A STUDY ON MARKTING MIX STRATEGIES

AND IMPACT OF CONSUMER BEHAVIOUR

ON PIAGGIO AUTOS AND TRUCKS

A Project Report Submitted to the

DEPARTMENT OF BUSINESS ADMINISTRATION

ICFAI UNIVERSITY, TRIPURA

In Partial Fulfillment of the Requirements

for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

BY

NIMMAGADDA SRINIVAS
08PMP0114975

Under the Guidance of

P.VEERABHADRA SWAMY B.SC., MBA, PGDCA ., MPhil.,.
Sr. Faculty Associate

CYGMAX INSTITUTE OF MANAGEMENT

STUDIES (CIMS)

1
 VIJAYAWADA.
DEPARTMENT OF BUSINESS
ADMINISTRATION

CERTIFICATE

This is to certify that this Project work entitled

“A Study on Marketing Mix Strategies and
Impact of Consumer Behaviour on Piaggio
APE Autos and Trucks” is the bonafide work of
NIMMAGADDA SRINIVAS submitted in partial
fulfillment of the requirements for the award of the
Degree of Master of Business Administration by
ICFAI University, Tripura.

Guide
Principal
Cygmax Institute of Management Studies Cygmax Institute of Management Studies
VIJAYAWADA – 10 VIJAYAWADA – 10

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 ACKNOWLEDGEMENT
I express my gratitude to M/s Garapati Auto
Ventures Limited (RAMCOR) for allowing me to do
my project work in their organisation and enable
me to conduct Market Survey on Piaggio APE Autos
and Trucks.

I express my sincere thanks to Sri. N. Ramesh,

HR Manager, and Sri. Balu, Service Manager,
Garapati Auto Ventures Limited, for sparing their
invaluable time to give their useful suggestions
during my project work.

I am grateful to my project director Sri.

P.Veerabhadra Swamy, Sr. Faculty Associate for his
inspiring guidance, keen interest and critical
evaluation of the work for the successful
completion of the project work.

I take this opportunity to express my gratitude to Sri. N.J.S

Rao, Principal, Department of Business Administration,
CYGMAX INISTITUTE OF MANAGEMENT STUDIES, and
other faculty members.

It is a pleasure to me to thank my Parents and

other family members whole heartedly who

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extended their support in doing this project as well
as the course.

Finally, I would like to record my thanks to all

my well wishers.

NIMMAGADDA SRINIVAS

DECLARATION

I hereby declare that the project work entitled

“A Study on Marketing Mix Strategies and
Impact of Consumer Behaviour on Piaggio
APE Autos and Trucks” submitted by me in
partial fulfillment of the requirements for the award
of the Degree of Master of Business
Administration, ICFAI University, is my own
work and it was not submitted to any other
university, nor published any time before.

Vijayawada

4
Date:
NIMMAGADDA SRINIVAS

5
 INDEX
Chapter NO Content Page No

1. INTRODUCTION 1 - 21
Introduction
Marketing Concept
The Marketing Mix
Specifications
Product Features Provide Customer Benefits
The Product Life Cycle
Organizational Chart

2 OBJECTIVES AND METHODOLOGY 22 - 24

Purpose of Study
Objectives
Methodology of the Study`
Research Instrument
Limitations of the Study

3. PROFILE OF THE INDUSTRY 25 - 37

Automobile Industry History
Indian Automotive Industry
Car Industry overview
Major players in the Industry

4. COMPANY / ORGANISATION PROFILE 38 - 50

Piaggio Brief
Products and Services
Truck
Ramcor Auto Ventures.

5 PRODUCT PROFILE 51 -
68

6 ANALISIS AND INTERPRETATIONS 69 - 104

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CHAPTER-I

INTRODUCTION

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 INTRODUCTION TO THE
CONCEPTUAL FRAMEWROK
1.1 Introduction:
Today’s companies are facing their toughest competition
ever, due to numerous factors. But the entire success of
the company lies in the amount of belief and loyalty; its
customers are having in it. The amount of faith that is
vested in the company by its customers determines the
way the company’s preceding. In this digitally enhanced
world, marketing has lost its prime scope and new terms
have started creeping in its contents and one can see
clearly that a vast majority of these are ‘customer
focused’. And the rest. They are from ‘Information
Technology’.
So customer plays the important role behind the success
of a company, no matter what levels of technology it has
and what levels of turnover they make. Now with the
technological interference, the war between the
companies has shifted from the grounds of Product, Price,
Place, and Promotion to single ‘P’ – Person. And that
person is the ‘Customer’. Also gone are the days of
creating customers. Its now acquiring and ‘sustaining’ the
customer that plays a major role in deciding the victor in
such wars.
1.2 Marketing Concept
Marketing is re-cognized as a special management
just like organizing, staffing, financing and producing. But
the signification of marketing as a vital function has been

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understood not by many. In fact, the marketing function is
closely related to the basic objectives of business.
A business may have many objectives, including that
of making profits. But on a deeper analysis it can be said
that the most sensible objective of the business must be
customer satisfaction. It should be its main objective.
Then it follows, the customer satisfaction should be the
impelling force behind the business organization and
obviously the marketing organization
The number to be served and the quality of service
required influenced the nature of business organization.
This does not mean that profile motive is to be satisfied at
the cost of customer satisfaction. On the other hand,
satisfying the customer should market it only mean that
profits.
Definitions of marketing
‘Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably’
-The Chartered Institute of Marketing
‘The right product, in the right place, at the right time, and
at the right price’
-Adcock et al
‘Marketing is the human activity directed at satisfying
human needs and wants through an exchange process’
-Kotler 1980

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1.3 The Marketing Mix
(The 4 P's of Marketing)
Marketing decisions generally fall into the following four
controllable categories:
• Product
• Price
• Place (Distribution)
• Promotion
The term "marketing mix" became popularized after Neil
H. Borden published his 1964 article, The Concept of the
Marketing Mix. Borden began using the term in his
teaching in the late 1940's after James Collation had
described the marketing manager as a "Mixer of
Ingredients". The ingredients in Borden's marketing mix
included product planning, pricing, branding, distribution
channels, personal selling, advertising, promotions,
packaging, display, servicing, physical handling, and fact
finding and analysis. E. Jerome McCarthy later grouped
these ingredients into the four categories that today are
known as the 4 P's of marketing, depicted below:
The Marketing Mix- Diagrammatic Representation

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These four P's are the parameters that the marketing
manager can control, subject to the internal and external
constraints of the marketing environment. The goal is to
make decisions that center the four P's on the customers
in the target market in order to create perceived value and
generate a positive response.
Product
Product is anything that can be offered to a market for
attention, acquisition, use or consumption that might
satisfy a want or need. It includes physical objectives,
services, persons, places, organizations and ideas.
Asbestos sheet comes under the family of durable goods.
Durable goods are those goods which for a longer period.
And hence the purchases are made only once
Product quality
in maintaining quality or developing a product, the
manufacturer has to choose a quality level that will
support the products’ intended position in the target
market. Quality, particularly to asbestos industry, is one of
the major product positioning tools. Quality stands for the
rated ability of the brand to perform its functions. Quality
is a summery term for the products durability, reliability,
precision, ease of operation and repair and other valued
attributes. Some of these attributes can be measured in
terms of buyer’s perception of quality. Most products are
established initially at one of four quality levels; low,
average, high and superior. Garapati auto ventures ltd.

11
Established 50 years ago the quality of the asbestos
sheets and to develop new products.
Product Decisions
The term "product" refers to tangible, physical products as
well as services. Here are some examples of the product
decisions to be made:
• Brand name
• Functionality
• Styling
• Quality
• Safety
• Packaging
• Repairs and Support
• Warranty
• Accessories and services
Price
1. The amount as of money or goods, asked for or given
in exchange for something else.
2. The cost at which something is obtained: believes
that the price of success is hard work.
3. The cost of bribing someone: maintained that every
person has a price.
4. A reward offered for the capture or killing of a person:
a felon with a price on his head.
5. Archaic. Value or worth.
Price is the instrument most generally identifies with a
market economy. A free system could not flourish without
price competition. Price is the universal index of value. It is

12
the best measure of demand. Price serves to bring the
supply of goods and services produced into equilibrium
with the quantity demanded. In a business firm various
marketing decisions relating to pricing of products are the
most significant because they from the very basis for
survival and growth of the firm.
According to converse decisions concerning price to be
followed for a period of time may be called price polices.
The determination of price ids very important and crucial
decision as it affects all the parties involved in the
production, distribution and consumption of goods. Price
effect volume of production, and the amount of profit.
Price is the sources of income to distributors. Price is
important to consumers because all their buying decisions
are influenced by prices. A price reflects the purchasing
power of money. It determines the standard of living of
people. It is the regulator of production and allocate of
resources. In marketing prices consists of various
decisions regarding list price discounts and allowances,
payments period and credit terms.
Before setting a price the firm has to consider
certain major points such as competitor’s price and prices
of substitutes. There are six main price setting methods.
1. cost-plus pricing
2. break-even analysis and target profit pricing
3. perceived-value pricing
4. going rate pricing
5. sealed bid pricing

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 6. psychological pricing
Cost Plus Pricing
It is the most common method of pricing adopted by
manufactures, Wholesalers and retailers. Under it,
management works out the cost of goods manufactured
and adds some percentage of profits to determine the
selling price. The practice of pricing soley on the cost plus
reasonable margin of profits is more commonly in large
contracts whose prices are under control of government.
Break-Even Analysis and Target-Profit Pricing:
Another cost oriented pricing approach is that of target-
profit pricing. The firm tries to determine the price that
would produce the profit it is seeking. This pricing method
is also used by public utilities that are constrained to make
a fair return on their investment. Target pricing used the
concept of break even chart. A break-even chart at
different sales volume level.
Perceived Value Pricing
An increased number of companies are basing their price
on the product’s perceived value. They so the buyer’s
perception of value not sellers cost as the key of pricing.
They use the non price variables to build up perceived
value in the buyer’s mind. Price is set to capture the
perceived value.
Going –Rate Pricing
In going-rate pricing, the firms’ bases largely on
competitor’s prices, with less attention paid to its own
costs or demand. The firm might charge the same, more,

14
or less than its major competitor. Competitor. Going rate
pricing is quite popular. Where costs are difficult to
measure, or competitive response is uncertain, firms feel
that the going price represents a solution. The going price
is thought to reflect the collective wisdom of the would
yield a fair return and not disturb industrial harmony.
Sealed-Bid-Pricing
Competitive oriented pricing also dominates where firms
bid for jobs. The firm base its actions of how competitors
will price rather than on ragid relation to the firms costs or
demand if firm wants to win the contract, requires pricing
lower than the other firms.
Psychological Pricing
Sellers should consider the psychology of prices and not
simply their economics. Many consumers as an indication
of quality. When a beer company raises fromRS.20to
RS.30, its sales not down. Prestige pricing is especially
effective with ego-sensitive products such as perfumes
and expensive cars.
Company Pricing Policies
The contemplated price should be checked for consistency
with company pricing policies. Many companies define the
price image they want, their policy, price discounts, and
philosophy of meeting competitor’s price.
Impact Of Price On Other Parties
Management also considers the reactions of other parties
to the contemplated price. How will the distribution
personnel and dealers feel about it? Will the company

15
sales fore be willing to sell at the price or complaint that it
is too high? How will competitors react at this price? Will
suppliers raise their prices when they see the company’s
price? Will the government intervenes and prevent this
price from being charged? In the last case, marketers
need to know the laws affecting price and make sure that
pricing policies are defensible.
Discounts
Most companies modify their basic price to reward
customers for certain acts, such as early payments of bills,
volume purchases, buying in off season and so on. These
price adjustments are called discounts and allowances.
1. Cash discounts
2. Quantity discounts
3. Functional discounts
4. Seasonal discounts
Allowances
Allowances are other types of reductions from the list
price. For example, trade-in allowances are price
reductions granted for returning an old item when buying
a new one. Trade-in allowances are most common in
automobile industry and also found in some other durable
goods. Promotional allowances are payments or price
reductions to reward dealers for participating in
advertising and sales support programmers.
Price Decisions
Some examples of pricing decisions to be made include:
• Pricing strategy (skim, penetration, etc.)

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 • Suggested retail price
• Volume discounts and wholesale pricing
• Cash and early payment discounts
• Seasonal pricing
• Bundling
• Price flexibility
• Price discrimination
Place
Place stands for various activities the company undertake
such as channels, coverage, location, inventory and
transport, to make the product accessible and available to
target consumers. Thus, a firm must identify, recruit, and
link various middle men under and marketing facilitators
so that its products and services are efficiently supplied to
the target market. It must understand the various types of
retailers, wholesalers and physical distribution firms as
how they make their decisions.
Channels Of Distribution
The main object of marketing process is to deliver the
goods their ultimate consumers. The process involves a
number of functions. Of these functions two are most
important. First, the creation of demand secondly, the
supply of goods wherever and sales promotion activities.
On the other hand, the distribution function is concerned
with management of system of distribution of goods. This
system is known as channels of distribution. The decision
relating to the channels of distribution is a very important
one. Hence it should be examined thoroughly.

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By channels of distribution we mean the intermediaries
through which the goods or products are transferred from
the producers to the actual user. In other words,
distribution channels are the system of economic
institutions through which a producer of goods delivers
them into the hands of the users.
Functions Of Channels Of Distribution:
The intermediaries in the process of marketing, performing
the following functions.
• Rationalization of distribution process
• Provision of finance
• Help in pricing
• Aid in communication
• Performance of promotional activities
• Aids in distribution of goods.
The following chart gives you the major channels of
distribution.
Large scale retailing Sole Selling Agency
direct sales agency
Departmental stores Whole Saler’s
Stockiest Selling Agency
Super bazaars Retailers’ Mail Order
Business
Co-Operative Stores
Multiple Shops
Nominated Retailed Stores Consumers Nominated
Retail Stockiest

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The decision relating to the selection of channels of
distribution is very important. Distribution channel of
Garapati auto ventures ltd. Is as follows:
MANUFACTURER FACTORY OWNED STOCKIST CONSUMER
SALES DEPOT

Distribution (Place) Decisions

Distribution is about getting the products to the customer.
Some examples of distribution decisions include:
• Distribution channels
• Market coverage (inclusive, selective, or exclusive
distribution)
• Specific channel members
• Inventory management
• Warehousing
• Distribution centers
• Order processing
• Transportation
• Reverse logistics
Promotion
Promotion stands for the various activities the company
under take to communicate its products merits and to
persuade target customers to buy them. Thus every
company has to buy advertising, set up sales-promotions,
arrange publicity and dispatch sales people to promote its
products. The company must communicate information
about product existence, features, terms….etc. to the
customers, suppliers, dealers. And it must communicate to
the internal public particularly to its directors, middle

19
management, sales force and works. The major tools of
promotion can be classified as follows:
• Advertising
• Personal selling
• Sales promotion
• Publicity
Advertising
Any paid from of non personal presentation and promotion
of ideas, goods, services by an identified sponsor. Because
of many forms and uses of advertising, it is difficult to
make all embracing generalizations about its distinctive as
a component of the promotion. Yet the following qualities
can be noted.

1. Public Presentation
Advertising is highly public made of communication. Its
public nature confers a kind of legitimacy to the product
and also suggests a standardization offering. Because
many persons receive the same message, buyers know
that their motives for purchasing the product will be
publicly understood.
2. Pervasiveness
Advertisement is a pervasive medium that permits the
seller to repeat a message, many times. It also allows the
buyer to receive and compare the massages of various
competitors. Large scale advertising by a seller says
something positive about the seller’s size, popularity and
success.

20
3. Amplified Expressiveness
Advertising provides opportunities for dramatizing the
company and its products through the artful use of print,
sound and colour.
4. Impersonality
Advertising can not be as compelling as a company sales
representative. The audience does not feel obligated to
pay attention or respond. Advertising is able to carry on
only a monologue, not dialogues, with the audience.
Advertising can be used to build up long-term image for a
product. It is an efficient way to reach numerous buyers
that are geographically dispersed at a low cost per
exposures. Certain forms of advertising, such as television
advertising, can require a large budget while other forms,
such as news papers, can be done on a small budget.
Personal Selling
Personal selling is the most essential tool in some
industries like washing powdered etc... The company’s
fate lies in the hands of selling personnel and on their
ability to sell the products. Lot of skill is required for this.
Personnel selling are the most effective tool of the buying
process, particularly in building up the buyer’s preference
conviction and action. The reason is that personal selling
when compared with advertising has three distinctive.
They are:
1. Personal confrontation
2. Cultivation and
3. Response

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Sales Promotion
Sales promotion consists of a wide variety of promotional
tools designed to stimulate earlier market response. They
include tools for consumer earlier market response. They
include tools for consumer (samples, coupons, money
refund offers, price off, premiums, demonstrations… etc)
trade promotion (buying-allowance, free goods,
merchandise allowances, co-operative-advertising, dealer
sale contests), and sales-force promotion (bonuses and
contests).
Sales promotion tools have three distinctive
characteristics. They are
1. Communication
2. Incentive
3. invitation
Sales promotion is very effective
• When new product is effective
• When we have to communicate major improvement
in the product
• When we want to amplify the results of advertising
• When we want to increase the number of retail out
lets.
Publicity
Publicity is non personal stimulation of demand for a
product, service, or business unit by planting commercially
significant news about it in published medium or obtaining
favorable presentation of it upon radio, television or stage
that is not paid by the sponsor.

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Promotion Decisions
In the context of the marketing mix, promotion represents
the various aspects of marketing communication, that is,
the communication of information about the product with
the goal of generating a positive customer response.
Marketing communication decisions include:
• Promotional strategy (push, pull, etc.)
• Advertising
• Personal selling & sales force
• Sales promotions
• Public relations & publicity
• Marketing communications budget
1.4 Specifications:
• Each field has its own precise definition of
specifications.
• “The design process can be dissected into five
phases and is the same for most aerospace products.
Phase one is a marketing analysis to determine
customer specifications or requirements”
• Specifications specify; they tell us exactly what must
be done.
Two perspectives on specifications:
1. Specifications are used to define the scope of product
work.
2. Specifications are used to make customer needs
precise.

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Specifications Specify Features
1. How do we know we have actually implemented a
feature? We need something measurable – that’s a
specification.
2. Different fields have different notions of
“measurable” – key is to remove ambiguity.
3. Product specs are high level, engineering specs will
be more detailed. There is a whole process involved
in cascading from the one to the other; we discuss it
later.
4. Once again, use the customer’s voice as much as
possible.
1.5 Product Features Provide Customer Benefits
• What cool things does our product do to provide
these benefits?
• Note that features can’t appear out of nowhere; if
you want a feature that has no benefit, go back and
put in the benefit.
• As much as possible, features should still be in the
customer’s language
Benefits, Features, Specifications
• Google “benefit feature specification product” for
thousands of hits germane to our discussion here.
Many of those hits are from software.
• Note that in loose parlance, benefits and features are
almost interchangeable, and specs can mean product
performance or system requirements for product use.
Customer Benefits Come First

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 • What does the customer want/need? What would
add value?
• These generally come from your product opportunity
research.
• You can’t just dump the list of needs generated last
term – we need to begin to think about what can be
delivered.
• Everything should be in the customer’s “voice” –
direct quotes are great, though not required.
1.7 Organizational chart:
An organizational chart is a chart which represents the
structure of an organization in terms of rank. The chart
usually shows the managers and sub-workers who make
up an organization. The chart also shows relationships
between staff in the organization which can be:
• Line - direct relationship between superior and
subordinate.
• Lateral - relationship between different departments
on the same hierarchical level.
• Staff - relationship between a managerial assistant
and other areas. The assistant will be able to offer
advice to a line manager. However, they have no
authority over the line manager actions.
• Functional - relationships between specialist positions
and other areas. The specialist will normally have
authority to insist that a line manager implements
any of their instructions.

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In many large companies the organization chart can be
large and incredibly complicated and is therefore
sometimes dissected into smaller charts for each
individual department within the organization.
There are three different types of organization chart:
• Hierarchical
• Matrix
• Flat
The Benefits of Organizational Charts
Organizational charts are an extremely effective way to
communicate organizational, employee and enterprise
information. An org chart makes it easier for people to
understand large amounts of information as a visual
picture rather than as a table of names and numbers.
Organizational charts provide the greatest value when
used as a framework for managing change and
communicating current organizational structure. When
fully utilized, org charts allow managers to make decisions
about resources, provide a framework for managing
change and communicate operational information across
the organization.
Using organizational chart software Human Resources can
create org charts automatically from HR databases and
distribute them to management. Managers are then able
to quickly visualize the organization and have the salary,
gender and tenure information needed for decision-
making purposes. Simply put, managing change is much
easier when you can visualize the organization.

