Professional Documents
Culture Documents
Undertaken at
HERO ELECTRIC
the Degree of
Bachelors of Business Administration
By
Nitish Kumar
Roll No.
Under the Supervision of
Ms. Sonam Yadav
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DECLARATION
I, Nitish Kumar, a student of BBA (Full Time) Programmed at the Centre for DPG Institute of
Technology And Management, Gurugram, Haryana, hereby declare that I have undergone the
Summer Training at MARKET ANALYSIS OF NEW GENERATION BIKE ( ELECTRIC
BIKE ) under the supervision of Ms. Sonam Yadav on and from 27th July to 28th August.
I also declare that the present project report is based on the above summer training and is my
original work. The content of this project report has not been submitted to any other university or
institute either in part or in full for the award of any degree, diploma or fellowship.
Further, I assign the right to the university, subject to the permission from the organization
concerned, use the information and contents of this project to develop cases, case leads, and
papers for publication and/or for use in teaching.
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ACKNOWLEDGEMENT
Nitish Kumar
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CONTENT
6.0 Conclusion 44
7.0 Reference 49
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1.0 EXECUTIVE SUMMARY
HERO Electric is a pioneer and market leader in the Indian Electric Two- Wheeler Industry which
provides Eco-friendly and Cost-effective mode of personalized transportation with its diverse
range of Electric Two-Wheelers.
HERO Electric offers a wide range of High Range and High Speed Electric Two-Wheelers
manufactured in its state-of-the-art manufacturing facility at Ludhiana and has a widespread
network of Exclusive Sales and Service outlets across the country.
The project given to me is market analysis of electric bike of hero electric company with special
reference to Gurugram, Haryana. Firstly my training starts from the production line of electric bike
after learning that part I have learned about pre dispatch inspection of vehicle. After learning about
electric bike deeply I was sent to Gurugram city for doing field work and found out customer
awareness about e-bike, why customer won‟t prefer e-bike, what is the market response of ebike
in Gurugram city, why sales are declining and all.
The experience was very grateful and learn a lot about electric bike that how it produce ,how it
dispatch from factory, from where they purchase and what are marketing conditions of ebike .
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2.0 ABOUT TWO WHEELER INDUSTRY IN INDIA
Two wheelers have a special place on the Indian roads. They are extremely popular and versatile
not only as passenger carriers but also as good carriers. India is the second largest producer of two-
wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular
growth. The country stands next to China and Japan in terms of production and sales respectively.
Majority of Indians, especially the youngsters prefer motor bikes rather than cars. Capturing a large
share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered
to be the favorite among the youth generation, as they help in easy commutation. Large variety of
two wheelers is available in the market, known for their latest technology and enhanced mileage.
Indian bikes, scooters and mopeds represent style and class for both men and women in India.
Indians prefer the two wheelers because of their small manageable size, low maintenance, Pricing
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.
Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of
India (API) started manufacturing scooters in the country. There are many two-wheeler
Manufacturers in India. Major players in the conventional 2-wheeler industry are Hero Honda
Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).
The demand for two-wheelers has been influenced by a number of factors over the past five Years.
The key demand drivers for the growth of the two-wheeler industry are as follows: Inadequate
public transportation system, especially in the semi-urban and rural areas;
• Increased availability of cheap consumer financing in the past 3-4 years
• Increasing availability of fuel-efficient and low-maintenance models
• Increasing urbanization, which creates a need for personal transportation
• Changes in the demographic profile
• Difference between two-wheeler and passenger car prices, which makes two-wheelers the
Entry level vehicle
• Steady increase in per capita income over the past five years
• Increasing number of models with different features to satisfy diverse consumer needs
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2.2 ABOUT ELECTRIC/HYBRID VEHICLE INDUSTRY
Indian Government has planned to unveil the roadmap for the development of the domestic electric
and hybrid vehicles in the country. Ministries such as Petroleum, Finance, Road Transport and
Power are involved in developing a broad framework for the sector. Along with these ministries
big auto industry names such as Mr. Anand Mahindra (Vice Chairman and Managing Director,
Mahindra & Mahindra) and Mr. Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar) are also
involved in this task. Government has also proposed to set up a Rs 740 crore R&D fund for the
sector in the 12th five year plan during 2012-17.The idea is to reduce the high cost of key imported
components such as the battery and electric motor and develop such capabilities locally.
