“Customer Perception towards the Post-sale services provided by Umarani TVS auto Agencies”

CONTENTS

SECTION DETAILS Page No NUMBER

1 Executive Summary 6-10

2 Industrial Profile 11-22

3 Company Profile 23-37

Theoretical Background 4 38-44 Utility of the Project 5 50-57 Methodology Adopted 6 58-60 Findings and Conclusion 7 61-75 Recommendations 8 76-77 Limitation 9 78

10 Bibliography 79-84

KLES’s Institute of management studies and Research, Hubli 1 “Customer Perception towards the Post-sale services provided by Umarani TVS auto Agencies”

EXECUTIVE SUMMARY

The automobile industry in India is growing is at rapid rate of 42%.In general the Two wheeler segment is growing at the rate of 26%.The global Manufacturers like Honda, Yamaha and Suzuki have entered Indian market in collaboration with some Indian companies. The motor cycle segment has become the core of two wheeler market with new launches like TVS Flame, , Honda Shine,, Apache RTR 160,Tvs Scooty Pep, Honda Pleasure, CBZ Extreme and so on and there are many still to come. This shows the potential of Indian Two wheeler market and low cost of production will make India a major Auto manufacturing hub. As the launch of various models increase there is an increase need for servicing of this Vehicle

TVS is unique from all other two wheeler company in the country because it is without any foreign collaboration. The company was established by T.V Sundaram Iyengar in the year 1911 and was primarily into the production of mopeds. TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. The company has many first to its credit like the introduction of the first indigenous moped and a 100 cc in collaboration with Japanese auto giant Suzuki.

When the collaboration ended in 2003, many thought that the company would die a natural death due to the exit of the foreign collaborator. However the company proved its detractors wrong by introducing the TVS Victor and rest as they say is history. It is the third largest two wheeler manufacturer in India and has reached tenth position among the world listing. Its dealer and customer network is widely spreaded in India which includes over 500 dealers. This company has been honored with The Deming Prize' for Total Quality Management (TQM) with the hallmark of Japanese Quality. TVS Apache- Bike of the Year 2006 by Business Standard Motoring. International certifications like QS 9000, ISO 9000 and TS 16949.

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The Project titled “ Customer Perception Towards the Post-Sale Service Provided by Umarani TVS Auto Agencies, Hubli.” Is an attempt to check the is to check the satisfaction level of TVS customer regarding the post –sales service provided by Umarani TVS Agency. The main aim of this project was to find the level of satisfaction of the customers regarding the post-sales service & customer preferred areas of improvement for Umarani TVS Auto Agency.

Area of study was limited to Hubli City. The methodology has been adopted to Questionnaire methods with personal interviews and the results collimated according to the nature of questions asked.

I have used both open-ended and close-ended questions in the questionnaire. With given restricted sample size of the customers in the given area all efforts have made to make sure that data is collected and analyzed.

I believe that the conclusions that I have drawn are based on the data I have collected and interpretations I have made are based on the customers feed back. Title of the Project:

“ Customer Perception towards the Post-sale services provided by Umarani TVS auto Agencies”

Objective:

To know customer perception towards the post-sale service provided by Umarani TVS auto agencies”

Sub objectives: 1) To study various attributes customers prefer in a two-wheeler service.

2) To analyze the extent of the customer satisfaction for a two wheeler Service

3) To find out difference in perception of customers towards authorized Service provider Vs unauthorized service providers in Hubli city.

4) To study the mindset of customers towards authorized services Offered by Umarani TVS.

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INDUSTRY PROFILE

History of Two Wheeler Industry

India is the second largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the number of two wheelers produced and domestic sales respectively. The distinction was achieved due to variety of reasons like respective policy followed by Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. Invention of Two-Wheelers

History can't be stored or categorized in a water tight compartment; neither can some things be definitely told or strictly defined. In this section a general history of two-wheelers is being traced without trying to venture into strict classification and differentiation. Around 1840 a Scotsman named Kirpatrick Macmillan came up with an idea of a pedal driven bicycle, Macmillan a blacksmith by profession got the idea when he was asked to repair a hobby horse. The first bicycle which its inventor called velocipede slowly started catching the fancy of the people, as inquisitive minds started thinking of faster ways of getting around the town.

Ind 1868 in France MIchaux-Perraux attached a small steam engine to a bicycle thus adding a little more steam to the development. Around the same time across the Atlantic a similar steam propelled machine was demonstrated by built by Sylvester Howard Roper of Roxbury, Massachusetts.

However the invention of the first motorcycle was done by the German inventors ottlieb Daimler and Wilhelm Maybach in 1885. The first petroleum-powered vehicle, it was essentially a motorized bicycle, although the inventors called their invention the Reitwagen ('riding car'). This engine was prepared more for experimentation rather than for commercial purposes.

However as early as 1894 a motorcycle was available for commercial purposes. The bike named Hildebrand and Wolfmuller was manufactured in a small scale few

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hundreds to be precise. These two wheelers died a natural death due to high cost and technical difficulties.

Slowly the were improved upon and soon they become faster, reliable and more fuel efficient. For a separate history on the development of scooters check out origin of scooters

The History of Indian two Wheeler Industry

In 1955, the Indian government needed sturdy and reliable motorcycles for its Army and police to patrol the rugged border highways. The first batch of 350cc Bullet from the Company of UK were received and assembled at Chennai.

Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally in 1960, it set up a shop to manufacture then in collaboration with Piaggio of Italy. The agreement expired in 1971.

