PPT

1. ASSIGNMENT
ON
“AFTER SALE SERVICES PROVIDED BY TWO WHEELERS COMPANY IN ”
SUBMITTED TO:
AUVRAJ SINGH
SUBMITTED BY:
UNIVERSITY SCHOOL OF BUSSINESS STUDIES
TALWANDI SABO

2. INTRODUCTION
Two wheeler automobile sector:
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,so the Automobile industry in
India is one of the largest in the world and one of the fastest growing globally. India manufactures over
18 million vehicles (including 2 wheeled and 4wheeled) and exports more than 2.3 million every year
1 It is the world's second largest manufacturer of motorcycles; there are eight key players in the Indian
markets that produced13.8 million units in 2010-11
2 At present the dominant products of the automobile industry are Two Wheelers with a
market share of over 75% and passenger cars with a market share of about 16%. Commercial
vehicles and three wheelers share about 9% of the market between them. The industry has
attained a turnover of more than USD 35 billion and provides direct and indirect employment
to over 13 million people.
The Indian two-wheeler industry has come a long way since its humble beginning in 1948
when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the
customer preferences have changed in favour of motorcycles and gearless scooters that score
higher on technology, fuel economy and aesthetic appeal, at the expense of metal-bodied
geared scooters and mopeds. These changes in customer preferences have had an impact on
the fortunes of the players. The erstwhile leaders have either perished or have significantly
lost market share, whereas new leaders have emerged.
With an expanding market and entry of new players over the last few years, the Indian two
wheeler industry is now approaching a stage of maturity. Previously, there were only a
handful of two-wheeler models available in the country. Currently, India is the second largest

3. producer of two-wheelers in the world. It stands next only to China and Japan in terms of the
number of two wheelers produced and the sales of two-wheelers respectively. There are many
two-wheeler manufacturers in India. The major players in the 2-wheeler industry are Hero
Honda, Bajaj Auto Ltd (Bajaj Auto), TVS Motor Company Ltd (TVS) and Honda
Motorcycle & Scooter India, Private Limited (HMSI) accounting for over 93% of the sale in
the domestic two wheeler market. It is noteworthy that motorbikes segment’s share is just
below 80% of the total 2W market in India which is dominated by Hero Honda with
1 http://www.imaginmor.com/automobileindustryindia.html
2 Centre for monitoring Indian economy (CMIE)
HISTORY OF TWO- WHEELER
The Encyclopedia describes a motorcycle as a bicycle propelled by an internal-combustion
engine (or, less often, by an electric engine).The motors on minibikes, scooters, and mopeds, are usually
air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement, the multiple-
cylinder motorcycles have displacements of more than 1,300 cubic cm.
The automobile was the reply to the 19th-century dream of self-propelling the horse-drawn carriage.
Similarly, the invention of the motorcycle created the self-propelled bicycle. The first commercial
design was a three-wheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal
single-cylinder gasoline engine mounted between two steer able front wheels and connected by a drive
chain to the rear wheel.
The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted
spark ignition engines. There was then felt the need for reliable constructions. This led to
road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on
the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new
ideas from early two-stroke-cycle designs to supercharged, multivalent engines mounted on
aerodynamic, carbon fiber reinforced bodywork.
The two-wheeler industry today has a significant role in the Indian Economy. With an annual turnover of
Rs. 6,200 crores and a compounded average growth of 10 per -cent in the recent years, it is one if the
few industrial sectors in the growth phaseService.today. The reasons for this are not far to seek.
The consumer’s who wants to be mobile today considers personal transportation as one of his basic
needs, In India, the two-wheeler is used in variety of purposes, particularly in urban areas
communicating to work, visiting people, carrying loads, outdoors jobs like selling and
the like. In rural areas, it enables people to travel more frequently to nearby towns for their daily needs.
In other words, it has also become a valuable support for increasing productivity and profits, besides
helping personal transportation.