Hero Eco group is a multi-company, multi-product and a multi-location enterprise with interests
in Electric Vehicles, Exports, Bicycle, Healthcare and Real Estate with Corporate Office based at
New Delhi, India. Their diversified business interests has enabled them to validate their vision as
a global enterprise with presence in more than 25 countries that helps change lives for the better –
one that delivers innovative and quality products and services to customers.
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The HERO ECO Group is a consortium of companies like:
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3.1 ABOUT HERO ELECTRIC
HERO Electric is a pioneer and market leader in the Indian Electric Two- Wheeler Industry which
provides Eco-friendly and Cost-effective mode of personalized transportation with its diverse
range of Electric Two-Wheelers.
HERO Electric offers a wide range of High Range and High Speed Electric Two-Wheelers
manufactured in its state-of-the-art manufacturing facility at Ludhiana and has a widespread
network of Exclusive Sales and Service outlets across the country.
Being a pioneer, HERO Electric has a number of first only initiatives to its credit like:
• The only Electric Vehicles Manufacturer in India to launch the unique concept of
“Charging Stations” for “Anywhere, Everywhere Charging” with in-house design and
development
• Only Electric Vehicle Manufacturer to launch first-of-its kind Electric Bike Door Step
Service branded as Electric Bike Assistance (EBA) for Electric 2-Wheelers for
“Anywhere, Everywhere Service”
• Founded and constituted the Society of Manufacturers of Electric Vehicles (SMEV), the
global representative body of Indian EV Industry comprising of members from the Electric
Four/ Three/ Two-Wheeler and Auto Components Industry
• With an in-house research and design center for development and invention of New
Greener & Innovative Technologies, HERO Electric has introduced first of its kind
innovative technologies like the Range Extender, Personal Charger, Charging Stations,
Easy Wheels etc.
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3.2 MANAGEMENT- HERO ELECTRIC LUDHIANA (PUNJAB)
Manufacturing
In 2007, Hero started its own manufacturing of Electric Bikes at its state-of-art manufacturing
facility at Mangli Plant -10kms from Ludhiana. The E-bike Mechanical critical parts viz. Frame,
Fork, Swing arm, Handle bar, Carriers, Center and side stands are being manufactured in the plant.
The parts after fabrication are pretreated and powder coated in the plant to increase the life. The
inspection is done at various manufacturing stages. The plant has in-house paint shop facilities to
paint Plastic parts in different variants. The E-Bike assembly is done on a conveyorised set up with
Audio-Visual controls and modern manufacturing concepts backed by stringent quality system.
Reliability Test
E-Bike parts are tested in the Lab for reliability test .The plant has state-of-the-art reliability testing
facilities like endurance test for tyre, fatigue test for handle bar, life test for all electrical
components, brake wire testing, water dip test for motors, salt spray testing for steel parts, battery
testing and analysis, UV/weather test for plastic painted parts and brake shoe performance testing.
The E-Bike is also tested for reliability on a Bump Testing Machine keeping in minds the Indian
road conditions and customer expectations for product life.
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Product Testing
E-Bikes are tested in-house on the parameters of electrical performance on a Dynamometer testing
machine which is designed on the basis of imported advanced technology. In addition, 100% E-
Bikes are tested on a specially developed E-BIKE TEST TRACK, designed and constructed for
bad road conditions, uneven bumps, rain showers, water logging on roads and steep gradients on
flyovers.
Assembly Line
The E-bikes are finally arranged systematically in plant once the vehicle is properly tested.
Pre-Dispatch Inspection
All the E-bikes in plant are rigorously inspected before dispatching to the dealers.
Final Dispatch
E-bikes are dispatched in an especially designed truck containers to avoid any transit damages
during journey from plant to dealership destinations.