26
Organizational charts provide managers with specific
departmental information that can then be used as a
baseline for planning, budgeting and workforce modeling.
It's easy to collaborate on important structural and
personnel decisions when you have the overall picture
along with the smaller views that make up that bigger
picture. Organizational charts can be linked directly to
spreadsheets or budgeting tools for interactive what-if
analysis, making planning and decision making easier.
Those organizational charts can then be used to provide
scenarios back to executives, finance and HR for
evaluation and approval. Managers may also use
organizational charts to communicate and solicit feedback
from their employees to build future plans.
When organizational charts are published and distributed
to an entire organization, you have a compelling method
for communicating valuable organizational information to
all employees. Organizational charts are ideal for sharing
the organization's strategic vision, as well as defining
responsibilities, dependencies and relationships. The
organizational chart also allows you to organize your team
with clear responsibilities, titles and lines of authority. No
document carries such important information, so
concisely, and so easy to understand as an organizational
chart.
Limitations of an Organizational Chart
There are several limitations with organizational charts:

27
 • It only shows 'formal relationships' and tells nothing
of the pattern of human (social) relationships which
develop.
• It shows nothing about the managerial style adopted
(eg autocratic or democratic)
• It very quickly becomes out-of-date, especially in
large organizations that change their staff regularly.
Chart showing the interrelationships of positions within an
organization in terms of authority and responsibility. There
are basically three patterns of organization: line
organization, functional organization, and line and staff
organization.
Consumer Behaviour Introduction
The study of consumers helps firms and
organizations improve their marketing strategies by
understanding issues such as how
• The psychology of how consumers think, feel, reason,
and select between different alternatives (e.g.,
brands, products);
• The psychology of how the consumer is influenced by
his or her environment (e.g., culture, family, signs,
media);
• The behavior of consumers while shopping or making
other marketing decisions;
• Limitations in consumer knowledge or information
processing abilities influence decisions and marketing
outcome;

28
 • How consumer motivation and decision strategies
differ between products that differ in their level of
importance or interest that they entail for the
consumer; and
• How marketers can adapt and improve their
marketing campaigns and marketing strategies to
more effectively reach the consumer.
One "official" definition of consumer behavior is "The
study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of
products, services, experiences, or ideas to satisfy needs
and the impacts that these processes have on the
consumer and society." Although it is not necessary to
memorize this definition, it brings up some useful points:
• Behavior occurs either for the individual, or in the
context of a group (e.g., friend’s influence what kinds
of clothes a person wears) or an organization (people
on the job make decisions as to which products the
firm should use).
• Consumer behavior involves the use and disposal of
products as well as the study of how they are
purchased. Product use is often of great interest to
the marketer, because this may influence how a
product is best positioned or how we can encourage
increased consumption. Since many environmental
problems result from product disposal (e.g., motor oil
being sent into sewage systems to save the recycling

29
 fee, or garbage piling up at landfills) this is also an
area of interest.
• Consumer behavior involves services and ideas as
well as tangible products.
• The impact of consumer behavior on society is also of
relevance. For example, aggressive marketing of high
fat foods, or aggressive marketing of easy credit,
may have serious repercussions for the national
health and economy.
There are four main applications of consumer
behavior:
• The most obvious is for marketing strategy—i.e., for
making better marketing campaigns. For example, by
understanding that consumers are more receptive to
food advertising when they are hungry, we learn to
schedule snack advertisements late in the afternoon.
By understanding that new products are usually
initially adopted by a few consumers and only spread
later, and then only gradually, to the rest of the
population, we learn that (1) companies that
introduce new products must be well financed so that
they can stay afloat until their products become a
commercial success and (2) it is important to please
initial customers, since they will in turn influence
many subsequent customers’ brand choices.
• A second application is public policy. In the 1980s,
Acutance, a near miracle cure for acne, was
introduced. Unfortunately, Acutance resulted in

30
 severe birth defects if taken by pregnant women.
Although physicians were instructed to warn their
female patients of this, a number still became
pregnant while taking the drug. To get consumers’
attention, the Federal Drug Administration (FDA) took
the step of requiring that very graphic pictures of
deformed babies be shown on the medicine
containers.
• Social marketing involves getting ideas across to
consumers rather than selling something. Marty
Fishbone, a marketing professor, went on sabbatical
to work for the Centers for Disease Control trying to
reduce the incidence of transmission of diseases
through illegal drug use. The best solution, obviously,
would be if we could get illegal drug users to stop.
This, however, was deemed to be infeasible. It was
also determined that the practice of sharing needles
was too ingrained in the drug culture to be stopped.
As a result, using knowledge of consumer attitudes,
Dr. Fishbone created a campaign that encouraged the
cleaning of needles in bleach before sharing them, a
goal that was believed to be more realistic.
All consumers can be classified into two types-
personal and organizational. When you buy a shirt for your
own use- you are buying in your capacity as a personal
consumer. However, when you are buying a printer or a
scanner for use in office than you are making the purchase
in your capacity as an .organizational consumer

31
 Whenever you buy goods and service for your own or
for family use, you are a representative of a personal
consumer. All individuals thus fall the category of personal
consumer. All business firms, government agencies and
bodies, non-business organization such as hospital,
temples, and trusts are organizational consumers of goods
and services purchased for running the organization.
Clients want to feel comfortable during a selling
process. Just because you might like to be approached a
certain way, doesn't mean that your client will. Every
client wants to be sold in a way that fits them personally.
There are four common personality types that customers
fall into; Expressive, steady, dominating, and analyzers.
Expressive people view the world positively. They are
comfortable socially and like to interact with others. They
are often recognition-oriented and seek out situations
where they can be the center of attention. Expressive
customers want to be sold by a sales person who shows
interest in them as a person. They enjoy presentations
that are entertaining and fun, don’t hurry them into a
decision! Let them talk while trying to direct them to a
mutual agreement.
People who fall into the "steady" category are
positive like the expressive. However, they are more
comfortable being behind the scenes, not in the
"spotlight". Steady people are not risk- takers and are
often resistant to change. They want to be sold in a way
that is non-threatening. They must feel that you are

32
trustworthy and credible. Make sure that you listen to
them and are sincere.
Dominators are usually very suspicious. They feel
that people are out to get them. They don't like wasting
time and are eager to get on with things. They often make
decisions very quickly and hardly ever change their minds.
A dominating person would be sold by someone who is
prepared and organized. A sales person must be direct
and get to the point with them. They want a salesperson
to respond to their ideas. Make sure that your facts are
straight and you provide them with references.
People who are considered "analyzers" are also
suspicious. They, however, are very detail oriented.
Analyzers are perfectionists and love facts and details.
They don't show a lot of emotion, and don't like people
who do. Analytic people expect you to provide them with a
lot of information. They want you to be well-prepared and
thorough. Make sure that you ask clear, logical questions.
Above all, avoid pushing them, and give them time to
think
Perception
Perception is the interpretation process by which
consumers make sense of their own environment. Many
people believe that perception is passive or rather that we
seeing and hear what is out there very objectively.
However, the truth is quite the contrary. People actually
actively perceive stimuli and objects in their surrounding
environments. Consumers see what they expect to see,

33
and what they expect to see usually depends on their
general beliefs and stereotypes. Since different groups
(segments) of people have different general beliefs and
stereotypes, they tend to perceive stimuli in the marketing
environment differently. What does all of this mean for
marketers? Basically, that marketers need to be aware of
this fact about perception so that they may be able to
tailor their marketing stimuli (i.e. ads, packaging, pricing,
etc.) differently for the different segments they are
targeting. Additionally, perceptual expectations can lead
to illusions and illusions can be used to great effect I
Perception is the interpretation process by which
consumers make sense of their own environment. Many
people believe that perception is passive or rather that we
seeing and hear what is out there very objectively.
However, the truth is quite the contrary. People actually
actively perceive stimuli and objects in their surrounding
environments. Consumers see what they expect to see,
and what they expect to see usually depends on their
general beliefs and stereotypes. Since different groups
(segments) of people have different general beliefs and
stereotypes, they tend to perceive stimuli in the marketing
environment differently. What does all of this mean for
marketers? Basically, that marketers need to be aware of
this fact about perception so that they may be able to
tailor their marketing stimuli (i.e. ads, packaging, pricing,
etc.) differently for the different segments they are
targeting. Additionally, perceptual expectations can lead

34
to illusions and illusions can be used to great
effectAbstract
A simplified cognitive model is proposed to assess
the dynamic aspect of consumer
satisfaction/dissatisfaction in consecutive purchase
behavior. Satisfaction is found to have a significant role in
mediating intentions and actual behavior for five product
classes that were analyzed in the context of a three-stage
longitudinal field study. The asymmetric effect found
demonstrates that repurchase of a given brand is affected
by lagged intention whereas switching behavior is more
sensitive to dissatisfaction with brand consumption. An
attempt to predict repurchase behavior on the basis of the
investigated cognitive variables yielded weak results.
However, repurchase predictions were improved when the
model was extended to a multipurchase setting in which
prior experience with the brand was taken into account.
Product Description
Companies are increasingly recognizing the power of
the consumer and the importance of service quality,
product performance and trading standards. Satisfying the
consumer is vital, but how can this be measured
successfully and how does it differ between cultures? By
asking whether numbers of complaints reflect overall
dissatisfaction, whether repeat purchasing reflects
contentment and whether changing marketing strategies
reflect consumer pressure, you explore the concepts
behind and the methods used for modeling consumer

35
satisfaction. You go on to discuss the problems of
generalization showing that cultural issues must be
considered whenever researching consumer behavior.
Applying new techniques for data analysis to a particular
culture, the book looks at whether the Chinese are
satisfied. shows how market behavior in general can be
affected by consumer satisfaction, and provides an insight
into the Chines value systems.
Major factors, which are influencing consumer
behavior
Consumer purchases are influenced strongly by or there
are four factors.
01. Cultural Factor
02. Social Factor
03. Personal Factor
04. Psychological Factor.
Cultural Factor
o Personality and Self concept :-
 Each person’s distinct personality influence
his or her buying behaviour. Personality
refers to the unique psychological
characteristics that lead to relatively
consistent and lasting responses to one’s
own environment.
• Cultural factor divided into three sub factors (i)
Culture (ii) Sub Culture (iii)Social culture
o Culture:-

36
  The set of basic values perceptions, wants,
and behaviors learned by a member of
society from family and other important
institutions. Culture is the most basic cause
of a person’s wants and behaviour. Every
group or society has a culture, and cultural
influences on buying behaviour may vary
greatly from country to country.
o Sub Culture :-
 A group of people with shared value
systems based on common life experiences
and situations.
 Each culture contains smaller sub cultures
a group of people with shared value
system based on common life experiences
and situations. Sub culture includes
nationalities, religions, racial group and
geographic regions. Many sub culture make
up important market segments and
marketers often design products.
o Social Class:-
 Almost every society has some form of
social structure; social classes are society’s
relatively permanent and ordered divisions
whose members share similar values,
interests and behaviour.
02. Social Factors:-

37
• A consumer’s behaviour also is influenced by social
factors, such as the (i) Groups (ii) Family (iii) Roles
and status
o Groups :-
 Two or more people who interact to
accomplish individual or mutual goals.
 A person’s behaviors are influenced by
many small groups. Groups that have a
direct influence and to which a person
belongs are called membership groups.
 Some are primary groups includes family,
friends, neighbors and coworkers. Some
are secondary groups, which are more
formal and have less regular interaction.
These includes organizations like religious
groups, professional association and trade
unions.
o Family:-
 Family members can strongly influence
buyer behaviour. The family is the most
important consumer buying organization
society and it has been researched
extensively. Marketers are interested in the
roles, and influence of the husband, wife
and children on the purchase of different
products and services.
o Roles and Status :-

38
  A person belongs to many groups, family,
clubs, and organizations.
 The person’s position in each group can be
defined in terms of both role and status.
 For example. M & “X” plays the role of
father, in his family he plays the role of
husband, in his company, he plays the role
of manager, etc. A Role consists of the
activities people are expected to perform
according to the persons around them.
03. Personal Factors:-
• It includes
• i) Age and life cycle stage (ii) Occupation (iii)
Economic situation (iv) life style(v) Personality and
self context
o Age and Life cycle Stage:-
 People change the goods and services they
buy over their lifetimes. Tastes in food,
clothes, furniture, and recreation are often
age related. Buying is also shaped by the
stage of the family life cycle.
o Occupation :-
 A person’s occupation affects the goods and services
bought. Blue collar workers tend to buy more rugged
work clothes, whereas white-collar workers buy more
business A Co. can even specialize in making
products needed by a given occupational group.
Thus,computer software companeswill design

39
 different products for brand managers, accountants,
engineers, lawyers, and doctors.
o Economic situation :-
 A person’s economic situation will affect product
choice
o Life Style :-
 Life Style is a person’s Pattern of living,
understanding these forces involves
measuring consumer’s major AIO
dimensions.
 i.e. activities (Work, hobbies, shopping,
support etc) interest (Food, fashion, family
recreation) and opinions (about
themselves, Business, Products)
• Personality and Self concept :-
 Each person’s distinct personality influences his or her
buying behaviour. Personality refers to the unique
psychological characteristics that lead to relatively
consistent and lasting responses to one’s own
environment.
04. Psychological Factors:-
• It includes these Factors.
• i) Motivation (ii) Perception (iii) Learning (iv) Beliefs
and attitudes
• Motivation :-
o Motive (drive) a need that is sufficiently pressing
to direct the person to seek satisfaction of the
need

40
• Perception :-
o The process by which people select, Organize,
and interpret information to form a meaningful
picture of world
• Learning:-
o Changes in an individual’s behaviour arising from
experience.
• Beliefs and attitudes :-
o Belief is a descriptive thought that a person
holds about something
o Attitude, a Person’s consistently favourable or
unfavourable evaluations, feelings, and
tendencies towards an object or idea

C H A P T E R - II

41
OBJECTIVES AND
METHODOLOGY

42
 OBJECTIVES AND METHODOLOGY
Purpose of Study
This study done with ‘PIAGGIO, APE AUTOS AND
TRUCKS’, at the dealer outlet Garapati Auto Ventures
Limited (RAMCOR), Vijayawada, carries the title "A Study
on Marketing Mix Strategies and Impact of Consumer
Behavior on Piaggio APE Autos and Trucks” the perception
and awareness of the consumers who are using APE
AUTOS and also an attempt is made to make the
consumers aware of the PIAGGIO APE AUTOS and
TRUCKS.
LCV (Light Commercial Transporting Vehicle) industry
in India is in the growth stage. There are new companies
entering the market. APE a commercial vehicle from
PIAGGIO, launched ten years ago i.e., 1999 in India, has
made its own image in this market. The purpose of this
study is to analyze the motivating factors like features,
models and marketing mix analysis of PIAGGIO APE AUTOS
and TRUCKS.
Objectives
The objectives of the study are as follows
To study marketing mix of Piaggio Ape Auto and
Trucks
To find out the various sales techniques adopted by
the company
To analyze organization chart of the company
To find out the various personal selling methods
adopted by the company

43
 To study display techniques adopted by the company
To find out the brand awareness for Ape Auto and
Trucks
To find out the customer’s perception of the APE
brand
To find out the views and opinions of the customers
regarding Piaggio vehicles, company and dealers.
To find out the payment system followed by the
Piaggio and promotional efforts undertaken by the
company
To find out and present efficiency of service
department.
To offer necessary suggestions.
Methodology of the Study
Marketing research is one of the most effective tools
that help organizations excel in the marketplace.
Obtaining necessary information about customers’ tastes
and preferences is the key to business success
Marketing research provides information about consumers
and their reactions to various products, prices,
distribution, and promotion strategies. Marketers who
collect accurate and relevant information quickly and
design their strategies quicker than their competitors are
more likely to be successful. Research is the systematic
design, collection, analysis, and reporting of data and
findings relevant a specific marketing situation facing the
company.
Effective research involves the following elements:

44
1. Research Plan:
Designing a research plan calls for decision on the
various data sources, research instruments for gathering
information from those sources.
The researcher can gather secondary data, primary data,
or both.
Primary data
The primary data are those which are originally
collected for first time by the researcher in view of
objectives. The data are in raw from. This requires
refinement through statistical methods in order to arrive
at conclusions. Primary data can be mainly collected with
4 types of methods. They are as follows:
1. Observation Method
2. Interview Method
3. Questionnaire Method
4. Schedules Method
Researchers can collect primary data during the
course of doing experiments in an experimental research
design. But in case we do research of the descriptive type
and perform surveys, whether sample surveys are census
surveys, then we can obtain primary data either through
observation or through direct communication with
respondents through personal interviews. The researcher
used mainly the questionnaire method to collect the
primary data. It is also collected by personal discussions
with the Area Sales Managers.

45
 The researcher used the questionnaire, telephone
survey and tabulation methods for the data collection.
These tools helped to collect the data.
Questionnaire is a sequence of questions developed
in view to derive the response from identified sample. For
this study a questionnaire is developed. The questionnaire
includes open ended questions, close ended questions and
dichotomous questions. The questionnaire helps in
collecting the primary data about consumer behavior in
various aspects and perception about Scorpio.
Secondary data
The secondary data means data that are already
available they refer to data which have already been
collected by some one else and which have already been
passed through the statistical process.
The chief sources of secondary data may be broadly
classified in to the following two groups.
1. published sources
2. Un-published sources.
Research Instrument:
Questionnaire:
A questionnaire, because of its flexibility, is by far the
most widely used research instrument for collecting
primary data. The term “questionnaire” usually refers to a
set of questions and a self-administered process where by
the respondent himself read the questions and records his
answers. Structured Questionnaire, consisting of closed

46
ended questions and rating scales was used to collect
information.
Limitations of the Study
• The survey is limited to Vijayawada city only
• It was difficult to get the dealers to respond at times
• The information supplied by the respondents may be
biased.
• It is difficult to get response from the Stockiest
Ramcor.
• It is difficult to get more information during morning
times from the Cargo drivers and from Passengers
auto drivers/owners.
• Time is limited to 9 weeks only.

47
C H A P T E R - III

INDUSTARY
PROFILE

48
 INDUSTRY PROFILE
Overview
The Indian economy has been influenced by impressive
industrial resurgence and automobile industry is definitely
one of them. The automotive industry has played a
commendable role in the rapid industrial and economic
growth of the country. Due to the economic liberalization a
number of global automobile manufacturers have found
India as one of the premier business destinations. With an
annual growth of about 18 %, prospects of the Indian
automotive industry are very bright.
Overview of the automobile industry worldwide suggests
that in the sectors of automobile manufacturing,
automobile assembling and automobile components, India
has come up with a huge potential market.
Apart from being one of the largest car markets in Asia,
India ranks 1st in the manufacturing of three wheelers and
2nd in two wheeler production. With more money spend
on the research and developmental activities, more
upgraded version of three wheelers would be hitting on
the Indian roads.
An overview of the automotive industry of the country
clearly indicates that the emergence of three wheelers as
an effective mode of transportation has benefited millions
of Indians. Three wheelers are not only used for carrying
passengers but are also used as luggage carriers. In India
the three wheelers usually run on diesel and petrol but of
late in some of the cities CNG run three wheelers have

49
also come up in large numbers. The three wheelers used
for carrying passengers in India are usually referred as
Auto-rickshaws. Most of the state governments in the
country are supporting the operation of CNG run Auto-
rickshaws and also three wheelers with four stroke
engines as they produce lesser harmful emissions. It has
been found that most of the three wheelers running on the
roads of the country come with mileage of about 34-36 km
per liter of petrol.
The three wheelers have successfully helped to overcome
the dearth of jobs in the country. Numerous people could
be seen driving auto-rickshaws on the roads of cities like
Delhi, Mumbai, Kolkata, Hyderabad, Bangalore and many
more. Due to their simple construction and limited amount
of investment the three wheelers as a mode of
conveyance and commercial mechanism has gained
popularity. What's more, their maintenance is also quite
simple. Bajaj Auto has dominated the three wheeler
market in the country for years. Several other companies
like Piaggio Vehicles and Mahindra & Mahindra have made
a late foray into this field. An overview of the current
automobile market indicates that the tremendous demand
of three wheelers in India and abroad has also allured
several other automobile manufacturers like Honda India
and TVS Motor to start producing the three wheelers.
Automobile Industry History
In the year 1769, a French engineer by the name of
Nicolas J. Cugnot invented the first automobile to run on

50
roads. This automobile, in fact, was a self-powered, three-
wheeled, military tractor that made the use of a steam
engine. The range of the automobile, however, was very
brief and at the most, it could only run at a stretch for
fifteen minutes. In addition, these automobiles were not fit
for the roads as the steam engines made them very heavy
and large, and required ample starting time. Oliver Evans
was the first to design a steam engine driven automobile
in the U.S.
A Scotsman, Robert Anderson, was the first to invent an
electric carriage between 1832 and 1839. However,
Thomas Davenport of the U.S.A. and Scotsman Robert
Davidson were amongst the first to invent more applicable
automobiles, making use of non-rechargeable electric
batteries in 1842. Development of roads made travelling
comfortable and as a result, the short ranged, electric
battery driven automobiles were no more the best option
for travelling over longer distances. The Automobile
Industry finally came of age with Henry Ford in 1914 for
the bulk production of cars. This lead to the development
of the industry and it first begun in the assembly lines of
his car factory. The several methods adopted by Ford,
made the new invention (that is, the car) popular amongst
the rich as well as the masses.
According the History of Automobile Industry US,
dominated the automobile markets around the globe with
no notable competitors. However, after the end of the
Second World War in 1945, the Automobile Industry of

51
other technologically advanced nations such as Japan and
certain European nations gained momentum and within a
very short period, beginning in the early 1980s, the U.S
Automobile Industry was flooded with foreign automobile
companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry
reveal that in the developed countries the Automobile
Industries are stagnating as a result of the drooping car
markets, whereas the Automobile Industry in the
developing nations, such as, India and Brazil, have been
consistently registering higher growth rates every passing
year for their flourishing domestic automobile markets.
Indian Automobile Industry
The Indian automobile industry is the tenth
largest in the world with an annual production of
approximately 2 million units. Indian auto industry,
promises to become the major automotive industry in the
upcoming years and the industry experts are hopeful that
it will touch 10 million units mark. Indian automobile
industry is involved in design, development, manufacture,
marketing, and sale of motor vehicles. There are a number
of global automotive giants that are upbeat about the
expansion plans and collaboration with domestic
companies to produce automobiles in India.
The major car manufacturers in India are Maruti Udyog,
Hyundai Motors India Ltd., General Motors India Pvt. Ltd.,
Honda Siel Cars India Ltd., Toyota Kirloskar Motor Ltd.,
Hindustan Motors etc. The two-wheeler manufacturers in

52
India are Honda Motorcycle & Scooter India (Pvt.) Ltd.,
TVS, Hero Honda, Yamaha, Bajaj, etc. The heavy motors
including buses, trucks, auto rickshaws and multi-utility
vehicles are manufactured by Tata-Telco, Eicher Motors,
Bajaj, Mahindra and Mahindra, etc.
Quick Facts:
• First Indian to own a car in India was Jamshedji Tata.
• First woman to drive a car in India was Mrs. Suzanne
RD Tata.
• The passenger car and motorcycle segment in the
Indian auto industry is growing by 8-9 percent.
• Commercial vehicle will grow by 5.2 per cent.
• The first automobile in India was rolled in 1897 in
Bombay.
• India is a potential emerging auto market.
• Motorcycles contribute 80% of the two-wheeler
industry.
• Unlike the USA, the Indian passenger vehicle market
is dominated by cars (79%).
• India is the largest two-wheeler manufacturer in the
world.
• India’s motorcycle segment will grow by 8-9 percent
in the coming years.
• India is the fifth largest commercial vehicle
manufacturer in the world.
• India has the number one global motorcycle
manufacturer.

