SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

MARKET POTENTIAL AND STRATEGIES TO INCREASE MARKET SHARE OF LUCAS-TVS TWO WHEELER STARTER MOTORS

SUBMITTED BY: HARINARAYAN P MBA-IB (2010-2012) Roll No. : A1802010026

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR PRADESH

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

MARKET POTENTIAL AND STRATEGIES TO INCREASE MARKET SHARE OF LUCAS-TVS TWO WHEELER STARTER MOTORS

SUBMITTED BY: HARINARAYAN P MBA-IB (2010-2012) Roll No. : A1802010026

INDUSTRY GUIDE
Mr. G. PRAVIN WINSTER
ASST. MANA GER, BD & MARKETING LUCAS-TVS, CHENNAI

FACULTY GUIDE
Ms. POORVA RANJAN

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY – UTTAR PRADESH

TELEPHONE TELECRAM FAX

044 - 26258211
LUCASUN, CHENNAI

444 - 26259642 044 - 262s7863

LUCAS.TVS LTD,, PADI, CHENNAI-6OO O5(}, INDIA.

TO WHOM IT MAY CONCERN
This is to certiflz that Mr. HARINARAYAN.P, a student of Amity International
ooMarket Potential and Strategies to Business School, Noida, undertook a project on

increase Market Share
LUCAS-TVS, Chennai

of

Lucas-TVS Two Wheeler Starter Motors"

at

Mr. HARINARAYAN.P has successfully completed the project under the guidance of

Mr. G. PRAVIN WINSTER. He is a sincere and hard-working student with
manners.

pleasant

We wish all success in his future endeavours

$0-uy4
Manager (Training & Development)

Regd. Ofllce: ll, Potullo Rood, Chennql - 600 002, lndlo. Corp. Otllce : 'Aolim Cenlre' 82, U. Eodho Krishnon Soloi, Chennol - 600 004. lelephone:28I10063 / 28110074. Fox:28115624.

CERTIFICATE OF ORIGIN

This is to certify that Mr. HARINARAYAN P a student of Post Graduate Degree in MASTER OF BUSINESS ADMINISTRATION, Amity International Business School, Noida has worked in the MARKETING DEPARTMENT under the able guidance and supervision of Mr. G. PRAVIN WINSTER, Asst. Manager, Business Development & Marketing, LUCAS-TVS LTD The period for which he was on training was for 8 weeks, starting from 13th may 2011 to 30th June 2011. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

SIGNATURE (Ms. POORVA RANJAN)

SIGNATURE (HARINARAYAN P)

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. G. PRAVIN WINSTER, Asst. Manager, Business Development & Marketing, LUCAS-TVS LTD for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank Mr. N. KUMAR, Mr. VINOTH, Mr. V. MAHESH, Mr. SUMIT and the entire team of MARKETING for their constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Ms. POORVA RANJAN of my institute, for her continued guidance and invaluable encouragement.

SIGNATURE (HARINARAYAN P)

TABLE OF CONTENTS
SUBJECT PG NO.

EXECUTIVE SUMMARY ......................................................................................................... 1 INTRODUCTION ...................................................................................................................... 2 INDUSTRY PROFILE ............................................................................................................... 3 LITERATURE REVIEW ................................................................................................................. 3 AUTOMOTIVE MISSION PLAN 2016......................................................................................... 5 MARKET SHARE ..................................................................................................................... 5 TWO WHEELERS INDUSTRY IN INDIA .......................................................................................... 7 KEY PLAYERS IN THE TWO-WHEELER INDUSTRY....................................................................... 7 DEMAND AND MARKET POSITION .......................................................................................... 8 AUTO COMPONENT INDUSTRY ................................................................................................ 11 AUTO-COMPONENTS MANUFACTURERS ASSOCIATION OF INDIA ........................................... 11 SEGMENT-WISE DIVISION: ................................................................................................... 12 CLASSIFICATION OF AUTO COMPONENT MARKET ................................................................. 13 MAJOR AUTO COMPONENT PLAYERS (TWO, THREE AND FOUR WHEELER PLAYERS)................ 14 MAJOR PLAYERS OPERATING IN THE PRODUCT SEGMENTS OF AUTO-COMPONENTS .............. 15 SWOT ANALYSIS: INDIA AUTO COMPONENT MARKET............................................................ 16 COMPANY PROFILE ............................................................................................................. 17 TVS GROUP............................................................................................................................. 17 TVS GROUP OF COMPANIES................................................................................................. 18 LUCAS-TVS.............................................................................................................................. 20 PRODUCTS .......................................................................................................................... 20 CUSTOMERS........................................................................................................................ 20 AWARDS............................................................................................................................. 23

SALES PERFORMANCE.......................................................................................................... 24 SWOT ANALYSIS .................................................................................................................. 24 ISSUES AND CHALLENGES.................................................................................................. 26 COMPETITOR ANALYSIS..................................................................................................... 27 COMPETITOR ANALYSIS IN TWO-WHEELER SEGMENT- STARTER MOTORS .............................. 27 COMPETITOR’S PROFILE .......................................................................................................... 28 DOMESTIC SUPPLY AND MARKET POSITION- MODEL WISE ........................................................ 30 DATA COLLECTION FRAMEWORK ............................................................................................. 31 RESULTS AND FINDINGS ..................................................................................................... 32 FAST MOVING TWO WHEELER MODELS IN MARKET.................................................................. 32 DATA ANALYSIS....................................................................................................................... 33 MOST FREQUENTLY SERVICED VEHICLE ................................................................................ 33 NUMBER OF STARTERS REPLACED IN A MONTH .................................................................... 33 AVAILABILITY OF THE PRODUCT ........................................................................................... 34 MOST PREFERRED PRODUCT IN MARKET .............................................................................. 34 CUSTOMER PREFERENCE IN BUYING AND SERVICING A PRODUCT.......................................... 35 SUGGESTION OF LUCAS-TVS STARTERS TO CUSTOMERS ........................................................ 36 OEM’s SATISFACTION LEVEL WITH LUCAS-TVS STARTER MOTORS .......................................... 37 HONDA: SATISFACTION SURVEY ........................................................................................... 37 HERO HONDA: SATISFACTION SURVEY.................................................................................. 38 YAMAHA: SATISFACTION SURVEY ......................................................................................... 39 RECOMMENDATIONS .......................................................................................................... 40 STRATEGIES TO BE ADOPTED ............................................................................................... 41 CONCLUSION ...................................................................................................................... 41 BIBLIOGRAPHY..................................................................................................................... 42 ANNEXURE............................................................................................................................. 43 TABLES ............................................................................................................................... 43

QUESTIONNAIRE ................................................................................................................. 49 CASE STUDY .......................................................................................................................... 53 COMPETITIVENESS OF THE INDIAN AUTO COMPONENT INDUSTRY ........................................ 53 MOVING UP THE VALUE CHAIN ............................................................................................ 55 R&D CAPABILITY.................................................................................................................. 57 PRODUCT LIABILITY ............................................................................................................. 58 THE ROAD AHEAD ............................................................................................................... 58 SYNOPSIS................................................................................................................................ 59

CHAP TER 1 EXECUTIVE SUMMARY
1) This study analyses the market potential and competitiveness of Lucas- TVS two wheeler starter motor in the Indian two wheeler industry. It is based on a field survey and a quantitative analysis of secondary data. The field survey covers 15 two wheeler dealers in Chennai, 11 mechanics and 5 Original Equipment Manufacturers (OEMs) 2) From 2002-2010, the Indian Automobile industry has grown at an average annual rate of over 18 percent in terms of value of output and auto-component sector has grown about 26 percent. During the same period in terms o f domestic production in numbers, two-wheelers have grown at a rate of 25 percent, three wheelers at more than 15 percent, commercial vehicles at about 25 percent per annum and the number of passenger vehicles by 17 percent per annum 3) Development of Auto-Component industry depends on the development of automobile industry. Due to the increased oil/ petrol price, there may be a downfall expected in the sales of four wheelers and customers may prefer 150/180cc two wheelers for their fuel efficiency. 4) Lucas-TVS, though a market leader in 4 wheeler segment, it had only 30 percent of domestic market share with respect to the sale of products to OEMs and aftermarket. In order to sustain in the two wheeler market and increase its net sales, it should have the ability to meet the future demand. 5) Market potential for two wheeler segment should be analysed and the production should be forecasted. Competitor analysis must be done in order to know their strengths and weakness. 6) A Customer satisfaction survey must be done to know how Lucas-TVS starter motor is rated against its rivals 7) A Field survey has been taken up in order to find out the aftermarket sales and customer’s perception regarding the starter motor. 8) Future growth drivers for auto-component industry is also studied

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CHAP TER 2 INTRODUCTION
The following objectives are set in order to obtain a proper flow to achieve the desired results.

Primary Objective:
To study the market potential and competitiveness of Lucas- TVS Starter Motor in domestic two wheeler market and to device an optimal strategy to increase its market share in supply to OEMs

Secondary Objective:
1) To analyse the competitiveness of Lucas-TVS’s products in Two-wheeler industry. 2) To study and analyse the two wheeler market. 3) To find the fast moving bike models in market and analyse Lucas presence on the same 4) To study the service level provided by the two wheeler dealers in a month 5) To analyze the current repair practice in the market 6) To know the customer preferences on buying a product 7) To analyse the growth factors in two wheeler industry and to find out the gap between the self (auto) start and manual start in two wheelers.