As I join the company, my company mentor divided my work into different sectors. For first fifteen
days he assigned me to work on assembly line and learn its process that how a vehicle get ready
in minutes.
Approximately every vehicle takes 4.5 minutes to be getting ready for final quality check and then
roll out.
There are eleven sub stations and eighteen main stations on assembly line through which a vehicle
is passed and get ready.
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The sub stations are:
The main stations which are on assembly line and performed by various workers are:
• Frame loading
• Main lock assembly
• Controller & convertor fitting
• Fork fitting
• Motor fitting
• Front wheel fitting
• Battery fitting
• Handle installation
• Harness ( wire fitting)
• GC body, foot board & tail light
• Main body & seat below cover
• Lower wind shield & front mud guard
• Centre wind shield & head light housing
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• Seat
• Carrier
• Q-check point(quality)
• Final Q point(quality)
• Final roll out
• Dynamometer testing
Currently they are producing 75 vehicles or e-bikes per day in a shift of eight hours. The quantity
of producing vehicle changes according to production planning and market demand.
About 65% plastic parts of ebike are import from china because of cost effective and 35% are
purchased from India only. China is the leading player in electric vehicle industry in the world due
to which it provides better quality products as lower prices as compare to Indian market.
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3.5 TECHNOLOGY AND RELATED PROCESS
• ELECTRIC HUB MOTOR to drive the rear wheel directly and there are two types of
Electric Hub Motor i.e. DC Brush Motor and DC Brush less motor having two basic parts
namely Permanent Magnet Stator and Wound Rotor.
• ELECTRONIC MOTOR CONTROLLER is the central controlling unit of any
Electric two wheelers provides electric power to the motor based on inputs from the
accelerator.
• ELECTRONIC ACCELERATOR sends electronic signals to the Electronic Motor
Controller to man oeuvre the bike or scooter.
• BATTERY PACK is like the fuel tank of E Bike or Scooter. There are different kinds of
batteries like Lead Acid, Nickel Metal Hydrate (Ni-MH), Lithium, etc. that are used for
supplying energy.
• BATTERY CHARGER is used to charge the battery pack of E Bikes or Scooters, just like
a mobile phone or a laptop. Some battery chargers are in-built and some are separate that
carried always on the move. The charger converts an AC supply to DC to store power in
the battery and it can be used with any normal domestic AC plug point. This makes charging
of battery pack easy and convenient.
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3.6 MODELS OF E-BIKE AVAILABLE AT HERO ELECTRIC SHOWROOMS
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PDI
PDI stands for Pre dispatch Inspection. It is done before dispatching the vehicle to the dealer.
Vehicle is checked and observed at three different levels.
• At final QC inspection
• During track testing
• During pre dispatch inspection
There is a proper format for each and every level through which a vehicle is passed and checked,
forward for loading in the truck. Before pre dispatch inspection a vehicle is observed at final
quality check inspection which is done at assembly line only.
After that vehicle is passed to track testing team which check the vehicle by driving it on actual
road conditions which is available in the factory area only. The problems which are observed by
track testing team are reworked by proper and expert mechanics and verified by head of track
testing team.
Than last step is pre dispatch inspection which includes proper and final checking of vehicle in
which they check any type scratch, any crack or any type of manufacturing fault.
It also includes adding and checking user manual, owner‟s certificate, RV mirrors, charger, battery,
tool kit, polarity of the charging socket, first aid box and expiry date. Without these items a vehicle
should not be dispatch.
