Comprehensive project Report on Honda

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A
COMPREHENSIVE PROJECT REPORT
ON
“A STUDY ON CONSUMER SATISFACTION TOWARDS NON-GEAR TWO
WHEELER OF HONDA IN RAJKOT CITY”
Submitted to
Marwadi Education Foundation’s Group of institution
In partial fulfilment of the
Requirement of the award for the degree of
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide: Miss KRISHNA UNADKAT
Submitted by
AKASH DETROJA DARSHAN RAJYAGURU
Enrolment No: 157340592047 Enrolment no:157340592040
MBA SEMESTER III/IV
Marwadi Education Foundation’s Group of institutions
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
Year: 2016-2017

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Student Declaration
I, AKASH DETROJA and DARSHAN RAJYAGURU hereby declare that the
report for Comprehensive Project entitled “A STUDY ON CONSUMER
SATISFACTION TOWARDS NON-GEAR TWO WHEELER OF HONDA IN
RAJKOT CITY” is a result of our own work and our indebtedness to other
work publications, references, if any, have been duly acknowledged.
Place :
Date :
(AKASH DETROJA)
(DARSHAN RAJYAGURU)

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Preface
Management is an essential ingredient in every organized endower One cannot get
knowledge just by reading book. He should have practical knowledge. It is said that, ̏
Practice makes a man Perfect. ̋ Theory makes him thoughtful. So, theoretical
knowledge is only a halfway in a study work. So, theoretical should be supplemental
by practical experience.
The knowledge gained by the student in college should be imparted practically. So
training is only way to achieve. Such expectation training process acts as a bridge
between college student and carrier performance.
We are very glad to present this report. All the valuable data are collected from
reliable from sources of the company which is trustworthy.

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Acknowledgement
As our part academic studies, we are students of Master of Business Administration,
are required in various of study on exploratory research on time management
practices at MBA student with a obtaining practical knowledge and increase our
ability towards practical training.
We are glad to submit this report. I like this opportunity to express my heart-felt,
sincere and deep sense of gratitude towards the management of “Study on
exploratory research on time management practices at MBA student” to providing
me a value untenable change in the experience
We take this opportunity to thank our Dean of the MBA department Dr. Suneet
Saxena who has constantly guided throughout our project.
I would like to thank Miss KRISHNA UNADKAT and all M.B.A. Staff members for
giving me valuable directly or indirectly support in preparation of this report.
Yours Faithfully,
(AKASH DETROJA)
(DARSHAN RAJYAGURU)

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Sr No Particulars Page.No.
Part I General Information
1 Company Overview 6
1.1 About the Company 7
1.2 About major Companies in the Industry 25
1.3 Product Profile (Major Products) 32
PART – II PRIMARY STUDY
2 Introduction of the Study 34
2.1 Literature Review 36
2.2 Background of the Study 39
2.3 Problem Statement /Rationale / of the
Study
40
2.4 Objectives of the Study 40
3 Research Methodology 41
3.1 Research Design 42
3.2 Source/s of Data 42
3.3 Data Collection Method 43
3.4 Population 44
3.5 Sampling Method 44
3.6 Sampling Size 44
3.7 Sampling Frame 45
3.8 Date Collection Instrument 45
4 Data Analysis and Interpretation 46
5 Results and Findings 61
6 Limitations of the Study 62
7 Conclusion/Suggestions 63
9 Bibliography [APA Format compulsory] 65
10 Annexure 67
INDEX

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General Information
CHAPTER-1
Company Overview

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1.1 About The Company
• Honda is the world’s largest manufacturer of two Wheelers , Recognized the
world over as the symbol of Honda two wheelers , the ‘Wings’ arrived in India
as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI ), a 100% subsidiary
of Honda Motor Company Ltd., Japan ,in 1999. Since its establishment in
1999 at Manesar, District Gurgaon, Haryana, Honda has lived up to its
reputation of offering the highest quality at the most reasonable price. Despite
being one of the youngest players in the Indian two-wheelers market, Honda
has become the largest two wheeler manufacturer as well as the second
largest two-wheelers company in India.
• Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is the 100% subsidiary of
Honda Motor Company, Japan – the World’s No.1 two-wheeler company.
Honda started Indian 2Wheeler operations in May 2001. In the 15 years since
then, Honda has grown to become the second largest two-wheeler company
in India with over 26 million happy customers in India. Today, every 7 seconds
a new customer joins the fast expanding Honda family in India.