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CHAP TER 3 INDUSTRY PROF ILE
LITERATURE REVIEW
There are two distinct sets of players in the Indian auto industry: Automobile compone nt manufacturers and the vehicle manufacturers, which are also referred to as Original Equipment Manufacturers (OEMs). While the former set is engaged in manufacturing parts, components, bodies and chassis involved in automobile manufacturing, the latter is engaged in assembling of all these components into an automobile. As noted by National Manufacturing Competitiveness Council (NMCC) 2006,

competitiveness of manufacturing sector is a very broad multi-dimensional concept that embraces numerous aspects such as price, quality, productivity, efficiency and macroeconomic environment. The OECD (Organisation of Economic Co-operation and Development) definition of competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. The Indian auto components industry has experienced healthy sequential growth over the last one-and-a-half years, following a period of de-growth in 2008-09. The recovery could be attributed to factors such as strong buoyancy in the end- user industry; recovery of the global economy; improved consumer sentiment and return of adequate liquidity in the financial system. The revival of the auto industry was initially driven by the fiscal stimulus programme of the government. Nevertheless, the fact that the growth momentum has sustained even after withdrawal of such incentives in February 2010 highlights the strength of the underlying domestic demand. ICRA (Investment Information and Credit Rating Agency of India Limited) expects the trend of automobile sales volume growth, and in turn the auto ancillary business growth to hold over the short-to-medium term aided by strong underlying domestic demand across all automobile segments [comprising two-wheelers (2W), three-wheelers (3W), passenger vehicles (PVs) and commercial vehicles (CVs)], thrust on low-cost sourcing by Original Equipment Manufacturers (OEMs) and Tier-1 players based from developed markets, aggressive supply side push from automotive Original Equipment Manufacturers (OEMs) in
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the form of new model launches and expected continuation of facilitators like easy access to vehicle financing, notwithstanding possible challenges related to pressures on commodity prices, interest rate hardening and fuel price deregulation. While almost all segments of the automobile industry have posted a steady growth over the last 18 months, the recovery in the Medium and Heavy Commercial Vehicle (M&HCV) segment has been the slowest to gather momentum. The segment had also experienced the sharpest volume decline in 2008-09, which had translated into significantly lower off- take and losses for suppliers of M&HCV components - and had contributed to around 40% of rating downgrades in the universe of auto and auto component manufacturers downgraded by ICRA in 2008-09 and 2009-10. However, with domestic economic activity having gained traction, ICRA expects the M&HCV segment volumes over the near term to surpass the levels achieved in the pre-downturn period, which should result in improvement in the credit profiles of auto component suppliers dependent on this segment. On the whole, ICRA believes the Indian auto components industry is poised to sustain its revenue growth momentum over the short-to-medium term. However, the industry profitability may face pressures due to (a) pricing pressures from OEMs, which in turn are entering into a phase of heightened competitive intensity constraining their pricing power; (b) threat of rising commodity prices; (c) likely higher cost of funds consequent to hardening of interest rates; and (d) import from other low-cost locations. In addition, companies engaged in select product categories within the auto components industry are expected to incur large CAPEX for enhancing production capacities to meet the growing demand, which could affect the capital structure and return metrics of such companies over the short term. However, in ICRA’s view, the anticipated strong business growth should result in healthy cash accruals and enable such companies to tide over the short term pressures and emerge with a stronger credit profile over the medium term. Other risks to growth and profitability of the Indian auto components industry include increase in competition from other countries to capture business opportunities both in the international as well as domestic markets; uncertainty arising from currency volatility; and ability to acquire capabilities in tune with technological advancements. The industry efforts to mitigate the above risks along with policy measures of the government would determine the impact of the above risks on the auto components industry going forward.

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AUTOMOTIVE MISSION PLAN 2016 The Ministry of Commerce, with the help of SIAM (Society of Indian Automobile Manufacturers) and ACMA (Automotive Component Manufacturers Association of India) has devised automotive mission plan 2016 to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion accounting for more than 10 percent of the GDP and providing additional employment to 25 million people by 2016. The Automotive Industry offers huge growth potential in terms of sales volume (including exports) and also immense employment opportunities. The likely future volumes of different vehicle categories were estimated on the basis of projections made by iMaCS (ICRA Management consulting Services Limited), NCAER (National council of Applied Economic Research) and AT Kearney. The value of projected domestic output was computed based on historical average vehicle prices. The export potential was estimated on the basis of current trends and possible opportunities in major export destinations. The demand for after-market auto components and export output was also included in computing growth potential of the industry. According to AMP, Government will encourage collaboration of Industry with research and academic institutions like CSIR, IIT, and machine tool industry for the development of appropriate technology and creation of IPR to meet more stringent regulations as well as to develop relevant machine tools and equipment that improve manufacturing processes and quality of the vehicles and components produced by the industry. The interface with the Core Group on Automotive Research (CAR) would be strengthened. MARKET SHARE Market share, in strategic management and marketing is, according to Carlton O'Neal, the percentage or proportion of the total available market or market segment that is being serviced by a company. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less
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dependent upon macro-environmental variables such as the state of the economy or changes in tax policy. Market share is used by businesses to determine their competitive strength in a sector as compared to other companies in the same sector. It also allows company to accurately assess its performance from year to year. There are four basic ways to improve market share. 1) Improving the quality of the Product, better than the competitors. 2) Product pricing factor is important 3) Should have Strong distribution Network 4) Product Promotion Increased market share is not always the best solution for businesses. It might not be profitable if it is associated with expensive advertising or a big price decrease. A company may not be able to meet the demand of an increased market share without huge inves tments in new equipment and employees. In some cases it can be to a company's advantage to decrease market share, if the lower costs of lower market share can improve profitability. Managing market share, therefore, is a very important aspect of managing a business

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TWO WHEELERS INDUSTRY IN INDIA
The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, price and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable and sturdy steed: The two-wheeler. India is the second largest producer and manufacturer 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. Indian two-wheeler industry has got spectacular growth in the last few years KEY PLAYERS IN THE TWO-WHEELER INDUSTRY There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS). Break up of Two wheeler Industry

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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), Mahindra 2 wheelers and Honda Motorcycle & Scooter India (P) Ltd (HMSI). Two-wheeler Industry Production Forecast

DEMAND AND MARKET POSITION The total size of Indian two-wheeler industry increased at a CAGR of around 9.0 perce nt in the last 5 years, and was pegged at Rs 360 billion with total volume of 10.5 million units in 2009-10. CRISIL research estimates the two-wheeler industry to grow at 8-10 percent in volume terms during 2009-10 to 2014-15, with domestic two-wheeler sales growing at 7-9 percent and exports at 10-12 percent. In value terms, the two-wheeler industry is estimated to post a CAGR of 9-11 percent to reach a size of Rs 720 billion by 2014-15. The industry is dominated by three players- Hero Honda, Bajaj Auto and TVS Motors- and is divided into three segments – motorcycles, scooters and mopeds. In volume as well as value terms, motorcycles lead the two-wheeler market. The share of motorcycles in total sales volume in 2009-10 was 80.3 percent, followed by scooters (14.2 percent) and Mopeds (5.5 percent).

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Motorcycles can be further divided into three segments- economy, executive and premium. The economy segment comprises lower- end motorcycles (priced at Rs 30-000-40,000), whereas the executive segment (priced at Rs 40,000-50,000) and premium segment (priced higher than Rs50, 000) constitute higher-end motorcycles. Now-a-days, due to the increased oil prices, high interest rates and to satisfy the market demand, players are shifting their focus to 110-125cc motorcycles. This has led to increase in the executive segment contribution from 42.6 percent in 2005-06 to 59.1 percent in 2009-10. Hero-Honda, the market leader, holds a dominant market share of 69.8 percent in the executive segment, whereas Bajaj Auto leads the other two segments with a market share of around 45.0 percent in both segments. Global players- Yamaha and Suzuki- also have a presence in the Indian two-wheeler industry; however, they are yet to gain a significant market share. Honda motorcycle & Scooter India Ltd (HMSI) leads the un-geared scooter segment, with a 50.6 percent market share. TVS Motors holds a second position in the scooters segments with a 20.5 percent share, followed by Hero Honda (14.3 percent). Electric scooter is manufactured by only two players, TVS Motors and Electrotherm (India) Ltd, and its share in the scooters segment is negligible as of 2010-11. Mopeds, which are generally preferred in rural and semi urban areas, are manufactured only by TVS motors. Over the past few years, Kinetic Motors, majestic motors and Kinetic

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Engineering have discounted their business operations; TVS Motors enjoy monopoly in the mopeds segment. In domestic sales 2009-10, Hero Honda retains its market leadership with 48 percent overall market share whereas Bajaj Auto grew at 38.8 percent, thus holds a market share of 19.1 percent, followed by TVS Motors, which holds 14.5 percent share. In last few years, HMSI is emerging as a strong contender to TVS motors. HMSI grew by 17.3 percent and has a market share of 12.7 percent. Yamaha Motors, Suzuki Motorcycles India and Mahindra & Mahindra are still struggling to gain a substantial market share. Mahindra & Mahindra entered two-wheeler industry with the acquisition of Kinetic Motors in 2008-09, however, its presence only in the scooter segment.