53
• In Asia, India is the fourth largest car market.
• The first automobile in India rolled in 1897 in
Bombay.
• India is being recognized as potential emerging auto
market.
• Foreign players are adding to their investments in
Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of
the segment size.
• Unlike the USA, the Indian passenger vehicle market
is dominated by cars (79%).
• Tata Motors dominates over 60% of the Indian
commercial vehicle market.
• 2/3rd of auto component production is consumed
directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the
world.
• India is the second largest tractor manufacturer in
the world.
• India is the fifth largest commercial vehicle
manufacturer in the world.
• The number one global motorcycle manufacturer is in
India.
• India is the fourth largest car market in Asia -
recently crossed the 1 million mark.

54
Automobile Industry in India is growing in a very high rate
with more than 1 million passenger vehicle sales per
annum and overall 10-15% growth annually. Now more
and more foreign manufacturers are coming to India and
existing companies are coming up with new models.
India’s automotive industry is now $34 billion worth and
expected to grow $145 in another 10 years. Indian
Automobile industry is the tenth largest in the world with
an annual production of approximately 2 million units.
Passenger Vehicles
In passenger vehicle segment still Maruti Udyog is the
leader with around 52%, market share followed by
Hyundai Motors with 19% and Tata Motors with 16%. Other
players in this segment are Honda Siel Cars and Ford India
Pvt. Ltd.

Utility Vehicles
Mahindra and Mahindra is the top player in this segment
with a market share of 42% followed by Toyota Kirlosker
and Tata Motors. Other manufacturers are Maruti Udyog,
General Motors and Hyundai India.
Medium and Heavy Commercial Vehicles
Tata Motors leads this segment with 61% market share
followed by Ashok Leyland, Eicher Motos and Swaraj
Mazda.
Light Commercial Vehicles

55
Passenger carriers segment leads by Tata Motors with 46%
share followed by Mahindra and Mahindra, Swaraj Mazda
and Force Motors. Good carriers segment also leads by
Tata Motors with 58% market share. Other players in this
segment are Mahindra and Mahindra, Swaraj Mazda and
Force Motors.
Market Share
At present major Indian, European, Korean, Japanese
automobile companies are holding significant market
shares. In commercial vehicle, Tata Motors dominates over
60% of the Indian commercial vehicle market. Tata Motors
is the largest medium and heavy commercial vehicle
manufacturer.
Among the two-wheeler segment, including scooters and
mopeds- motorcycles have- major share in the market.
Hero Honda contributes 50% motorcycles to the market in
which Honda holds 46% share in scooter and TVS makes
82% of the mopeds in the country. In the three wheeler
industry in India, Piaggio holds 40% of the market share.
Bajaj is the leader by making 68% of the three-wheelers.
Car manufacturers in India dominate the passenger
vehicle market by 79%. Maruti Suzuki is the largest car
producer in India and has 52% share in passenger cars
and is a complete monopoly in multi purpose vehicles. In
utility vehicles Mahindra holds 42% share. Hyundai and
Tata Motors is the second and third car producer in India.
Over the years, the world has been witnessing fantabulous
development in the sector of automobile industry. With

56
their advanced engineering techniques, the major auto
giants like Mercedes, Ford Motors, General Motors, Audi,
BMW, Hyundai, Mitsubishi etc have come up with some of
the most sophisticated vehicles that a human mind could
have hardly imagined just a few years ago. The global
automobile manufacturers have found huge potential
markets in a number of developing countries. It is not only
the cars, consumer vehicles and two wheelers that are
sold in these various countries in large numbers, but the
three wheeler market is also quite big in these nations.
You will get to see innumerable three wheelers running on
the roads of various Southeast Asian countries like India,
Thailand, Sri Lanka, Pakistan, Philippines, Nepal and
Bangladesh etc.
There are a number of reasons that have resulted into the
proliferation of the three wheelers in umpteen countries.
Three wheelers are quite economical in terms of
manufacturing and maintenance. They have also earned
huge popularity due to their easy maneuvering
capabilities through the narrow lanes that are prevalent in
most of the developing countries.It is not that three
wheelers are used only in the developing nations.
Three Wheeler Companies
You will also get to see various brands of three wheeler in
different parts of US, UK and some of the European
nations. Reliant and Morgan Motor Company are the two
major three wheeler manufacturers in UK. One of the US
based three wheeler manufacturers; ZAP has even come

57
up with eco-friendly three wheelers that operate with
battery. Bajaj Auto, Piaggio is the leading players in the
three wheeler industry in most of the Southeast Asian
nations.
The vehicles have also given rise to the three wheeler
accessory industry in many countries. It is believed that
numerous people have got employed in various countries
due to these three wheelers. Apart from serving the daily
need of the commuters the three wheelers also play
commendable role in the transportation of several
commodities. Seeking the increasing demand of three
wheelers, more automobile companies are considering
manufacturing these vehicles.
Maintenance Tips
The number of three wheelers running on the Indian roads
have increased significantly in the recent years. With more
number of automobile companies, like: TVS Motor, Honda
India etc. starting their ventures in the particular segment
of automobiles, the Indian roads will soon witness
numerous three wheelers. Three wheelers are an effective
mode for transporting goods as well as for carrying
passengers. The investment required to posses a three
wheeler is quite low. Three wheelers even require low
maintenance charge.
By availing the three wheeler maintenance tips, you would
be able to sustain their level of performance. Three
wheeler maintenance tips also ensure longevity of your

58
vehicle. A list of three wheeler maintenance tips is given
as follows:
• Check the Engine Oil : As you might know that the three
wheeler engine is largely dependent upon the engine
oil, the level of it should not be allowed to go down
below the recommended one. In most of the cases, 2T
oil is used as an engine oil. 2T oil minimizes the fouling
of the spark plug and pre-ignition. It also reduces the
chance of deposit formation and rusting. But there is a
ratio in which it should be mixed with the fuel. For a liter
of the fuel, you must not add more than 20 milliliter of
2T oil.
• Drive at an ideal speed : Three wheelers must be driven
between a speed of 35 km to 45 km in order to ensure
longevity of the engine. The engine of the vehicle
should be warmed up before you press hard on the
accelerator. For this you need to drive the three wheeler
in lower gear for some time.
• Regularly check the air pressure of the tires : For better
performance and smooth driving of the three wheelers,
the tires of the vehicle must have optimum air pressure.
Inadequate air pressure may lead to problems while
maneuvering the three wheeler.
• Check working of the braking system of the three
wheelers : The break clearance should be perfect and
there should be sufficient brake fluids. Often it is seen
that dust gets accumulated on the braking system that
hampers its functioning.

59
Three Wheeler Manufacturers
The two and four wheelers are quite a hit all around the
world. While the two wheelers have undergone significant
improvement and transformation resulting in categories
like scooters, scooterate, mopeds and motorcycles, the
four wheelers too have come up in different shapes, size,
design and forms. The cars have evolved into so many
forms with light commercial and heavy commercial
vehicles too making deep inroads into the global
automobile markets. However, it is the three wheeler
segment of the automobile that has lagged behind its
other counterparts.
No wonder, as against them, the number of popular three
wheeler manufacturers is quite limited and in India, one
comes across only three leading three wheeler
manufacturers.The leading three wheeler manufacturers
in India are Bajaj Auto, Mahindra & Mahindra and the Italy-
based Piaggio. While Bajaj Auto is a leading name in the
Indian two wheeler segment, Mahindra & Mahindra is
known more for its sports utility vehicles and jeeps like
Bolero and Scorpio.
In the three wheeler segment, the classification is broadly
in terms of carriage and passenger vehicles. Since the
former does have a very limited capacity to carry goods
and is not preferred by many, the three wheeler
manufacturers are more into the passenger three
wheelers. Bajaj Auto has a range of models for passenger
three wheelers namely RE 2S, RE 4S, RE 4S CNG, RE 4S

60
LPG, RE Diesel and RE Diesel Mega while its existing
carriage three wheeler is called GC 1000.
Mahindra & Mahindra has got the Champion range of three
wheelers. There are Champion pick up and Champion
delivery vans while the Champion Passenger carrier is
mostly seen in the western parts of the country. The Alfa
three wheeler carriages of the M& M has a wide and tall
cabin, heavy duty gear box, unique designed chassis and
hydraulic shock absorbers.
The Italian auto major Piaggio manufactures Ape 50 in
association with Bajaj Auto at Pune with a 150cc engine.
This three wheeler has different body forms and matches
the specifications of various countries wherever it is
produced. TVS Motor has recently entered the fray with its
own model of a three wheeler and with the market
recording an impressive 18% CAGR rate over the last
fiscal, the three wheeler manufacturers still have plenty to
laugh about
Three Wheeler Models in India
While all attention remains fixed on the impressive growth
being recorded by the two and four wheeler segments of
the Indian automobile, it is the two models of three
wheelers that continue to march ahead without being in
the limelight. An 18% CAGR growth and record production
of more than a half million three wheelers, many of them
being exported, the Indian three wheeler companies have
never been so happy and proud. So much so that the TVS
Motor, a predominantly two wheeler company has

61
ventured into the three wheeler recently, planning to
garner a substantial domestic market share besides
exporting a good number of them.
Talking of models of three wheelers, there is not much to
choose from except passenger and commercial three
wheelers. The leading three wheeler manufacturers in
India are Bajaj Auto, Mahindra & Mahindra and Piaggio
with the former being the undisputed leader in both the
segments of three wheelers. Among the passenger three
wheelers from the Bajaj Auto, one comes across the
diesel, gas and CNG versions of three wheelers with
popular models like RE Diesel, RE Diesel Mega, RE 4S CNG,
RE 4S LPG and RE 2S and RE 4S respectively.
The existing commercial three wheelers from the Bajaj
Auto is GC 1000 while Champion series from Mahindra &
Mahindra is part of the commercial segment of the 3
wheeler. Champion pick up van, both the diesel and CNG
versions and Champion delivery van and passenger three
wheelers are the ones from the M&M group.
The M& M has another commercial offering in the form of
Alfa. The Alfa 3 wheeler has a distinct appearance,
impressive mileage to volume ratio, large cargo box and a
longer wheel base that gives stability to the vehicle. The
Piaggio range of three wheelers is manufactured in
association with the Bajaj Auto and its popular 3 wheeler
Ape 50 has a 150cc engine that is also part of the
commercial type of 3 wheelers.
Three Wheelers Awaited Models

62
The leading three wheeler manufacturers in India are Bajaj
Auto and Mahindra & Mahindra with Piaggio, the Italian
auto major too having a sizeable presence in the country
in association with the Bajaj Auto. TVS Motor, a popular
name in the two wheeler segment of Indian automobiles,
too is making a late foray into the field. The production of
the three wheeler segment has crossed the magical figure
of half a million and many thousands of them are currently
being exported. The overall growth rate too has been
impressive at a CAGR of 18%.
In the backdrop of this positive development, one has
seen a number of models of three wheeler that have made
their mark on the Indian roads. However, talking of the
three wheeler models awaited, one does not have too
many of them in the pipeline as of now. The leader of the
pack as expected is the Bajaj Auto that does have a
number of models of three wheelers in the market. Since
the composition of the 3 wheeler market in India is divided
amongst the commercial and passenger vehicles, the
company does have three wheelers for both the segments.
with diesel dominating the passenger three wheeler
segments with models like RE Diesel and RE Diesel Mega ,
Bajaj Auto is also making concerted efforts to make a
dominant presence in the CNG run three wheelers. Three
wheeler models like RE 4S CNG and RE 4S LPG are
pointers in that direction.
The other players such as M&M and Piaggio however
continue to focus on the commercial segment of the three

63
wheelers. Ape 50 and the Champion range of three
wheeler pick up and delivery vans are the popular
offerings from these three wheeler companies. In view of
the positive growth and prospects of the three wheeler
segment in India, one surely should expect more and
innovative models being launched in not so distant future.
Showrooms
Three wheeler showrooms play an important role in
making the consumers aware of the company's products
and bringing close to them. They provide a chance to see
the three wheeler on own, understand the specifications
and features and even test ride the vehicle. Thus the
consumer gets an opportunity to identify his needs and if
the concerned model of a three wheeler matching them.
All the leading three wheeler companies in India namely,
Bajaj Auto, Piaggio and Mahindra & Mahindra have their
showrooms in the important towns and cities in the
country. Bajaj Auto has got the most extensive network of
showrooms for its vehicles.
With cities like New Delhi, the company has got 10
showrooms and Mumbai and Bangalore following suit with
8 showrooms respectively. Kolkata with 4 showrooms and
other cities like Ahmedabad, Hyderabad and others too
being part of the Bajaj Auto's ambitious marketing
network with quite a number of showrooms showcasing all
popular models of the Bajaj three wheelers . The company
however is different in one sense as against the other
players and that is the exclusive showrooms that Bajaj

64
Auto has for its range of three wheelers. Piaggio has
limited operations in India. In spite of being a formidable
player in the three wheeler segment, Piaggio has its
production and marketing tie-up with Bajaj Auto and does
not have exclusive showrooms of its own. M&M, the other
leading three wheeler player in India is focusing more on
the four wheeler segment and hence does not have
exclusive three wheeler showrooms but sells its Champion
range of three wheelers through the showrooms primarily
for the four wheelers.
The three wheeler showrooms have facilitated the growth
of 3 wheeler showrooms in a big way. One can realize the
important role played by the showrooms while analyzing
the 18% CAGR recorded by this segment of Indian
automobiles. With major players in for expansion and
export plans, one can only see more of silver lining for the
three wheeler automobiles in near future.
Statistics
Three wheelers serve as a major mode of transportation in
India. Over the years Indian three wheeler companies
have come on their own, in terms of technology, skills and
expertise. Three wheeler statistics suggest that companies
like Bajaj Auto and Mahindra & Mahindra have
substantially grown their revenues by marketing their
three wheelers not only in this country but also in various
Southeast Asian nations. Three wheelers come with
affordable price and also require easy maintenance.

65
The popularity of three wheelers, for carrying passengers
as well as goods in India has been increasing due to their
unique ability to pass through narrow lanes. Most of the
three wheelers are also quite fuel efficient. As there is
huge potential of three wheeler market in India, various
three wheeler manufacturers are continuously putting
effort to develop better models of these vehicles, by
equipping them with more added features and stylish
looks. By analyzing the graphical representations of three
wheeler statistics, you will get to know more about these
vehicles.

India has also been one of the major exporters of three

wheelers. Thousands of passenger and goods carriage
three wheelers running in the various Southeast Asian
nations are often manufactured by the several companies
based in India. There has been massive growth in the
export of three wheelers during 2006-2007. The exports of
three wheelers grew by 20.35 % than the previous fiscal
year. In the year 2005-2006 the total number of three

66
wheelers exported was 76881, and it rose to about 92526
during 2006-2007.

The three wheeler statistics show that the domestic sale of

the vehicles have also increased from 2005 to 2007. A
graphical representation of the domestic sales trend of
three wheelers in given below:

From the above facts it is quite evident that the popularity

of three wheeler is all set to rise in the coming years and
the exports will also increase.To know more about three

67
wheeler statistics and matters related to automobiles,
browse through the pages of
Consumer Guide
Over the years the automobile industry in India has been
growing rapidly. Along with the surging growth of the
number of cars, the two wheelers and three wheelers have
also come up in large numbers in this country. At present
in India, Bajaj Auto is the market leader in the segment of
three wheelers, the other two major manufacturers being
Mahindra & Mahindra and Piaggio Vehicles. Seeking the
immense potential of three wheeler market in India, more
players are coming into the foray to launch their three
wheelers.Very soon companies like Honda India and
TVS Motor would be introducing three wheelers in India.
Before buying a three wheeler, it is imperative to go
through a relevant and proper three wheeler consumer
guide that will help to find out the best of three wheeler
with the best of the options. As a prudent consumer for a
three wheeler, one is expected to consider the following
issues before embarking on the endeavor to buy a three
wheeler.
Model of Three Wheelers
In the recent years, the three wheeler segment has been
witnessing the introduction of various new models that are
equipped with some fantastic features. Bajaj Auto has got
models based on diesel and CNG versions with different
features on commercial and passenger three wheelers.

68
One needs to determine his precise needs and go for the
relevant model of the three wheeler.
Three Wheeler Finance
The emergence of the several financial institutions has
come as a boom to the numerous consumers of three
wheelers. By availing an auto loan you can buy a brand
new three wheeler. You can even get to buy a used three
wheeler with an auto loan. Several auto financing
companies' like ICICI, Associates Finance, FISAF, HDFC
Bank. Are some of the popular names in the field of three
wheeler financing.
Three Wheeler Insurance
There are various automobile insurance companies in
India providing insurance for three wheelers. You should
always insure your vehicle to get secured from any
financial loss that may be incurred due to accident or
theft. Some of the popular automobile insurance
companies are: ICICI Lombard, Bajaj Allianz, New India
Assurance Co., National Insurance Company, HDFC Chubb
etc.
Three Wheeler Maintenance
It has been found that three wheeler maintenance can
effectively increase their performance. You must follow the
basic three wheeler maintenance tips in order to ensure
proper functioning of the automobile. Regular checking
the engine oil, removing dirt from the braking system and
checking the level of brake fluids and proper check of the

69
air pressure of the tires would certainly enhance the work
life of your vehicle.
Eco Friendly Three Wheeler Engine: Apart from the diesel
engines, three wheelers are also available with CNG
engines and LPG engines that are known for emitting
lesser harmful gases and thus would be preferred.
Safety Tips
Knowledge about the safety tips is quite essential for the
safety of the vehicle and the occupants. You should know
in detail about all the rules and regulations of driving on
the Indian roads to enjoy hassle free driving of a three
wheeler.

