CHAPTER 1 INTRODUCTION 1.1 BACKGROUND OF THE STUDY
India is undergoing unprecedented change. It is one of the fastest-growing large economies in the world, with a population of around one billion people, with huge human and natural resources, and with costs that are at the very low end of the global average. India has its dominance in the IT industry with this being a base for almost all the leading IT companies in the world. India’s large English-speaking population certainly enhances it as an attractive business destination. India represents an economic opportunity on a massive scale, both as a global base and as a domestic market. India is the world’s seventh-largest country in terms of area, with a majority of the population living in rural areas. Reaching this fragmented and dispersed market significantly increases the complexity of distribution for companies in India. But according to some companies, addressing potential consumers is perfectly feasible. Indian consumers are becoming increasingly sophisticated and knowledgeable about products; media channels that allow companies to communicate with consumers are growing in diversity and reach. Consumers are getting richer, leading to competition in the market-place for consumer products. The result is that consumer companies are increasingly concerned with marketing issues, as they seek to differentiate their products and communicate their values to potential customers. The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is emerging as one of the world's fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to January 2013 was worth US$ 7,653 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data published by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.
The growth rate for overall domestic sales for 2011-12 was 12.24 percent amounting to 17,376,624 vehicles. In the month of only March 2012, domestic sales grew at a rate of 10.11 percent as compared to March 2011. Passenger Vehicles segment grew at 4.66 percent during April-March 2012 over same period in 2011. The overall Commercial Vehicles segment registered growth of 18.20 percent during April-March 2012 as compared to the same period in 2011. Three Wheelers sales recorded a decline of (-) 2.43 percent in April-March 2012 over same period in 2011. Total Two Wheelers sales registered a growth of 14.16 percent during April-March 2012. The two - wheeler market is the largest at INR 10,000 crore to INR 11,000 crore, or 44 percent of the market, and Tamil Nadu, Maharashtra, Gujarat and Uttar Pradesh constitute close to 45 per cent of the market. This market is also expected to grow the fastest, given the strong growth in new sales (more than 15 per cent per year) and the large volume of two-wheelers entering the vintage for aftermarket parts (2 to 12 years). With the population of automobiles in India exceeding 110 million and growing at the rate of 12% p.a. the automotive aftermarket business in India is poised for an immense growth. There are tremendous opportunities in Automotive Services, Maintenance and Aftermarket Products.
CHAPTER II COMPANY PROFILE: 2.1. COMPANY PROFILE: TVS
established by Thirukkurungudi Vengaram Sundaram Iyengar. He began
with Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar and Sons Limited, a company that consolidated its presence in the transportation business with a large fleet of trucks and buses under the name of Southern Roadways Limited. When he died in 1955 his sons took the company ahead with several forays in the automobile sector, including finance, insurance, manufacture of...
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