Domestic Market Share of Two wheeler Players

Source: Annexure Table (v)

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AUTO COMPONENT INDUSTRY
Indian auto component industry is emerging as a global manufacturing hub for auto component manufacture. Indian auto component industry is one of the front runners for grabbing the global auto component outsourcing market, estimated to be worth US$700 billion by 2015. Auto components sector requires an incremental investment of Rs 2,000crores as per the report of working group on automobile industry Eleventh Five Year Plan (2007-2012). Today, India has the potential to manufacture a range of automotive components (about 20,000 in numbers) - from fasteners to engine parts apart from the foreign demand, the domestic automobile production is also growing with sales expected to be about 17 million by 2012. The exports are expected to touch US$17.5 billion by 2015. The Indian auto component Industry is highly fragmented: Around 500 organized players account for the 77% of the value added in the sector. Unorganized players are mainly replacement market players or tier ¾ component manufacturers Auto-Components Manufacturers Association of India (ACMA) represents the auto component industry in India and has around 500 registered members. AUTO-COMPONENTS MANUFACTURERS ASSOCIATION OF INDIA The Automotive Component Manufacturers Association of India (ACMA) is the nodal agency for the Indian Auto Component Industry. Its active involvement in trade promotion, technology up-gradation, quality enhancement and collection and dissemination of information has made it a vital catalyst for this industry's development. Its other activities include participation in international trade fairs, sending trade delegations overseas and bringing out publications on various subjects related to the automotive industry. ACMA is represented on a number of panels, committees and councils of the Government of India through which it helps in the formulation of policies pertaining to the Indian automotive industry.

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For exchange of information and especially for co-operation in trade matters, ACMA has signed Memoranda of Understanding with its counterparts in Australia, Brazil, Canada, Egypt, France, Germany, Iran, Italy, Japan, Malaysia, Pakista n, South Africa, South Korea, Spain, Sweden, Thailand, Tunisia, Turkey, UK, USA and Uzbekistan. ACMA represents over 600 companies, whose production forms a majority of the total auto component output in the organized sector. In the domestic market, they supply components to vehicle manufacturers, Tier-1 suppliers, to state transport undertakings, defence

establishments, railways and even to the replacement market. A variety of components are being exported to OEMs and aftermarket worldwide . SEGMENT-WISE DIVISION: The Auto components industry is predominantly divided into the following segments:  Engine parts: 31%  Drive Transmission & Steering Parts: 19%  Suspension & Brake Parts: 12%  Electrical Parts: 9%  Body and chassis: 12%  Equipments: 10%  Others: 7% According to estimates available from industry association ACMA, the global automotive component industry is estimated to be more than US$1trn. It is forecasted to hit US$1.9 trillion by2015. Out of the total auto-component market in 2015, around 40%, US$700 billion market is expected to be driven by low cost countries globally. India is one of the fastest growing low-cost manufacturers of auto components in the world. The auto-component market is estimated to be US$19 billion in 2008-09 in India, of which US $3.8 billion is the export market. With the growth in automobile sector, entry of new players in India, rising income and export, auto component manufacturers in India has potential to rise at a CAGR of 13% to touch US$40 billion by 2015. In volume terms, two/three wheelers are the largest customer segment of auto-component market (around 34%), followed by passenger cars
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Auto-component industry production forecast

contributed nearly 33% and commercial vehicle (CV) components account for almos t 24% of the auto-component market CLASSIFICATION OF AUTO COMPONENT MARKET The auto component industry can be classified into the 3 channels; as far as auto component market is concerned. The classification of auto component market, as per the market spread, is shown below: Classification of Auto Component Market
Auto Component market

OEM Demand

After market Demand

Export Demand

Auto Components

Auto Accessories

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The OEM (Domestic and Export Demand) contributes to 70 percent of the turnover, rest 30 percent of the auto component demand is generated through aftermarket or replacement demand. Auto-Component’s demand in OEM and After Market

MAJOR AUTO COMPONENT PLAYERS (TWO, THREE AND FOUR WHEELER PLAYERS) There is not any distinction between the two wheeler and four wheeler automobile component players in the Indian automobile component industry. The major organized players who are catering to two wheeler OEMs are also catering to four wheeler OEMs. However, for some niche commercial vehicle components, due to specialized load bearing and design requirements, some automobile component players are the vendors only to commercial vehicles. The Indian automotive industry is characterised by a strong competition between increasingly quality conscious manufacturers. The large, highly skilled but low cost manufacturing base makes partnering linkages with overseas players attractive. These strengths coupled with India’s well established strengths in IT/ Software combined together to make India an emerging player in this sector.

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MAJOR PLAYERS OPERATING IN THE PRODUCT SEGMENTS OF AUTOCOMPONENTS

Product Segment

Transmission and Steering

Key Sub-Segments Gears and Drive Clutches Axles Others Starter Motors, Generator, Distributor, Spark plugs, Ignition Coil, Flywheel Magnet, Voltage Regulator, Electrical Ignition

Electrical Parts

Engine Parts

Pistons Piston Rings Engine Valves Carburettors Fuel Delivery System

Headlight Equipment Dashboard Sheet Metal

Suspension and Braking

Brake System Brake Linings Shock Absorbers

Others

Fan Belts Sheet Metal

Major Players Rico Auto Industries. Automotive Axles Wheels India ltd. Sona Koyo Steer. GKN Driveline (India) Denso MICO Motherson Sumi Minda Industries Lucas TVS India Nippon Escorts India Pistons Geotze (India) India Pistons Rane Engine Valves Shriram Piston & Rings Space Carburettors Ucal Fuel Lucas TVS MICO Germany Lumax, Autolite, Phoenix Lamps Premier Instruments & Controls Jay Bharat Maruti, Omax Auto, JBM tools Automotive Axles Brakes India Kalyani Brakes Allied Nippon Rane Brake Lining Sundaram Brake Gabriel India Munjal Showa Rico Auto Rico Auto

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SWOT ANALYSIS: INDIA AUTO COMPONENT MARKET The classical tool to assess the industry environment is through SWOT analysis . Strength  Is Globally Cost Competitive  Adheres to strict quality controls  Has access to latest technology Weakness  Industry has low level of R&D capability  Industry is exposed to cyclical downturns in the automotive industry  Most component companies are dependent on global majors for technology

 Provides

support to critical infrastructure and metal industries

Opportunities  May serve as sourcing hub for global automobile majors  Significant export opportunities may be realised through diversification of export basket  Implementation of Value-added tax (VAT) in FY2004 will negate the cascading impact  Continuous pressure on global OEMs to reduce cost and source from low cost countries

Threats  The presence of a large counterfeit
components market poses a significant threat

 Pressure on prices from OEMs
continues

 Imports pose price based competition
in the replacement market

 Further marginalization of smaller
players likely

With the growing sales of automobiles, new global OEMs are entering in the Indian automotive industry which in turn provides the auto component industry the opportunity to register robust growth over next 5-8 years. The component industry has not more than 50 players with turnover of more than US$ 500 million per annum. The growing automobile demand and the increasing awareness to purchase genuine spare parts in the aftermarket poses attractive market opportunities for the two and four wheeler auto component manufacturers.

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CHAP TER 4 COMPANY PROF ILE
TVS GROUP
TVS is an Indian diversified industrial conglomerate with principal base in Chennai and Madurai. Almost all the companies in the group are privately held. The largest and the most visible company is TVS Motors, one of the top 3 two-wheeler manufacturers in India. From its humble beginning at the turn of the 20th century, the group has progressed to become the largest manufacturer and distributor of auto components in India TVS Group was established in 1911 by T.V.Sundaram Iyengar, one of the visionaries of the Indian industry. His ideas were years ahead of their times. Three years before World War I, when the automobile was still seen as some kind of intimidating “horse- less carriage”, he had the vision to set up South India’s first ever rural bus service and over the years, this transport company became the largest of its kind in the country, legendary for its punctuality and service. In fact, the rules and regulations laid down by him later became the blue print for the Motor Vehicles Act. The importance given by the founder of Trust, Value and Service-TVS, are the basic tenets of the TQM framework even today. His philosophy of business reflected the kind of man he was-simple and stern. It was based rigidly on four concepts – Quality, Service, Reliability and a sense of Ethics. The TVS Group is the largest manufacturer and distributor of automotive components in India, with a turnover in excess of 2.7 billion US$ and a family of over 25000 members. Today, this renowned business conglomerate remains faithful to its core ideals of trust, values, service and ethics. The TVS Group is India's leading supplier of automotive components and one of the country's most respected business groups. With a combined turnover of more than USD 5 billion, the TVS Group employs a total workforce of around 25,000. Charting a steady growth in terms of expansion and diversification, it currently comprises around 43 companies. These companies operate in diverse fields ranging from two-wheeler and automotive component manufacturing to automotive dealerships, finance and electronics.