70
C H A P T E R - IV

COMPANY/
ORGANISATION
PROFILE

71
COMPANY / ORGANISATION PROFILE
HISTORY OF PIAGGIO:
Piaggio based in Pontedera, Italy encompasses seven
brands producing scooters and motorcycles. As the fourth
largest producer of scooters and motorcycles in the world,
Piaggio produces more than 600,000 vehicles annually,
with five Research and development centers, more than
6,700 employees and operations in over 50 countries.
History
Founded by Rinaldo Piaggio in 1884, Piaggio initially
produced locomotives and railway carriages. During World
War I the company focused on producing airplanes
During World War II the company produced bomber
aircraft, but Piaggio emerged from the conflict with its
Pontedera plant completely demolished by Allied
bombing. Italy's crippled economy and the disastrous
state of the roads did not assist in the redevelopment of
the automobile markets. Enrico Piaggio, the son of
Piaggio's founder Rinaldo Piaggio, decided to leave the
aeronautical field in order to address Italy's urgent need
for a modern and affordable mode of transportation. The
idea was to design an inexpensive vehicle for the masses.
Aeronautical engineer Corradino D'Ascanio, responsible for
the design and construction of the first modern helicopter
by Agusta, was asked by Enrico Piaggio to create a simple,
robust and affordable vehicle. The vehicle had to be easy
to drive for both men and women, be able to carry a
passenger, and not get its driver's clothes dirty. In 1946

72
Piaggio launched the legendary Vespa scooter (Italian for
"wasp") and within ten years over a million units had been
produced. The Italian language gained a new word,
"vespare," meaning to go somewhere on a Vespa.
Development:
With strong cash flow emanating from the success of the
Vespa, Piaggiodeveloped other products, including the
1957 Vespa 400, a tiny passenger car.
In 1959, Piaggio came under the control of the Agnelli
family, the owners of car maker Fiat SpA. Resultantly, as
the wider ownership of Fiat in Italian industry, in the 1964
the two divisions (aeronautical and motorcycle) split to
become two independent companies; the aeronautical
division was named IAM Rinaldo Piaggio. Today the
airplane-company Piaggio Aero is controlled by the family
of Piero Ferrari, who also still holds 10% of the famous car
maker Ferrari. In 1969 the motorcycle company purchased
Gilera.
Under new ownership:
In 1959, Piaggio came under the control of the Agnelli
family, the owners of car maker Fiat SpA. Vespa thrived,
until 1992, when Giovanni Alberto Agnelli became CEO,
but Agnelli was already suffering from cancer and died in
1997. In 1999 Morgan Grenfell Private Equity acquired
Piaggiobut a quickly hoped-for sale was dashed by a failed
joint venture in China. In Italy, Piaggio invested 15 million
euros ($19.4 million) in a new motorcycle but dropped it
after building a prototype. By the end of 2002, the

73
company had run up 577 million euros in debt on
revenues of 945 million euros, and booked a loss of 129
million euros.
Then came Roberto Colaninno: A lot of people told me I
was crazy. Piaggio wasn't dying. It just needed to be
treated better. Piaggio's Financial position was in a bad
shape, but its brand was still well known and its products
were featured in many Hollywood films thanks to the
Vespa ET4. In 1995, Colaninno had pulled off Europe's
then largest-ever hostile takeover when he took control of
Telecom Italia SpA. In October 2003, Colaninno made an
initial investment of 100 million euros through his holding
company Immsi SpA in exchange for just under a third of
Piaggio and the mandate to run it. Chief executive Rocco
Sabelli redesigned the factory on Japanese principles, and
changed it so that every Piaggio scooter could be made on
any assembly line.
Unlike the turnaround recipe applied at U.S. auto makers,
Mr. Colaninno didn't fire a single worker - a move which
helped seduce the company's skeptical unions. "Everyone
in a company is part of the value chain," said Colaninno.
All bonuses for blue-collar workers and management were
based on the same criteria: profit margins and customer
satisfaction. Air conditioning was installed in the factory
for the first time, increasing productivity. He also gave the
company's engineers, who had been idled by the
company's financial crisis, deadlines for projects. They
rolled out two world firsts in 2004: a gas-electric hybrid

74
scooter and a sophisticated tilting scooter with two wheels
in front and one in back to grip the road better.
One of Piaggio's problems Mr. Colaninno couldn't fix from
the inside was its scale. Even though Piaggio was the
European market leader, it was dwarfed by rivals Honda
and Yamaha. A year after restoring Piaggio's health,
Colaninno directed Piaggio's takeover of the Italian
scooter and motorcycle manufacturer Aprilia, and with it
the Aprilia-owned Moto Guzzi, storied Italian manufacturer
of motorcycles. In 2006, Piaggio floated on the Milan Stock
Exchange, becoming a Public Company.
Ape Expertise: World class transportation solution for you
Ape understand your business and hence our world class
transportation solution provides you the best operating
efficiency and excellence in last mile delivery (in
secondary and Tertiary distribution).Our range of products
(3 wheelers and 4 wheelers) are designed to meet your
needs of both intercity (in a congested city conditions) and
inter-city transportation.
With your products as well as World-class service back up,
we are equipped to provide you speed, cost economies,
reliability to your “consolidation” and “distribution”
mechanisms and immense efficiency till the last mile.
The Ape Assurance:
• Convenience in “Consolidation and Distribution” on
narrow streets in the market.
• Nationwide strong Sales and Service Set-up at more
than 800 locations.

75
 • Lowest operating cost on transportation.
• Faster and Reliable mode of transportation.
Advantage of PIAGGIO: World class Customer Care
• Over 800 Sales and Service centers PAN India.
• State-of-the-art Service set-ups.
• Fully trained and efficient team for world class
customer care.
• Great Mileage & Performance:
• Best on –road Mileage.
• Easy maneuverability (driving convenience) on
narrow roads within city/towns.
DEPENDABILITY, RELIABILITY&EARNABILITY IS THE
MISSION STATEMENTS OF APE PIAGGIO.
With its sleek Italian styling and contemporary
ergonomically design, the Ape TRUK is yet another winner
from the house of Piaggio – the force behind India's largest
selling diesel 3-wheeler: Ape. True to its international
pedigree; the Ape TRUK is a state-of-the-art sub one-tonne
4-wheeler that combines a whole basket of outstanding
features – excellent stability, the highest payload, the
convenience of 3-side openable panels, higher ground
clearance, all-terrain capability and outstanding fuel
efficiency. Add to this its stylish Italian looks and the highly
comfortable car-like interiors, and you get a clear picture
of what the Ape TRUK has to offer.
Different Types of Transportational Needs, Answer is with
us.

76
 • High body
• Pick-up (Basic Model)
• Delivery van
• Bakery Shop
• Cylinder Carrier
• Hydraulic Hopper
• Florist van
• Ice Cream Parlour
• Hydraulic Jetter
• Water tanker
• Dumper Placer
• Soft Drink Carrier
• Chicken Carrier

Piaggio’s Ape Auto and Trucks

Piaggio based in Pontedera, Italy encompasses seven
brands producing scooters and motorcycles. As the fourth
largest producer of scooters and motorcycles in the world,
Piaggio produces more than 600,000 vehicles annually,
with five Research and development centers, more than
6,700 employees and operations in over 50 countries.
HISTORY OF APE - “Ape” is the Italian for “bee”
Launched 2 years after the World renowned Piaggio Vespa
in 1948, the introduction of this new 3-wheeled vehicle
helped commercial activities pick up inpost-warItaly.
Unique and unrivalled, Ape has remained faithful to itself,
even through so many models and never-ending changes.
Today, its unique, quirky shape is built around a semi-

77
monocoque frame that uses a single load-bearing chassis
in sheet-steel. A steel body houses either one or two
seats. The body comes in number of styles including Van
and Pick up and can be customized to meet a variety of
commercial needs, from catering to urban refuse
collection. The Ape is also a fantastic outdoor advertising
media solution.
The three wheeler industry has attracted less attention
from major manufacturers when compared motorcycles or
car industry. Now this segment is hotting up as Tata
launched its ace (though it’s a four wheeler) and reaps the
benefit (India’s first mini-truck - Tata’s Ace, which was
launched in May 2005, is reported to be selling 6,500 units
a month. In March 2007, Tata rolled out its 1,00,000th Ace
within 22 months of its launch). Ace made a new segment
called small commercial vehicle segment and is seen as
an ideal vehicle for deal for short, narrow village roads as
well as long highway hauls, for small bulky loads and large
heavy ones. The lower end of the LCV (light commercial
vehicles) market was seeing a major upheaval with the
Supreme Court ban on overloading of cargo vehicles and a
ban on entry of heavy commercial vehicles into city roads.
The total market for three-wheelers in India is about 4.5
lakh vehicles a year. The cargo segment is expected to
account for 55 per cent.
Piaggio ape three wheeler is the market leader in this
segment. Piaggio which has 48% market share has
become a dominant player in this segment. Piaggio is

78
growing at 40% annually and from selling 35,000 three-
wheelers in 2003, it breached the 1.40-lakh mark last
year. Now the Italian major Piaggio decides to take on the
mighty Tata with its new four wheeler – Ape truk. Piaggio
said the Ape Truk is the India’s only international pick-up
in the sub-one-tonne category and is the same model that
runs in Europe. Whether the ape truk can match the
mighty Tata’s ace and will it replicate its sibling success,
let’s check it!
Piaggio Vehicles Private Limited (PVPL)
Piaggio Vehicles Private Limited (PVPL) in India is a 100%
subsidiary of Piaggio & C.Spa of Italy, a world major in two,
three and four wheeled motorized vehicles. It
revolutionized the two and three wheeler business in India.
Piaggio’s target in India of achieving a turnover of $ 1
billion by 2010 is well on the road to fulfillment. PVPL
commenced its Indian operations in 1999 with introduction
to ape'brand of diesel Light Transportation vehicles. PVPL
has pioneered the 3-wheeler goods transportation in India
and has achieved and sustained a leadership status in the
cargo segment. Piaggio India is now recognized not just as
a leader in its class, but also as the gold standard in fuel
efficiency, load carrying capacity and lowest operating
costs.
Piaggio has invented 3-wheeler in year 1947 and ever
since company has pioneered the technology all across
the globe. The latest entrant in the product range is a sub
one-ton four wheeler "ape truk" , which has been

79
successfully launched in various states across India. The
access to Piaggio’s immaculate and rigorous R&D has
played a role of a key driver to our success in India. The
R&D backup in India has played a role of backbone in
introducing state-of-the-art of product with latest
technology. The company is headquartered at Pune and its
state-of-the-art manufacturing facilities at Baramati,
Maharashtra. PVPL employs around 1700 people, has a
widespread network with 7 regional offices, 14 branch
offices and more than 600 sales and service outlets
acrossthecountry.
Piaggio Vision:
To be the no. 1 and the most profitable global player with
world - class quality and technology leadership in the light
commercial vehicle category offering transportation
solutionsforspecificcustomerneeds.
To be perceived as a unique, high -impact, fast- response,
innovative and growth oriented company which is known
around the world for its unmatched level of excellence
Piaggio Products
The company’s product range includes half tonner cargo
vehicles (Pick up and Delivery van), and 3 Seater
passenger vehicles in various fuel variants like Diesel,
CNG, and LPG. The latest entrant in the product range is a
sub one-ton four wheeler ape truk, which has been
successfully launched in various states across India. All
vehicles are engineered for higher fuel efficiency, rugged
performance and outstanding load carrying capability;

80
these vehicles are extremely environment friendly and
conform to the most stringent emission norms.
Piaggio's ape' already has more than 6,00,000 happy ape’
customers in India today. The company achieved sales of
over 1,55,000 vehicles in the year 2007. PVPL is currently
the market leader in the state-of-the-art three-wheeler
diesel category in India, with a market hare of 55%.
Piaggio India’s manufacturing hub is a picture of cutting
edge manufacturing technology and advanced facilities.
Having started with just 40 vehicles a day, the Indian Plant
today produces 500 vehicles per day and has a capacity of
2,00,000 vehicles per annum. Piaggio India truly
represents a seamless integration of the best of skills,
technology, design, research and customer care with
Indian resources, infrastructure, intelligent manpower,
marketing and financial skills, and most importantly, a
deep understanding of the Indian market and customer
needs. Piaggio’s concern for the environment is known
across the globe. We have always shared a huge
commitment to develop products that are environment
friendly.
Ape'-the 3 wheelers with an array of distinctly
superior features:
• High Economy
• Low Operating Cost
• Reliable & rugged
• Total Care
• Looks and Style

81
With its sleek Italian styling and contemporary
ergonomically design, the Ape TRUK is yet another winner
from the house of Piaggio – the force behind India’s largest
selling diesel 3-wheeler: Ape. True to its international
pedigree: the Ape TRUK is a state-of-the-art sub one-tonne
4-wheeler that combines a whole basket of outstanding
features – excellent stability, the highest payload, the
convenience of 3-side openable panels, higher ground
clearance, all-terrain capability and outstanding fuel
efficiency. Add to this its stylish Italian looks and the highly
comfortable car-like interiors, and you get a clear picture
of what the Ape TRUK has to offer.
Key Benefits
• Great Mileage & performance
• More Load ability
• State-of - the art technology
• Lowest operating costs
• Unbeatable service
• Super safety
• Great driving comfort
• Elegant good looks
• Easy customization
With its sleek Italian styling and contemporary
ergonomically design, the Ape TRUK is yet another winner
from the house of Piaggio – the force behind India's largest
selling diesel 3-wheeler: Ape. True to its international
pedigree; the Ape TRUK is a state-of-the-art sub one-tonne
4-wheeler that combines a whole basket of outstanding

82
features – excellent stability, the highest payload, the
convenience of 3-side openable panels, higher ground
clearance, all-terrain capability and outstanding fuel
efficiency. Add to this its stylish Italian looks and the highly
comfortable car-like interiors, and you get a clear picture
of what the Ape TRUK has to offer.

Product Range
The company's product range includes half tonner cargo
vehicles (Pick up and Delivery van), and 3 Seater
passenger vehicles in various fuel variants like Diesel,
CNG, and LPG. The latest entrant in the product range is a
sub one-ton four wheeler "apé truk", which has been
successfully launched in various states across India. All
vehicles are engineered for higher fuel efficiency, rugged
performance and outstanding load carrying capability;
these vehicles are extremely environment friendly and
conform to the most stringent emission norms.
Piaggio's apé already has more than 6,00, 000 happy
ape’ customers in India today. The company achieved
sales of over 1, 55,000 vehicles in the year 2007. PVPL is
currently the market leader in the state-of-the-art three-
wheeler diesel category in India, with a market share of
55%.Piaggio India’s manufacturing hub is a picture of
cutting edge manufacturing technology and advanced
facilities. Having started with just 40 vehicles a day, the
Indian Plant today produces 500 vehicles per day and has
a capacity of 2,00,000 vehiclesperannum.

83
Piaggio India truly represents a seamless integration of the
best of skills, technology, design, research and customer
care with Indian resources, infrastructure, intelligent
manpower, marketing and financial skills, and most
importantly, a deep understanding of the Indian market
and customer needs. Piaggio’s concern for the
environment is known across the globe. We have always
shared a huge commitment to develop products that are
environment Unique and unrivalled, Ape has remained
faithful to itself, even through so many models and never-
ending changes. Today, its unique, quirky shape is built
around a semi-monocoque frame that uses a single load-
bearing chassis in sheet-steel. A steel body houses either
one or two seats. The body comes in number of styles
including Van and Pick up and can be customized to meet
a variety of commercial needs, from catering to urban
refuse collection. The Ape is also a fantastic outdoor
advertising media solution.
THE PRO-TRUCK GROUP –
The UK’s official APE importer and distributor Pro-Truck
were established in March 1996 by the current Managing
Director C.R. Raine. In the space of just under 10 years
Pro-Truck has grown to a thrivingbusiness.In May 1996,
Pro-Truck were appointed as Isuzu truck agents and a site
was acquired for workshops. Pro-Truck have also adopted
Isuzu’s unique award winning sales and after sales care
programme. Several blue chip companies are now part of
the Pro-Truck valuable customer base and portfolio. The

84
introduction of Piaggio light commercial vehicles and LDV,
Ford, Renault and Iveco aftersales enhanced the company
portfolio. Pro-Truck specialises in maintenance contracts
and municipal vehicle repairs along with standard
servicing, body coachbuilding and conversions. The Pro-
Truck Group has a good portfolio of used vehicles; follow
the Pro-Truck Group link for more information. Continued
growth and development led to the creation of U-Hire, Pro-
Trucks dedicated contract sole hire Rental Company.
In 2005 Pro-Truck became the UK importer and distributor
for Piaggio Ape and TM Range of vehicles, setting up a UK
Dealer Network. Pro-Truck also have a bodyshop building
bespoke bodies and conversions for the Piaggio Ape range
and other vehicles.
The full range of Pro-Trucks services include:
1. New and used vehicle sales
2. Purchase contract lease and hire - long or short term
rent
3. Full after sales facilities with dedicated staff.
4. After sales
5. Contract maintenance
6. Service contracts
7. Regular inspections
8. Maintenance municipal vehicle specialists repairs
9. General repairs
10.Class 4, 5a and 7 testing station
11.Parts - Piaggio, Isuzu, LDV, Ford, Renault, Iveco+TM
12.Vehicle storage

85
 13.Body building and conversions in dedicated
bodyshop.
14.Customer care specialists.
15.Finance solutions
16.Insurance solutions
17.Franchise opportunities
Piaggio Future Plans
Italian auto maker Piaggio is planning to manufacture two
wheelers in India in the coming years, as part of the
company's growth plans for Asia.The maker of the famed
Vespa scooter would also be developing four-wheeler
product range and manufacture new diesel engines.
Detailing the company's strategic plan for the 2009-12
period, Piaggio today said it aims to create the conditions
for strong growth in Asia. As part of the plan, the firm
would strengthen its direct industrial presence and also
increase "the offering of two-wheel vehicles to be
produced in India as well and commercial vehicles,
backed by the development of distribution structures,
organisation, and human resources". Piaggio said it would
start the production of new 1000 and 1200 cc diesel and
turbo diesel engines. "These engines are to be the
fundamental feature of the Group's expanded range of
commercial vehicles, produced and marketed in both
Europe and Asia, which will lead to growth and
segmentation of the Ape, Quargo, and Porter lines," the
statement noted. The company would develop "four-wheel
product range, with new Ape Mini Truk, new Ape Truk Maxi

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Cargo...," in India. The company produces three and four
wheelers at the Baramati plant in Maharastra.
GARAPATI AUTO VENTURES (RAMCOR)
For people vision passion commitment to be part of
Ramcor
Kaiser India
Garapati garage
Garapati auto ventures pvt ltd
Vision
To be one of most valued organizations for retailing auto
motive and allied products with professional approach and
ethical business practices.
To attain customer delight through, effective,
implementation of systems and procedures and
development of infrastructure, which will ensure quality
Service
To nurture the products and the respective brands and
achieve optimum growth for the companies were present.
To nurture a culture where in the employs work as team
and experience total satisfaction, growth and respect
which ultimate results in highest level of productivity
To act with great responsibility towards the society and
play an important role in the betterment of the same.
Garapati values
• Concern for customers
• Relation ship with trade partners
• Compliance of systems and procedures
• Reverence for fellow employees

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 • Commitment to our principles
• Respect to wards work
Garapati Major Strengths
• Long standing commitments to our principles
• Highest level of focus on customer satisfaction
• Self sufficient and well laid out infrastructure with
one properties in key location
• Committed and qualified man power with low
attrition rate
• Management commitments to perceptual existence
of the business though precisely approach.
• Consistent performance and market coverage for all
the products currently handled by us.
• Credibility in terms of financial strength and
discipline
A look into Garapati’s past 1950-2000
The firms in the group enjoyed the flowing associations
over the years which are today the foundation for
understanding of the market place and consumer
behavior.
• Promoted brands such as Austin and cargo trucks in
commercial vehicle segment.
• Promoted greaves Garuda 3w in 3w segment.
• Promoted brands like Murphy radios, televista,
televisions and son dyne music systemes kelvinator,
BPL, Sony etc in consumer durable segment.

88
• Promoted brands like Cyanamid’s, Hoechst, etc in agro
chemicals segment
• Promoted brands like novertis, ciba geigy and wovartis
in animal health car segment.
• Promoted the furniture range from feather Life
Corporation in furniture segment.
• Promoted telecom products like fax machines EPABX
systems and acted as franchisee for airtel therefore,
telecom segment.
• Promoted products from loan exchange (zero-B) in
hygiene segment.
• Promoted spraying equipment (ASPE), portable engines
(greaves) and iseki Japan (power tillers) agricultural
inputs segment.
The Promoters
K.V.S Parkas Rao Age 40 years is a commerce graduate
with post graduation in Business management with
specialization in marketing he joined the family business
in 1991
His group focus is on sales administration human resource
and development
Requirements of the group .the focus is also on identifying
new areas for inorganic growth
He is a member of following organizations committers
The Andhra chamber of commerce industry treasure
The Krishna industrial agricultural exhibition society
member –managing committee

89
Managing committee member auto summit 2008
organized fade
Strive- member
K .Nelima Devi age 35 years is a Commerce Graduate
with post graduation in Business Management. She joined
the family business in 2003, her current focus is on
Financial Management of the group
RAMCOR
KAISER INDIA
GARAPATI GARAGE 1959
GARAPATI AUTO VENTURES PVT LTD
Business Development Initiatives
In order to ensure that the organization is inline with
modern business practices and prepared for the future.
Consultants are engaged from time to time to train and
carry programs, people across all the divisions. These
programs transform partners to customer centric.
PIAGGIO
RAMCOR Dealer since: 1999
Products portfolio: Ape 3wheelers, cargo & Passenger
variants.
Territories handled: Complete districts of Krishna & Guntur.
Vital Statistics: Sales: Over 4751 vehicles sold during F06-
07.
Service: Over 4000 vehicles serviced per month
Infrastructure: Own sales and service outlets in 14
locations, spread over Krishna and Guntur.