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HERO ELECTRIC VEHICLES (P)
LTD DATE:
HERO ELECTRIC INSPECTION JOB CARD
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8 BRAKE Ensure proper brake Brake should not be Actual
ADJUSTMENT system tight/loose while application
application
Free play movement Play should be between Actual
2-5 mm application
9 LOCK Function of steering Working By
lock functioning
Gc lid box lock Working By
functioning
Seat lock Working By
functioning
Battery lock Working By
functioning
10 PLASTIC PART No over flow, no dust, Aesthetically OK Visual
no scratches, no color
mis match/sticker
pasting should be
proper/plastic part Fitment should be ok
fitment
11 REFLECTOR Reflex reflector red for Fitment Visual
rear
Reflex reflector amber Fitment Visual
for side
12 DYNAMO METER Max speed (25km/hr) 25 KM/HR Visual
TESTING Max torque 39 Nm Dynamiter
voltage 48V Dynamiter
13 TEST TRACK No damage to any parts Functional perfection Dynamiter
after testing
Max speed 25KM/HR Testing
Gradient test 8 degree Testing
NAME: NAME:
SIGN. (LINE Q.C): SIGN. (FINAL Q.C)
P.D.I
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9 Expiry date
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PROBLEMS OBSERVED DURING PRE DISPATCH INSPECTION DATE:
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4.0 SWOT ANALYSIS OF E-BIKE
SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the
Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.
A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieving that objective.
Strengths
Weakness
Opportunities
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Threats
• Lack of electricity
• Raw material is becoming costlier
• New product to the market
• Increasing competition
• Environment friendly product as it does not produce any type of noise pollution or air
pollution.
• No registration of vehicle required
• No license required
• Low maintaince
• Economical
• Easy to drive
• Safe and healthy
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5.0 MARKETING ANALYSIS
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5.4 TYPES OF RESEARCH DESIGNING
The pilot survey was conducted with the sample size of 5 despondences in order to test the type of
data what we gathered. On the basis of response, questionnaire was prepared. The pilot survey
helped us to know the area we need to bring changes in the questionnaire. The final survey was
conducted for 250 respondents.
The data obtained was analyzed with the help of Microsoft excel sheet.
PRIMARY SECONDARY
EXTERNAL/INTERNAL
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5.6 SOURCES OF PRIMARY AND SECONDARY DATA COLLECTION
PRIMARY SOURCE OF DATA: The collection of primary data comprises of first hand data
from the customers and at the point of purchase, direct interactions with the dealers, retailers off
showroom and focused group.
• Questionnaire
• Personal Interview
5.7 MEASUREMENT TECHNIQUES USED: As our research is purely subjected to exhibit the
view of customers. In our research we have used the following measurement techniques.
• Ms excel Sheet: In excel sheet the data from the questionnaire was stored and then used for
further analysis.
QUESTIONNAIRE: This is the major source of primary data used for research; it has been
directly collected from the respondents according to the sample size. It has detailed questions on
awareness, market share, sales and promotions.
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DEFINING THE POPULATION
Sampling Elements
SPECIFYING SAMPLING UNIT: It is the „basic unit‟ containing the elements of the target
population.
Sample size denotes the number of elements selected for the study. For the present study, 250
respondents were selected at random. All the 250 respondents are two wheeler riders.
Personal Interview Method: I interviewed the manager and experts in that field to know the
reason for which the sale of the Electric bikes is low.
Questionnaire: This is the most important source of our research as our research is purely
subjective and exhibits the view of the customers. The format of our questionnaire is structured.
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5.9 ANALYSIS OF QUESTIONIARE
AGE
3%
7%
20%
18-25
26-33
70% 33-41
41 above
INTERPRETATION
From the above pie chart we get to understand that about 70% of people out of 250 are of age
group 18-25,20% of are between 26-33,3% are of age group 33-41 and 7% are of age group 41
and above.
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Question-3 Gender
GENDER
75
MALE
FEMALE
175
INTERPRETATION
From above pie chart I found that about 70 % of the respondents were male and 30 % of them were
female.
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Question 4 Occupation of people
Govt.
employee,
49
Others, 125
Private
employee, 50
Self employed, 26
INTERPRETATION
From above pie chart out of 250 respondents, there are 20 % private employees, 19.6 % are govt.
employees, 10.4 % self employees and about 50 % are working in other professionals.
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Question 5 Income per month
20 30
50
Nil
<10000
100
10000-25000
50
26000-40000
40000-above
INTERPRETATION
Income varies from person to person. From 250 respondents about 12 % respondents are having
no income they are dependent on their parents or on family members, about 40 % of respondents
were having less than Rs 10000 income and between Rs 10000-25000 and 26000-40000 only 2020
% respondents were having income and only 8 % of people were having more than Rs 40000
income. Income plays the important factor for the buying behavior of customer. The income is
based on monthly basis.