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Uniting these multiple businesses is a common ethos of quality, customer service a nd social responsibility. TVS GROUP OF COMPANIES The TVS group, with a turnover of over one billion dollars, is the largest manufacturer of automotive components in India. The group produces auto electrical, diesel fuel injection systems, braking systems, automotive wheels and axle fasteners, powder metal components, radiator caps, two wheelers and computer peripherals. Backed by five service and distribution companies with an extensive network across the country, group has the largest distribution network for automotive products in India Company Manufacturing Companies Axles India Ltd Brakes India Ltd India Nippon Electricals Ltd India Japan Lighting Ltd Automotive axles Hydraulic brakes & clutch ignition systems Magnetos, two/three wheeler ignition systems Headlamps, rear combination lamps & various signal lamps for automotive & two wheeler applications Engine/transmission components Auto electrical parts Automotive tyres Brake linings & clutch facings Diesel fuel injection equipments Air brakes High tensile fasteners, cold extruded products, sintered components, intelligent systems, radiator caps Yarn Turbo chargers Products

Lakshmi Auto components Ltd Lucas-TVS Ltd TVS Srichakra Ltd Sundaram Brake Linings Ltd Delphi- TVS Ltd Sundaram Clayton Ltd Sundaram Fasteners Ltd

Sundaram Textiles Ltd Turbo Energy Ltd

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TVS Interconnect Systems Ltd TVS Electronics Ltd TVS Sewing Needles Ltd TVS Motor Company Ltd TVS Cherry Ltd

Electronic connectors Computer peripherals Sewing needles Two wheelers Precision miniature, sub- miniature, selector switches, hall effect sensors, key switches Automotive wheels

Wheels India Ltd Distributive Companies India Motor parts & Accessories Ltd Lucas India Service Ltd

Distributors of automotive components Distributors of auto electrical, fuel injection equipment, LISPART & batteries Distributors of passenger cars, commercial vehicles, automotive spare parts

TV Sundaram Iyengar & Sons Ltd

Other Companies Southern Roadways Ltd Sunco Machines Ltd Sundaram Industries Ltd Freight services Precure tyre retreading equipment Tyre retreading, coach building, components. rubber

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LUCAS-TVS
Lucas - TVS established in 1961 as a joint venture between Lucas UK and T V Sundram Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems. Lucas-TVS is the Leader in Auto Electricals in India today with 48 years experience in design and manufacturing. 4 out of 5 vehicles rolled out daily are fitted with Lucas-TVS products. 100% share of LUCAS-TVS is now owned by the TVS group. Lucas - TVS is a TS16949 and OSHAS 18001 certified company. Lucas-TVS have bagged the Deming application price in 2004 from the Japanese Union of Scientists and Engineers (JUSE). Lucas-TVS has emerged as one of India's largest independent suppliers of automotive components and it reaches out to all segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps, two-wheelers, and off- highway vehicles, and also caters to stationary and marine applications. PRODUCTS Lucas-TVS manufacture electrical components for the entire automobile industry (CVs, LCVs, Cars, 3/2 wheelers) and provides wide range of products with various technical features as per the demand in market. Various Products are: 1) Starter Motors 2) Alternators 3) Wiper Motors 4) Blower Fan Motors 5) Small Motors

6) Ignition
CUSTOMERS Cars/Utility vehicle:

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LCVs/CVs:

Tractors:

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Earth movers:

Two/ Three Wheelers

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Exports:

After Market Customers: Australia, Austria, Bangladesh, Bahrain, Belgium, China, Doha, Dubai, Egypt, England, Germany, Ghana, Ireland, Italy, Korea, Kuwait, Libya, Malaysia, Mauritius, Romania, Russia, Serbia, Seychelles, Singapore, South Africa, Spain, Srilanka, Sultanate Of Oman, Switzerland, Turkey, U.S.A, Zambia. AWARDS Lucas-TVS, believes that quality begins and ends with the customer. This means identifying customer needs and comprehensively meeting them. For the company, quality is not just conformance to drawings or specifications but ensuring customer satisfaction. 1. II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS - 2008 Automotive sector Ministry of Power, Govt. of India 2. TATA CUMMINS Lucas- TVS is Awarded "OUTSTANDING SUPPLIER & EXCELLENCE PERFORMANCE during the year 2007 by CUMMINS INDIA LIMITED 3. Deming Application prize JUSE, Japan 4. Best Supplier Award Maruti Udyog
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5. 100 PPM Award Hyundai motor India 6. Q1 Award From Ford SALES PERFORMANCE Lucas-TVS will retain its dominant position in the automotive electricals market over the medium to long term, supported by its long-standing and established relationships with domestic OEMs. However, revenue growth and profitability will remain under pressure with sluggish off- take by OEMs, increasing competition, and pricing pressures from the OEMs. Net sales and Growth Trend of Lucas-TVS

Source: Annexure table (ii)

SWOT ANALYSIS Strengths  Lucas- TVS reaches out to all segments of the automotive industry from two wheelers to Heavy Commercial Vehicles (HCVs)  It has extensive distribution network comprising over 2000 outlets spanning the entire length and breadth of the country.

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 Its focus on quality products combines with urge to constantly learn and improve imparts it a unique strength, which cannot be easily initiated by its competitors  It has been successful in developing contacts with a host of service dealers over last eleven and half decades.  The management style at Lucas-TVS allows participation at the worker level. Small Group Activity (SGA) is just an example of this management style. Weakness  Lucas-TVS have not been able to establish a backward integration. It has to further develop its technologies to meet higher quality demand in market  Lucas-TVS is facing high pressure from OEMs in terms of pricing of the product  The company has to motivate development of quality products so as to bring down the rejection levels Opportunities  Rapid inflow of investments in the auto component sector resulting in new green field sites near the vehicle- manufacturing units to ensure JIT delivery to OEMs. This will further open new avenues for the company  With liberalization and the slashing of import duties both on automobiles and auto components, world class automobile manufacturers have shown interest in entering the Indian markets. Increased production of vehicles will stimulate the auto components industry Threats  Inability to match the technological capabilities of big foreign auto component manufacturers like Delphi, MICO etc.  The company has established links with many collaborators which is not the case with other Global players, hence might prove to be a threat in future.

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CHAP TER 5 ISSUES AND CHALLENGES
ISSUES AND CHALLENGES The Indian Auto-Component industry as a whole is engulfed with certain challenges. These challenges can be dissected into two categories – internal factors i.e. the challenges faced at organizations’ level and external factors where the other entities, issues outside the organization / industry influence the growth of the industry. Internal Factors  Sustaining Quality Levels  Under- investment in ERP (Enterprise Resource Planning) infrastructure leading to inefficient stock planning and high inventory levels  Rising attrition rate which slows down the growth  Need for Innovation  Enhancement of share of Auto component in global trade External factors  Poor logistics and power Infrastructure  Increasing cost of raw materials and labor wages  Increasing competition and high lead time for international contracts (from OEMs)  Managing M&A /JV / collaborations.  Tightening environmental & safety regulations leading to high capital investments

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CHAP TER 6 COMPETITOR ANALYSIS
COMPETITOR ANALYSIS IN TWO-WHEELER SEGMENT- STARTER MOTORS The two wheeler industry is going through a tremendous technological change where each firm is engaged in changing its processes and technologies to sustain the competitive advantage and provide customers with optimized products and services. Starting from engine parts to drive train, chassis to body dimensions, OEMs are offering various types of models with prices ranging from Rs30, 000 to Rs1, 00,000 and more. Now-a-days firms are launching “sport” type bike models for day-today life use. In olden days, people have to kick start their bikes, which in other way resemble as a stress reliever. If the engine doesn’t pick up the first time or the second, people continue to kick as much and the kick lever gets jammed. With new technologies in hand, vehicles are manufactured without kick levers (i.e. Kick start). Self-Start in two wheelers has made the industry to sustain continuous growth while satisfying customers in all sub-segments. It has provided ease in starting a bike and has made ride smooth. What is a self / electric start? Self start or an electric start in a two wheeler is defined as a system that uses battery power to automatically start an internal-combustion engine. Person, who rides a two wheeler, has to just press the “Start” button and the vehicle’s engine is triggered on. Self start mechanism works with the help of a Starter Motor. A starter motor (also starting motor or starter) is an electric motor for rotating an internal-combustion engine so as to initiate the engine's operation under its own power. Lucas-TVS starters for two-wheelers have been introduced in the year 2002, and sales has not picked up as expected by the firm. Given here are the details of other two-wheeler starter motor supplier for the Indian two wheeler industry. 1) Varroc Engineering Private Limited 2) Mitsuba Sical India Limited 3) Flash Electronics India Private Limited
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COMPETITOR’S PROFILE
Varroc Engineering Private Limited Trade Mark: Varroc Excellence Products Manufactured: Engine valves, Crank shafts, Transmission Assemblies, Front wheel hub Assemblies, Steering Assemblies, Catalytic Converters, Starter and Wiper Motor, Capacitor discharge Ignition, Regulator rectifier, Magnetic AC Generators, Body Switches, Lightning systems, Direction Indicators. Principle Customers: Domestic (OEM): Bajaj Auto Ltd., Suzuki Motorcycles India Ltd., Honda Motorcycle & Scooter India Pvt. Ltd., India Yamaha Motors Ltd., Royal Enfield Sales Turnover (2009-10 in US $ Mln): 192.55 Exports Turnover (2009-10 in US $ Mln): 12.45 Mitsuba Sical India Limited Year of Commencing Production: 1986 Trade Mark: MSIL (MITSUBA SICAL INDIA LIMITED) Products Manufactured: Wiper Motor and Link Motion Assembly, Windshield Washer Assembly, Fan Motor Assembly, AC Generator, Starter Motor Assembly, Power window Motor Principle Customers: Domestic (OEM): Hero Honda Motors India Ltd., Suzuki Motorcycles India Ltd. and Honda Motorcycle & Scooter India Pvt. Ltd. Sales Turnover (2009-10 in US $ Mln): 66.67 Flash Electronics India Private Limited Year of Commencing Production: 1989