90
Performance F07-08: Sales growth of over 61% over F06-
07.
Achievements awards
YEAR Awards
20003-2004 Mahandra’ dealer excellence
2004-2005 Mahandra dealer excellence awards award
for process system south zone
2005-2006 mahandra dealer excellence awards
2006-2007 Mahandra dealer excellence award
category B _Rank All
RDI ranknumber2-ALL India
Sales satisfaction Index category
Brink
2007-2008 Rank 4In Categories
Garapati Dealerships
Product Portfolio
Passenger Cars Logan:
SUVS (Sports Utility Vehicles) –Scorpio range
MUV (Multi Utility Vehicles) – Bolero range
PICK–UP -Maxi trunk camper Gateway
Light Commercial Vehicles – Piaggio Ape range
Territories Completely looking and carrying out
activities in Krishna Guntur Districts.
Vital Statistics
Sales : over 794 Vehicles per Annum
Service : over 600 Vehicles Service per Month
Infrastructure : own sales and service centers in
Vijayawada & Güntur

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Performance : from 2007-2008 to 2008-2009
Growth rate is over 25%

CHAPTER-V

PRODUCT
PROFILE

92
 PRODUCT PROFILE
Piaggio’s Ape Auto and Trucks
Piaggio based in Pontedera, Italy encompasses seven
brands producing scooters and motorcycles. As the fourth
largest producer of scooters and motorcycles in the world,
Piaggio produces more than 600,000 vehicles annually,
with five Research and development centers, more than
6,700 employees and operations in over 50 countries.
HISTORY OF APE - “Ape” is the Italian for “bee”
Launched 2 years after the World renowned Piaggio Vespa
in 1948, the introduction of this new 3-wheeled vehicle
helped commercial activities pick up inpost-warItaly.
Unique and unrivalled, Ape has remained faithful to itself,
even through so many models and never-ending changes.
Today, its unique, quirky shape is built around a semi-
monocoque frame that uses a single load-bearing chassis
in sheet-steel. A steel body houses either one or two
seats. The body comes in number of styles including Van
and Pick up and can be customized to meet a variety of
commercial needs, from catering to urban refuse
collection. The Ape is also a fantastic outdoor advertising
media solution.
The three wheeler industry has attracted less attention
from major manufacturers when compared motorcycles or
car industry. Now this segment is hotting up as Tata
launched its ace (though it’s a four wheeler) and reaps the
benefit (India’s first mini-truck - Tata’s Ace, which was
launched in May 2005, is reported to be selling 6,500 units

93
a month. In March 2007, Tata rolled out its 1,00,000th Ace
within 22 months of its launch). Ace made a new segment
called small commercial vehicle segment and is seen as
an ideal vehicle for deal for short, narrow village roads as
well as long highway hauls, for small bulky loads and large
heavy ones. The lower end of the LCV (light commercial
vehicles) market was seeing a major upheaval with the
Supreme Court ban on overloading of cargo vehicles and a
ban on entry of heavy commercial vehicles into city roads.
The total market for three-wheelers in India is about 4.5
lakh vehicles a year. The cargo segment is expected to
account for 55 per cent.
Piaggio ape three wheeler is the market leader in this
segment. Piaggio which has 48% market share has
become a dominant player in this segment. Piaggio is
growing at 40% annually and from selling 35,000 three-
wheelers in 2003, it breached the 1.40-lakh mark last
year. Now the Italian major Piaggio decides to take on the
mighty Tata with its new four wheeler – Ape truk. Piaggio
said the Ape Truk is the India’s only international pick-up
in the sub-one-tonne category and is the same model that
runs in Europe. Whether the ape truk can match the
mighty Tata’s ace and will it replicate its sibling success,
let’s check it!
The Ape Assurance:
• Convenience in “Consolidation and Distribution” on
narrow streets in the market.

94
 • Nationwide strong Sales and Service Set-up at more
than 800 locations.
• Lowest operating cost on transportation.
• Faster and Reliable mode of transportation.
Advantage of PIAGGIO: World class Customer Care
• Over 800 Sales and Service centers PAN India.
• State-of-the-art Service set-ups.
• Fully trained and efficient team for world class
customer care.
• Great Mileage & Performance:
• Best on –road Mileage.
• Easy maneuverability (driving convenience) on
narrow roads within city/towns.

Piaggio’s new four wheeler – ape truck:

The three wheeler industry has attracted less attention
from major manufacturers when compared motorcycles or
car industry. Now this segment is hotting up as Tata
launched its ace (though it’s a four wheeler) and reaps the
benefit (India’s first mini-truck - Tata’s Ace, which was
launched in May 2005, is reported to be selling 6,500 units
a month. In March 2007, Tata rolled out its 1,00,000th Ace
within 22 months of its launch). Ace made a new segment
called small commercial vehicle segment and is seen as
an ideal vehicle for deal for short, narrow village roads as
well as long highway hauls, for small bulky loads and large

95
heavy ones. The lower end of the LCV (light commercial
vehicles) market was seeing a major upheaval with the
Supreme Court ban on overloading of cargo vehicles and a
ban on entry of heavy commercial vehicles into city roads.
The total market for three-wheelers in India is about 4.5
lakh vehicles a year. The cargo segment is expected to
account for 55 per cent.
Piaggio ape three wheeler is the market leader in this
segment. Piaggio which has 48% market share has
become a dominant player in this segment. Piaggio is
growing at 40% annually and from selling 35,000 three-
wheelers in 2003, it breached the 1.40-lakh mark last
year. Now the Italian major piaggio decides to take on the
mighty Tata with its new four wheeler – ape truk. Piaggio
said the Ape Truk is the India’s only international pick-up
in the sub-one-tonne category and is the same model that
runs in Europe. Whether the ape truk can match the
mighty Tata’s ace and will it replicate its sibling success,
let’s check it!
Engine and power train:
Piaggio’s ape truk is powered by 482cc, single cylinder,
indirect injection diesel engine which generates maximum
power of 11.26bhp at 4500rpm. This water cooled engine
develops a maximum torque of 23Nm at 3200rpm. Piaggio
is the one which offers fuel efficient three wheelers in this
mileage conscious segment. Piaggio dealers claim the new
ape truk will offer 20kpl against Tata ace which offer
14kpl. You have to believe the piaggio’s words since their

96
ape three wheeler delivers 30kpl. According to piaggio the
new ape truk can achieve a maximum speed of 65kph.
Unlike the 5 speeded tata’s ace, the new ape truk features
6 speed gearbox.
Driver’s zone:
Ape truk looks bold with its sturdy bumper and bigger
tyres. Don’t forget this ape truk is from an Italian
manufacturer. No more boring round headlamps like in the
ace, ape truk’s headlamps are stylish and ape features
prominent grille. Ape truk is aerodynamically designed
which according to Piaggio will give you better pick-up.
Though design and stylin is not a major factor in this
segment I believe most will welcome this changes. Similar
to the Tata’s ace, ape truk feature a car like cabin.
The ape truk has a maximum gradeability 17’ (higher than
the ace) which could definitely woo the customers of
northwest and other hill station commuters. Ape truk has
lower minimum turning radius i.e 7.7m when compared to
Tata ace’s 8.6m which means ape truk has
maneuverability than ace which is essential for city riding.
Ape can fill 15ltrs in its tank whereas ace can fill 30lts in
tank. This may not factor you a lot since most of these
mini trucks are used in city.
Piaggio ape truk features hydraulic brakes on all wheels
and for parking it uses mechanical brakes on rear wheels.
Steering is made by using rack and pinion similar to ace.
We have to wait to see power steering in this segment.
Suspension of ape truk is by McPherson at the front and

97
twist beam cross arm at the rear. Both at the front
hydraulic double acting telescopic shock absorbers are
offered to control the vibration. You can expect good riding
and handling characteristics in the new ape truk than
piaggio’s other offering because of this superior
suspension.

Accessories and Versatility:

Steering lock with ignition key, roof lamp with integrated
rear view mirror, both side sun visors and integrated
blinkers are special add-on accessories offered by piaggio
for the ape truk.
With three side openable panels ape truk can be easily
loaded/ unloaded and ape truk’s off the road capability is
enhanced by its higher ground clearance of 185mm along
with bigger and wider(155 R13) tyres. Tata’s ace has an
edge over ape truk in power to weight ratio, but ape has
its advantage over ace in gross to kerb weight ratio. You
can apply a payload of 865kg in this 685kg ape truk. When
comes to dimensions again tata ace scores more points
than ape truk Also with loading height of 675mm tata ace
is more useful in loading and unloading than ape truk.
Price and service:
Ape Truk comes with an aggressive price tag of Rs 2, 15,
000 (ex-showroom, Chennai) against Tata Ace, which is
available at about Rs 2, 50,000. Piaggio offers 1yr or
36000km warranty and 8 free services for its new ape
truk. To enhance the customer foucs Piaggio plans to sell

98
the new Ape truk through a separate chain of dealerships
alongside its existing chain of three-wheeler outlets (230
dealers and 230 sales outpoints).
Certainly with aggressive pricing and with Piaggio’s
impeccable service ape truk will try to ace the tata’s ace.
A healthy competition ahead in this segment is sure with
ape’s arrival.
More crackers in this segment:
Mahindra, Bajaj, Atul auto, MLR motors, Ashok Leyland,
Hindustan Motors, TVS Motor Company and even car
majors like Hyundai and Maruti Suzuki is planning to enter
this fast growing segment. Here are their plans.
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*Mahindra is working on a mass-market cargo and
passenger vehicle that would be the first vehicle offering
from its Pune plant.
*The Rajkot-based Atul Auto Ltd will launch its four-
wheeler light commercial vehicle (LCV) in two years.
*Hyderabad based MLR motors will launch a micro
commercial vehicle and a passenger variant by January
2008.
*Hyundai Motor Corporation, Korea, plans to set up a light
commercial vehicle (LCV) manufacturing plant in India.
Though Hyundai denied it may launch it LCV porter.
*Tata plans an electric variant of ace and also a new LCV
platform. Also a panel van on ace platform will be
launched.

99
*Bajaj Auto is working on a four-wheeled goods carrier and
it could be launched in 2-3 years.
*Other major players such as TVS, Hindustan Motors,
Ashok Leyland and Suzuki are seriously mulling their foray
in to this segment.
Piaggio plans to diversify in to light commercial
vehicles market.
Piaggio Pvt Ltd is changing gears to diversify its offerings
in the light commercial vehicles (LCV) category. The
company had recently launched its pickup truck ''Ape'' in
South India.
According to Ravi Chopra, chairman and managing
director, Piaggio India, the company is working on the
introduction of additional variants in the sub one-tonne,
one-tonne and below two-tonnes category by 2010.Chopra
said the macro-economic conditions along with rural
marketing initiatives of FMCG companies were conducive
for the growth of the LCV segment in India, in which the
company plans to be a full range player. Piaggio''s expects
a larger regional presence for its recent offering, the sub
one-tonne truck ''Ape'', by March 2008, and estimates this
segment to grow at about 20 per cent.
According to Chopra, the company is focusing on retaining
its 44 per cent market share in the three-wheeler cargo
segment, and has found increased prospects in the export
market with the launch of its CNG cargo three-wheeler.
Piaggio is mulling an investment of €60 million for a
manufacturing facility for diesel engines, that will have a

100
capacity of two lakh units, and is likely to be operational
by end 2009. this facility would service the domestic
market, and cater to the demand from the Italy-based
parent company. PVPL has announced that it will begin
production at a diesel engine plant being built in
Maharashtra by the end of 2009, in a bid to emerge as a
full range four-wheeler light commercial vehicle maker in a
market dominated by local players like Tata Motors and
Mahindra & Mahindra
Piaggio bullish on the Indian market, pushing ahead
aggressively on all fronts
Piaggio’s plant in Baramati in India could become the
Italian company’s global hub for sourcing engines and
transmissions. The company is investing Rs 450 crore in
its Baramati facility and will soon be making small-
capacity, twin-cylinder diesel engines there, in technical
collaboration with Japanese company Daihatsu.These
engines, which will comply with the latest emissions
norms worldwide, will be used in new Piaggio mini-trucks
which are likely to be launched in India in 2009. The
Baramati facility will have an initial capacity of 50,000
engines per annum, which could be scaled up if required.
The engines will also be exported to Europe for Piaggio’s
global requirements. Piaggio’s Indian arm, Piaggio Vehicles
Pvt. Ltd., is already the market leader in three-wheelers
and has a growing presence in the small trucks segment.
With its new-generation fuel-efficient diesel engines,
Piaggio hopes to take on the Tata Ace and various other

101
players in the small trucks segment. Piaggio, which
already sources diesel engines from the Germany-based
Kohler Group for the Piaggio Ape Truk, will also start
sourcing single-cylinder diesel engines from Greaves
Cotton for its three-wheelers.
Very soon, Piaggio hopes to be able to offer various
powertrain options to its three-wheeler and mini-truck
customers. With the new engines that are being
developed with Daihatsu, the company also hopes to
explore export markets for its vehicles. Of the 85,409
three-wheelers sold in India during the April-June quarter,
40,000 were Piaggio vehicles. The company also exports
its vehicles to South Africa, South America (Argentina,
Mexico and Peru), Sri Lanka and Bangladesh. Finally, as
reported here earlier, Piaggio is also considering a return
to the Indian scooter market by 2010. Piaggio has a wide
range of Vespa-branded scooters in Europe and the
company may launch some of those two-wheelers in the
Indian market within the next two years.
Piaggio eyes 5-fold rise in Ape Truk sales
Piaggio Vehicles, the Indian arm of Italian auto company
Piaggio, is planning a three-pronged strategy to boost the
sales of its four-wheeler Ape Truk, a sub-one-tonne light
commercial vehicle launched in May 2007.
Piaggio sold 4,000 units of Ape Truk in the country in 2007
and expects to sell 18,000-20,000 units in the calendar
year 2008.

102
The company’s three-pronged strategy envisages a pan-
Indian presence, more product variants and sharpening of
sales and marketing activities, said J Narayanan, general
manager (customer care and NPI).
The company launched two variants of the Ape three-
wheeler, Ape Xtra and Ape Xtra LD, targeting the light
transportation sector, in Chennai today. Piaggio last year
launched its 482-cc Ape Truk in the sub-one tonne
commercial vehicle category, which is currently dominated
by Tata’s Ace.
The size of the four-wheeler market in the sub-one tonne
segment is estimated at one lakh units and Tata’s Ace
accounts for 95 per cent of the market followed by Ape
Truk and M4 of Force Motors, according to Narayanan.
As part of its business strategy, Piaggio plans to roll out
the Ape Truk in more cities and towns across India this
year and increase its presence to 670 locations from 550
locations presently.
The company has the capacity to manufacture 36,000
units of the Ape Truk at its Baramati plant in Maharashtra.
The production capacity at the plant could be ramped up
quickly depending on market demand as it is a modular
type of production facility.
On the three-wheeler front — both passenger and cargo
vehicles — the company sold 1.55 lakh units in 2007 and
is targeting sales of 1.7 lakh units in 2008. The company
currently has a capacity to manufacture 2 lakh three-
wheelers.

103
Piaggio has reported topline growth of 15 per cent over
the past two years. Its turnover in 2007 was over Rs 1,500
crore. “We expect 10-11 per cent topline growth in 2008,”
Nayaranan added
• Industrial cooperation agreement with Daihatsu in
four-wheel commercial vehicles
Supply agreement with Greaves in three-wheel
commercial vehicles
• Expansion in India, China, Vietnam and Japan
• Entry on to Indian two-wheeler market
• Piaggio Group in India and Asia-Pacific: 2007
projected net sales € 290 mln (+18.4%)
The Piaggio Group, the leading European constructor of
two-wheel vehicles and a primary global player, which has
also built up a solid position in light transport vehicles in
Europe and Asia, held a press conference in Mumbai at
which chairman and chief executive officer Roberto
Colaninno illustrated the strategic guidelines for expansion
of the Group’s operations in Asia.
Engines for four-wheel light transport vehicles: new
agreement with Daihatsu
The Piaggio Group recently reached a major agreement
confirming and strengthening its strategic cooperation
with Japan’s Daihatsu Motor Co., Ltd. (Daihatsu), the world
leader in design, production and marketing of
technologically advanced compact motor vehicles.
Enhancing the long-standing links between the two

104
companies, the agreement extends cooperation in light
transport vehicles to provide for:
the supply by Daihatsu of powertrains (1,300cc petrol
engines and transmissions) for the current Piaggio Porter
range of light transport vehicles;
further cooperation relating to the supply by Daihatsu of
parts, components and assemblies for the new models in
the Porter and Quargo ranges mounted with the new
small-displacement Piaggio turbodiesel and diesel
engines; these engines will be producing at its Indian
subsidiary, Piaggio Vehicles Private Limited (PVPL).
The Piaggio Group in India and Asia-Pacific: 2007 projected
net sales € 290 mln (+18.4%)
The new Piaggio Group organisation in Asia operates
through manufacturing and marketing subsidiaries and
joint ventures in four countries—India, China, Vietnam and
Japan. Its Asian operations have an industrial and
commercial impact on the Group’s entire product pipeline,
which comprises two-wheelers (scooters and motorcycles)
and three and four-wheel light transport vehicles (Ape,
Quargo and Porter ranges).
According to preliminary estimates, in 2007 the Piaggio
Group reported net revenues totalling approximately €
290 million in India and Asia-Pacific, for YoY growth of
18.4% from € 245.0 million in 2006. Specifically, turnover
at the Indian subsidiary PVPL gained 15.3% to reach €
238.0 million, from € 206.4 million in 2006.

105
The figures do not include results at the Piaggio Group’s
Chinese joint venture, which are not consolidated in the
Group’s results. The Group has a strong and successful
presence in India, which will play a key role in the new
organization.
Piaggio Vehicles Private Limited (PVPL) is a wholly owned
Piaggio subsidiary headquartered in Pune in the State of
Maharashtra. From its manufacturing plant in Baramati, it
currently produces and markets the Ape three-wheeler
range of passenger and cargo vehicles, and the new Ape
Truk four-wheel commercial vehicle with a carrying
capacity of 800 kg, launched on the Indian market on July,
2007. In just four years, Piaggio Vehicles Private Limited
has more than tripled its sales volumes, from 49,600
vehicles in 2003 to more than 154,000 vehicles sold in
2007.
In India, the Group also plans to invest € 60-65 million in
the development and industrialisation of twin-cylinder
turbodiesel and diesel engines (up to 1,200cc) and
construction of a powertrain plant in Baramati. As noted
above, the Group will be partnered by Daihatsu on
development and industrialisation of the new powertrains.
As part of its development strategy, the Piaggio Group,
through its PVPL subsidiary, today signed an 8-year
agreement with Greaves Cotton Limited under which
Greaves will:
-- continue to supply PVPL with the GL 400 BSII
monocylinder diesel engine;

106
-- supply PVPL with the G 435 BSIII monocylinder diesel
engine, beginning in 2010 to coincide with the pan-Indian
introduction of the Bharat III emissions regulations in
India.
Greaves will provide PVPL with the engines, as the sole
supplier of monocylinder diesel engines for Ape three-
wheelers built by PVPL, thus enabling the Piaggio Group to
meet its objectives for eco-compatibility, efficient fuel
consumption and general product price competitiveness.
In addition to the supply agreement with Greaves
announced today, the Piaggio Group has a close
partnership with Lombardini/Kohler, which supplies PVPL
with the 482cc liquid-cooled 5-speed diesel engine
mounted on the Ape Truk four-wheeler.
China
In China in 2007, the Piaggio Group constructed more than
200,000 two-wheel vehicles at the Foshan facility run by
the equally owned joint venture formed in 2004 with local
partner Zongshen Group. The vehicles are produced under
the Piaggio brand for distribution on the European market
and on a co-branding basis with local partner Zongshen
for the Chinese market. The results of the Chinese joint
venture are not included in the Group consolidation.
Vietnam
In Vietnam, construction of a new facility has begun in the
Hanoi area, and is expected to be completed by the end of
2009. The factory will produce Vespa scooters for the local
market. The total investment, for which the Group has

107
established a 100% controlled subsidiary, Piaggio Vietnam
Co. Ltd., amounts to an estimated USD 25/30 million.
Japan
Operations in Japan are conducted through the subsidiary
Piaggio Group Japan Corporation, established on January 1,
2008, to strengthen Piaggio’s market position and
rationalise the import and distribution of vehicles for all
Group brands. The subsidiary will coordinate sales and
marketing, taking a role similar to that of Piaggio Group
Americas Inc. in North and South America.
Growth guidelines: new products and global sourcing The
Piaggio Group’s extensive geographical presence
described above will accelerate development of new two-,
three- and four-wheel vehicles and new engines; at the
same time it will help the Group enhance components and
accessories sourcing operations through Group global
sourcing divisions in Surajpur (India) and Foshan
(China).Two-wheelers: the Group enters the Indian market
In parallel with the supply agreements on three- and four-
wheel commercial vehicles signed with Greaves and with
Lombardini/Kholer, and with the recent expansion of
cooperation with Daihatsu, the Piaggio Group intends to
build a strategic focus on two-wheeler production and
marketing in India, maximising technological innovation
through development of eco-compatible engines
delivering low emissions and reduced fuel consumption.
In this connection, the Group said recently that it would
begin European marketing of thermo-electric hybrid

108
scooters at the end of 2008, the world’s first large-scale
application of this technology in the scooter industry.
At the same time, the Group is conducting its market
analyses to verify the feasibility of the launch of two- and
3/4-wheel hybrid vehicles in India, presumably at the end
of 2009 and early 2010.
Specifications

109
Piaggio
Piaggio has a landmark achievement ever since it entered
the Indian market. They are available in diesel segments
allied with a fuel efficient engine. Having a heavy load
capacity and enough space in the driver's cabin, they are
economical and user friendly. We have latest models of
these wheelers.

