project on automobiles

7/25/2019 Project on automobiles

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RESEARCH METHODOLOGY

Primary Data:

The primary data collected through questionnaires administered to a sample of 50 consumers

selectedfrom Raipur city the Questionnaire was pre-Designed and pre-tested before it was

administered.n

For financial analysis money control .com has been considered

nnual report of !ero !onda T"#

Secondary Data :

#econdary data was collected through $arious publications of newspapers% maga&ines% boo'sand maga&ines websites of !ero !onda% and T"# bi'es.websites

Sample Design(

total of 50 consumers were selected from the Raipur city for this study to analy&e the

consumers beha$iour with reference to select motor bi'es i.e.% )amaha% !ero !onda% *a+a+ and

T"# bi'e.

INDIAN AUTO INDUSTRY

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India is emerging as one of the worlds fastest growing passenger car markets and second

largest two wheeler manufacturer. According to the International Yearbook of Industrial

Statistics 2! released b" #nited $ations Industrial %e&elopment 'rganisation (#$I%')*

India ranks 12th in the list of the worldstop 1+ automakers. It is home to the largest two

wheeler manufacturer and ,fth largest commercial&ehicle manufacturer in the world. -he

industr" is producing about 1 lakh passenger &ehicles* /.+ lakh commercial &ehicles*

lakh two wheelers and + lakh three wheelers per annum.

In order to make India a power to reckon with in the automoti&e sector the

go&ernment launched theAutomoti&e 0ission Plan (A0P) 221. As per the A0P*

it is estimated that the total turno&er of theautomoti&e industr" in India would be in

the order of #S% 122 billion #S% 1+ billion in 21. It ise3pected that in real terms*India would continue to en4o" its eminent position of being the largest tractorand

threewheeler manufacturers in the world and the world5s second largest twowheeler

manufacturer.

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6" 21* India will emerge as the world5s se&enth largest car producer (as compared

to the ele&enthlargest currentl") and retain the fourth largest position in world truck

manufacturing sector. 7urther 21* the automoti&e sector would double its contribution to the countr"5s

8%P from current le&els of ,&e per cent to 1 per cent. -he Indian automoti&eindustr" consists of the following ,&e segments

F,R/ ( ,1D,1 T232*,4/ ,1D#TR)

The total two-wheeler sales of the ,ndian industry accounts for around 6 of the total $ehicles

sold in,ndia. 7ith 89%8%:: two wheelers already sold in ,ndia in the quarter from ;un-#ep

800


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7I8#:; 2< %'0;S-I= 0A:>;- S?A:; 7': 2!

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TWO WHEELER SEGMENTAL CLASSIFICATION AND ITS GROWTH

The three main product segments in the two-wheeler category are scooters, motorcycles and

mopeds.However, in response to evolving demographics and various other factors, other

subsegments emerged,viz. scooterettes, gearless scooters, and 4-stroke scooters. While the

first two emerged as a response todemographic changes, the introduction of 4-stroke scooters

has followed the imposition of stringent pollution control norms in the early !!!. "esides,

these prominent sub-segments, product groups within these sub-segments have gained

importance in the recent years.The two wheeler industry has been growing at a #$%& of

'.4() from !!4 to !!', with the productionbeing about *+ lakh vehicles in !!4 to an

estimated !! lakhs in !!'. otorcycles have always been the maor contributor to the two

wheeler industry in /ndia. 0rom a share of about 11.+') in !!4, it hassteadily grown to

about 2!.+2). The share of scooters has gone down from *.*+) in !!4 to +.22) in!!'.