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Trade Mark: FLASH Products Manufactured: Automotive Sensors, Ignition Coils, Starter Motors, Stepper Motors, Magneto Assembly, Alternators, RR Unit, CDI, DC Flashers, Spark Plug Cap & Complete Automotive Solution for Electrical & Electronic Components Principle Customers: Domestic (OEM): Bajaj Auto Ltd., Honda Motorcycle & Scooter India Pvt. Ltd. and India Yamaha Motors Ltd. Sales Turnover (2009-10 in US $ Mln): 32.29 Domestic Market share of two wheeler Starter Motor Suppliers

Source: Annexure Table (v)

Currently, Mitsuba holds the dominant position in the two wheeler domestic automotive electrical market as it supplies two wheeler starter motor to most of the bike models of two wheeler market leader-Hero Honda. Mitsuba also supplies starter motor to all bike models o f Honda and Suzuki which holds 13 percent and 6 percent of the market respectively. After the split between Hero and Honda, the Hero group is likely to expand its business overseas which in turn is an opportunity to LUCAS-TVS to expand its supplies thereby capturing the market. Honda Motorcycle & Scooter India, the country's fourth- largest two29

wheeler maker, can now take on the market leader in every segment, while other companies will also try to make the most out of an expected weakening of Hero Honda's brand image

DOMESTIC SUPPLY AND MARKET POSITION- MODEL WISE
Starter Motor Supplier OEMs Bike Models Splendor Super Splendor Passion Pro CD (Dawn, Deluxe) Glamour Karizma CBZ Hunk Achiever Twister Shine Stunner Unicorn Unicorn Dazzler Heat GS 150R Zeus Slingshot Access Discover 150cc Pulsar Platina Discover 125/135 cc Pulsar Platina Pleasure Activa Aviator Dio Discover 100cc Pep+ Teenz Wego Apache Victor Star City Flame Jive Fazer Entizer Gladiator FZ16
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Hero Honda

Mitsuba Sical Honda Motorcycles and Scooters India

Suzuki

Varroc Excellence

Bajaj Auto

Flash

Bajaj Auto Hero Honda Honda motorcycles and Scooter India Bajaj Auto

Lucas-TVS

TVS Motors

Yamaha

DATA COLLECTION FRAMEWORK
Three sets of questionnaire were prepared to find out the performance of Lucas-TVS starter motors in two wheeler market. One set of questionnaire (Customer Satisfaction Survey) is to the OEMs, to find out the level of satisfaction with Lucas-TVS products. The second set and the third set of questionnaire is to the Authorized two wheeler dealers and to the mechanics respectively, to find out the top selling bike models and customer preference in buying/ repairing a faulty starter motor. Questionnaire to OEMs: Questionnaire were given to the OEM representatives and were asked to rate the performance of Lucas-TVS products with respect to Quality, Delivery, Line rejections, After sales support, Product Improvements and New product Development in comparison with other suppliers. Questionnaire to Dealers (Sales and Service): Q1 & Q2 explicitly asked to the respondent to specify the top 3 selling bike models for the month of May and June and if possible the volume sold is also noted. Q3 to Q5 of the questionnaire are used to get general details regarding the number of vehicles serviced per month and replacement of faulty starter motor. Q6 explicitly asked to the respondent about the price o f Lucas-TVS products when compared to others and their recommendations Questionnaire to Mechanics Q1 & Q2 explicitly asks the respondents regarding the number of vehicles serviced per month and number of starter motor replaced. Q3 & Q4 asks about the availability of product spares and the discount price given by the nearby dealers on starter motors. Q7 & Q8 explicitly asks the respondent regarding the customer preference regarding the quality, price and servicing a starter motor. Q9 to Q12 of the questionnaire are used to get the general details regarding the awareness of Lucas-TVS products and its recommendations.

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CHAP TER 7 RESULTS AND FINDINGS
FAST MOVING TWO WHEELER MODELS IN MARKET
AVERAGE VOLUME SOLD/ MONTH 45 TVS Streak Apache Splendor plus HERO HONDA Splendor pro Passion pro Twister (with Disc brakes) HONDA Unicorn Shine Pulsar BAJAJ Discover Platina FZ16 YAMAHA Enticer Fazer SUZUKI Access 110cc 150/180cc 100c 100cc 100cc 110cc 150cc 125cc 150cc 125cc/150cc 15 100cc 150cc 125cc 125cc 125cc 25 Mitsuba Sical 5-15 LTVS 50 Flash/ Varroc 100 Mitsuba Sical 60 Mitsuba Sical 5 CURRENT SUPPLIER

COMPANY

MODEL Scooty Pep +

CAPACITY 110cc

LTVS/ Chengudu

Honda’s sale is on increasing line compared to last year. Unicorn (Standard and Dazzler) is on the top selling bike list. Due to the increase in oil/ petrol price, customers prefer 100150/180cc bikes which give good mileage. TVS, Honda, Suzuki have also stated the increasing sale on scooter segment i.e. Scooty Pep+, Activa and Access as many customers who travel through heavy traffic areas prefer gearless vehicle compared to geared ones.
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DATA ANALYSIS
MOST FREQUENTLY SERVICED VEHICLE

It is seen that Scooty pep+ is serviced more in a month than other vehicles. Service dealers quoted that, in a month they service over 100 Pep+, which comes for general service and with minimal complaints. NUMBER OF STARTERS REPLACED IN A MONTH

Most of the mechanics say that around 50-100 two wheeler starters are replaced per month. The average life time of a two wheeler starter motor is 3 years.
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Number of Starter Motor Replaced per month Attributes 50-100 100-150 150-200 >200 Number of Respondents 5 2 3 1 Percentage 45.45% 18.18% 27.27% 9.09%

AVAILABILITY OF THE PRODUCT

Most of the respondents responded that the product spares are available in the market. Distributors offer at a nominal discount rate (8-10 percent) and spares are available with 6 months to 1 year warranty. MOST PREFERRED PRODUCT IN MARKET Attributes Varroc Mitsuba Sical Lucas-TVS Chinese Products Percentage preferred 46% 19% 27% 8%

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It is seen that Varroc starter motor is highly preferred in the market. 46% of the respondents have voted for varroc starter motor. CUSTOMER PREFERENCE IN BUYING AND SERVICING A PRODUCT Attributes Price Quality Servicing a old Product Buying a New Product Number of Respondents 1 10 2 8

.

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From the analysis it is clearly seen that customers prefer buying a new product than servicing and importance is given to quality and not price of the product. However, some customers prefer Chinese products because of its low prices in the aftermarket

SUGGESTION OF LUCAS-TVS STARTERS TO CUSTOMERS 64 percent of the respondents responded that they suggest Lucas-TVS two wheeler starter motor to the customers whereas 36 percent of them said they will not suggest it to the customers.

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OEM’s SATISFACTION LEVEL WITH LUCAS-TVS STARTER MOTORS A Customer satisfaction survey was done, where the questionnaire was given to representatives of the respective OEMs through mail or through direct meeting and information obtained is shown below: HONDA: SATISFACTION SURVEY

It is seen that, there is a gradual increase in quality of the product and product rating given by Honda motorcycles and Scooter India Limited on Lucas-TVS two wheeler starter Motor.

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It is seen that the delivery performance and the Price of the product are stable from 2006. Though Lucas-TVS face pressure from OEMs regarding the reduction of price on their product, steps have to be taken to bring a win- win situation favoring the both. HERO HONDA: SATISFACTION SURVEY

There is a steady rise seen product rating as well as the quality of the product. Price seems to be steady, that is no alteration in price has been done so far.

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YAMAHA: SATISFACTION SURVEY

It is seen that, there is a gradual increase in quality of the product and product rating given by Yamaha on Lucas-TVS two wheeler starter Motor. Price seems to be steady, that is no alteration in price has been done so far. It is also seen that the delivery performance, sales and service provided by Lucas-TVS are rated high. Currently Lucas-TVS has 100 percent share on supply of starter motor to Yamaha.