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• Honda is also the fastest growing company in country today. With a host of
facilities under its wings, the first factory of HMSI is spread over 52 acres
including a covered area of about 100,000 sq. meters in Manesar, District
Gurgaon, Haryana with an annual capacity of 1.65 million units. To meet the
ever increasing demands of the products, Honda has started operations of its
second plant in Tapukara, District Alwar, Rajasthan. Expanding to full
operations , Honda production capacity has jumped 30% year on year to 2.8
million per annum in FY 12- 13.On February 17 2016, Honda enograted the
“World’s largest only scooter plant" at Vithalapur Gujarat with annual capacity
of 1.2 million units. The new plant will employ approximately 3000 people
within first 2 years of commercial production.
• Honda’s third plant at Narsapura Industrial Area near Bengaluru, Karnataka is
equipped to manufacture 1.2 million units. Utilizing production technologies
refined at Manesar & Tapukara plants as starting point, the 3rd plant is
employed with state-of-the-art manufacturing, automation and environment
friendly technologies to deliver quality products.
• Growth: Starting FY’16-17 on high note, Honda 2Wheelers India set the pace
of industry in the first quarter with a stellar 22% growth, compared to 14%
growth of domestic industry. Honda’s performance stood out as it reinforced
its position as both the Highest market share gainer and Highest volume
gainer of the Industry ). In automatic scooter segment, Honda’s market share
has now reached 58%.Continuing to post positive growth for every
consecutive year in its 15 years of Indian operations, Honda Motorcycle &
Scooter India Pvt. Ltd. (HMSI) closed FY’2015-16 with a bang. Honda’s total
sales for the fiscal stood at 4,483,459 two-wheelers while domestic sales
closed at 4,283,345 units as Honda’s all 3 existing plants in India continued to
run on peak capacity. Creating a new high, Honda’s 2wheeler exports crossed
the 2 lac mark (200,114 units) for the first time ever in fiscal year 2015-16!

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• Current Production: Honda started production in 2001 from its first plant of
1.6 million units capacity at Manesar (Haryana). In 2011, Honda expanded to
2nd plant of 1.2 million units at Tapukara (Rajasthan). This was followed by
3rd plant of 1.8 million units annual capacity at Narsapura (Karnataka) in
2013. All three plants are currently running on full capacity. Foreseeing future
increase in customer demand for automatic scooters, Honda inaugurated its
new 4th plant in India at Vithalapur (Mandal Taluka, Gujarat). Entailing
investment of INR 1,100 Crore, the green-field project is unique as Honda’s
only scooter plant in India. The first line started operations in February 2016
and in just four months, the 2nd line of additional 0.6 million units capacity
started operations in June’16 making this the ‘fastest ever capacity creation
by Honda 2Wheelers India. Overall, this takes Honda’s total production
capacity to 5.8 million units - 1.6 million units (1st plant), 1.2 million units (2nd
plant), 1.8 million units (3rd plant) & 1.2 million units (4th plant).
• Network: With new speed, Honda is adding approximately 2 new touch-
points every day. Adding 850 new touch-points, Honda 2Wheelers expanded
its network to 4,500+ mark ending FY’15-16. Aggressively expanding our
network footprint, with special focus on semi-urban and rural areas, we aim to
cross 5300 outlets by current fiscal end. Direct Offices: With its new corporate
office in Gurgaon, Honda has streamlined its strategic planning under 1 roof.
Parallelly, penetrated its direct office presence from its 5 regional offices to 11
zonal offices for amassing local market intelligence, strategizing, and
implementing regional approach faster. The 11 zonal offices are located at
key cities – Chennai, Raipur, Ahmedabad, Bhopal, Patna, Jaipur, Nagpur,
Mohali, Hyderabad, Bhubaneswar & Varanasi.