The following table gives the percentage share of motorcycles, scooters and mopeds in the

two wheeler industry in /ndia

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DEMAND DRIVERS

-he demand for twowheelers has been in@uenced b" a number of factors o&er the

past few "ears. -he ke" demand dri&ers for the growth of the twowheeler industr"

are as follows06 followed by *a+a+ uto ?806@%

!3#,?>96@ and T"# 3otors ?6@. This segment retrie$es higher re$enues from the rural areas%

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which are lessdependence on financeB therefore comparati$ely it is among the best performing

segments

ECO"OMY SEGME"T

This segment is a strong foothold for *a+a+ uto which has a mar'et share of >C56 followed by

!ero !onda ?>AC6@ and T"# 3otors ?>8C6@. This is the most competiti$e segment as all the

Aplayersrelati$ely ha$e a higher presence in the same. *ut this segment continues to be the

worst hit due to thecredit una$ailability and global slowdown. The industry has shown a R of

>56 from F)0C-F)0on account of finance a$ailability from E# *an's and pri$ate ban's li'e

,,, *an'. *ut from F)0: F)0< )TD the industry has shown shrin'age as most of the ban's

reduced their e=posure in the autofinance domain gi$en the unfa$orable macro economic

situation.

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S%OT Analysis

scan of the internal and e=ternal en$ironment is an important part of the strategic

planning process. /n$ironmental factors internal to the firm usually can be classified as

strengths ?#@ or wea'nesses ?7@% and those e=ternal to the firm can be classified as

opportunities ?2@ or threats ?T@. #uch an analysis of the strategic en$ironment is referred to as a

#72T analysis. #72T analysis of the ,ndian automobile sector gi$es the following points(

Strengt&s:'

4arge domestic mar'et

#ustainable labor cost ad$antage

ompetiti$e auto component $endor base

o$ernment incenti$es for manufacturing plants

#trong engineering s'ills in design etc

%ea(nesses:'

4ow labor producti$ity

!igh interest costs and high o$erheads ma'e the production uncompetiti$e

"arious forms of ta=es push up the cost of production

4ow in$estment in Research and De$elopment

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,nfrastructure bottlenec'

Opport)nities:'

ommercial $ehicles( # ban on o$erloading

!ea$y thrust on mining and construction acti$ity

,ncrease in the income le$el

ut in e=cise duties

Rising rural demand

T&reats:'

Rising input costs

Rising interest rates

ut throat competition

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Industry present and future trends:

Automobile is one of the largest industries in global market. 6eing the leader in

product and process technologies in the manufacturing sector* it has been recognised as one

of the dri&ers of economic growth. %uring the last decade* wellEdirected eCorts ha&e been

made to pro&ide a new look to the automobile polic" for realising the sector5s full potential for

the econom". Steps like abolition of licensing* remo&al of uantitati&e restrictions and

initiati&es to bring the polic" framework in consonance with F-' reuirements ha&e set the

industr" in a progressi&e track. :emo&al of the restricti&e en&ironment has helped

restructuring* and enabled industr" to absorb new technologies* aligning itself with the global

de&elopment and also to realise its potential in the countr". -he liberalisation policies ha&e

led to continuous increase in competition which has ultimatel" resulted in modernisation in

line with the global standards as well as in substantial cut in prices. Aggressi&e marketing b"

the auto ,nance companies ha&e also pla"ed a signi,cant role in boosting automobile

demand* especiall" from the population in the middle income group.

The composition of the two-wheeler industry has witnessed sea changes in the post-

reform period. ,n


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1ational ouncil of pplied /conomic Research ?1/R@ had forecast two-wheeler demand

during the period 8008H-0A through 80-8. The forecasts had been made using econometric

technique along with inputs obtained from a primary sur$ey conducted at C prime cities in the

country. /stimations were based on Eanel Regression% which ta'es into account both time series

and cross section $ariation in data. panel data of 9 ma+or states o$er a period of 5 years ending


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the ma=imum in the northern region% which will account for more than 50 per cent of the demand for

scooters in 80-8.

Source< Indian Automobile Industr"< 'ptimism in the Air* Industr" Insight* $=A;:

-he present economic situation of the countr" makes the scenario brighter for shortterm

demand. :eal 8%P growth was at a high le&el of D./ per cent during the ,rst uarter of 2/.

