied

10

Highly not satisfied

10

No of Customers
45
40
35
30
25
20
15
10
5
0
at
is
fe
d
no
ts
H
ig
hl
y

sa
tis
fe
d
eu
tr
al
ly
N

H
ig
hl
y

sa
tis
fe
d

No of Customers

Interpretation:
According to my survey, Out of 100 respondents 25% of the people
highly satisfied at the time of vehicle delivered as per the allotted time in TVS
motod. And 40% of the people satisfied & 15% of the people neutrally satisfied
& 10% of the people not satisfied and the remaining 10% of the people says
hoghly not satisfied about the time of vehicle delivered as per the allotted time
in TVS Motors.

12 Do you feel the service charges /repair charges were reasonable?

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TVS MOTOR COMPANY

Response

No of Customers

Excellent

28

Good

38

Bad

24

Very poor

10

No of Customers
40
35
30
25

No of Customers

20
15
10
5
0
Excellent

Good

Bad

Very poor

Interpretation:
In the sample taken out of 100 respondents 28% of the people feel service
charges/repair charges were Excellent & 38% of the people says good. On the other
hand 24% of the people says bad and remaining 10 % of the people feel the service
charges/repair charges were very poor.

13 Do you recommend your friends to purchase?

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TVS MOTOR COMPANY

Response

No of Customers

Yes

71

No

29

No of Customers
80
70
60
50

No of Customers

40
30
20
10
0
Yes

No

Interpretation:
A look at the chart shows that 71% of the members are suggesting to friends
and 29% of the members are not suggesting.

14 Satisfaction level of quality of service after sale being provided?

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TVS MOTOR COMPANY

Response

No of Customers

Highly satisfied

55

Satisfied

25

Neutrally satisfied

12

Not satisfied

Highly not satisfied

No of Customers
60
50
40
30
20
10
0
at
is
fe
d
no
ts
H
ig
hl
y

sa
tis
fe
d
eu
tr
al
ly
N

H
ig
hl
y

sa
tis
fe
d

No of Customers

Interpretation:
Out of the responses obtained from 100 customers 55 % said that they highly
satisfied of quality of service after sale being provided, 25% of the people are
satisfied, 12% of the people are neutrally satisfied and 8% of the people that they
highly not satisfied of quality of service after sale being provided.

15 What is the opinion regarding mileage of the preferred bike?

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TVS MOTOR COMPANY

Response

No of Customers

Highly satisfied

40

Satisfied

30

Neutrally satisfied

15

Not satisfied

10

Highly not satisfied

No of Customers
45
40
35
30
25
20
15
10
5
0
at
is
fe
d
no
ts
H
ig
hl
y

sa
tis
fe
d
eu
tr
al
ly
N

H
ig
hl
y

sa
tis
fe
d

No of Customers

Interpretation:
Out of the responses obtained from 100 customers 40% said that they highly
satisfied regarding Mileage of the bike, 30% said that they satisfied, 15% said that
they neutrally satisfied and 10% said that they not satisfied and remaining 5% said
that they highly not satisfied about mileage of the preferred bike.

16 On what basis do you prefer to buy tvs model?

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TVS MOTOR COMPANY

Response

No of Customers

Product variety

21

Brand

24

Pricing

35

Offers

20

No of Customers
40
35
30
25

No of Customers

20
15
10
5
0
Product variety Brand

Pricing

Offers

Interpretation:
From the above table it is shown that 35% of the respondents are citing Price
as the factor. While 24% cited brand image as the reason for choosing the service 21%
cited Product variety as the factor. As far as Offers is concerned only 20% of the
respondents have quoted it as the reason for choosing this service.

17 What type of service betterment do you expect from tvs motors?

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TVS MOTOR COMPANY

Response

No of Customers

Better Service

45

Better settlements & claims

35

Better returns

15

Others

No of Customers
50
45
40
35
30
25
20
15
10
5
0
re
tu
rn
s
Be
tt
er

Be
tt
er

Se
rv
ic
e

No of Customers

Interpretation:
From the source of field survey, out of 100 respondents 45% of the people
expect betterment of service from TVS motors & 35% of the people better settlements
and claims & 15% of the people better returns & 5% of the people need other futures
in TVS motors.

18 Based on your overall experience would you visit this service centre again?
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TVS MOTOR COMPANY

Response

No of Customers

Yes

72

No

28

No of Customers
80
70
60
50

No of Customers

40
30
20
10
0
Yes

No

Interpretation:
According to my survey 72% of people like to say that, they are recommended
to visit this service centre again & 28% of the people are not recommended to visit
this service centre again.