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• Fun Expansion: Honda is proud to be the industry first to promote fun, safety
and environment in India. Honda is proud to be the industry first to promote
fun, safety and environment in India. For 9 years, Honda has initiated and
expanded on popular fun initiatives from grass-root level (Gymkhana and
Honda Ten 10 Racing Academy) to giving national level exposure (Honda
One Make Race) to taking Indian racers to global racing platforms (Dream
Cup and Asia Road Racing Championship). Additionally, Honda has
introduced 4 global high-performance fun bikes in India. These include – CB
1000R, CBR 1000RR Fireblade, VT 1300CX and Goldwing 1800L.
• Safety Promotion: Honda has educated over 9 lac individuals of all age
groups on safety riding activity with special focus on empowering females and
kids. Additionally Honda 2Wheelers India has adopted ten Traffic Training
parks in Chandigarh, Jaipur, Bhubaneswar, Cuttack, Yeola- Nashik,
Hyderabad, Indore, Ludhiana and two in Delhi where it has trained over 3 lac
people on safe riding.
• Awards: In its 15 years journey in India, Honda 2Wheelers has won more
than 100 prestigious awards. In FY 2015-16, Honda’s products have already
won hearts of customers and critics alike including 4 JD Power awards.
Honda’s 110cc motorcycle Livo is recognized as the “Motorcycle of the Year
up to 110cc” by NDTV Car & Bike Awards. CB Unicorn 160 was recognized
as “Motorcycle of the Year up to 180cc” by NDTV Car & Bike Awards.
Honda’s flagship CBR 650F won accolades as Auto X Best of 2015 ‘Mega
Test’ and the India Superbike Award by EVO India. Additionally, Brand Honda
won the Reader Digest’s Trusted Brand in 2Wheeler category, 2Wheeler
Manufacturer of the Year (NDTV Car & Bike awards), Brand Excellence
Award in Automotive Sector – 2Wheelers (ABP News) and Quality Brands
2015-17 (Quality Brands 2015-16).

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1.2 About the automobile industry and major companies
• With the increasing growth in demand on back of rising income,
expanding middle class and young population base, in
addition to a large pool of skilled manpower and growing
technology, will propel India to be among the world's top five auto-
producers by 2015.
• India is also one of the key markets for hybrid and electric medium-
heavy duty trucks and buses. India is an extremely important
market for Hyundai. The Indian automobile sector is poised for
steady and strong growth in the future. The Indian automobile
industry holds good growth potential for the mid-term and long
term horizon, as per Mr Bo Shin Seo, MD and CEO, Hyundai Motor
India Ltd (HMIL). Moreover, Ford Motor Co plans to convert
India into global production centre for compact cars, once its
Sanand plant in Gujarat comes on stream in 2014, under a
project codenamed B562 that may induce three different
compact cars from the same platform.

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World Market Of Automobile Industry
The automobiles sector is compartmentalized in four different
sectors which are as follows:
• Two-wheelers which comprise of mopeds, scooters, motorcycles
and electric two-wheelers
• Passenger Vehicles which include passenger cars, utility vehicles
and multi-purpose vehicles
• Commercial Vehicles that are light and medium-heavy vehicles
• Three Wheelers that are passenger carriers and goods carriers.
Austria based motorcycle manufacturer KTM, the established
makers of Harley Davidson from the US and Mahindra &
Mahindra have set up manufacturing bases in India.
Furthermore, according to internal projections by Mercedes
Benz Cars, India is set to become Mercedes Benz’s fastest-
growing market worldwide ahead of China, the US and Europe.
The automotive industry is a wide range of companies and
organizations involved in the design, development, manufacture,
marketing, and selling of motor vehicles. It is one of the world's
most important economic sectors by revenue. The automotive
industry does not include industries dedicated to the
maintenance of automobiles following delivery to the end-user,
such as automobile repair shops and motor fuel filling stations.