6oth industr" and the ser&ice sectors ha&e shown high growth during this period at the rates of

!. and .+ per cent respecti&el". ?owe&er* poor rainfall last "ear will pull down the 8%P growth

to some e3tent. -aking into account all these factors along with other leading indicators

including go&ernment spending* foreign in&estment* in@ation and e3port growth* $=A;: has

pro4ected an a&erage growth of 8%P at .D per cent during the tenth ,&e"ear plan. Its mid

term forecast suggests an e3pected growth of D./ per cent in 8%P during 2/+ to 2!.

Ger" recentl"* I07 has portra"ed a sustained global reco&er" in Forld ;conomic 'utlook. A

signi,cant shift has also been obser&ed in Indian households from the lower income group to

the middle income group in recent "ears. -he ,nance companies are also more aggressi&e in

their marketing compared to pre&ious "ears. =ombining all these factors* one ma" &isualise a

higher growth rate in twowheeler demand than presented in -able 1* particularl" for the

motorc"cle segment.-here is a large untapped market in semiurban and rural areas of the

countr". An" strategic planning for the twoEwheeler industr" needs to identif" these markets

with the help of a&ailable statistical techniues. Potential markets can be identi,ed as well as

prioritised using these techniues with the help of secondar" data on socioeconomic

parameters. 7or the twowheeler industr"* it is also important to identif" the target groups for

&arious categories of motorc"cles and scooters. Fith the formal introduction of secondhand car

market b" the reputed car manufacturers and eas" loan a&ailabilit" for new as well as used

cars* the twowheeler industr" needs to upgrade its market information s"stem to capture the

new market and to maintain its alread" e3isting markets. A&ailabilit" of eas" credit for two

wheelers in rural and smaller urban areas also reuires more focussed attention. It is also

imperati&e to initiate measures to make the presence of Indian twowheeler industr" felt in the

global market. Adeuate incenti&es for promoting e3ports and setting up of institutional

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mechanism such as Automobile ;3port Promotion =ouncil would be of great help for further

surge in demand for the Indian twowheeler industr".

T$S

T" #undaram ,yengar and #ons 4imited ?T"#s@ is the holding company for the T"# roup of

companies engaged in the manufacturing of almost all 'inds of automoti$e components% best

two wheelers and a few other industrial products. They are also into the financial ser$ices sector.

The turno$er of the entire group was close to I8 billion in 800A. The T"# group of companies is

mainly situated in Eadi% Tamil 1adu% in the outs'irts of hennai ?formerly 3adras@.

The company has many first to its credit li'e the introduction of the first indigenous moped and a

00 cc motorcycle in collaboration with ;apanese auto giant #u&u'i. 7hen the collaboration

ended in 800A% many thought that the company would die a natural death due to the e=it of the

foreign collaborator. !owe$er the company pro$ed its detractors wrong by introducing the T"#

"ictor and rest as they say is history. The company roped in master blaster #achin Tendul'ar for

the promotions and the sales went northwards after that. T"# company is aiming to capture a

quarter of the total two wheelermar'et in the country.

T"# group was a pioneer in mopeds but slowly they ha$e shifted focus to the motorcycle

segment since the entire mar'et seems to be mo$ing in that direction as consumer preferences

and choices ha$e changed with the changing times.The company has been able to outdo it self

and spring a surprise% as many analysts felt that the company would be pushed to the periphery

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http://www.automobileindia.com/two-wheelers/http://www.automobileindia.com/two-wheelers/


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of the two wheeler mar'et. 7ith the e=it of #u&u'i% many felt T"# would ha$e to limit itself to the

moped mar'et in the country.

The company did not ha$e a good trac' record of in-house product de$elopment as most of itsG

earlier $entures li'e the #haolin% #hogun and the #upras failed to ta'e off.

This further heightens the importance of the success of the T"# "ictor%the company aims to

become the number 8 two wheeler manufacturers in ,ndia and also want to crac' the top fi$e in

sia. The company has products across all categories from premium motorcycles to entry le$el

mopeds and has recently launched pache in the premium segment.