Engine & Transmission

Type Single cylinder four stroke, direct
injection, diesel engine
Displacement 395cc
Max H.P 8.0 bhp@ 3600rpm
Compression Ratio 18:1
Torque 16.7 NM @ 2200-2400rpm
Fuel Efficiency 36 ± 4km/litre
Max speed 50km/hr
Starting Self start
Cooling Forced air cooled
Gear box 4 forward + 1 reverse
Transmission
4 forward, 1 reverse, Constant mesh type. Wet, multi
plate type.
Suspension
Front Suspension Dual action hydraulic telescopic
shock absorber with helical springs

110
Rear Suspension Independent suspensions triangular
arm, rubber compression spring & dual action hydraulic
shock absorber.
Chasis
Unique monocoque chassis design, with pressed &
stamped tandem master cylinder. Hydraulically operated.
Weights
Kerb weight (kgs) Pick up 415 kg.
Kerb weight (kgs) Delivery 440 kg
Gross weight Pick up 975 kg.
Gross weight Delivery 975 kg.
Tyres
Size 4.5 x 10, 8PR 415 kg.
Electricals
System voltage 12 V D.C
Battery 12 V,50 A.H
Alternator Flywheel mounted
Wiper motor 12 V
Dimensions
Wheel base PV 1920mm
Wheel base DV 1920mm
Overall length PV. 2930mm
Overall length DV 2965mm
Max width PV. 1490mm
Max width DV 1495mm
Max height PV. 1635mm
Max height DV 1750mm
Cargo bed PV. 1480mm x 1400mm
Cargo bed DV 1480mm x 1400mmx1050mm
Turning radius 2750mm
Track width 1260mm

Piaggio Ape Truk

BodyStyle Pickup Truck

Fuel Type Diesel
Fuel Efficiency --
No. of doors 2 Doors
Rating

Driver+1 seating

111
Dimensions & Weight
Overall length(mm) : 3505
Overall width(mm) : 1460
Overall height(mm) : 1750
Wheel base(mm) : 1820
Ground clearance(mm) : 185
Turning circle diameter : 7.7 m
Kerb weight : 685 Kg
Cargo Deck(LxWxH in mm): 2010x1400x320; Max
Others :
Gradeability: 17%; Payload: 865 Kg; Gross Weight: 1550 Kg
Fuel Tank Capacity(ltr) : 15 L

Engine
Displacement(cc) : 482
Maximum speed : 65 Kmph
4-stroke, Naturally aspirated, Indirect Injection, Water cooled
Type/Configuration :
Diesel Engine

Clutch
Clutch type : Single Plate Dry Friction Diaphragm

Transmission
Transmission type : Manual
Number of Speeds : 5 Forward, 1 Reverse

Brakes
Dual Circuit Hydraulically actuated with LSPV at rear circuit;
Type :
Parking Brakes: Mechanical at Rear wheels

Suspension
McPherson Strut with coils, Hydraulic Double acting
Front :
Telescopic Shock Absorbers
Twin Beam Cross arm with rubber bumper, Hydraulic Double
Rear :
acting Telescopic Shock Absorbers

Tyres & Wheels

Tyres : 155 R 13 Radial

Chassis
Chassis type : Monocoque chassis with pressed steel long members

Performance
Max. Horsepower (ps/rpm) : 8.4 kW @ 4500 rpm
Max. Torque (kg m/rpm) : 23 Nm @ 3200 rpm

Steering
Min. Turning Radius (m) : 3.85 m
Type : Mechanical, Rack & Pinion

112
113
 COMPARISON ON THREE WHEELERS
AS AVAIL ABLE IN MARKET

Three wheelers companies

S Parameters Piaggio Vehicles Scooters India Ltd Mahindra & Mahindra Ltd Bajaj Tempo Ltd
No Compared Ape Vikram Champion Minidor
A B C D
1 Suitability type of Suitable to ply in the lanes and Suitable to ply in the lanes Suitable to ply in the lanes and the Suitable to ply in the lanes and the streets having
vehicle and the streets having less than 15 and the streets having less streets having less than 15 feet width. less than 15 feet width.
market supplies feet width . than 15 feet width.
2 Specification Hydraulic Tipping : Available Tipping : Manual Tipping Hydraulic Tipping : Available Hydraulic Tipping : Available
Body : Bottom M S Body : Bottom M S Body : Bottom M S
Body : Bottom M S
Side Aluminum Side Aluminum Side Aluminum
Side Aluminum
Payload : 560 Kg Payload : 600 Payload : 665 Kg
Payload : 600 Kg
Engine : Diesel 400 cc Kg Engine : Diesel 510 cc
Engine : Diesel 499 cc
Turning Radius : 2750 mm Engine : Diesel 510 cc Turning Radius : 3260 mm
Turning Radius : 3500 mm
Fuel Consumption : 36 Km / Lit Turning Radius : 3500 Fuel Consumption : 18-20 Km / Lit
Fuel Consumption : 23 Km / Lit
Loading Height : 1335 mm mm Loading Height : 1250 mm
Loading Height : 1330 mm
Fuel Consumption : 25
Km / Lit
Loading Height : 1450
mm
3 Usage for SWM For the streets having less than For the streets having less For the streets having less than 15’ For the streets having less than 15’ width tipping
15’ width tipping Auto (three than 15’ width tipping Auto width tipping Auto (three wheelers) is Auto (three wheelers) is useful. These tipping Auto
wheelers) is useful. These (three wheelers) is useful. useful. These tipping Auto may also be may also be used for Door to Door collection.
tipping Auto may also be used These tipping Auto may also used for Door to Door collection.
for Door to Door collection. be used for Door to Door
collection.
4 DGS & D priced DGS & D rate is Not Available DGS & D rate is Not Available DGS & D rate is Not Available DGS & D rate is Not Available
Vehicles However local rates may be However local rates may be However local rates may be ascertained However local rates may be ascertained by adhering
ascertained by adhering tender ascertained by adhering by adhering tender procedure tender procedure
procedure tender procedure

5 Service Center Repairable in local service Repairable in local service Repairable in local service center Repairable in local service center
center center
6 Response time AMC details not furnished. AMC details not furnished. AMC details not furnished. AMC details not furnished.
for service Fault will be rectified with in 48 Warranty given for 6 months Fault will be rectified with in 3 days Fault will be rectified with in 48 hours
hours Fault will be rectified with in
3days
7 Annual O&M cost May be calculated based on the May be calculated based on May be calculated based on the total May be calculated based on the total cost of vehicle
total cost of vehicle as per the the total cost of vehicle as per cost of vehicle as per the guide line as per the guide line suggested by the observation
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114
 guide line suggested by the the guide line suggested by suggested by the observation committee for comparison.
observation committee for the observation committee for committee for comparison.
comparison. comparison.
8 Entry tax Rate quoted inclusive of all Rate quoted inclusive of all Not mentioned Not mentioned
taxes taxes
9 Rate to includes Registration and insurance Registration and insurance Registration and insurance charges Registration and insurance charges extra
registration tax charges extra charges extra extra
for the first time
10 T raining to 3 days 3 days 3 days 3 days
Drivers

Note : 1 The commissioner should ascertained the DGS&D rate . If the DGS&D rate is not available tender procedure may be adhered.

2 The comparative statement on O& M may be prepared by the commissioner with the latest DGS&D rate / with the latest rate received by tender.

COMPARISION ON FOUR WHEELERS

AS AVAILABLE IN MARKET

Four wheelers companies

Swaraj Mazda Eicher
Multi – Mobiles & Mahindra &
S Parameters Bajaj Tempo Ltd Ltd V . S . T Motors Motors Ltd
Machinery Pvt ltd Mahindra Ltd
No Compared Tempo Excel 3 Swaraj Mazda TATA 407 EICHER
Hunter MD 204 DI Pickup 3200
10.59
A B C D E F
1 Suitability type Suitable to ply in the streets Suitable to ply in the Suitable to ply in the streets Suitable to ply in Suitable to ply in the Suitable to ply
of vehicle and having more than 15 feet width. streets having more having more than 15 feet the streets having streets having more in the streets
market supplies than 15 feet width. width. more than 15 feet than 15 feet width. having more
width. than 15 feet
width.
2 Specification Tipping : Available Tipping : Available Tipping : Available Tipping : Available Tipping : Available Tipping :
Body : Body : Mild Steel Body : mild Steel Body : mild Steel Body : Mild Steel Available
Stain less Steel Payload : 3000 Kg Payload : 2575 Kg Payload : 3300 Kg Payload : 3100 Kg Body : Mild
Payload : 2000 Kg Engine : Engine : Engine : Engine : Steel
Engine : Diesel 625 cc Diesel 325cc Diesel 2523 cc Diesel 345.5 cc Diesel 2956 cc Payload : 3700
Turning Radius : Turning Radius : Turni ng Radius : Turning Radius : Turning Radius : 6450 Kg
4900 mm Not given 6900 mm 5500 mm mm Engine :
Fuel Consumption : Fuel consumption : Fuel Consumption : Fuel Consumption : Fuel Consumption : 7 Diesel 4
14 Km / Lit 8 Km / Lit 8 Km / Lit 7 Km / Lit Km / Lit Cylinder
Un laden weight : Un laden weight : Un laden weight : Un laden weight Un laden weight 2250 Turning Radius

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115
 1370 Kg 3245 Kg 2220 Kg 1890 Kg Kg : 6500 mm
Fuel
Consumption :
7 Km / Lit
Un laden weight
:
2250 Kg
3 Usage for SWM Can be used for Primary Can be used for Can be used for Primary Can be used for Can be used for Can be used for
collection or Secondary Primary collection or collection or Secondary Primary collection Primary collection or Primary
Collection Secondary Collection Collection or Secondary Secondary Collection collection or
Collection Secondary
Collection
4 DGS & D priced DGS & D rate is available. DGS & D rate is DGS & D rate is available. DGS & D rate is DGS & D rate is DGS & D rate is
Vehicles Rs. 2,40,692 available. Rs. 3,12,555 available. available. available.
+ ET @ 15 % Rs.36104 Rs. 3,37,505 + TNGST @ 12 % Rs. 5,02,341 Rs. 4,31,777 Rs. 6,06,561
TNGST @ 12% + MPST @ 12 % + Rs.37507 +TNGST @ 11% inclusive of all
Rs 33215 Rs.40,500 + ET 13 % Rs.46,162 Total cost Rs 47,495 taxes
Transportation Transportation Transportation Rs. 5,95,751 Total cost
Rs. 5000 Rs. 9850 Rs 5038 inclusive all Taxes Rs. 4,79,272
Total cost Rs. 3,15,000 Total cost Transportation ET not included
Rs. 3,88,000 Rs. 5000
ET not included Total cost
Rs. 4,01,263

5 Service Center Available Available 5 centres Available Available with all 25 centres Available 20 centres
Cab be serviceable in the local Cab be serviceable Cab be serviceable in the dealers Cab be serviceable in Available
service center in the local service local service center Cab be serviceable the local service center Cab be
center in the l ocal service serviceable in
center the local service
center
6 Response time 1.AMC contract service charges 1.AMC not furnished 1.AMC not furnished 1.AMC not 1.AMC available 1..AMC
for service Rs. 6000 / Year Warranty Warranty furnished Warranty 12 months available with
AMC comprises of to weekly 12 months 12 months Warranty 12 2. Fault rectified with in minimum of
maintenance visit 2. Fault rectified with 2. Fault rectified with in four months Seven days Rs.30,000per
2. Fault rectified with in three in two days days 2. Fault rectified vehicle per rear
days with in one Week Warranty12
months
2. Fault rectified
with in 48 Hours
7 Annual O&M Rs. 0.30 Rs. 0.24 Rs. 0.29 Rs. 0.28 Rs. 0.26 Rs. 0.27
cost / Ton / Km /Ton / Km /Ton / Km /Ton / Km /Ton / Km /Ton / Km
8 Entry tax Included in the total cost Not Included in the Included in the total cost Included in the total Included in the total Included in the
total cost cost cost total cost

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82
 9 Rate to includes Not Included extra charge will Not Included extra Not Included
Not
NotIncluded
Included
Not
extraIncluded
charge
extra
registration tax be collected as applicable charge will be will be
extra
charge
charge
collected
charge
will
willwill
asbe
for the first time collected as collected
applicablecollected
beascollected
applicable
as
applicable applicable
10 Training to Does nor arise Does nor arise Does nor arise Does nor arise Does nor arise Does nor arise
Drivers

Note : 1 The DGS&D rate furnished in the comparison statement has to be ascertained and
time of
If the DGS&D purchase
rate by the commissioners
is not available concerned.
tender procedure may be adhered.

2 The O& M tabulated in the above statement may be re calculated by the commissioner
concerned
received by tender. with the latest DGS&D rate / with the latest rate

83
 C H A P T E R - VI

ANALYSIS AND
INTERPRETATION

ANALYSIS OF THE STUDY

As a part of the study I met Area Sales Managers of different companies and about stockiest
dealing with different brands of AUTOS and TRUCKS in the Vijayawada only.
ANLYSIS OF THE STUDY TAKEN INTO CONSIDERATION THE DATA GIVEN BY THE
AREA SALES MANAGERS
First I have taken into consideration, the data given by area sales managers. I have met area
sales managers of RAMCOR AUTO VENTURE LTD, MAHINDRA, BAJAJ AUTO, T.V.S AUTOS,
and TATA’S JASPER.
ABOUT THE ORGANISATION
The first question was asked about the “Organizational structure”.

84
 The five area sales managers have respond in a similar way. The organizational structure in all
the four companies is almost as follows:

O R G A NIS ATIO N AL STR U CT U R E

M a n a gin g P artner ( C E O)

G e n e r al M a n a g er

A s st. G e n er al M a n a g er

A c c o u nt S er vic e Spares HR S ales

M a na ger M a nager M a na ger M a nager M a nager

Sr. A s st. S p ares C o- H R A s st. A s st. S ale s

A c c o u nta nt S er vic e or dinat or M a nager
M a nager
C o u nter
A c c o u nta nt S er vic e Spares Team
A d visor s ales Leader

D ata E ntry S u p er vis or s D ata E ntry S ales

O p er ator O p er ator E x e c utive s
T e c h.
S p e c i ali st A s st. Tr ai ne e
Spares S ales
E x e c utive s
T e c h ni cia n

Tr ai n e e
T e c h nicia n s

85
 The Organizational structure of each organization is same from president to manager.
Next question was about the “Hierarchy of field staff”
Area Sales manager
Sales Officer
Team leaders
Showroom Sales Consultants & Field Sales Consultants
Hoister
The hierarchy of field staff is same for all the five organizations.
Next question was regarding the area covered by the each area sales manager.
The sales manager occupies the highest position among the field staff. Each sales manager has to
control and operate in one District’s. In those districts he has to see that the sales activities are
performed effectively and in a smoother way.
The area covered by each area sales manager in the five companies is Krishna and Guntur
Districts.
The first question was asked about the different products that each company manufactures.
The main products of AUTO industry are
AUTO’S with Diesel and C.N.G Versions
APE Diesel Engine Trucks
Bajaj Auto with Diesel and C.N.G Variants
Mahindra ALFA Passenger and Cargo Segments
T.V.S Autos in Passenger Segment.
ABOUT THE PRODUCTS
PIAGGIO
1.3Wheeler 2.4Wheeler
EICHER 2004
1. LCV 2. HCV 3.TIPPERS 4.BUSSES
MIHANDRA 1950
1. BOLERO 2. PICK UP 3.SCORPIO 4.LOGAN 5. XYLO
DELER SINCE 1950
Product Portfolio

Passenger Cars Logan:

SUVS –Scorpio range
Muv – Bolero range
PICK –UP -Maxi trunk camper Gateway
Territories Handed Complete Distracts of Krishna Guntur
Vital Statistics
Sales over 794 Vehicles per Annum
Service over600Vehicles Service per Month

86
Infrastructure: own sales and service centers in Vijayawada & Guntur
Performance: for 2007-2008 Growth of over 25% 2008-2009
HONDA
GENSETS:
1. Petrol 2diesel 3.Gas 4. Kerosene
NEW HOLLAND (complete tractor range)
1. Agriculture
HP
GPDS 1950
VOLTAS 1960
1. SPLIT AC 2.WINDOW AC 3.WOTER COOLUR
GREAVES 2008
1. Road Rollor, 2.Ready Mix Concrete 3. Pump Unit 4. Batching Plant Unit
HUNDAI 2008
Construction Equipments, Earth mover’s equipments
Major Players
Major players offer a wide range of 3 wheelers from reputed three wheeler manufacturers
including Bajaj auto rickshaw, Pal Wonder and Piaggo rear engine two stroke, four stroke petrol and
CNG. We are one of the traders and exporters of various models of three wheelers from Bajaj &
Piaggio.
Piaggio
Piaggio has a landmark achievement ever since it entered the Indian market. They are
available in diesel segments allied with a fuel efficient engine. Having a heavy load capacity and
enough space in the driver's cabin, they are economical and user friendly. We have latest models of
these wheelers.
Engine & Transmission
Type Single cylinder four stroke, direct injection, diesel engine
Displacement 395cc
Max H.P 8.0 bhp@ 3600rpm
Compression Ratio 18:1
Torque 16.7 NM @ 2200-2400rpm
Fuel Efficiency 36 ± 4km/litre
Max speed 50km/hr
Starting Self start
Cooling Forced air cooled
Gear box 4 forward + 1 reverse
Transmission
4 forward, 1 reverse, Constant mesh type. Wet, multi plate type.
Suspension
Front Suspension Dual action hydraulic telescopic shock absorber with helical springs
Rear Suspension Independent suspensions triangular arm, rubber compression spring &
dual action hydraulic shock absorber.
Chasis
Unique monocoque chassis design, with pressed & stamped tandem master cylinder. Hydraulically
operated.
Weights

87
Kerb weight (kgs) Pick up 415 kg.
Kerb weight (kgs) Delivery 440 kg
Gross weight Pick up 975 kg.
Gross weight Delivery 975 kg.
Tyres
Size 4.5 x 10, 8PR 415 kg.
Electricals
System voltage 12 V D.C
Battery 12 V,50 A.H
Alternator Flywheel mounted
Wiper motor 12 V
Dimensions
Wheel base PV 1920mm
Wheel base DV 1920mm
Overall length PV. 2930mm
Overall length DV 2965mm
Max width PV. 1490mm
Max width DV 1495mm
Max height PV. 1635mm
Max height DV 1750mm
Cargo bed PV. 1480mm x 1400mm
Cargo bed DV 1480mm x 1400mmx1050mm
Turning radius 2750mm
Track width 1260mm

Bajaj GC 1000
We offer Bajaj GC 1000, A compact yet heavy duty vehicle having good load capacity. These
wheelers have a powerful engine and efficient in giving good mileage. Various colors available to
choose from.
Engine
Type Four Stroke, Single Cylinder, IDI, Compression Ignition
Cooling Type Forced Air Cooled
Displacement 416 cc
Max Power 8.5 bhp( 5.9 kW) @ 3600 rpm
Max Torque 20 Nm @ 2400 rpm
Ignition Type Electric start
Transmission Type 4 forward & 1 reverse gear
Clutch Type Single plate,dry friction type,foot operated
Electrical System
System System 12V DC
Chassis
Chassis Type Semi Monocoque
Suspension
Front Suspension Antidive leading link with helical compression spring & shock
absorber
Rear Suspension Independent suspension with spring & shock absorber
Tyres
Front Tyre Size 4.5x10,8PR
Rear Tyre Size 4.5x10,8PR
Brakes
Front Brakes Hydraulic brakes with auto adjuster
Rear Brakes Hydraulic brakes with auto adjuster
Fuel Tank

88
 Fuel Tank Capacity 8 litres
Dimensions
Overall length 2960 mm
Overall width 1375 mm
Overall height 1810 mm
Wheel Base 2025 mm
Ground Clearance 170 mm
Minimum Turning Radius 2.75 m
GVW 990 kg
Loading Tray
Length (Pick up) 1500 mm
Width (Pick up) 1325 mm
Height (Pick up) 250 mm
Length (HiDec) 1500 mm
Width (HiDec) 1325 mm
Height (HiDec) 1050 mm