4. The year 1997 was a difficult period for the automobile sector with the major sector with major
player hit by the recession. However, two- wheelers came through un- scratched with a modest three
per cent growth. One of the primary reasons for this has been the robust growth of the rural market. A
series of good monsoons and high prices for agricultural commodities have increased the
purchasing power of rural customers. Today, the rural market of over six lakhs Indian villages
contributes 35 percent to total two wheeler sales.
THE TWO-WHEELER INDUSTRY BASICALLY COMPRISES
MOTOR CYCLES
The motorcycles segment grew by 28% in terms of sales in 1995, which is remarkable by all
standards. In the 1980’s the only available motorcycles in the Indian market were the conventional
indigenously build Rajdoot, Bullet and Yezdi. This changed drastically when Japanese introduced their
motorcycle in Indian market. The superior styling and better ergonomics led to increase in the market
share.
SCOOTERS
In 94 - 95 the scooter segment accounted for 46 - 80% of two wheeler industries crossed
the one million mark. As such the scooters segment has grown by 34% - 37%, which is one of the
segment achievements of industry.
The most important contribution to the segment is Baja Auto with an installed capacity of 12.72-lakh
scooters per annum. In act the company is the largest manufacture of two-wheeler in the
country and fourth largest in world. Other
Companies, which involve in manufacturing scooter are LML with a capacity if 20,000 scooter
per annum and Kinetic Honda. In both the companies (LML Limited and Kinetic Honda) foreign partners
enjoyed a majority stake.
MOPEDS
In 1972 Indian customers was introduced to the models of two-wheeler, which was popularly
known as Mopeds. The segment was dominated by Luna, which become virtually to generic name
for mopeds and come to be identified with lower middles class people of the country because it was the
cheapest available two wheeler with maximum offered mopeds are for this smallest chunk in the
Industry.
However this segment has failed to grow especially compared to Motorcycles and Scooters. During the
1980,s mopeds are quite popular in first half of the 1980’s, the scooters showed a phenomenal
growth of 65% during 1980 – 85. During 1994 mopeds registered a growth of just 13% Kinetic
Engineering is one of the leading producers of mopeds in India.
A major part of growth on the two wheeler industry has come from Motorcycles especially the
Indo – Japanese 100 CC motorcycles which are considered fuel efficient, reliable and suited for
rough roads. Scooterettes are also growing at a fast pace and are being increasingly perceived as a
better option providing convenience and modern style, by urban customers. In this category, TVS Scooty
holds a dominant market share. TVS Scooty, launched in 1994, with its elegant looks has definitely
spurred the growth of this segment. The two-wheeler industry has come a long way from a modest
production of 150 units in 1950 to three million units per year in 1998.

5. INDIAN TWO WHEELER INDUSTRY: AT PRESENT
2000-2010
The Indian two wheeler industry has shown rapid rate of growth in last one decade. Its share
in automobile industry has increased from 15% in 2001 to 17% in 2010 (Table 2). Annual
sales by industry have increased from Rs. 7486 crore in 2001 to Rs. 30096.82 crore in 2010
A snapshot of the 2W manufacturers operating in India across time shows that 15
while the core that existed 10 years back continues to remain the same, there have been
several casualties along the way but at the same time there have been several new entrants.
This is also the period which witnessed the end of Hero Honda’s 27 years old JV with Honda
in 2010. Rising income levels, reducing excise duties, higher loan tenure and loan-to-value
offered by the financing companies have all fuelled the growth of two-wheeler demand.
Besides, mounting traffic chaos and limited parking space has also increased the demand for
two-wheelers from households that can afford or actually do own a car. Furthermore, with
increasing women working population, changing social philosophy and broad-mindedness,
the penetration of two-wheelers in target population has increased significantly during last
one decade especially in urban areas. However rural areas and smaller towns still remains
considerably underpenetrated market.
In recent years, the Indian two-wheeler (2W) industry has shown a strong volume growth
over the last two-years, having grown by 25% in 2009-10 and 27% in 2010-11 to reach 13.3
million units. This strong double-digit growth has been driven by multiple factors. One
reason, of course, is statistical as this period of high double-digit growth has showed up after
a rather sedate previous two years, when the 2W industry volumes had shrunk by 5% in
2007-08 and had grown by a mere 5% in 2008-09. In addition to the contribution of pent-up
demand, the 2W industry growth over the last two years has been supported strongly by
various underlying factors including India’s rising per capita GDP, increasing rural demand,
growing urbanization, swelling replacement demand, increasing proportion of cash sales and
the less measurable metric of improved consumer sentiment.

6. AFTER SALE SERVICES
In simple words, after market refers to any market where customers who buy one product or
service are likely to buy a related, follow-on product. In many industries, the initial purchase
decision of consumers can have long run effects on their future choices. This occurs where
consumers purchase durable products that also require the purchase of some complementary
products at least some of which are purchased at a later date than the purchase of the durable
product. The existence of an after-market is often a persuasive argument for manufacturers to
stay in direct contact with end-users. Aftermarket service includes product support for
warranties, contracts, and parts sales. There are numerous industries in which this is the case.
An ‘aftermarket transaction’, according to Shapiro and Teece (1994) has two
characteristics:
• The aftermarket product or service is used together with a primary product.
• The aftermarket product or service is purchased after the primary product.
The peculiar competitive feature of these types of industry lies in the competitive interaction
between the primary durable product and the secondary or ‘aftermarket’ for associated
complementary products or services. Often due to technical differences between the durable
primary products, the choice of complementary products compatible with a particular make is
limited. This implies that once the primary product has been purchased, consumer choice is
confined to those aftermarket products or services compatible with that industry product. For
example, the owner of a Ford motor car needs to purchase spare parts which are compatible
with that type of automobile. In the case of video games, once a consumer has purchased a
particular games platform, this can only be used to play games compatible with that platform.
In other words, consumers are to a greater or lesser extent locked into certain aftermarket
suppliers. Where consumers are locked in this manner, this raises the possibility that the firms
supplying aftermarket products or services can profitably engage in anti-competitive
behaviour with regard to the supply of the complementary product. 50
Like other durable consumer goods, two wheelers also have an after‐sales market in addition
to the sales markets. It has been observed that a firm holding a market power in the after‐sales