T&e ma*or prod)cts

T"# Fiero T"# #amurai

T"# #haolin

T"# #hogun

T"# pache?50 cc%A. Es J:500rpm@

T"# pache RTR 90 /F, ?/lectronic Fuel ,n+ection@

T"# pache RTR :0 ?.Aps@

T"# entra

T"# Flame

T"# Flame ?85 cc%cc$ti technology@

T"# 3K 00

T"# #tar

T"# #tar ity

T"# #tar #port

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http://www.automobileindia.com/two-wheelers/tvs-motors/tvs-victor.htmlhttp://www.automobileindia.com/two-wheelers/tvs-motors/tvs-victor.htmlhttp://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Flamehttp://www.automobileindia.com/two-wheelers/tvs-motors/tvs-victor.htmlhttp://en.wikipedia.org/wiki/TVS_Apachehttp://en.wikipedia.org/wiki/TVS_Flame


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T"# #upra

T"# "ictor ?0 cc@

T"# "ictor 4K ?85 cc@

SHARE HOLDING PATTERN

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HSTORY

The third largest two-wheeler company is the flagship company of the T"# roup ?Cbillion #D@

withan annual turno$er of o$er a billion. ,t was the fiirst two-wheeler manufacturer in the world to

behonored with the ;apanese Quality award The Deming Eri&e for Total Quality 3anagement.

#et up in the


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For the fiscal year ended A 3arch 800


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Source< Annual :eport

The increased growth in ngeared #cooters is due to its independence from influence of

a$ailability of retail finances. lthough sales grew in two wheeler segment at 56 growth its

incomparable to that of !ero !onda at A06.

Three wheeler% T"# Ming was introduced in si= states and has achie$ed a 56 3#.

HERO HO"DA

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!ero !ondaGs company profileThe +oint $enture between ,ndiaGs !ero roup and !onda 3otor

ompany% ;apan has not only created the worldGs single largest two wheeler company but also

one of the mostsuccessful +oint $entures worldwide.During the :0s% !ero !onda became the first

company in ,ndia to pro$e that it was possible to dri$e a $ehicle without polluting the roads. The

company introduced new generationmotorcycles that set industry benchmar's for fuel thrift and

low emission. legendary GFill it - #hut it - Forget itG campaign captured the imagination of

commuters across,ndia% and !ero !onda sold millions of bi'es purely on thecommitment of

increased mileage.2$er 80 million !ero !onda two wheelers tread ,ndian roadstoday. These are

almost as many as the number of people inFinland% ,reland and #weden put togetherN!ero!onda has consistently grown at double digits since inceptionB and today% e$ery second

motorcycle sold in thecountry is a !ero !onda. /$ery A0 seconds% someone in ,ndia buys !ero

!ondaGs top -selling motorcycle #plendor. Thisfesti$e season% the company sold half a million

two wheelers i n a single monthOa feat unparalleled in global automoti$e

!/R2 !21D

ntrod)ction

!ero !onda 3otors 4td. started out in


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and societal responsibilities. Twenty fi$e years and 85 million two wheelers later% !ero !onda is

closer to fulfilling this dream. This $ision is the dri$ing force behind e$erything that company do

at !ero !onda. ompany understood that the fastest way to turn that dream into a reality is by

remaining focused on that $ision.

There were many un'nowns but !ero !onda 'ept faith% and today% !ero !onda has been the

largest two wheeler company in the world for eight consecuti$e years. 2ur growth has 'ept

compounding. The company crossed the ten million unit milestone o$er a


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!aryana% and its third and most sophisticated plant at !aridwar has +ust completed a full year of

operations. ,t is difficult to imagine that all this has happened in the span of +ust two and a half

decadesN

The best is yet to come. During the year in re$iew% !ero !onda powered its way in a mar'et that%

for all practical purposes% was feeling the full effects of the economic slowdown in ,ndia. 7ith an

economic reco$ery now clearly on the cards% !ero !onda is all set to ride into another summit.