19 Did you find service centre staff co-operative, Courteous & polite?
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TVS MOTOR COMPANY

Response

No of Customers

Excellent

21

Satisfied

45

Average

23

Not satisfied

Highly not satisfied

No of Customers

at
is
fe
d

No of Customers

H
ig
hl
y

no
ts

Av
er
ag
e

Ex
ce
lle
nt

50
45
40
35
30
25
20
15
10
5
0

Interpretation:
Out of 100 respondents 21% of the people say excellent service centre staff
very co-operative in TVS motors. 45% of the people satisfied & 23% of the people
average & 8% of the people are not satisfied and remaining 3% people are highly not
satisfied.

20 Why do you prefer for this service?

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TVS MOTOR COMPANY

Response

No of Customers

Convenience

53

Economical

30

Security

Features

13

No of Customers
60
50
40
30

No of Customers

20
10

Fe
at
ur
es

Se
cu
rit
y

Ec
on
om
ic
al

Co
nv
en
ie
nc
e

Interpretation
In todays busy world convenience seems to be the most overriding factor. It is
clear that 53% of the respondents have preferred this service due to easy & hands free
availability, making it convenient to use it. On the other hand 30% have said economy
of the service, and 4% of the respondents said that security as their choice. While 13%
said features as the reason for preferring the service.

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TVS MOTOR COMPANY

CHAPTER - 5
FINDINGS
CONCLUSION
SUGGESTIONS
QUESTIONARIES
BIBILOGRAPHY

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TVS MOTOR COMPANY

FINDINGS

Majority of the respondents in the age group between 21 30 years are using
TVS XL Super series and majority of the respondents in the income level of Rs.
3001 4000 are satisfied with the price of TVS vehicle.

Majority of the respondents are using the vehicle for personal use and they had
taken test drive before purchase. Most of the respondents in the school level
education and they are satisfied with the after sales service provided by the
dealer.

Majority of the respondents feel comfort with the after sales service and they
recommend the TVS brand to others.

TVS vehicles are mainly preferred for its Power & Pickup and Safety & Comfort.
Majority of the respondents are satisfied with the Design / Style and Safety &
Comfort and also feel that the performance of TVS is good.

Majority of the respondents using XL Super series belongs to the occupation of

business and private employees and majority of the respondents get aware
through Friends & Relatives belongs to the occupation of private employees and
business persons.

Most of the respondents (72%) are satisfied with the service of the salesman and
least number of respondents(28%) are not satisfied.

To most of the respondents (85%) the vehicle is delivered on promised time.

Only two few of the respondents (15%) vehicle is not delivered on promised
time.

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TVS MOTOR COMPANY

60% of the respondents were offered test drive and 40% of Respondents were not

offered the test drive.

According to the survey 30% of the respondents feel good and 24% Of
respondents feel satisfactory and 22% of the respondents feel excellent 18% of

respondents feel moderate and 6% of respondents feel unsatisfactory.

Most of the respondents (34%) are satisfied and 26% of respondents Are niether
neither satisfied nor satisfied 18% of respondents are dissatisfied 14% of
respondents are not at all satisfied and 8% respondents are fully satisfied.

Most of the respondents (60%) feel brand name is important 40% of the
respondents feel brand name is not important.

Most of the respondents feel mileage (80%) price (75%) and low maintenance
(60%) and 30% of respondents feel brand name is important 20% of respondents
feel wide range of respondents is important.

38% respondents purchased Vehicles before 3 years 32% of Respondents

purchased before 1- 2 years 18% of respondents Purchased before 6 months and
12% of respondents purchased before 3 5 years.

Most of the respondents are need of less labour charges (35%)And Service in
time (32%) and 18% of respondents need reliable Service and few of the
respondents need well trained mechanics (8%) And availability of Spares (7%).

Most of the respondents face the problem of delay in service (39%)And high
price of spare parts (36%) some of the respondents face problem of not easily
availability of spares (17%) and low quality Of spare parts (7%).

Most of respondents rate the service performance as good (42%) And Average
(33%) some of the respondents rate as very good (16%) And bad (9%).

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TVS MOTOR COMPANY

Most of the respondents are need of increase in number of service stations to

reach maximum number customers.

Most of the respondents have complaint about delay in availability of spare parts
and high price.

SUGGESTIONS

TVS Motors has to update its technology to meet the changing customer needs
and preferences to cope up with the competitions in the market.

Mileage can be improved to increase customer satisfaction as the price of

petrol is high.

Offers & Discounts can be given by the dealers to delight the loyal customers.
Helmet and its holder can be provided as a gift for the new customers.