Agni Prinda
Technical Specifications
Engine 4 Stroke Air Cooled Di Diesel Engine
CC 395cc
Power 5.51kw @3600 Rpm
Torque 16.7nm @ 2200 Rpm
Clutch Multi Wet Plate
Starting Electric
Battery 60 AH
Transmission Constant Mesh Type
Fr. Suspension Leading Link Type Coil Spring & Shock Absorbers
Rear Suspension Independent Suspension Spring & Shock Absorbers
GVW Agni : - 999 Kgs, Parinda 810 Kgs
Kerb Wt Agni :- 444 Kgs , Parinda 430 Kgs
Brake Dual Circuit Hydraulic Brakes With Tandom Master Cylinder
Dimensions
Wheel Base 2115mm
Length 2985mm
Width Agni :- 1450mm , Parinda 1430mm
Competitors
Mahindra & Mahindra has comprehensive manufacturing facilities with high level of
vertical integration. Catering to the Sector's diverse customer base spanning rural and semi
urban customers, defence requirements and luxurious urban utility vehicles or SUVs. These
manufacturing plants keep abreast with the latest technology to meet the growing market
expectations. These manufacturing facilities have some of the best technologies and
equipment in India and provide for a very challenging and satisfying work environment. Its
plants in Mumbai and Nasik manufacture multi-utility vehicles and engines are produced at
the Igatpuri plant. Utility Vehicles, Light commercial vehicles and 3 wheelers are
manufactured at the Zaheerabad plant in Andhra Pradesh and three-wheelers at the Haridwar
plant.
Mahindra Champion

89
 It is the leader in its category. It delivers about 5 km more per every liter than
the competition. And it comes with more space, more comfort and more savings. In
other words, a range of Champions for your every need. For cargo, for passengers and
for those who care about the environment-Champion CNG. And each one gives you
the unbeatable advantage only a Mahindra Champion comes with. The entire cargo
range has inbuilt value added features like soft drinks carrier, side opening delivery
van, aluminum delivery van, garbage tipper.
The Champion range:
1) Champion Pik-Up Van - The load carrying Champion
• Soft doors for all weather protection
• Shorter gear level for easy shifting
• Glove box to store documents and other items
• Coolant recovery tank to maintain radiator water levels
• Protective rear mudguard, water bottle holder and more
2) Champion CNG Pik-Up Van - The eco-friendly Champion
• A CNG powered engine that doesn’t compromise on power and pick-up
• Saves on fuel costs. 30% over diesel 3-wheelers
• Bi-fuel single cylinder (petrol/CNG), spark ignition engine
• 3-way catalytic convertor
• Internationally reputed CNG kit with interlock switch, speed limiter etc.
3) Champion Delivery Van - The all weather Champion
• Made from pressed, corrugated panels for extra-strength
• Comes with two lockable rear doors
• Great all weather cover with the added security of lock & key
• A total volume of 4 cu.mt. The largest cargo box to transport the largest load
• Perfect for transporting bakery products, cigarettes, eatables, juices, cosmetics, oil, eggs
and anything that requires protection from the weather
4) Champion Passenger Carrier - The comfort Champion
• Double advantage of extra mileage and extra space
• More legroom and headroom
• Comfortable seating so passengers don’t feel cramped
• Separate luggage compartment
• Also available in CNG & key
Mahindra Alfa

90
 The Alfa, it looks great but its performance is what makes the impact. Its extra
economy lets you save more, extra comfort lets you drive more and extra space lets
you carry more. So you earn a lot more.
• Superior mileage to volume ratio gives you more economy. So carry more and save on cost of
moving your cargo.
• Longer wheel base gives you higher stability so you can carry larger loads.
• Strongest and largest cargo box.
• Wide and tall cabin gives you excellent cross ventilation for tireless driving. Also makes for
effortless entry and exit. A feature you probably wouldn’t find in any other vehicle in this
category.
• Specially designed dashboard provides slots for mobile, mobile charger, stereo & FM tuner,
speakers etc. Carry all your accessories with you.
• Clear headlamp lens and multi-focal reflector. For brighter lights and safer night driving.
• Great style, great looks. Lets you stand out wherever you go.
TVS
TVS makes its foray into the three-wheeler market with TVS KING
TVS Motor Company today scripted a new page in its history with the formal launch of the
TVS King, thus announcing its foray into the three-wheeler market in India. The company's latest
offering was launched at a glittering function in Chennai by Thiru M. K. Stalin, Minister for Rural
Development and Local Administration, Government of Tamilnadu and Thiru K N Nehru, Minister for
Transport, Government of Tamilnadu in the presence of TVS Motor Company's Chairman Thiru Venu
Srinivasan and other dignitaries.
Launched in LPG and Petrol Versions, the TVS King would be India's first 200 cc two stroke
autorickshaw that will come with electric start and that is loaded with superior features. The TVS King
promises good mileage and is fitted with a higher capacity engine with the peak torque at lower rpm to
take care of gradability without frequent gearshifts. A modern low friction 7-port engine that is high in
fuel efficiency drives the TVS King. The engine operates at lower revolutions for a given road speed
thereby improving the reliability of the engine. Refined quality and engineering skills ensure that the
TVS King will deliver high value to its customers both in terms of styling and efficiency. The vehicle
comes with powerful twin 35 watt headlamps with bigger and brighter rear tail lamps and has a single
larger area windshield with laminated glass. Attractive interiors that add to the styling of the vehicle
include an attractive dashboard, dual tone high quality seats, and an integrated bumper. The TVS
King's electric start option reduces driver's fatigue. The vehicle has better head & legroom in the
passenger compartment while the suspension and the seat are positioned so as to optimize superior ride
quality for longer duration. Standard accessories include a water bottle holder and a magazine holder.
Styled on the lines of a car, the TVS King redefines all performance characteristics like initial pickup
and power, comfort, convenience, fuel efficiency, reliability and safety to give pride of ownership to
the driver. Optional accessories include stylish wheel covers, FM radio, a digital clock, an idol stand,
floor mats and an additional rear bumper.

91
 On the occasion, going beyond the product, TVS Motor Company also announced several
family welfare schemes for auto drivers and their families. The company will offer all TVS King
owners a one year free accident and healthcare policy. TVS Motor Company has tied up with reputed
insurance companies for the same. This policy will cover the owner and his family i.e. wife and
children against medical care upto Rs. 30,000 per annum on a floater basis. The owner will additionally
be covered by a personal accident policy for one lakh rupees. Given that auto drivers are cultural
ambassadors, TVS Motor Company also announced a novel training program to enhance the image of
these drivers and thereby create an atmosphere where these drivers enjoy their work as well. Through
this program, TVS King drivers would be provided with training in courtesy and friendliness. They will
also be given training in safety and preventive maintenance.
TVS Motor Company also announced another unique recognition scheme to promote
education through which the company will recognize and reward children of TVS King Owner/ Owner
Drivers who secure the three highest marks in Class X and Class XII examinations in each state in our
country. TVS would be leveraging its existing extensive distribution & service network in India and 47
countries abroad to market and provide superior customer experience in sales and service.
“The three-wheeler market has grown at an 18 per cent CAGR (compounded annual growth
rate) over the last five years, faster than that of two-wheelers and commercial vehicles. As the economy
grows, the public transport system will not be able to cope up with the demand. A large section of the
public will turn to autorickshaws for transport,” said H S Goindi, senior vice-president, three-wheeler,
TVS.
In April-July, TVS witnessed a drop of nearly 16 per cent in its two-wheeler sales. The
company enters the three-wheeler segment armed with three two-stroke models of 200cc, each running
on petrol, LPG and CNG. The diesel version will come in 18 months. The company also intends to
launch four-stroke three-wheelers in six months.
The products unveiled today will be launched in a phased manner between October and
November this year. The prices will be announced at the time of the launch.
These will be manufactured at the company’s greenfield plant in Hosur and will entail an
investment of Rs 125 crore. The installed capacity will be 100,000 a year.
India’s three-wheeler output in the last financial year was 556,000. The market leader was
Bajaj Auto, accounting for a 57 per cent share. But during April-July this year, Piaggio cornered a 41
per cent share, against 42 per cent for Bajaj.
Bajaj Auto’s products are priced in the range of Rs 56,000-75,000 (ex-factory). TVS is likely
to price its vehicles a bit lower.
Goindi said TVS aimed to capture at least 30 per cent of the three-wheeler market in the next
three years. The petrol version of the three-wheeler market is expected to grow at 7-8 per cent and the
diesel version at 10-12 per cent. The company also aims to export three-wheelers and is looking to
assemble them at its Indonesia plant in a year.
TVS three wheeler:
TVS Motor’s new passenger three-wheeler will come fitted with a 200cc, two-stroke, 7 ports
engine. The three wheeler’s petrol engine produces a peak power of 8.5 bhp and a peak power torque of

92
18 Nm. The three wheeler comes with an electric self-start. The three wheelers are expected to e price
between Rs50000 – Rs75000. TVS also rolled out LPG and CNG version of the passenger
autorickshaw along with the petrol version. TVS is working on a four-stroke engine platform which
will be launched within the next one year. TVS will come out with a cargo version of the three-wheeler.
The cargo version of the three-wheeler would be in the diesel category at a payload capacity of one-
tonne. The vehicle will be fitted with a higher capacity engine with the peak torque at lower rpm to
take care of gradability without frequent gearshifts.
Bajaj Auto to revamp 3-wheeler product range
Bajaj Auto Ltd (BAL) has decided to replace its entire three-wheeler portfolio and go back to
the drawing board for a range of new products in the three and four-wheeler segment. The company
will set up a new plant for these products at its existing facilities at Waluj near Aurangabad.
The Managing Director, Mr Rajiv Bajaj, told Business Line that product development work
has started at the company's R&D facilities for a range of three-wheelers, four-wheelers and passenger
and goods transport vehicles that will replace the existing models.
"Our three-wheelers were designed in the sixties and I am convinced that we are already five years too
late in starting this effort," Mr Bajaj said."In the short term, our three-wheeler business will be under
pressure but it contributes to over 20 per cent of our profits and we are convinced that with a new
range, profitability figures can be even bettered." The company's total sales of three-wheelers in the
domestic market in fiscal 2004-05 fell 4 per cent to 1,56,312 units from the previous year's 1,63,408.
Its market share in the three-seater-three-wheeler passenger vehicle segment also dropped to 86 per
cent from 92 per cent in the previous year. "The small three-wheeler segment is going through
difficulty because it is completely governed by permits and there are restrictions on them now in many
places," he said.
BAL's goods carrier business, however, grew by 36 per cent (against the industry growth of 28
per cent in the goods cargo segment) to 32,500 units and gained a 1 per cent share of the market. BAL
has a 26 per cent share in the three-wheeler cargo vehicles business where it is pitted mainly against the
Piaggio's Ape. Replying to a specific query, Mr Bajaj said the new facility at Waluj would be
benchmarked against the company's motorcycle plant at Chakan and said it would initially manufacture
25,000 vehicles a month. "We expect to see the results of this effort in three years," he said. Even as the
company's market share in the business has recently dropped due to competition, it has simultaneously
revamped its three-wheeler sales channels, appointing 100-150 dealers exclusively to sell these
vehicles. "We want dealers who will focus on selling just this product," Mr Bajaj said.
Bajaj Auto launches CNG three-wheelers in Indonesia
Mumbai: Bajaj Auto today launched its CNG three-wheeler in Indonesia. The Bajaj CNG will
replace the dated two-stroke three-wheelers that ply in Jakarta. Around 250 vehicles will be replaced by
the end of October 2006, and 15,000 vehicles are expected to be replaced in the near future. The
opening of this market is expected to add significantly to Bajaj auto's three-wheeler exports, which
crossed the 75,000 mark in 2005-06.
Bajaj Auto would be retailing the vehicles through its distributor PT Abdi Raharja. The master
showroom and workshop has been built with three floors of 600sq metre area each, and is located

93
centrally in South Jakarta. According to Sanjiv Bajaj, executive director, Bajaj Auto Ltd, "We are proud
to offer the Bajaj four-stroke CNG three-wheelers to the people of Indonesia. Jakarta is a very large,
modern city and there is a need to replace the existing three-wheelers with a convenient, comfortable
yet economical transport. We are happy to offer the Bajaj CNG, which will complement existing mass
transport, to provide fast and easy point-to-point transportation solution to the citizens of the city."
The Bajaj CNG three-wheelers have a four-stroke engine and can run on both CNG and petrol,
and come with a host of safety measures. The enclosed cabin provides safety to the passengers and
drivers apart from being secure from theft. The CNG cylinders are manufactured by Worthington of
Austria, and tested and approved by international testing agency Bureau Veritas. The vehicle is also
fitted with a 'bursting disc', which acts as a safety valve and releases gas into the atmosphere, if the
pressure of the gas in the cylinder exceeds 300kg/cm ².
The Bajaj CNG three-wheeler conforms to emission norms ECE R-40 as per Decree KEP-141
of 2003 issued by state minister of environmental affairs, Indonesia, and reduces carbon monoxide
(CO) emissions by over 90 per cent, non-methane hydrocarbons emissions by almost 75 per cent,
carbon-dioxide (CO2) emissions by 25 per cent, and particulate matter load by 70 per cent as compared
to the existing two-strokes vehicles. Apart from India, Bajaj three-wheelers are used in Sri Lanka,
Guatemala, Peru, Mexico, Egypt besides of course Bangladesh where 25,000 CNG vehicles already
ply. In India, the vehicles can be seen where CNG supply is available. 50,000 units in New Delhi and
30,000 units in Mumbai are currently plying.
Here comes the Honda India auto rickshaw!
Hot on the heals of the Honda Unicorn will come the first Honda three-wheeler, a Honda auto
rickshaw that will take on the likes of the ubiquitous Bajaj rickshaw and the Piaggio Ape. The new
rickshaw from Honda will feature a modified Honda Eterno engine (150 cc), and may later be offered
in a 200cc version too. We do not know for sure, but sure we haven't heard about any three-wheeler
from Honda before that is a passenger carrier like the proposed three-wheeler. Honda may have other
three-wheeled vehicles, but they are most probablyATVs (allterrainvehicles).
So after making its mark in the scooter market and winning the battle with India's largest scooter
manufacturer; and about to launch a motorcycle that will take on the same manufacturer's best-selling
motorcycle, Honda India is about to take on the same auto manufacturer in the three-wheeled passenger
segment too. Very, very interesting. The other players in the three-wheeler segment in India are
Mahindra and Mahindra, Piaggio and Atul Auto - all of whom are marginal players in the market. So
there is a good chance that Honda Motorcycles and Scooters India will manage to snatch a large piece
of the three-wheeler pie.
FOUR WHEELER’S SEGMENT COMPETITOR
Mahindra’s MaXX
MaXX Pik-Up fitted with DI Super engine
Fuel efficient engine-More profit per trip, per km
India’s largest selling UV engine
Fuel efficient engine-More profit per trip, per km
Less maintenance-ensures less cost, better engine life & good resale value

94
 Smooth engine-less noise, less vibrations
High pulling power with torque 16.55 kgm at 1500 rpm
40 kW at 3200 rpm (58 HP) for faster pick up
3 year unlimited km warranty
Heavy duty rear axle
Heavy duty wheel rims
The new MaXX Pik-Up Flat Bed has a flat cargo box which opens on all three sides. Thus
making loading and unloading effortlessly easy. But that’s not all.The new Flat Bed has everything that

you’ve come to expect from the MaXX Pik-Up. The powerful DI Turbo engine that refuses
to compromise on fuel economy. The low turning radius that allows you to manoeuvre
in the t ride really comfortable. And of course, the low cost of maintenance that you’ll find in every
Mahindra vehicle. The new MaXX Pik-Up Flat Bed, now MaXX convenience too ightest spots.
The new generation chassis and suspension that make the
Unique features:-
• Heavy duty rear axle
• Fuel efficient DI Turbo engine
• Flat & spacious cargo box
• Cargo box that opens on 3 sides
• Low maintenance cost
• Low turning radius
• Radial tyres
• Heavy duty wheel rims
Presenting a vehicle where every feature is designed with your profit in mind.
MaXX Maxi lets you load more than you ever did. It gives you more speed, more
pick-up, more power and unmatched fuel economy. So you make more than ever
before. Go ahead think big, achieve big and be as big as you ever wanted to be.
FEATURES
High Fuel Efficiency
The DI Turbo engine, the largest selling UV engine in the country, delivers an
unmatched fuel economy of 16 kmpl*.
Low Maintenance
Like any Mahindra vehicle the Maxi Truck too will be low on maintenance costs and easy on
your pockets
More Stability
Radial tyres and a rigid suspension make sure you're perfectly balanced whatever the road
conditions
More Safety

95
 Strong new generation chassis and body gives you more durability and safety even with the
heaviest of loads.
Big on Speed
Push the speedometer needle to a place it has never gone before. Hit speeds of 100 kmph. Do
more trips per day. Earn much more than you ever did.
Big on Ground Clearance
Bigger radial tyres, rigid suspension and 180mm ground clearance allows you to go over
speed breakers, potholes and craters without worrying about damage to the undercarriage.
Big on Loading Capacity
Load 900 kg with ease. Or over 150 kg more than any other vehicle in its class. And get the
largest loading area with the flat bed cargo box.
Big on Power
The powerful 63 HP engine allows you to race up the steepest of inclines even with the
heaviest of loads. Leaving other vehicles struggling far behind.
TATA Motor’s ACE
ABOUT TATA ACE: Main Competitor to APE, TRUCK in this segment of Auto mobile.
A new revolution in transport, which is set to change the competitive landscape of the small
commercial vehicle segment. Tata Ace - the small, big machine
Tata Motors is India’s only full range manufacturer of automobiles with a portfolio covering:
Trucks, Buses, Utility vehicles and Passenger Cars.
It has the distinction of being the fifth largest medium and heavy commercial vehicle
manufacturer in the world, with a significant presence in Asia, Europe, Africa and Latin America. Tata
Motors has a manufacturing base in Bangladesh and a bus body plant in Senegal.
Tata Motors offers the most comprehensive range of commercial, passenger and multi-utility
vehicles. Over 150 models - from 2 tonne LCVs to 40 tonne tractor-trailers and buses that can seat 13
to as many as 67 people - provide a wide variety of transport solutions. Through the synthesis of
inherent competencies with state-of-the-art systems, processes and technology, Tata Motors has
continuously evolved, adding value to its products, and is now heading towards being a global player.
The goal is not just to better its product portfolio, but also to keep expanding it, emerging as a
commercial vehicle manufacturer with a complete and comprehensive product range. The acquisition
of the Daewoo Commercial Vehicle Co., South Korea in March 2004 was an important step in that
direction - a logical extension of the product portfolio for Tata Motors. The hugely successful launch of
the fully-built coaches and branded buses (under the 'Globus' and 'Starbus' brand names, respectively)
March 2005, was an extension of the product portfolio to plug a significant gap in the market.
Recognizing a gap in the market for small commercial vehicles, Tata Motors worked towards
an innovative solution. In an era where there is a need is to transport goods speedily, conveniently and
in a cost effective manner, while providing comfort, style and easy maintenance, Tata Motors has
developed the Tata Ace - India's first mini-truck. Ideal for short, narrow village roads as well as long
highway hauls, for small bulky loads and large heavy ones, the Ace is an innovative 4-wheeler offering

96
for the first time in this category. The small exterior belies the power-packed technologically-superior
engine which gives the Ace high power and high loading capacity.
Tata Winger Cargo:
The all new Fuel-efficient Winger Cargo from Tata Motors.
Now you have Winger Cargo - a smart looking, fuel efficient cargo delivery van with two
‘firsts’ to its credit. It is India’s first delivery van with Power Steering and also the first with a front
wheel drive.
Specifications Are:
• Front wheel drive for greater fuel efficiency
• Ready-to-use factory built monocoque pressed steel body
• 6.4-metre turning radius for easy maneuverability
• Low floor height for easy loading & unloading
• Large branding area on vehicle body
• Power steering
• Independent front suspension for comfortable rides
• BSIII Compliant
• Compressed engine & driveline compartment for maximum space
Next question was about the sales depots.
Each company is having their own sales depots throughout the country. The products are
distributed to stockists from these depots. The depots of different companies are located at different
places. The depots of RAMCOR , Varun ltd, Jasper Ltd, Sundaram Ltd, located in the following places
Garapati auto Bajaj Autos T.V.S Autos Jasper ltd Mahindra &
venture ltd Mahindra
(RAMCOR)
Vijayawada Vijayawada Vijayawada Vijayawada Vijayawada
Guntur Guntur Guntur Guntur Guntur

About the Price Factors

The question was regarding the basic price of Autos. Basic price is which is constant
throughout the country. Each company has its Own basic price. (In Rs. Per Auto)

Brand APE AUTO Bajaj Autos T.V.S Autos Mahindra ALFA

Basic price 1,40,500.00 1,38,865.00 1,40,000.00 1,49,650.00
The basic price is the price of the product excluding taxes, which is constant though out the
country at a particular time.
The question was regarding the basic price of Trucks. Basic price is which is constant
throughout the country. Each company has its Own basic price. (In Rs. Per Truck)
Brand APE Truck TATA ACE Mahindra MAXX Truck
Basic price 2,45,800.00 2,98,000.00 3,18,000.00

The basic prices are not fixed. These vary from time to time.