Type Eublic company

*#/( !/R2!21D 3

Founded ;anuary


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D 00% D 00 ##% D Dawn% D Delu=e% D Delu=e ?#elf #tart@

lamour% lamour F.,

!un'

;oy

Mari&ma% Mari&ma R% Mari&ma P3R F,

Eassion% Eassion% Eassion Ero

Eleasure

#treet

#plendor% #plendor% #plendor ?4imited /dition@% #uper #plendor% #plendor 1K

SALES GROWTH ANALYSIS

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http://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Splendorhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Splendor


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2/ 2+ 2 2D 2! 2

-GS 2!2.21 2!D+.1 929/. 9!+/. 921.+ 9D.

8:'F:?:A-; 1.!H 12./!H 1./D 1./! 1/.2

?;:'?'$%A

+!92./2 D/21.+

!D19.! !. 1991.! 1291.1

8:'F-?

:A-; 2.D 2+ 1D./1 19.1 /.9 1.29

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-GS 0otors showed a health" growth in sales from 7Y 2/ to

7Y 2D due to a booming automobile industr" and rising demand*

with sales rising from :s. 2!2 =r in 7Y 2/ to :s 921.+=r in 7Y

2D. %ue to the global recession* and the high interest costs and

interest rates* the automobile industr" was se&erel" impacted in 7Y

2!* resulting in a sharp drop in -GSs sales of1.+H. 2 Fheeler

sales 4umped back again in 7Y 2* with a rise in sales of 1/.2H for

-GS. -hus-GS has had a health" increase in turno&er from 7Y 2/ to

7Y 2* e3cept for 7Y 2!* when itwas impacted due to the global

recession and slackening demand. =orresponding 2wheeler sales

,gures from -he Societ" of Indian Automobile

0anufacturers(SIA0) indicate that that the 2 wheeler sales in the

industr" fell from D*!D2*99/ units in 7Y 2D toD*2/*2D! units in

7Y 2! thus indicating the slackening demand due to

ad&erse ,nancialconditions in 7Y 2!


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LI!UIDITY RATIO

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7or -GS* the current ratio is constantl" increasing* which is a good

indicator that managements eCorts are increasing the ratio. ;&en

during the recession time of 7Y2!* the ratio increased as aresult of

better management of liabilities. 7or ?ero ?onda* the &alues are

alwa"s less than 1 andmuch less than -GS current ratios. $one theless* both ,rms show &alues that are less than the ruleofthumb

indicator. -otal outstanding dues of creditors other than

small scale industrial undertakingsJ increased in !* bringing down

the current ratio &alue for ?ero ?onda. -he drop in thecurrent ratio of

?ero ?onda* from 7Y 2! to 7Y 2 is due to a steep increase in

the currentliabilities and this increase can be attributed to an entr" in

the balance sheet called K'ther Liabilities


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6" rule of thumb* the uick ratio should ideall" be 1


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"#In$ent%ry turn %$er rat&%

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-he in&entor" management of -GS does not appear to be good.

Instead of an increase in the &alues*we see a decrease from 7Y +!.

In 7Y * there is a slight impro&ement. 6ut* there is still room for

impro&ement. -here is a 1.1H dip in the ratio for 7Y! as

compared to 7Y D which ma" be attributed to a drop in ='8S

(M1/H). ?ero ?onda has a good i ='8S. 6ut* there has been a dip in

the ratio showing that in&entor" management is not good n&entor"

turno&er ratio. In the 7Y !* there is a positi&e change of 9H in In

comparison to -GS* ?ero ?onda has a much better in&entor"

management strateg" &alue during 7Y! due to the dip in sales

owing to the recession. 6ut* in 7Y2* probabl" due to


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' DE(TOR TURNO)ER RATIO

8enerall"* a debtor ratio indicated a better debt

collection strateg" of the compan". 6ut* in the current case* it

ma" indicate that the companies became more willing to sell on

credit than the" were before. -his is substantiated b" the fact that

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the increase in the accounts recei&ables is mainl" due to increase in

unsecured short term debtors which ma" indicate credit line to

customers. -he debtor turno&er ratio for -GS has been decreasing

since 7Y . -he increase as compared to 7Y+ is due to the higher

sales growth without corresponding increase in debtors. -he debtor

turno&er ratio for ?ero ?onda was at a &er" good &alue in 7Y +*

but there has been a considerable decrease e&er since.