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Hero MotoCorp plans to establish 20 manufacturing and assembly
facilities to expand its presence across 50 countries by 2020.
Nissan Motor India, the Indian unit of Japanese auto maker Nissan
Motor Co Ltd, has entered into an agreement with Ennore Port
Ltd (EPL), to export at least 60,000 cars a year through the port for
the next 10 years.
TVS Motor Co plans to launch two new motorcycle models in
the Kenyan market. These motorcycles will be specific to the
Kenyan markets in terms of usability, reliability and durability.
Moreover, the firm also plans to set up a two-wheeler assembly
line in Uganda and will also launch two motorcycle models in
the African nation.
HMIL has invested US$ 2 billion in two state-of-the-art
passenger car manufacturing facilities in India. Moreso, India
contributes 25 per cent of the firm’s global sales.
Mahindra & Mahindra (M&M) plans capital expenditure and
investments worth Rs 10,000 crores (US$ 1.63 billion) over the next
two years.
Suzuki India Ltd (MSIL) is setting up an operational integrated
research & development (R&D) centre in Rohtak, Haryana.
Tech Mahindra has signed an agreement with Volvo Car
Corporation. The IT Company will provide Volvo with a service to
maintain and develop a range of applications that can increase
efficiency and reduce costs.

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Isuzu Motors India plans to start contract manufacturing of its
sports utility vehicles (SUV) and pick-up trucks at Hindustan
Motors' (HM) Chennai plant from December 2013.
Daimler India Commercial Vehicles (DICV) has expanded its
network across the country. The company plans to establish
dealership facilities in over 100 identified locations across India by
2014.

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Indian Market of Automobile Industry
• INTRODUCTION
With the increasing growth in demand on back of rising income,
expanding middle class and technology, will propel India to be
among the world's top five auto-producers by 2015.
The automobile industry accounts for 22 per cent of the country's
manufacturing gross domestic product (GDP). The auto sector is
one of the biggest job creators, both directly and indirectly. It is
estimated that every job created in an auto company leads to three
to five indirect ancillary jobs.
India is expected to become a major automobile manufacturing
hub and the third largest market for automobiles by 2020,
according to a report published by Deloitte.
India is currently the seventh-largest automobiles producer in
the world with an average annual production of 17.5 million
vehicles, and is on way to become the fourth largest automotive
market by volume, by 2015.
young population base, in addition to a large pool of skilled
manpower and growing .

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• LEADING PLAYERS IN TWO-WHEELERS NON-GEAR SECTOR
Company Name Product Range Head Office Market Share(%)
HONDA Activa
Deo
Aviator
Activa 3G
Activa i
Gurgaon in
Haryana
40
HERO
MOTOCORP
Pleasure
Maestro
New Delhi 18
SUZUKI Access
Swish
Minami-ku,
Hamamatsu
20
TVS Pep+
Wego
Jupitor
Scooty streak
Scooty Zest
Chennai 13
MAHINDRA &
MAHINDRA
Duro
Rodeo
Mumbai 09

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• MARKET SHARE
• The growth story for the Indian automobile industry in 2014 rode on
the two-wheeler segment. The segment has clocked positive growth
at 12.9 percent year-on-year to reach sales of nearly 13.5 million
units by October 2014. India's automobile sector has also picked up
pace, with eight of the country's leading manufacturers' reporting
combined passenger vehicle sales of 198,427 in November 2014, a
10 per cent annual rise. The rise in sales in November 2014 was
led by Maruti Suzuki, whose sales increased 17 per cent to 100,024
units in the domestic market.
• The commercial vehicles (CV) industry in India has registered an
increase of 8.59 per cent in September 2014, as fleet owners have
started to buy trucks in the anticipation of an improved economic
activity. The automobile sector in Andhra Pradesh has a potential
for US$ 1 billion investment and US$ 1.50 billion output, according
to a recent analysis by Automotive Components Manufacturers’
Association of India (ACMA) and city-based Andhra Chamber of
Commerce and Industry Federation (ACCIF).
• INVESTMENT
• To match production with demand, many auto makers have started
to invest heavily in various segments in the industry in the last few
months. The industry has attracted FDI worth US$ 11,351.26 million
during the period April 2000 to November 2014, according to the
data released by Department of Industrial Policy and Promotion
(DIPP). Some of the major investments and developments in the
automobile sector in India are as follows:

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• Snapdeal.com has entered into a partnership with Hero MotoCorp
Ltd to sell two-wheelers and expect its online automobile sales
to generate Rs 1,000 crore (US$ 162.33 million) of business in
next six to 10 months.
• Automotive supplier Uno Minda and Japan’s Toyoda Gosei Co
Ltd have announced a joint venture (JV) partnership to
manufacture and sell rubber hoses to automobile makers in
India. The JV will be set up with a total investment of Rs 85.3
crore (US$ 13.84 million) in a phased manner.
• Tafe Motors and Tractors Ltd (TAFE) has invested around US$ 140
million by way of equity in the US-based AGCO Corporation, a
worldwide manufacturer and distributor of agricultural equipment.
• Flipkart founders Mr Sachin Bansal and Mr Binny Bansal have
led a US$ 1million investment in Ather, an electric vehicle start-
up focused on designing high-speed electric two-wheelers.
• Harley Davidson Motor Co. has expanded their line up in India
as it has launched three new models— the Breakout, Street
Glide and CVO limited edition.
• Hero Electric is looking for merger and acquisition (M&A) options or
technology tie-ups to encourage its next generation electric vehicle
technology.

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GOVERNMENT INITIATIVE
• The Government of India encourages foreign investment in the
automobile sector and allows 100 per cent FDI under the automatic
route. To boost manufacturing, the government had lowered excise
duty on small cars, motorcycles, scooters and commercial vehicles
to eight per cent from 12 per cent, on sports utility vehicles to 24 per
cent from 30 per cent, on mid-segment cars to 20 per cent from 24
per cent and on large-segment cars to 24 per cent from 27 per cent.
Some of the major initiatives taken by the Government of India
are...
• The government’s decision to resolve VAT disputes has resulted in
the top Indian auto makers namely, Volkswagen, Bajaj Auto,
Mahindra & Mahindra and Tata Motors announcing an investment
of around Rs 11,500 crore (US$ 1.86 billion) in Maharashtra.
• The Automobile Mission Plan for the period 2006–2016, designed
by the government is aimed at accelerating and sustaining growth in
this sector. Also, the well-established Regulatory Framework under
the Ministry of Shipping, Road Transport and Highways, plays a
part in providing a boost to this sector.
• The Government of India-appointed SIAM and Automotive
Components Manufacturers Association (ACMA) are responsible in
working for the development of the Indian automobile industry.
• The Lok Sabha passed the Motor Vehicles Amendment Bill, 2014,
paving the way for regularisation of e-rickshaws.

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Growth of Automobile Industry
• The automotive industry in India is one of the largest automotive
markets in the world. It was previously one of the fastest
growing markets globally, but it is currently experiencing flat or
negative growth rates. In 2009, India emerged as Asia's fourth
largest exporter of passenger cars, behind Japan, South
Korea, and Thailand, overtaking Thailand to become third in 2010.
As of 2010, India was home to 40 million passenger vehicles.
More than 3.7 million automotive vehicles were produced in India
in 2010 (an increase of 33.9%), making India the second fastest
growing automobile market in the world (after China). India's
passenger car and commercial vehicle manufacturing industry
recently overtook Brazil to become the sixth largest in the world,
with an annual production of more than 3.9 million units in 2011.
From 2011 to 2012, the industry grew 16-18%, selling around
three million units. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to
4 million by 2015, not 5 million as previously projected.
Expected to grow at a compound annual growth rate (CAGR) of
13 per cent during 2012-2021, as per data published by
Automotive Component Manufacturers' Association of India
(ACMA). The world standing for the Indian automobile sector, as
per the Confederation of the Indian industry is as follows:
1. Largest three-wheeler market
2. Second largest two-wheeler market
3. Tenth largest passenger car market
4. Fourth largest tractor market
5. Fifth largest commercial vehicle market
6. Fifth largest bus and truck segment

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• GROWTH RATE IN TWO-WHEELER NON-GEAR SECTOR
YEAR GROWTH RATE
1993 0.316
1994 0.268
1995 0.254
1996 0.235
1997 0.272
1998 0.278
1999 0.302
2000 0.328
2001 0.302
2002 0.301
2003 0.280
2004 0.305
2005 0.353
2006 0.628
2007 0.697
2008 0.615
2009 0.689
2010 0.940
2011 0.988
2012 1.00
2013 1.20
2014 1.55

