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An Analysis On Value Chain

In TVS Group

TABLE OF CONTENTS

TOPICS Page No

1. INTRODUCTION OF TWO WHEELER AUTOMOBILE SECTOR: -4-

2. GLOBAL TWO WHEELER MARKET – 2009 -4-

3. TWO-WHEELERS PURCHASE TREND -5-

4. INDIA AS A GLOBAL AUTOMOBILE MARKET PLAYER. -6-

5. INTRODUCTION OF TV SUNDARAM IYENGAR AND SONS LIMITED (TVSS).-8-

6. TVS MOTORS AS A TWO WHEELER PIONEERS.-10-

7. OVERVIEW OF TVS, QUALITY, FINANCIALS & GROWTH PLANS-15-

8. IT’S COMPETITORS. -13-

9. TVSM – STRATEGY FOR GROWTH-15-

10. SCOOTY PEP + -17-

11. SWOT ANALYSIS OF SCOOTY PEP-19-

12. CONCLUSION-19-

13. BIBLIOGRAPHY-20-

INTRODUCTION OF TWO WHEELER INDUSTRY

Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS.

Global two wheeler market – 2009

Two-wheelers to remain the preferred option over Cars
– The ownership and maintenance cost of a car is 4 times of a two wheeler – Two wheelers deliver a superior mileage of 70kmpl as compared to 12kmpl of the cars. – Mileage is a key factor influencing buying behavior.

Size of the total market: 43 million numbers

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Two-wheelers Purchase Trend-

← Growing working population

← Increased access to credit and lower interest loans

← Increased consumer embrace of financial products

← Upward migration of household income levels

← Fast paced urbanization to rise from 28% to 40% by 2020

← Middle class expanding by 30 - 40 million every year

India is on every major global automobile player's roadmap and it isn't hard to see why:

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➢ India is the 2nd largest two-wheeler market in the world, ➢ 4th largest commercial vehicle market in the world
➢ 11th largest passenger car market in the world and is ➢ Expected to become the 7th largest by 2016.

Two-wheelers on a roll

➢ The demand drivers for the two-wheeler industry are

➢ High growth in service sector @ 9%

➢ Favorable demographics – a young population, rising house-hold incomes, increasing literacy levels

➢ Faster introduction of new models

➢ Increasing replacement demand (from 6 to 3 years)

➢ Absence of effective public transport.

➢ Increased availability of low cost retail finance (more than 1500 locations)

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The key factors emerging are:-

• Target audience for two-wheelers is huge.

• 140 mn people will be added to the working population in the next 5 years time.

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Two-wheelers to remain the preferred option over Cars
– The ownership and maintenance cost of a car is 4 times of a two wheeler – Two wheelers deliver...
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