=omparati&el"* ?ero ?onda has a much better debt turno&er ratio

indicating that their strateg" of debt collection is much more

eCecti&e than -GSs

*# A$era+e In$ent%ry H%,d&n+

-er&%d

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"TERPRETATO"

-he a&erage in&entor" holding period for -GS has been on the rise

since 7Y2+. Particularl" in 7Y!* there has been a greater

in&entor" holding period which could be attributed to the decrease

in sales during recession leading to more in&entories for more time

7or ?ero ?onda* the period had been decreasing from 7Y+ till

7YD. -here was an increase in the &alue during 7Y! due to the dip

in sales owing to the recession. 6ut* in 7Y2* probabl" due to

better in&entor" management* the &alue of the in&entor" holding

period has come down In comparison to -GS* hero ?onda has a

much better in&entor" management strateg".

,-OPERAT"G CYCLE

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"TERPRETATO":

-he operating c"cle for both the companies has increased in

7Y! due to an increase in both in&entor" holding period and

debt collection period owing to the recession. -hat the in&entor"

management of ?ero ?onda is much better than that of -GS can be

clearl" seen from the &alues in the table.

.#CA-ITAL MAR/ET ANALYSIS -E RATIO

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!ero !onda is operating at higher E/ Ratio relati$ely to T"# motor.

.- Cas& /lo0 statement analysis

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"TERPRETATO":

7or -GS 0otors* anal"sing the cash @ow statement of the ,rm from

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7Y 2+ to 7Y 2* we see that -GS generates a large amount of

cash from operating acti&ities* signif"ing a higher earnings ualit".

It has had a sig signif"ing that the compan" is in&esting hea&il" in

its plant* machiner" and capacit" e3pansion. Also signif"ing that the

compan" is in&esting hea&il" in its plant* machiner" and capacit"

e3pansion. the compan" has a smaller proportion of positi&e cash

@ows from ,nancing acti&ities (e3cept for 7Y and 7Y 2D when

,nancing cash @ow contributed a large proportion) indicating that

the compan" is able to generate cash from loans a&ailed after

disbursing interest and di&idend pa"ments 6ut the net increase in

cash and cash eui&alents is still negati&e and contributing towards

a negati&e cash balance* indicating a cash crunch for the compan".

7rom 7Y 2+ to 7Y 2 (e3cept for 7Y 2! and 7Y 2)* cash

@ow from operating acti&ities is signi,cantl" greater than net pro,t

of the ,rm* indicating a higher earnings ualit" and indicating

that the ,rm has been growing with increasing cash from

operating acti&ities. As cash is kingJ increasing cash from

operating acti&ities signif" that the ,rm has been growing. In 7Y

2!* operating cash @ow was signi,cantl" smaller than $et Pro,t*

indicating a lower earnings ualit" for 7Y 2! %i&idend pa"ments

for -GS ha&e followed no speci,c trend and di&idend pa"mentsha&e been in manageable proportions with respect to cash @ow

from operations. 'nl" in 7Y 2!* when operating cash @ow was

strained* the compan" chose to pa" out di&idend close to H of

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their operating cash @ow* indicating e3cessi&e di&idend pa"ment to

keep shareholders happ"

HERO HONDA

-he cash @ow statements of ?ero ?onda show an o&erall increase

in the net pro,t o&er the si3 ,nancial "ears considered e3cept for

a dip in the pro,ts in 7Y 2D owing to recession. 7rom 7Y 2/ to

7Y2* the cash @ow from operating acti&ities has remained at a

&alue greater than the net pro,t e3cepting for 7Y 2+ and 7Y

2D. -his pro&es the fact that ?ero ?ondas ualit" of

earnings is signi,cantl" high. 7rom 7Y 2/ to 7Y 2 ?ero?onda has consistentl" shown a negati&e &alue for cash @ow from