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Question 6 Size of the family
size of family
15
60
below 4 members
5-6 members
125
50 6-7 members
more than 8
INTERPRETATION
Every respondent was having different family size, according to above pie chart I found that about
50 % of respondents were having 5-6 members in a family, about 20 % were having 6-7 members
, about 24 % were having more than 8 members in a family and only 6 % were having less than 4
members in a family.
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Question 7 what is the main source of financing while purchasing a two wheeler?
Source of finance
50
bank
120 cash payment
others
80
INTERPRETATION
From the above pie chart I understand that most of people were dependent on bank loan for
purchasing the vehicle. About 48 % of respondents were dependent on bank loan as source of
finance; about 32 % of them use cash payment as source of finance and 20 % of them were
dependent of other types of sources of finance.
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Question 8 Do you own a two wheeler vehicle?
no, 25
yes, 225
INTERPRETATION
Above pie chart states that about 90 % of people own their two wheeler and only 10 % out of 250
respondents do not own two wheeler. It means most of people want and own two wheeler as it is
easy to drive and also cost effective.
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Question 9 how many members in a family legally eligible to ride two wheeler?
30 20
Member
90 110
Member
Member
More than 4
INTERPRETATION
From this pie chart I come to know that how many members in a family are legally eligible in a
family to drive two wheeler. Only 8 % respondents are having one member in a family who is
eligible to drive two wheeler, 44 % were two members in family to drive two wheeler, 36 % were
having three members and only 12 % were having more than 4 members in a family who are
legally eligible to drive a two wheeler. No. of members in a family who are eligible to drive two
wheeler also effects the sale of two wheeler.
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Question 10 on an average how many kilometers do you drive in a day?
No of kilometers in a day
22
30
108
less than 10 kms
11-20 kms
90 21-30 kms
more than 30 kms
INTERPRETATION
From the above pie chart I found that out of 250 respondents 36 % of people drive their vehicle
between 11 – 20 kms per day, 43.2 % of people drive less than 10 kms per day, 12 % of people
drive between 21 -30 kms per day and 8.8 % drive for more than 30 kms.
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Question 11 Are you aware about e-bike?
awareness of e-bike
115
135
yes
no
INTERPRETATION
From above pie chart I come to know that only 54 % respondents were aware of electric bike and
about 46 % of respondents were not aware about electric bike, what type of product it is.
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Question 12 from which source did you come to know about electronic bikes?
Not aware
50
Newspaper
Internet
15 115
Hoarding
10
Pamplets
30 On road promotions
10 Word of mouth
20
INTERPRETATION
From the above Bar chart we found that out of 250 respondents 46 % of the people are not aware
of Electric Bikes, 8 % of people are aware through Newspaper, 20 % of people are aware through
word of mouth, 4 % of people are aware through Internet, 12% of the people are aware through
hoardings, 4 % from pamphlets and about 6 % were aware from on road promotions.
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Question -13 which brands of electric bike are you aware of?
10
Not aware
115 YO BYKE
120 HERO ELECTRIC
AVON
INTERPRETATION
From the above pie chart I found that about 48 % percent of people were aware about hero electric
brand, 2 % were aware of yo byke, 4 % were aware of Avon brand and 46 % of people were not
aware of any brand of electric bike.
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Question-14 After purchasing a bike for how many years would you prefers to use it?
30
70
0-2 years
90
2-4 years
60 5-6 years
more than 7 years
INTERPRETATION
From the above Pie chart we found that out of 250 respondents 24 % of people use the bikes for
5-6 years, 36 % of people use for 2-4 years, 28 % of people use for more than 7 years and 12 %
use for less than 2 years.
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Question -15 if you are willing to purchase a bike which one you would prefer?
Willing to purchase
57
Petrol bike
Electric bike
193
INTERPRETATION
From the above pie chart I come to know that about 77.2 % people wants to purchase petrol bike
and 22.8 % are the only people who wants to purchase electric bike.
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Question -16 according to which source of advertisement is more effective in Faridkot to increase
the sales of electric bike?