7. spare part market can exclude its competitors by tying its maintenance and repair services
with the spare parts sales, whereby it can affect consumers’ welfare. This ability gained by
the firm is resulted from switching costs, information asymmetries, insufficient reputation
and other market failures.
In Indian car industry, automakers (Honda, Hyundai and Volkswagen) have recently been
accused of using their dominant position to abuse the consumers. The complaint states how
these companies make their spare parts available only through their authorised dealers at
exorbitant rates.
“This practice by the international car makers does not give the consumer a fair price
advantage as he has no choice but to buy the spare parts from authorised dealers. Prima facie
it makes a case and the DG has been ordered to probe the matter further,” an official of the
CCI said. Interaction and some discreet inquiry with some two wheeler companies shows that
two wheeler industry also carries similar feature. A detailed analysis is required in this regardto come to
any conclusion. In this respect, the analysis shall comprise the stages of markedefinition, analysis of a
dominant position, and definition of abuse. In addition, the analysisof a dominant position is the most
critical step.

8. AFTER SALE
We at Mahindra 2 Wheelers offer you six free services and two paid services specifically
programmed to keep your vehicle in good running condition for daily use. Coupons for the same
would be accepted at all authorized Mahindra 2 Wheelers dealerships and service centers
SERVICES SERVICE TYPE KMS. RANGE TIME PERIOD
1st Free 300 to 500 km. Within 45 days
2nd Free 2500 to 3000 km. Within 90 days
3rd Paid 5000 to 5500 km. Within 180 days
Free
4th 7500 to 8000 km. Within 270 days
5th Free 10000 to 10500 km. Within 360 days
6th Paid 12500 to 13000 km. Within 450 days
7th Free 15000 to 15500 km. Within 540 days
8th Free 17500 to 18000 km. Within 630 days
BIKE HEALTH
MAINTENANCE:
CATEGORY DESCRIPTION REMARKS
Must be serviced every 2500-
Six free and two paid
Free Service 3000 km. or within 3 months
services
from the date of previous service
Must be replaced every
Air Cleaner 12 months/ 12000km.
whichever is earlier

9. Must be replaced every
Spark Plug 12 months/ 12000km.
whichever is earlier
Must be replaced every
Drive Belt 12 months/ 12000km. Standard limit- 18.0mm
whichever is earlier
Must be replaced every
Clutch Shoe 12 months/ 12000km. Standard limit- 2.0mm
whichever is earlier
Must be changed after every
Must be changed initially
Engine Oil 2500-3000 km. or within 3
at 300-500 km.
months
Engine Oil change, while engine
Engine Oil Grade SAE. 10W 30 SJ
O/H 950 ml. at servicing 800 ml
Transmission Oil/Gear Must be changed initially Must be changed after every
Box Oil at 300-500 km. 6000 km. or within 6 months
Gear box O/H 110ml. while gear
Gear Box Oil Grade 85W 140 Grade
box oil change, 100ml.
WARRANTY
MAHINDRA TWO WHEELERS LIMITED
gives the following warranty in respect of all new Flyte scooters manufactured at their
works and sold after pre-delivery inspection, to be free from any manufacturing defect
and undertake to repair or replace free of charge, within a period of 24 months from
date of sale or running of 20,000 kms., tyre and tube, which upon their examination will
reveal to be having manufacturing defect to the entire satisfaction of the manufacturers.
Proper care and precaution has been taken to ensure the best quality in respect of the
material and workmanship in manufacturing.
This warranty excludes any loss of or damage due to normal wear and tear for the parts
such as:Clutch Shoe, Brakeshoe, Variator Roller, Drive Belt, One Way Clutch and
Cylinder Piston etc.
All parts failing, due to manufacturing defect and coming under the above terms of
warranty, should be sent to Mahindra Two Wheelers Limited,Pithampur, through any of
their authorized outlet duly accompanied by a proper warranty claim form.
Battery Warranty: 12 months from the date of purchase Customer can directly claim
battery warranty from local dealer by presenting battery warranty card.
THE WARRANTY BECOMES VOID IN THE FOLLOWING CASES:
Failure due to misuse and non-observance of instructions given in Owners' Manual
Failure due to accident
Repairs by unauthorized workshop
Use of non-genuine spare parts
Use of non-genuine quality lubricants
Service not availed as per specified schedule

10. Any modifications, if carried out
If the maintenance of the scooter is not done as per maintenance schedule in the
manual
Vehicle sold or transferred to another person within the warranty period
Loss of or damage to parts due to normal wear and tear
For painted parts: Only blistering, chipping, flaking covered under warranty for first 12
months only. Company holds the final authority for decision.
Any consequential loss or damage is specifically excluded.Under the warranty, only
repair or replacement of certain defective parts will be considered. Under any
circumstances, replacement of the vehicle is not warranted. Decision regarding
warranty settlement shall be taken by MAHINDRA TWO WHEELERS LIMITED and
shall be final and binding on all concerned, subject to Pune jurisdiction only.