,nancing acti&ities which is constituted b" ta3* di&idends and

interest pa"ments and repa"ments for long term borrowings. So*

we can infer that ,nancing for in&estment acti&ities is mainl"

deri&ed from the cash from the operating acti&ities. -he net

increase in cash and cash eui&alents for all the si3 "ears is positi&e

contributing towards the positi&e cash balance. ?ence* the

compan" is free from cash crunch. -he trend of increase in the cash@ow from operating acti&ities leads to the inference that the ,rm

has seen a health" growth for the past si3 "ears (e3cept for 7Y

2+ and 7Y 2D when the ualit" of earnings are low due to the

cash @ow from operating e3penses being lower than the net pro,t).

?ero ?onda has no particular pattern for di&idend pa"ments. -he

percentage of di&idend pa"ment was relati&el" high wi compan"

witnessed a comparati&el" lower cash @ow from operating

acti&ities* "et* the amount paid the +.+H in 7Y 2/ and

9.9DH in 7Y 2D. In the latter period* the as di&idend was high

=omparing the two companies* it can be seen that ?ero ?onda has

a much better performance than -GS. Also* for ?ero ?onthere has

alwa"s been a net increase in the cash and cash eui&alents

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?YP'-?;SIS

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#ample si&e is ta'en to be 50

,t is assumed that !ero !onda is the mar'et leader among all other bi'es.

,t is assumed that the chosen sample is the representation of whole

population.

,t is assumed that information pro$ided by the samples is accurate and

*est of 'nowledge

omaparati$e study of !ero !onda L T$s

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DATA ANALYSIS

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1/=isting customer

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2.C0art s0%1&n+ t0e 2ust%3er sat&sfa2t&%n re+ard&n+ t0e&r4&5esperf%r3an2e#

-otal number of customer satis,ed N +-otal number of customer not satis,ed N

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9 3atisfaction level on basis of after sales service.

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3atisfied +'

5nsatisfied

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5. Bikes spare part is easily aaila!le i

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". Resale al#e $% !ike

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& Bike pre%era!le %$r %e'ale

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LI0I-A-I'$S

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lthough , ha$e gi$en my 00 percent for doing this pro+ect. *ut still were certain limitations

while doing the research wor'. #ome of the limitations were

as follows.

. 2ne of the biggest limitations with this pro+ect wor' is the time /actor- #ince we had got

only 90 days for doing this pro+ect% therefore we thin' it was less time for doing this pro+ect

wor'. Time was $ery much limited and as a result we were restricted with the time

boundation.

8. nother limitation was with the lang)age. 7hile doing the researchwor'% , faced a lot of

problem regarding the language. #ince e$ery person didnSt understand /nglish% therefore we

had to ma'e them understand in different languages li'e !indi

A. lso due to the limited time period% we couldnSt able to co$er more area.ThatSs why we were

also restricted with the area also.

C. The research wor' is influenced by the e=aggeration of some of therespondents.

5. ,n some cases% the respondents were not gi$ing us the proper reply.!eshe might thin' that

this was only westage of time or this might create some problem etc. nd as a result heshe

had gi$en some fa'e answers and filled the questionnaire $ery casually.

9. ,t was $ery difficult to ta'e name% address and phone number of therespondents. #ome of the

respondents after filling the questionnaire didnSt want to gi$e their name% address and phone

number.

.The sample si&e for this research report is 50 only which may not dispute the actual picture of

this study.

The mood of the respondents while felling up of the questionnaire% can also ha$e ad$erse

impact on true finding of study.

This research report is sub+ect to Raipur city only. #o the conclusion drawn cannot be

applicable to whole of ,ndia or national le$el.

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There may be sampling error.

The economic constraints of the researcher can also ha$e impact on the result of the

study

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7I$%I$8S

The most li'ely scenario assumed annual growth rate of ross Domestic Eroduct ?DE@

to be 5.5 per cent during 8008-0A and was anticipated to increase gradually to 9.5 per

cent during 80-8.

*efore getting into country law enforcement official insparsey populated two wheeler

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

sectorthat has undergone significant changes due to shift in policy en$ironment.