Source of advertisement
52 Newspaper
TV advertisements
6 Sales Person
15 Hoarding
8 160 Mobile Messaging
9
Sponsering events
INTERPRETATION
From the above Bar chart we found that out of 250 respondents 64 % of people think that
Newspaper is the best source of creating awareness about Electric Bikes, 3.6 % of people through
TV Ads, 6 % through Hoarding, 3.2 % through Sales person, 20.8 % people through Sponsoring
events and 2.4 % people through Mobile Messaging.
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Question-17 do you think that sales of electric bikes are doing well?
69
yes
181
no
INTERPRETATION
From the above pie chart I found that out of 250 respondents 27.6 % think that sales of electric
bike is doing well and 72.4 % think that sales are not doing well.
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5.10 LIMITATIONS
In spite of all these limitations best efforts have been put to make the report correct, genuine and
fulfilling the objectives of the report.
5.11 FINDINGS
• 46% people are not aware about Electric bikes in Faridkot City.
• 22.8% people are willing to purchase Electric bikes in Faridkot city.
5.12 SUGGESTIONS
• There is need to bring more awareness of various other features of HERO ELECTRIC
BIKES in the mind of customer by advertising in newspapers ,Television commercials and
hoardings.
• Not suitable for long ride.
• Good for learner and youths.
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6.0 CONCLUSION
• There should be more charging points so that it can be easily charged conveniently.
• More brand awareness should be created by adapting a proper promotion mix for HERO
ELECTRIC BIKES through Television advertising, Road shows, Trade Fair, Hoardings.
• More display in showrooms and open up more showrooms or small outlets nearby Faridkot
city to create the awareness among people and make easy to people to get service their
vehicle and many more things.
• The promotion of HERO ELECTRIC BIKES should be done rigorously to save petrol and
diesel and it should be promoted as a vehicle which is Pollution free.
• The speed factor has to be increased and the appearance has to be worked upon price is
high.
• The carrying capacity needs to be improved.
• They should design the bikes in such a way that it attracts youths.
• Bikes pick up and speed is relatively low.
• Fed up of daily charging.
• Fear of battery getting exhausted while travelling.
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QUESTIONNAIRE
Dear Sir/Madam
I need your help and support to complete this research. The success of this research will depend
on your trust and clear response. So kindly provide me your opinion to fill these questionnaires.
I hereby declare that the information will be confidential and will not be misused.
1) Name:
_
2) Age : 3) Gender :
a) Male
b) Female
5) Occupation
a) Government employee
b) Private employee
c) Self employed
d) Others
a) Below 10000
b) 10000-25000
c) 26000-40000
d) More than 41000
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6) Size of the family
a) Below 4 Members
b) 4-6 Members
c) 7-8 Members
d) More than 8 Members
a) Bank loan
b) Full cash payment
c) Others
a) Yes
b) No
a) 1Member
b) 2 Members
c) 3 Members
d) more than 4 Members
a) Less than 10 km
b) 11-20 kms
c) 21-30 kms
d) more than 31 kms
a) Yes
b) No
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If no, go to question no 14
12 From which source did you come to know about electronic bikes?
a) Newspapers
b) Magazines
c) Internet
d) Hoardings
e) Pamphlets
f) On road promotion
g) Word of mouth
a) Yo Bykes
b) Hero Electric
c) Not Aware
d) Avon
14) After purchasing a bike for how many years would you prefer to use it?
a) 0-2 Years
b) 3-4 Years
c) 5-6 Years
d) More than 7 Years
15) If you are willing to purchase a bike which one would you prefer?
a) Petrol bike
b) Electronic bike
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16) According to you which source of advertisement is more effective in FARIDKOT city to
increase sales of Electronic Bikes?
a) Newspaper
b) TV Ads
c) Sales Persons d) Hoarding
e) Mobile Messaging
f) Sponsoring Events
17) Do you think that sales of Electronic Bikes are doing well?
a) Yes b) No
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7.0 REFERENCES
industry)https://en.wikipedia.org/wiki/Automotive_industry_in_India
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