In the initial stages, the segment was dominated by API,it was later overtaken by . Although various government and private enterprise entered the fray for scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years

The motorcycles segment was no different, with only three manufactures viz Enfield, and Escorts .While Enfield bullet was a four stroke bike,Jawa and the Rajdoot were two stroke bikes. The motorcycle segment was initially dominated by Enfield 350 cc bikes and Escorts 175 cc bike.

The two wheeler market was opened to foreign competion in the mid -80s.And then the market leaders Escorts and Enfield were caught unaware by the onslaught of the 100 cc bikes of the four Indo –Japanese joint ventures. Babasabpatilfreepptmba.com Page 5 “Customer Perception towards the Post-sale services provided by Umarani TVS auto Agencies”

With the availability of fuel –efficient low power bike, demand swelled, resulting in Hero Honda then only producer for four stroke bikes (100 cc category ),gaining top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two stroke and four stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth of motorcycles segment was brought in Japanese motorcycles, which grew at a rate of nearly 25% in the last five years.

The industry had a smooth ride in the 50s,60s and 70s when the government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to peak volume of 1.9mn vehicles in 1990.

The entry of Kinetic Honda in mid –eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women towards buying scooters, who were earlier inclined towards moped purchase. In the 90s ,this trend was reversed with the introduction of Scooterette. In the line with this, the scooter segment has constiently lost its part of the market share in the two wheeler market.

In 1990s, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992,resulting in a production loss of 0.4 mn vehicles. Barring loss due to increase rise in fuel prices, high input cost and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing .factors like increased production in 1992,due to new entrants coupled with the recession in the industry resulted in companies either reporting losses or fall in profits.

Segmental Classification and Characteristics

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The three main products segments in the two wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various others factors, other sub segment emerged, viz.scootrretess, gearless scooters, and 4 stroke scooters .While the first two emerged as a response to demographics changes, the introduction of 4 stroke scooters has followed the imposition of stringent pollution

Scooter Motorcycle Moped

Price*(Rs. A > 22,000 > 30,000 > 12,000

Stroke 2-stroke, 4-stroke Mainly 4-stroke 2-stroke

Engine Capacity (cc) 90-150 100, 125, > 125 50, 60

Ignition Kick/Electronic Kick/Electronic Kick/Electronic

Engine Power (bhp) 6.5-9 7-8 and above 2-3

Weight (kg) 90-100 > 100 60-70

Fuel Efficiency (kms per litre) 50-75 50-80+ 70-80

Load Carrying High Highest Low

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The growth of production in Automobile industry in 000s

Category 2000- 2001- 2002- 2003- 2004- 2005- 2006- 01 02 03 04 05 06 07 Passenger 513 564 609 842 961 1,046 594 cars Multi-utility 128 106 112 146 249 263 144 vehicles Commercial 157 163 204 275 350 391 237 vehicles Two 3,759 4,271 5,076 5,625 6,527 7,600 4,155 wheelers Three 203 213 277 341 374 434 264 wheelers Total 4,760 5,317 6,278 7,229 8,461 9,734 5,394 Growth in 10.47 11.70 18.60 15.12 16.80 14.97 18.04 percentage

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Table 7.5 : Automobile export (Numbers in 000) Category (till Sept’06) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Passengercars 23 50 71 126 161 170 98 Multi-utility vehicles 4 3 1 3 6 5 3 Commercial vehicles 14 12 12 17 30 41 23 Two wheelers 111 104 180 265 367 513 332 Three wheelers 16 15 43 68 67 77 62 Total 168 185 307 479 620 806 519 Growth in per cent 20.24 9.74 65.35 55.98 31.25 28.03 27.43 Source: Ministry of Heavy Industries & Public Enterprises (Department of Heavy Industries

TWO WHEELER Manufactures

• The Major Two wheeler Manufactures of India are • TVS Motors Company LTD ( TVS ) • Honda Motors Ltd ( HHML ) • Bajaj Auto Ltd ( Bajaj Auto ) • Yamaha Motors India Ltd ( Yamaha ) • Honda Motorcycles & Scooter India ( P ) Ltd ( HMSI ) • Royal Enfield Ltd ( REL ) • Kinetic Motor Company Ltd ( KMCL ) The Indian two wheeler industry is highly dominated by three players TVS Motors Company ( TVS ) ,HERO HONDA Motors Ltd ( HHML ) and Bajaj Auto Ltd (Bajaj Auto ) accounting for over 80 % of sales in 2007.

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Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly through: licensing and technical collaboration (as in the case of Bajaj Auto and LML); and joint ventures (HHML). .

A third form - that is, the 100% owned subsidiary route - found favour in the early 2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the alliances of some major two-wheeler manufacturers in India.

Besides the below mentioned technology alliances, Suzuki Motor Corporation has also followed the strategy of joint ventures (SMC reportedly acquired equity stake in Integra Overseas Limited for manufacturing and marketing Suzuki motorcycles in India).

Table 2 Technological tie-ups of Select Players

Nature of Alliance Company Product

Bajaj Auto Technological tie-up Kawasaki Heavy Industries Ltd, Japan Motorcycles

Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers

Technological tie-up Kubota Corp, Japan Diesel Engines

HHML Joint Venture Honda Motor Co, Japan Motorcycles

KEL Technological tie-up Hyosung Motors & Machinery Inc Motorcycles

KEL Tie up for manufacturing Italjet, Italy Scooters and distribution

LML Technological tie-up Daelim Motor Co Ltd Motorcycles

Hero Motors Technological tie-up Aprilia of Italy Scooters

With the two-wheeler market, especially the motorcycle market, becoming extremely competitive and the life cycle of products getting shorter, the ability to offer new models to meet fast changing customer preferences has become imperative. In this

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