The two wheeler industry current assets are decreased comparing between 800:-

800


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The two wheeler industry fi=ed assets are decreased comparing between 800:-

800


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T"# 3otors showed a healthy growth in sales from F) 800C to F) 800 due to

a booming automobile industry and rising demand

T"#% the current ratio is constantly increasing% which is a good indicator

!ero !onda is operating at higher E/ Ratio relati$ely to T"# motor.

The operating cycle for both the companies has increased in F)0: due to an

increase in both in$entory holding period and debt collection

SuggestionsOrecommendations

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!ero !onda should thin' about fuel efficiency in case of upper segment bi'es.

T"# should target rural area as !ero !onda did

3aintenance cost and the a$ailability of the spare parts should also begi$en

due importance.

T"# should try to introduce some good financediscount schemes for

students.

T"# should focus on its ad$ertisement and mileage to increaseits mar'et

share.

ompany should also focus on its after sales ser$ice as well as the

performance of the bi'es.

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!ero-!onda should also gi$e some offers with their different models.This

will help in increasing the mar'et share of the !ero-!onda company.

The T"# should also launch some cheaper models so that the students can

buy more. This will be beneficial for both i.e. the company and the

consumers.

#ince in the female bi'e category% T"# is the mar'et leader with a total

mar'et share of CA6. !ero-!onda has a total mar'et share of A56.

!ero-!onda is maintaining a good customer loyalty. Therefore company

should also focus on inno$ations and newer technologies. This will help

the company to capture more and more mar'et and earn more and more

profits.

T"# should focus on in$entory management in order to reduce cost of

production.

11LOGRAPHY

2- SAM

3- %%%-HEROHO"DA-COM

4- %%%-T$SMOTORS-COM

5- 5P MAGA6"E

7- %%%-T%O%HEELERS-COM

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http://www.herohonda.com/http://www.tvsmotors.com/http://www.twowheelers/http://www.herohonda.com/http://www.tvsmotors.com/http://www.twowheelers/


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,- A""!AL REPORT ' HERO HO"DA 8 T$S

9- "DA" A!TOMO1LE "D!STRY: OPTMSM " THE AR "D!STRY "SGHT

"CAER

!uest&%nna&re

Name :- ________________________________

Sex a) MALE B) FEMALE

Respected Sir/Madam,

My name is MANEN!RA "#MAR t$e st%dents &' DSM RAI-UR. As per &%r c&%rse

c%rric%(%m,

am d&in* t$e mar+et researc$ &n Consumer perception

about Hero Honda / other bikes. S& need y&%r a(%a(e

ie '&r t$e %esti&ns *ien e(&. 0e i(( e *rate'%( t& y&%.

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1 :- 0$ic$ i+e d& y&% $ae3

a. 4er&-4&nda . Ba5a5

c. 6S d. 7ama$a

12 :- 8(ease pri&riti9e t$e &pti&ns t$at a''ects y&%r p%rc$asin*

decisi&n &' i+es. ein* t$e m&st imp&rtant and ; ein*

t$e (ess imp&rtant ?

1; :- 6& $at extent d& y&% t$in+ t$at y&%r i+e is d%ra(e3

a. ery str&n* . Str&n*

c. Medi%m d. 0ea+

e. ery ea+

1@ :- Acc&rdin* t& y&%r percepti&n $ic$ i+es spare parts are

easi(y aai(a(e in t$e mar+et3

a. 4er&-4&nda . Ba5a5 c. 6S d. 7ama$a

e. Any &t$er p(ease speci'y) __________________

1C :- Re*ardin* resa(e a(%e, $at is y&%r c&nsiderati&n3

a. 4er&-4&nda . Ba5a5 c. 6S d. 7ama$a

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e. Any &t$er p(ease speci'y) __________________

1D:- Acc&rdin* t& y&%, $ic$ i+e is m&st pre'era(e '&r

'ema(e3

a. 4er&-4&nda . Ba5a5 c. 6S d. 7AMA4A

project on automobiles

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