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CHAP TER 8 RECOMMENDATIONS
From the above analysis it is visible that Lucas-TVS is on path to success. But still competitors like Mitsuba and Varroc are playing a tough game by holding major shares in two wheeler market. After the analysis on fast selling bike models, it can be inferred that Lucas-TVS is having an opportunity to supply starter motors to these models in order to increase its sales. Further, the split of Hero Group and Honda Motorcycle has widened the path of growth for auto-components companies to take steps for the supply. New technological Improvements have to be done to enter new markets. New product development has to be tuned so as to introduce many products in a short span of time to attract OEMs. Pricing has to be made optimal so that Chinese products don’t eat away the share in aftermarket. The firm must create Uniqueness in their marketing strategy and their product ranges so that the people in the distribution channel get attracted and the sales of the product can be increased. Extensive marketing of the product has to be done; Niche marketing will be highly suitable. Also company has to employ exclusive distributors for distributing the product and can provide training programs for dealers involved in the process of distribution. Further the company can negotiate with the OEMs for the future supply of starter motor to

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the bike models which will be launched in future. This will increase the domestic market share as well as the net sales of the company. STRATEGIES TO BE ADOPTED  Focus on niche segments and niche export markets is an innovative marketing strategy followed by some component firms. For example, Manual Rack and Pinion (R&P) Steering Gears is in high demand in the Middle East and Africa, while they are not preferred in most other parts of the world. Hence, a Chennai based steering manufacturer, whose core strength lies in manual R&P steering gears, has decided to focus on this niche export market.  Low-cost manufacturing and targeting East Asian countries for exports  Lucas-TVS can target the blooming segment in two wheelers, that is electric two wheelers (battery operated)  Acquisition of leading foreign brands and plants is believed to be a strategy that gives access to new markets and technologies. When this value addition is blended with existing cost advantage in plants located in India, overall competitive advantage is enhanced. Further, this also serves as a brand-promotion strategy.  Technical collaborations with international technology leaders will help Lucas- TVS to rise up to global standards. CONCLUSION According to a study conducted by IMRB (Indian Market Research Bureau) the domestic automotive component market holds promising potential for the domestic industries and for the players from china and ASEAN countries. Domestic two wheeler players will soon start their ventures outside India. Lucas-TVS, with a varied opportunity, can collaborate with technological leaders and produce starters which adhere to the global quality thereby increasing its exports, Market share and soon becoming a Market Leader in two wheelers’ segment. Lucas-TVS can supply their products to non-auto industries such as industrial machinery manufacturers, so as to ensure that their market risk is minimized.
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BIBLIOGRAPHY
REFERENCES 1) “Global Competitiveness of Indian Auto Component Industry & Its Sustainability” Auto Component Manufacturer’s Association (ACMA) Member book 2011 2) “INDIAN AUTO COMPONENTS INDUSTRY: RIDING THE TIDE”- Investment Information and Credit Rating Agency of India- “December 2010 3) “Defining the Role of the Government in the Transnationalisation Efforts of the Indian SMEs in the Auto Components Sector”- Department of Scientific & Industrial Research (DSIR), August 2008 4) Automotive Mission Plan 2006-2016 5) Badri Narayanan G. “Determinants of Competitiveness of Indian Auto Industry”Indian Council of Research on International Economic Relations (ICRIER)-2008 6) Hari K. Nagarajan “The Evolution and Structure of Two wheeler Industry in India”IIM Bangalore 7) “Demand Forecast for Indian Automobile Industry”-Society of Indian Automobile Manufacturers (SIAM) 8) Vision 2015’ for the Indian supplier industry: how achievable is it?’ A Report of ACMA-McKinsey. WEB LINKS 1) SIAM: http://www.siamindia.com/scripts/gross-turnover.aspx http://www.siamindia.com/scripts/production-trend.aspx 2) FADA: http://www.fadaweb.com/vision_2015.htm 3) IBEF: http://www.ibef.org/industry/autocomponents.aspx 4) India Infoline: http://content.indiainfoline.com/wc/archives/sect/attw/ch07.html 5) Know India: http://www.knowindia.net/auto.html

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ANNEXURE
TABLES (i) Table showing the two wheeler production forecast 2008- 2009201020112012201320142015Year 09 10 11 12* 13* 14* 15* 16* Sales 7.43 9.37 11.995 14.994 16.328 17.773 19.151 20.683 Exports 1.004 1.14 1.653 1.845 2.07 2.333 2.608 2.908 Production 8.434 10.51 13.648 16.839 18.398 20.106 21.759 23.591 Growth 24.61% 29.86% 23.38% 9.26% 9.28% 8.22% 8.42% Source: SIAM

(ii) Table Showing Lucas-TVS Net sales growth Analysis 200506 200607 200708 200809 200910 201011* 1400 6.87%

Year Net sales 543 715 886 1020 1310 Growth 31.68% 23.92% 15.12% 28.43% Source: Lucas-TVS Annual Report 2002-2009 (iii) Table showing current and estimated Domestic market Share Year 2010-11 2011-12 2012-13* LTVS 29.30% 31.64% 38.07% Mitsuba 39.63% 38.22% 35.09% Varroc/Flash 17.87% 18.06% 15.40% Chengudu 11.02% 8.69% 8.38% Others 2.18% 3.39% 3.06% Source: Refer table (iv) Table Showing Preferred Starter Motor in aftermarket
Preferred product Product No. of Respondents Percentage Varroc 5 45.45% Mitsuba 2 18.18% Lucas-TVS 3 27.27% Chinese products 1 9.09% Total 11

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(v) Table showing the current supplier of two wheeler starter Motor to various bike models of two wheeler market players
2 Wheeler projections and Volume Engine LTVS LTVS LTVS Capacity 2010-11 Supply 2011-12 Supply 2012-13* Supply ES ES ES 100cc 450000 0 550000 0 600000 0 100cc 950000 0 1000000 0 1050000 105000 100cc 380000 0 400000 0 430000 0 125cc 150000 0 200000 0 220000 0 125cc 240000 0 280000 0 290000 0 225cc 50000 0 60000 0 70000 0 150cc 200000 0 260000 0 280000 0 150cc 100000 0 110000 0 100000 0 150cc 30000 0 40000 0 40000 0 0 0 0 0 100000 0 102cc 350000 350000 500000 500000 600000 600000 108cc 0 0 60000 60000 150000 100000 2900000 350000 3460000 560000 3930000 805000 110cc 125cc 125cc 150cc 150cc 109cc 109cc 210000 240000 70000 60000 50000 0 710000 140000 0 0 0 0 0 0 710000 140000 270000 360000 100000 70000 60000 35000 880000 140000 0 20000 0 0 0 0 880000 140000

OEMs

Bike / Scooter Model Splendor Passion Pro CD Super Splendor Glamour Karizma CBZ Hunk Achiever New model Pleasure New model

Current Supplier of Starter Motor Mitsuba Mitsuba/ Taigene Mitsuba Mitsuba Mitsuba Mitsuba Mitsuba Mitsuba Mitsuba LTVS LTVS

Bike Bike Bike Bike Bike Bike Hero Honda Bike Bike Bike Bike Scooter Scooter Total Bike Bike Bike Bike Bike Bike Scooter Scooter

HMSI

Twister Shine Stunner Unicorn-Std Unicorn Dazzler New Model Activa Aviator

290000 0 Mitsuba 400000 100000 Mitsuba 110000 0 Mitsuba 60000 0 Mitsuba 70000 0 Mitsuba 60000 60000 Mitsuba 1030000 1030000 LTVS 150000 150000 LTVS 44

Scooter Dio Total Bike Bike Bike Bike Bike Bike Bike Bike Discover Discover Discover Pulsar Pulsar Pulsar Platina New Model

109cc

90000 1570000 900000 120000 90000 600000 100000 50000 200000 0 2060000 180000 30000 120000 330000 140000 300000 180000 100000 1380000 80000 40000 30000 200000 350000

90000 940000 500000 0 0 0 0 0 0 0 500000 72000 30000 36000 40000 20000 100000 80000 40000 418000 80000 40000 30000 200000 350000

80000 80000 1995000 1120000 1100000 170000 110000 700000 140000 70000 280000 100000 2670000 190000 40000 160000 360000 180000 330000 220000 140000 1620000 90000 50000 40000 220000 400000 700000 0 0 0 0 0 0 0 700000 80000 40000 60000 130000 72000 130000 100000 60000 672000 90000 50000 40000 220000 400000

80000 80000 LTVS 2250000 1420000 1100000 800000 210000 100000 140000 0 800000 150000 150000 0 80000 0 332000 0 150000 0 2962000 1050000 200000 50000 180000 400000 200000 360000 240000 180000 1810000 110000 60000 50000 240000 460000 LTVS Flash Varroc Varroc/Flash Varroc/Flash Varroc/Flash Varroc/Flash Varroc/Flash

Bajaj Auto

100cc 125/135cc 150cc 135/150cc 200cc 220cc 100/125cc

Total Bike Bike Bike Bike Bike Scooter Scooter Scooter Apache Victor Star City Flame Jive Pep+ Teenz Wego 150/180cc 110/125cc 110cc 125cc 110cc 110cc 60cc 110cc

TVS Motors

Total Bike Bike Bike Bike Fazer Enticer Gladiator Fz16 125cc 125cc 125cc 150cc

90000 LTVS/Chengudu 50000 LTVS LTVS/Chengudu 180000 LTVS/Chengudu 100000 LTVS/Chengudu 150000 LTVS/Chengudu 120000 LTVS/Chengudu 80000 LTVS/Chengudu 770000 110000 60000 50000 240000 460000 LTVS LTVS LTVS LTVS 45