97
Next question was asked to enquire about the discounts offered by the company
The companies offering discounts to stockists or to customers in order to achieve maximum
sales of their products. The following are the generalized methods almost all companies are following.
• Cash discounts
• Exchange offers
• One year insurance free
• Complementary gifts.
All the companies allow different rates of discount to their stockists and customers. The
discounts allowed by the companies are as follows.
Brand Discount percentage
Tata Ace xxxxxxx
Ape Truck Mark1 xxxxxxx
Mahindra Maxx xxxxxxx
Varun Bajaj Autos xxxxxxx
T.V.S Autos xxxxxxx
Mahindra Alfa, Champion xxxxxxx
Ape Autos xxxxxxx
The discount rates offered by the companies are changing from time to time. The variation
mainly depends on the stock positions in the depots.
Next question was asked to know something about the transportation of the final product.
Mainly there are two types of transportation facilities that are available in India. They are
railways and roadways. All companies use roadways as the transportation system.
All the companies are following only the E.D.C.M destination. In this method the freight
charges are deducted from the bill and the stockiest has to pay the freight charge. This means the
freight charges is borne by the company. Some times the stockiest has to pay extra money towards
transportation. Some times the freight charge given by the company may not match the market rate of
transportation. In such cases stockiest loose some money out of their margins.
The road system was available for transportation of Autos to all the companies. Hence all
companies are using only the road transportation, because the trucks can reach the godowns of the
stockiest easily where as railway may not reach safely and easily.
All the companies are following E.D.C.M destination system in this the company will bear all
the transportation system in this the company fixes the transportation charges, this charge is reduced
from the bill and the stockiest have to pay the transportation amount to the truckers.
About The Distribution
The question was asked about the distribution system. Distribution system means the
distribution of the product from the place of the manufacturing to the place where the ultimate
customer buys it.
Naturally the distribution system contains Manufactures, Wholesalers, Dealers, and Retailers.
But for this Auto industry all the companies are following same distribution system.
Plant depots customers

98
 The products are manufactured in the plants and they are transported by trucks to depots for
warehousing. According to the orders placed by the stockiest the product is sent to the stockiest i.e. the
material is directly transported to stockiest from the depot.
Next question was regarding the management of the depots.
Each company is having its own depots located all over India. The depots are owned by the
company itself. Each depots is having a depots in charge who is appointed by the company and he is
the person manages the depot.
Next question was regarding the number of stockiest present in each district.
Each company is having one or two stockiest in each district.

99
About Advertising
All the companies are following the corporate advertising. i.e. the company advertises about
the product and the company. All the costs are borne by the company,
In each district the company depots or stockiest follow different media for advertising. They
are
Stockiests Media of advertising
Garapati (RAMCOR) Audio, wall paintings
Varun Bajaj Auto Audio, wall paintings, audio visuals
T.V.S Auto Audio, wall paintings
Mahindra Auto Audio, wall paintings
Jasper Tata Audio, wall paintings
Analysis of the Study Considering the Data Given By Stockiest
I have met about five stockiest in Vijayawada, Krishna District.. The questions relating to the
“organization, product” are omitted from the questionnaire while approaching the stockists. Then the
questionnaire consists of bio-data of the stockists, price factors, distribution, sales and advertising.
About Bio-Data of the Stockiest
It consists of
1. Name of enterprise
2. Name of the stockists.
3. Stockist of the company.
Next question was regarding the billing procedure.
All the companies are following the same billing procedure and it is as follows.
Basic price xxxxxxx
Less: discount(if any) xxxxxxx
Add: sales tax(15%) now VAT xxxxxxx
Less: freight xxxxxxx
Total Xxxxxxx
Firstly if any discount is allowed that will be reduced from the basic price. Then sales tax and
insurance will be added. Lastly the freight charge is deducted from the bill.
Next question was asked about the profit margin of the stockist.
The profit margin of the stockist varying from 1% to 6% or even more. Taken into
consideration the demand for the product, stockists fix up their profit margins.
About Sales
The question regarding the average sales per month that each stockist sells.
Each stockists sell different quantities. The selling capacity of each stockist is varying from 10
to 15 vehicles per month.
The sales figures of different brands per month are as follows. (Vehicles per month)
Brand Krishna Guntur district Total
district
RAMCOR 20 15 35
Varun Bajaj 25 10 35
T.V.S 15 12 27

100
Jasper Tata 10 08 18
Mahindra 08 15 23

101
Age Group:-
Age influences the perception level of consumer. Different age groups prefer different types of
products. The tastes and preferences of different age group different from that of the other.
Table: 1
Age Group Number of persons

18-30 53
30-35 33
35-45 8
Above45 6

Interpretation: From the above data it is clear that most of the people served are from the age Group
of 18-30 i.e.53%of the people who belong to this group are willing to buy Autos 30-35.33%of the
people belong age group 35-45.8% belong to age group Above 45. 6%

Number of persons

60

50

40

30 Number of persons

20

10

0
45
0

5
-3

-3

-4

ve
18

30

35

bo
A

102
Occupation
The people surveyed belong to different fields they are mainly from…those who are
using autos are:
Table: 2
Occupation Number of persons

Business 20
Drivers 68
Agriculture 12

Interpretation: Only 20% of people are using Autos for Business, 68% are Auto Drivers and 12% of
people are using for Agriculture.

80

70

60

50
Occupation
40
Number of persons
30

20

10

0
1 2 3 4

103
Brand Share: Different types of people will choose different Brands for their requirements and needs
let’s see how many are Preferring Ape.
Table: 3
Brand Number of persons

Ape 52
Mahindra 20
T.V.S 12
Bajaj 16

Interpretation: 52% of people are choosing Ape as their Favourite, besides Mahindra with 20%, T.V.S
with 12% and Bajaj with 16% in the market of Vijayawada.

Number of persons

Ape
Mahindra
T.V.S
Bajaj

104
Brand Image:
The brand image of company is a very prestigious thing. Manufactures work out a lot for maintaining
their product up to the Perceptions of the customers. So they will give a great value to the brand image
of product.
Table: 4
Opinion Number of persons

Excellent 30
Good 60
Satisfied 10

Interpretation: 60% of the people made Ape Brand Good, 30% of the people gave excellent mark and
10% of the people gave satisfied mark.

Number of persons

70
60
50
40
Number of persons
30
20
10
0
Excellent Good Satisfied

105
Problems:
Table: 5
Problem No Of Respondents
Crank 18
Clutch 24
Gear box 12
Service 46

Interpretation: Majority of share i.e. 46% of people are dissatisfied with service offered by the
Company, 18% complained about crank, 24% with Clutch and 12% with Gearbox are more
complained..

No Of Respondents

18%

Crank
46% Clutch
Gear box
24% Service

12%

106
Prices of spare parts:
Table: 6

Spare Parts Prices are HIGH No Of Respondents

Yes 78
No 22

Interpretation: 78% of customers are given that spare parts prices are high and 22% are adjusting with
the prices sold in the Company.

No Of Respondents

22%

Yes
No

78%

107
Satisfaction about the Vehicle

Table: 7
Vehicle Satisfied No of Respondents
Yes 78
No 22

Interpretation: 78% of customers are satisfied with the Vehicle they are using and 22% are
complaining about the product and are dissatisfied.

No of Respondents

22%

Yes
No

78%

108
Reference:
Table: 8
Vehicle No Of
Recommended Respondents
Yes 88
No 12

Interpretation: 12% of the people will not recommend to others to buy Ape Autos and Trucks.
Majority 88% will recommend to others and benefited by Ape pariwar plan, to get Discounts offered by
the Company.

No Of Respondents

12%

Yes
No

88%

109
Vehicle Requirement in the Market
Table: 9
Product No Of
Recommended Respondents
C.N.G 88
Truck 12

Interpretation: 88% of Ape lovers are interested to buy C.N.G version if company made it available in
the Market and 12% of the people are interested about back Engined Truck. Company must consider
this issue..

No Of Respondents

12%

C.N.G
Truck

88%

110
Availability of Spares in the Market
Table: 10
Availability of Spares No Of Respondents
Comfortable 94
Not up to the Mark 6

Interpretation: 94% of the customers are satisfied with the spares availability in the market and 6% of
the customers are dissatisfied and Complained that they are not up to the mark.

No Of Respondents

6%

Comfortable
Not up to the Mark

94%

111
Rating on Dealership:
Table: 11
Rating on Dealership No Of Respondents
Excellent 65
Good 20
Average 10
Poor 5

Interpretation: 65% of the customers rated RAMCOR is Excellent, 20% of them told good and 10%
of the customers rated average on the Dealership

No Of Respondents

5%
10%

Excellent
Good
20%
Average
65% Poor

112
Rating on Servicing Station.
Table: 12
Rating on Service Station No Of Respondents
Excellent 5
Good 10
Average 20
Poor 65

Interpretation: RAMCOR must improve in this corner, 65% of the customers rated as poor servicing
by the company,5% rated excellent,10% rated good and 20% of the customer rated as average.

No Of Respondents

5%
10%
Excellent
Good
20%
Average
65% Poor

113
QUATIONNAIRE TO SERVICE MANAGER (Spares Manager)
1. Accurate and Updated product and Price information is available to you?
Rating given: 2
Interpretation: Rating is below average, hence I suggest that company must improve
information flow regarding product and their prices to the customer.
2. Ordering Procedure In spares
Rating given: 2
Interpretation: Rating is below average, hence I suggest that company must improve ordering
procedures in spares department.
3. Order Monitoring
Rating given: 4
Interpretation: Rating is good, company must appoint statutory body to have better control
over the department.
4. Accurate Shipments
Rating given: 2
Interpretation: Rating is below average, hence I suggest to improve shipment process to get
better results.
5. Good Product Quality regarding Spares
Rating given: 3
Interpretation: Rating is average, company must consider this aspect to improve their quality
regarding spares.
6. Empathic and Reliable Contact persons as our Superiors
Rating given: 4
Interpretation: Rating is good, company is following good measures in getting and
maintaining supervisors.
7. Quality Discrepancy Reports regarding work
Rating given: 3
Interpretation: Rating is average, company must improve in maintaining quality of work in the
concern departments by adopting necessary training methods.
8. Packing Procedures regarding Dispatching
Rating given: 3
Interpretation: Rating is average, company must deliver the goods in the promised time to the
customers that can improve goodwill on the company and brand.
9. Problem Resolution
Rating given: 3
Interpretation: Rating is average, company must consider this issue and appoint concern
committee in solving customer’s problems in time.
10. Response Time in Inquires
Rating given: 4
Interpretation: Rating is good, company is good in this aspect and improving sales strategy.

114
11. How satisfied are you with Ape, Piaggio Services?
Rating given: 4
Interpretation: Rating is good, company is trying to satisfy its pupil by considering all aspects.
This is a good sign for any company.
Note: Rating is given in between 0-5 Marks Only according to Manager of Spares
Mr.Rama Krishna.

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Additional Information about RAMCOR, VIJAYAWADA
1. EKALAVYA is the training program for marketing executives in RAMCOR. It has duration of 2
days only.
2. RAMCOR is getting maximum market share from cities only.
3. All Customer Feed Back forms are analyzed by Customer Relationship Manager and by Sales
manager collectively.
4. About 60% of share is occupied by Ape in city and surroundings, in Auto Market.
5. Re-engineering is under process in Ape-Truck, they are Constant Mess Gear Box (Lever
operated Gear) 5 speed Gear box. Double cylinder Air cooled Engine.
6. At present Ape Truck occupied 9-11 %( app) in VIJAYAWADA market.
7. Expecting growth up to 25% of share in the Market by March-2010.
8. Ape auto is the First Vehicle having double doors in the auto segment.
9. RAMCOR was given Tipper autos to Pedana Municipality, for carrying waste & garbage.
10. While selling any Vehicle to customers, company will look Owner’s profile & his Business
needs.
11. If any Customer is willing to carry above 2 tones, Vehicle Order will be rejected.
12. According to Government G.O all 3 wheelers will be banned in city transportation. There will be
replacement of City Operated Vehicles (4 wheelers) in the place of 3 wheelers in near future.
13. Major Banks giving Loans to Ape Piaggio:
S.B.I
PUNJAB NATIONAL BANK
CORPORATION BANK.
14. COMPRESSED.NATURAL.GAS (C.N.G) is going to strike on roads this October-2009, in
three wheeler Segment.
15. NON-BANKING FINANCERS TO APE :
CHOLAMANDALAM
SHRIRAM
INDUS IND
L&T
16. Ape Cargo goods occupied 62% in ANDHRA PRADESH, 57% in All INDIA Level up to
December 2008.
17. Ape Passenger Auto occupied 68% in ANDHRA PRADESH, 60% in All INDIA Level up to
December 2008.
18. RAMCOR is going to launch APE LIFE (used vehicle) very shortly in between (July-August)-
2009
19. Piaggio Engine Oil span was given up to 10,000kms and costs 195RS/- per liter
20. Ape given Extended Warranty for 12 months by paying 1000/- only. Overall customer can get 20
months warranty.
21. CUSTOMIZATION - BEYOND IMAGINATION. Is the tag line of Piaggio.
22. Ape Piaggio got NDTV’s BEST COMMERCIAL VEHCILE AWARD FOR 2009

116
 FINDINGS
• Accurate and Updated product and Price information is
not available to the service Department.
• Ordering procedures not clear or not up to the mark.
• Average Product Quality regarding Spares
• Empathic and Reliable Contact persons as a Superiors
• Quality Discrepancy regarding work is Average
• Problem Resolution procedures not up to the mark.
• Dispatching of spares and vehicles are not in time
• Supervisors are properly trained in reaching their goals
• Company spare part prices are high when compared to
others
• There is no electrician for wiring and water boy for
water servicing in the guarage
• Most of the customers are not satisfied with the rear
Suspension facility in the Truck offered by the company
• 88% of the customers are preferring C.N.G vehicles in
the market.
• 94% of the customers are satisfied with the availability
of spares in the market
• 52% of the Vijayawada market is occupied by Ape
Autos.
• Only 8-11% is occupied by the Trucks in local markets
• 78% of the customers rated Ape autos satisfied with the
Autos

117
• 88% of the customers will refer to buy Ape auto and
truck to others
• 65% of the customers rated excellent dealership for
Ramcor
• 65% of the customers rated poor for the servicing in
Ramcor
• Stockiest does not support to the pupil who are needy
to his services

SUGGESTIONS
• APE must concentrate more on C.N.G segment to be a
competitor to Bajaj C.N.G autos in occupying local
markets.
• Co-ordination is missing between spares and service
departments in the Company.
• Monitoring Committee must be appointed by the
company to have Inventory Control Management
control all over the departments in the company.
• Spares department is much worried about the dispatch
of ordered spares by the Service department in the
Company.
• APE Pariwar (refer-sell-earn) marketing plan by the
company is not working up to its expectations.
Company should consider this issue.

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• Spares particularly Crank, Engine oil and Chassis are on
high rates. So customers are buying Duplicate spares
which are available in the local market and encouraging
them.
• APE Truck did not have elevation in finding customer in
the market.
• Customers are not satisfied with the Suspension
Mechanism in Truck.
• Back Engined Truck is not any way competitor with front
Engined truck-View of Auto drivers.
• To retain its mark in the market, Ape must release C.N.G
Vehicles in both 3 wheeler and 4 wheeler.
• Introducing Magic by TATA motors grabbing much
market in Passenger, 4 wheelers Segment in the local
markets.
• There is a lot of confusion about the company’s figures
regarding market share in both Auto and truck
segments.
• Due to Financial Recession around the World, many of
the Merchants are postponing their proposal of buying
new vehicles for their Business.
• Sudhakar Industries private Ltd, Hydraulic Auto truck
manufactures selected Ape auto is the best vehicle for
fitting Hydraulic mechanism , which is exhibited in
P.W.D.Grounds K.C.P Exhibition 2009 VIJAYAWADA.
• Reengineering must done in clutch, gearbox set up in
both autos and trucks

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 BIBLIOGRAPHY
Books:
 Marketing Management by Philip Kotler 2006
 Marketing Management by William Stanton
 Marketing research by C.R.Kothari, 2006

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  Marketing Management by ICFAI Press
Periodicals
 Business Today
 Surveys on Indian Auto Mobile industry
 Case studies on Global Automobile Industry By
Muthukumar R. ICFAI University Press.
Websites
automobileindustry.com Autonagar.com
mahindraandmahindra.co Ape 3 wheelrs.com
m Tata Ace.com
scribd.com Wegcars.com
citehr.com Autoindia.com
google.co.in Vicky. In
Company Brochures Ebay.co.uk
Bajaj Autos.com AfroAsiatic.com
T.V.S Autos.com Scribd.com
Mahindra & Mahindra RSS.com
Autos.com Automobileindia.com
Autocarindia.com Citehr.com
A-Z 3 wheelers.com
Piaggio autos/U.K.com

QUESTIONNAIRES ADMINISTERED

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 QUESTIONNAIRE FOR THE AREA SALES
MANAGERS
ORGANISATION
1. What is the organizational structure of your
organization?
2. Hierarchy of your field staff.
3. What is the area covered by each field consultant
PRODUCT
1. What are the different products that you manufacture
/ offer in your company?
2. Places where your plants are located.
PRICE FACTORS
1. What is the basic price of Ape Auto/Truck?
2. Any discount allowed in the bill?
3. Any additional discount?
1. in bill
2. Finance
4. What is the billing procedure that your company is
following?
a. basic price
b. discount
c. insurance
d. freight
e. sales tax / VAT
5. Freight charges that your company follows
1. 1.kilometre slab
2. Destination
6. Stockist price

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DISTRIBUTION
1. what is the distribution system of your company
2. from which plant do you get Ape vehicle
3. Who will manage the showroom?
a. company b. private persons c.
authorized dealer
4. which Districts comes under each depot
5. What is the means of transportation?
a. road ways b. railways
6. how many stockists your company have in each
district
7. What are the average sales of your depot per month?
ADVERTISING
1. What is advertising strategy of your dealership?
a. corporate advertising
b. involvement of stockists
2. What are the different media of advertising used by
your company?
a. Audio b. Audio visual c. Literature d. Wall
paintings e. Bill boards.

123
QUATIONNAIRE TO SERVICE MANAGER (Spares
Manager)
12.Accurate and Updated product and Price information
is available to you?
13.Ordering Procedure In spares
14.Order Monitoring
15.Accurate Shipments
16.Good Product Quality regarding Spares
17.Empathic and Reliable Contact persons as our
Superiors
18.Quality Discrepancy Reports regarding work
19.Packing Procedures regarding Dispatching
20.Problem Resolution
21.Response Time in Inquires
22.How satisfied are you with Ape, Piaggio Services?
Note: Rating is given in between 0-5 Marks Only.

(Source: Manager of Spares Mr.Rama

Krishna).

124
 QUESTIONNAIRE FOR THE STOCKISTS

BIO DATA OF STOCKIST

1. Name of the enterprise
2. Name of the stockist
3. Stockist for which company
PRODUCTS
1. What are the different products do you sell?
2. Location of territory?
PRICE FACTORS
1. Any discount allowed in the bill?
2. Any additional discount?
a. in bill
b. credit note
3. What is billing procedure that your company is
following?
a. basic price

125
 b. discount
c. insurance
d. freight
e. sales tax
4. Freight charges that your company follows
a. Kilometer slab
b. destination
5. Stockist price
DISTRIBUTION
1. What is the means of transportation?
a. road ways b. railways
SALES
1. what is the average sales per month
a. retail sales b. whole sale sales
ADVERTISING
1. What is the advertising strategy of your company?
a. corporate advertising
b. Involvement of stockists
2. What are the different media of advertising used by
your company?
a. audio
b. audio visual
c. literature
d. wall paintings
e. bill boards

126
 QUESTIONNAIRE FOR THE CUSTOMERS
1. Customer Name :
Address
Telephone number-
2. Vehicle Details:
Registration number:
Model Name:
Purchased date……… Engine number……
Chassis number………
Traveled KMS…….. Driven by Owner….. Driven
by Driver……
3. Customer Business Details………………………
If you had any other Vehicles……………………

127
Traveled Kms per one day…………………for how
many kms are you giving your vehicle for
servicing…………….
4. If you face any problem repeatedly regarding
vehicle………
5. If you feel that spare parts prices are high?
Yes….. No………
6. Are you Satisfied with your Vehicle…………………
……
7. Would you recommend buying vehicle to others,
that you are using……..
8. Will you buy any vehicle from Ape Piaggio………
……
9. Availability of spares parts in the market, do you
feel comfort………..
10.Does your vehicle reached your expectations…
……………………….
11.Your rating on Dealership ……………
a. Excellent b. Good c. Average d.Poor
12.Your rating on Service station…………… (0-
10marks).
a. Excellent b. Good c. Average d.Poor.
13.Your Valuable suggestions.
About vehicle……………………………………………
…
About Dealer……………………………………………
…

128
 About company…………………………………………
…

129