Though customers are satisfied by the free service offered by the dealers,
adequate steps might be made to increase the quality in services that will result
best in customer satisfaction.

The company can increase the service stations and reduce their service
charges.

To fulfill the needs of the respondents Eswar TVS should set new branches in
the Anantapuramu and near surroundings to reach the maximum number
customers.
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TVS MOTOR COMPANY

According to the survey most of the respondents are in the need of the
improvement in providing service in time and lesslabour charge Eswar TVS
should take action by recruiting well trained service staff and. And implement
machineries to provide service in time.

To know the problems faced by the customers at the time of post sale service
should conduct free check up camps and collect the feedback of at the time of
service.

CONCLUSION

TVS is one of the largest automobile industries in India. It has created a

notable place in the minds of the people.

Its growth has created a milestone changes in the preference for two wheelers.

But new arrivals of various other brands have really shaken its market in an
expected manner.

But better services like after sales service, free service, customer relation will
retain the existing user in the same brand.

Preference should be given not only in expanding the market.

This can be successfully carried out only by rendering services in a satisfying

manner.

If it is properly executed then the company will be ranked first in the market.

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TVS MOTOR COMPANY

A company which wants to target a particular segment should change its

marketing plan to suit the needs of its target group.

Thus the behavioral changes of customers before and after the purchase of
vehicle is based on the performance of vehicle and after sales service provided
by the dealers.

Most of the respondents are satisfied with the services of Eswar TVS motors.

Less labour charge and service in time service in time and increase in number
of service station they are three major parameters in demand.

The sale of scooty and victor are high as compared other vehicles.
Most of the respondents feel good about TVS two-wheeler vehicles.

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TVS MOTOR COMPANY

QUESTIONAIRE
Customer preference and satisfaction level towards TVS motors
NAME

PROFESSION

(M) (F)

QUESTIONARIES
1. Are you belonging to which age group in the following?
Below 20
21-30
31-40
41-50
Above 50
2. Will you prefer which following model of tvs model?
TVS XL
SCOOTY SERIES
PEP SERIES
VICTOR SERIES
STAR CITY SERIES
APACHI SERIES
3. ARE YOU BELONG TO WHICH INCOME LEVEL RESPONDENT?
Below 3000
3001-6000
6001-8000
8001-10000
Above 10,000

4. What type of occupation does the consumer belonging?

Farmer
Private employee
Government employee
Student
Business
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TVS MOTOR COMPANY

5.Mostly on what type of purpose respondent use vehicles?
Personal use
Official use

6.What type of purchase mode of the bike does respondent prefer?

Reddy cash
Bank loan
Private loan

7.What type of opinion does respondent see on price?

Highly satisfied
Satisfied
Neutrally satisfied
Not satisfied
Highly not satisfied

8.How customer preferences before purchasing the bike?

BRAND NAME
PRICE
Performance
Mileage
After sale service
9.What education qualification of respondent belonging?
Illiterate
School level
College level
Others

10.What are the opinions does the respondent have after sale
services?
Highly satisfied
Satisfied
Neutrally satisfied
Not satisfied
Highly not satisfied

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TVS MOTOR COMPANY

11.About convenience does the respondent are satisfying when the

delivered as per the allotment times?
Highly satisfied
Satisfied
Neutrally satisfied
Not satisfied
Highly not satisfied
12. Do you feel the service charges /repair chargeswere reasonable?
Excellent
Good
Bad
Very poor

13.

Do you recommend your friends to purchase ?

Yes
No

14.

Satisfaction level of quality of service after sale being

provided?
Highly satisfied
Satisfied
Neutrally satisfied
Not satisfied
Highly not satisfied
15.What is the opinion regarding mileage of the preferred bike?
Highly satisfied
Satisfied
Neutrally satisfied
Not satisfied
Highly not satisfied
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TVS MOTOR COMPANY

16.On what basis do you prefer to buy tvs model?

Product variety
Brand
Pricing
Offers
17.What type of service betterment do you expect from tvs motors?
Better Service
Better settlements & claims
Better returns
Others
18.Based on your overall experience Would you visit

this service center again?

Yes
No
19. Did you find service center staff co-operative,

Courteous & polite?

Excellent
Satisfied
Average
Not Satisfied
Highly not satisfied
20. Why do you prefer for this service?
Convenience
Economical
Security
Features
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TVS MOTOR COMPANY

BIBLIOGRAPHY
Market Research by Tull and Hawkins
Marketing Management by Philip Kotler
WWW. Tvmotors.com
WWW.tvsvictor.com
www.googl.com

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