Yamaha

Total

Suzuki

Bike Bike Bike Bike Bike Scooter

GS150R Heat Zeus Slingshot New model Access

150cc 125cc 125cc 125cc 110cc 125cc

50000 0 230000 280000 20000 10000 160000 190000

Total Bike Stallio 110cc Bike Mojo 300cc Scooter Rodeo/Duro/Flyte 125cc

0 0 0 0 0 0 0 0 0 0 0

120000 15000 260000 395000 120000 30000 220000 370000

0 0 0 0 0 0 0 0 0 0 0

160000 70000 300000 530000 150000 40000 280000 470000

Mitsuba Mitsuba 30000 Mitsuba Mitsuba 0 Mitsuba 100000 Mitsuba 130000 30000 Imported (Chinese) 0 Imported (Chinese) 60000 Imported (Chinese) 90000

Mahindra Total

Total vehicles

8730000

2558000

10910000 3452000

12412000 4725000

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(vi) Table Showing Most frequently serviced vehicle in a month Most frequently serviced vehicle TVS Pep+ 40% Honda Activa 35% Bajaj Pulsar 10% Hero Honda Pleasure 10% Others 5%

(vii)

Table showing Number of starters replaced in a Month Number of Starters replaced Starters No. of Replaced Respondents Percentage 50-100 5 45.45% 100-150 2 18.18% 150-200 3 27.27% >200 1 9.09% Total 11

(viii)

Table Showing Honda’s Customer Satisfaction survey Product Rating Sales & Service 77 80 86 93 97 80 86 86 93 95 Delivery Performance 100 100 100 93 100

Year 2007 2008 2009 2010 2011

Quality

Price 80 80 80 80 80

77 84 90 91 97 (All in Percentages-%)

(ix) Table showing Hero Honda’s Customer satisfaction survey Product Rating 80 84 90 90 90 Sales & Service 80 86 94 94 98 Delivery Performance 100 100 100 93 100

Year 2007 2008 2009 2010 2011 (in %)

Quality Price 85 80 87 80 87 80 87 80 90 80

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(x) Table showing Yamaha’s Customer Satisfaction Survey Product Rating 77 83 90 90 100 Sales & Service 80 83 90 94 98 Delivery Performance 100 100 100 100 100

Year 2007 2008 2009 2010 2011 (in %)

Quality Price 77 80 90 80 96 80 93 80 95 80

(xi) Customer’s Preferences No of respondents

Attributes Price Quality Servicing a old product Buying a new product

Percentage 2 18% 9 82% 3 8 27% 73%

(xii)

Product Availability and Recommendation Availability of the product Attributes No. of Respondents Percentage Yes 9 81.82% No 2 18.18%

Recommendation Attributes No. of Respondents Percentage Yes 7 63.64% No 4 36.36%

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QUESTIONNAIRE Questionnaire-OEMs 1) How do you rate our quality in when compared to others?

Starters from

Performance Features

Life time of a starter

Rejection rate

Lucas Tvs Others
( Rate 1-5, where 1 is very poor and 5- Excellent) 2) How do you rate our delivery Performance compared to others?

Products from

Adhering to schedule

On time delivery

Ability to Meet Fluctuation

Lucas Tvs Others
( Rate 1-5, where 1 is very poor and 5- Excellent) 3) What do you say about the pricing of Lucas TVS Starters when compared to others? 4) If you have any suggestion for the above, please explain 5) How do you rate Lucas-TVS product reliability in terms of warranty failures? 6) How do you rate the after sales services?

Products from

Technical Support

Customer Support/After sales service

Warranty services

Lucas Tvs Others
( Rate 1-5, where 1 is very poor and 5- Excellent)

7) Would you want Lucas-TVS to improvise in the current product? a) Yes b)No

8) If yes, in what aspect?
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9) Would you want Lucas-TVS to Increase the New product Introductions? a) Yes b)No

10) How would you rate the quality of the New products, that are introduced by LucasTVS when compared to others? New Products Quality Product Procedures Responsiveness from Modifications Lucas Tvs Others ( Rate 1-5, where 1 is very poor and 5- Excellent)

11) Would you recommend Lucas-TVS starters to all of your two wheelers? a) Yes b)No

12) If no, what you expect from Lucas-TVS Questionnaire- Dealers Name: Place: 1. Please specify the top 3 selling bike models for the entire year? a) b) c) 2. How much vehicles are sold per month?

Model

Volume

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3. How many vehicles are serviced per month? a) 50-100 b) 100-150 c) 150-200 d) More than 200

4. How many Starters are replaced in a month? a) 0-2 b) 2-4 c) 4-6 d) More than 6

5. Which Company’s Product is preferred more in the market? a) Varroc b) Flash c) Mitsuba d) Lucas-T.V.S

6. Is the price of Lucas-T.V.S parts high when compared to its competitors? a) Yes b) No

7. The parts of which company’s product are replaced more? ____________ a) Varroc b) Lucas- T.V.S c) Chinese Products d) Mitsuba

8. Would you recommend Luvas-tvs starter to any other two wheeler model a) Yes b)No

Questionnaire-Mechanics 1. How much vehicles are serviced per month? a) 50-100 b) 100-150 c) 150-200 d) More than 200

2. How many number of two wheeler Starters are replaced in a month? a) 50-100 b) 100-150 c) 150-200 d) More than 200

3. Are the Products/Spares available with the nearby dealers, if not time required to deliver the same? a) Yes b) No

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4. Discount Percentage getting on spare parts or full units on MRP? a) 7% b) 8% c) 9% d) 10%

5. From where are you buying the spare parts? a) Distributors b) Outside Dealers

6. How frequently the starters in vehicles are repaired? a) 3 months b) 6 months c) Yearly d) Once in 2 years

7. How do customers rate the product? (Based on) a) Price 8. What do customers prefer? a) Servicing an Old Product b) Buying a new Product b) Quality

9. Which products customers prefer more? a) Original Products b) Local Products

10. How many days of warranty the competitors and local players provide for their product? a) 6months b) 1 year c) 2 years d) More than 2 years

11. Are you aware of Lucas-T.V.S 2 wheeler Starters? a) Yes b) No

12. Do you recommend Lucas-T.V.S 2 wheeler starters to your customers? a) Yes b) No, because __________

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CASE STUDY
COMPETITIVENESS OF THE INDIAN AUTO COMPONENT INDUSTRY “The Indian auto component industry could be the next big success story after software, pharmaceuticals, BPO and textiles.” The size of the global auto component industry is approximately $1trillion. The leading auto component manufacturers (OEMs) in the world are Ford Motors, General Motors (GM), Delphi Corporation, Caterpillar, International Truck and Engine Corporation and Cummins. The US is the world's biggest auto component market. In 2002 it imported auto component worth $69 bn. In India, Chennai, Pune and Gurgaon are the three big clusters for the auto component manufacturers. The approximate size of the Indian auto component industry is 25,000 crore (approx. $5 bn). The size of the Indian auto component industry is still very small; it is just one-sixth the size of the world's largest auto component maker, the $28 bn Delphi Corporation.

Major US Auto Component Imports (In $mn) Year 1998 1999 2000 2001 2002 Mexico 14,574 16,814 18,791 18,402 20,397 Brazil 1,082 1,147 1,086 824 1,137 China 863 1,041 1,368 1,483 1,884 Thailand 309 374 362 380 516 India 99 117 150 141 177
Source: US Census Bureau's Foreign Trade Statistics 2003

For the year ended March 2004, the domestic auto component sector had registered revenues of $1.1 bn (Rs 4,800 crore) from exports. This was 38.8% higher compared to export revenues during the FY 2002-03. According to Automotive Component Manufacturers' Association of India (ACMA), the projected compounded annual growth rate (CAGR) for the domestic industry is 18% and the export projections for 2010 is $2.7 bn. India falls way behind other developing countries when it comes to auto component exports. Indian auto component manufacturers don't have the scale of production required to beat the global majors. For example, Kayaba, world's biggest shock absorber maker, produces 240 mn units/year whereas, Gabriel India, India's largest shock absorber maker, manufac turers only 9 mn units/year. Low scale of production acts as a hindrance for Indian auto component manufacturers from getting large export orders. Most of the export orders Indian
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manufactures receive are worth less than $100 mn. In global standard any export which is less than $100 mn is considered insignificant. Major Auto Component Exporting Nations in 2004 (In $bn) Country India Mexico China Thailand Brazil Export 1.1 16 3 2 4
Source: Compiled from Businessworld 23rd February 2004

The auto component industry in India has seen high growth in recent years. There are three major reasons behind the recent robust growth of auto component industry. First, the domestic automobile industry (two-wheelers, commercial vehicles and passenger cars) has registered good growth. High demand for automobiles has subsequently fuelled the demand for auto component from automakers. Second, the replacement market is growing rapidly as more and more new vehicles hit the road. Moreover, the product life cycle of automobiles is becoming shorter. As more new models hit the road the demand for auto component keeps rising. The increasing number of vehicles means an expanding market for replacement components. Third, the global automobile industry is going through its worst phase ever. To cut production cost, the world's leading automobile companies are sourcing cheaper auto components from countries like India and China. To become globally competitive, Indian auto component industry has to learn the best manufacturing practices, be quality consciousness and adhere to strict delivery schedules. The Indian auto component industry is also highly fragmented. Of the 400 odd players present in the market, only 30 record revenues higher than Rs 150 crore. Two third of the industry players have annual revenues less than 50 crore. And out of 400 companies, only 15 generate export revenues over $10 mn. The Indian auto component manufacturers serve major OEMs as Tier II or Tier III suppliers. China is the hottest destination for auto component sourcing as it has many Tier I suppliers. China has over 500 Tier I auto component manufacturer. Tier I manufacturers have enormous advantage over Tier II or Tier III suppliers. The major advantage is that Tier I suppliers are the first to get orders for components from vehicle makers. Getting early orders help the Tier I supplier to recover the investments very quickly. Moreover, when there is vehicle sales raise, they earn profits. Unlike Chinese manufacturers, the Indian auto component manufacturers lack the high-end designing, manufacturing and development skills. According to Deep Kapuria, CMD, Hi- Tech Gears: "To succeed, you need greater integration with the
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original equipment manufacturer and the tech partner (design integration and R&D); innovation and indigenous technology; and a global mindset (product liability/logistics). We are learning the ropes in the latter two, but are yet to get to the first”. Comparison of labor Costs Developed Indian Companies Country Skilled labor cost/hour Labor cost forging industry Total Labor Cost $8 $20 Dana-38.8% of sales and UEF37.9% of sales 20-40 % of sales

Global Companies

9.4% of Sales 3-15% of sales

Source: Compiled from different sources

Indian Auto Component Industry in 2002 (ACMA)  337 Companies with ISO 9000 Certification  Companies with ISO 14001 Certification  193 Companies with QS-9000 Certification  25 Companies with TS 16949  2 Deming Prize winning companies  1 Japan Quality Medal winning company Export of auto components from India as % of Production (in Rs Crore) FY Year Production Exports % 2000-01 17,246 2,706 15.7 2001-02 21,602 2,802 13 2002-03 25,535 3,496 13.7 2003-04 30,640 4,500 14.7
Source: Business Line, May 1st 2004

MOVING UP THE VALUE CHAIN The Indian auto component manufactures are moving up the value chain to integrate them with the global auto component industry. In recent times, the industry has adopted threepronged strategy to go global. First, giving thrust to exports. Exports are growing at a compounded annual rate of 20-25%. Second, Indian companies have started acquiring plants

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abroad. Third, many Indian manufacturers have started collaborating with foreign players. By collaborating with foreign companies, the Indian companies are learning the high-end designing and development skills of the major auto component manufacturers in the world. Reverse engineering is one area where the Indian auto component manufacturers have proved successful. Recently, the Pune-based Commercial Vehicles Systems Research Centre of Anand Group added two new products - a self-steer axle and an air suspension for its partner Dana Corporation of US. These products were developed within seven and nine months respectively, against the 22 months it takes to manufacture these products in the US. Ten more products are under development in the research labs of Anand Group for its partner Dana Corporation. Many Indian companies are trying to become Tier I suppliers to the global automakers. Bharat Forge, India's largest auto component exporter is trying to exploit its available resources and expertise to become a Tier I supplier. The company has indigenous design and development capability; it has the world's largest single location plant. Bharat Forge has some inherent strength like it takes 3-4 weeks to market a product against the global standard of 6-12 months and it has the experience of working with the world's leading clients like Toyota, Ford, Honda and Volvo. Bharat Forge has 50% of the US market for front axle beams for trucks. Recently the company has made some overseas acquisitions to expand its customer base in original equipment market. In the auto component industry original R&D is a highly capital intensive. The global tier I players invest 5-7% of their turnover in R&D whereas; Indian companies spend less than 1% of their turnover on R&D. According to Suresh Krishna, Chairman and Managing Director, Sundram Fasteners, there are three basic reasons that prompted Indian component companies to venture abroad. First, having established a reasonable domestic presence, big Indian component makers are now looking for an international presence. Second, having improved their productivity, quality and reliability, Indian companies feel more confident venturing abroad. Third, the Indian government's investment friendly policies and hassle- free environment for overseas acquisitions have encouraged Indian companies to take the acquisition route. With these overseas acquisitions, the Indian companies can tap the original equipment (OE) market abroad. The Indian companies can supply their own products to these customers.

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Indian Company Amtek Auto Amtek Auto Bharat Forge Sundaram Fasteners Sundram Fasteners

Acquisitions by Major Indian Players Company/Plant acquired/Set-up abroad Located in Smith Jones Inc. US GWK Group UK Carl Dan Peddinghaus GmBH* Germany Dana Spicer Europe* (Forging unit) UK Sundram Fasteners (Zhejiang)** China Name not disclosed. US company that manufactures high precision custom gears and planetary gears.

Size of the deal ($ mn) 20 37 116# (euro) 2.6 5

G. G. Automotive Gears

US

110

Source: Businessworld, 23rd February 2004 * Plant **Plant set-up #Approximate

R&D CAPABILITY In recent years the world's leading automakers and Tier I suppliers have opened their R&D centers in different parts of the country. The cost of R&D in India is low compared to any developed country and skilled manpower is available. In the long run the entry of foreign companies would benefit the Indian industry as people working in foreign firms would acquire insights and skills which otherwise would be impossible to acquire. In India there is not a single auto component manufacturer which does original R&D. Only a few companies have recently started design and development (D&D). D&D is the initial stage of R&D and it works as a support function for R&D in auto component industry. Every major auto component manufacture starts with D&D before venturing into full scale R&D. R&D in auto component industry involves developing a component as per the requirement of vehicle maker/OEMs/Tier I supplier. It involves developing the original design of the component, making prototypes and testing and then mass production of the component. R&D in auto component industry requires high technological capabilities and Indian companies are on a learning curve. The Indian companies have also proved their competence in making minor modifications to existing products that either result in new uses for the product or significant cost cutting. For example, Bangalore-based Motor Industries Company (Mico) has indigenously developed a

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high-pressure single cylinder pump for its parent company, Bosch. The newly developed pump was highly advanced compared to the existing pump. Though Bosch did not handhold Mico by providing drawings, the product was derived from an existing product. Today, Mico has been designated Bosch's global development centre for single-cylinder, multi-cylinder and mechanical rotary pumps. PRODUCT LIABILITY The Indian auto component companies need to adhere to strict quality control to prevent any defects in the designing and manufacturing of their products. The World's leading OEMs follow strict product liability rules while going for any contract with their suppliers. Under product liability rules any supplier could be penalized by its client if the product fails to meet the set quality standards and results in line stoppages, recalls and claims. In India the domestic insurance companies such as Tata AIG started providing product liability insurance to the Indian auto component makers. This will give the Indian auto component manufacturers the confidence to do more business with foreign automakers. With product liability insurance in place the acquisition and execution of export contracts will be easier for the Indian companies. THE ROAD AHEAD World's major automakers have announced their intention to develop India as a major sourcing hub for auto components. Indian enjoys enormous cost advantage in manufacturing, R&D, skilled labor and software. However, it can't rely on its low cost advantage for a long time. Countries like China, Thailand and Mexico are also becoming very competitive so far as cost is concerned. Moreover, over the years these countries have built large scale of production and technological competence. The recent success of Indian auto component industry is partly due to the fact that major automakers in the world were compelled to outsource from countries like India and China to cut costs. Sooner or later the global auto industry will come out of recession. Then cost won't be the only deciding factor for the automakers while sourcing components. The majority of the Indian auto component companies operate in the lower end of the value chain (like casting and forging) of the industry. Globally, the product life cycle and the product lead time is shrinking fast. To succeed, Indian auto component companies should develop capabilities to keep pace with major automakers

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SYNOPSIS

MARKET POTENTIAL AND STRATEGIES TO INCREASE MARKET SHARE OF LUCASTVS TWO WHEELER STARTER MOTOR

STUDENTS’S NAME: HARINARAYAN P INDUSTRY GUIDE: Mr. G. PRAVIN WINSTER FACULTY GUIDE: Ms. POORVA RANJAN BRIEF SUMMARY OF THE PROJECT: OBJECTIVE:

To study the market potential and competitiveness of Lucas- TVS Starter Motor in domestic two wheeler market and to device an optimal strategy to increase its market share in supply to OEMs
FINDINGS AND CONCLUSION

Market potential for two wheeler segment was analysed and its production was forecasted. Competitor analysis was done in order to know their strengths and weakness. A Customer satisfaction survey with OEMs was also done to know how Lucas-TVS starter motor is rated against its rivals. Field survey has been taken up in order to find out the aftermarket sales and customer’s perception regarding the starter motor. After the analyses, it is clear that, Lucas-TVS should optimize their pricing factor and need to cope up with the technological advancement so as to meet global quality.
STUDENTS’ PERCEPTION ABOUT INDUSTRY GUIDE

Mr. G. Pravin Winster, Asst. Manager (Business Development & Marketing) holds a post graduate degree- MBA, in the field of International Business and Marketing. He is openminded, positive and has excellent knowledge about Indian Automobile industry. He is very much available for interaction and highly assistive. I would like to thank Mr. N. Kumar, Mr. Vinoth, Mr. V. Mahesh, Mr. Sumit and the entire marketing for their hearty support for the completion of this project.

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