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Factors determining the growth of the industry
• Fuel economy and demand for greater fuel efficiency is a major
factor that affects consumer purchase decision that will bring
leading companies across two-wheeler and four-wheeler segment
to focus on delivering performance-oriented products.
• Sturdy legal and banking infrastructure
• Increased affordability, heightened demand in the small car
segment and the surging income of the Indian population.
• India is the third largest investor base in the world.
• The Government technology modernization fund is
concentrating on establishing India as an auto-manufacturing hub.
• Availability of inexpensive skilled workers
• Industry is perusing to elevate sales by knocking on doors of
women, youth, rural and luxury segments.
• Market segmentation and product innovation

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Employment Opportunities
• There are a wide range of jobs available in the automobile
industry. With the number of vehicles available on the road today,
the need and requirement for people who can fix these machines
is fast increasing. Careers like automobile technician, car or bike
mechanics are a great option. Becoming a diesel mechanic is
also a significant alternative. Diesel mechanics are responsible for
repairing and servicing diesel engines. As they are also required to
repair engines of trucks and buses, other than cars, they are
provided with hefty wages.
Employment Trends
• The Automotive Mission Plan for the period of 2006-2016 aims to
make India emerge as a global automative hub. The idea is to
make India as the destination choice for design and
manufacture of automobiles and auto components, with outputs
soaring to reach US$ 145 billion which is basically accounting for
more than 10% of the GDP. This would also provide further
employment to over 25 million people by 2016 making the
automobile the sunrise sector of the economy.

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Employment Trends
• The Automotive Mission Plan for the period of 2006-2016 aims to
make India emerge as a global automotive hub. The idea is to
make India as the destination choice for design and
manufacture of automobiles and auto components, with outputs
soaring to reach US$ 145 billion which is basically accounting for
more than 10% of the GDP. This would also provide further
employment to over 25 million people by 2016 making the
automobile the sunrise sector of the economy.

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1.2 About major Companies in the Industry
1. Honda
• Honda Motorcycle & Scooter India Pvt. Ltd was founded on August
20, 1999 at Manesar near Gurgaon in Haryana.
• The foundation stone for the Honda factory was laid on December
14, 1999 and the factory was completed in January 2001.
• The company initially ventured into scooters as its joint venture
agreement with the Hero Group precluded its entry into the
motorcycle segment for 5 years.
• The company set benchmarks in the Indian scooter industry with
the launch of its gearless scooter
• Honda Activa. Honda Deo, launched after it, was a slightly
upgraded and trendier version of Activa.

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• 1st bike launched by HMSI was Honda Unicorn. It was followed by
Honda Shine.
• All the products launched by HMSI were runaway hits in the
market.Its initial production capacity was 100,000 scooters per year,
which has now been upgraded to 600,000 scooters.
• The bike production capacity is 1000,000 per annum.
• Initial investment behind the factory was Rs. 215 crores and has
now grown to 800 crores.

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2 Hero
• Hero is the brand name used by the Munjal brothers for their flagship
company, Hero Cycles Ltd. Hero Honda started in 1984 as a joint
venture between Hero Cycles of India and Honda of Japan.
• Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the
world's largest manufacturer of two - wheelers, based in India.
• In 2001, the company achieved the coveted position of being the
largest two-wheeler manufacturing company in India and also, the
'World No.1' two-wheeler company in terms of unit volume sales in
a calendar year. Hero MotoCorp Ltd. continues to maintain this
position till date.
• Hero MotoCorp has three manufacturing facilities based at
Dharuheradun, Gurgaon in Haryana and at Haridwar in
Uttarakhand.

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• In 2010, when Honda decided to move out of the joint venture, Hero
Group bought the shares held by Honda. Subsequently, in August
2011 the company was renamed Hero MotoCorp with a new
corporate identity.
• On 4 June 2012, Hero MotoCorp approved a proposal to merge the
investment arm of its parent Hero Investment Pvt. Ltd. into the
automaker. The decision comes after 18 months of its split from
Honda Motors.

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3 TVS
• TVS was established by Thirukkurungudi Vengaram Sundaram
Iyengar. He began with Madurai's 1st bus service in 1911 and
founded T.V.Sundaram Iyengar and Sons Limited, a company that
consolidated its presence in the transportation business with a large
fleet of trucks and buses under the name of Southern Roadways
Limited.
• When he died in 1955 his sons took the company ahead with
several forays in the automobile sector, including finance,
insurance, and manufacture of two-wheelers, tyres and
components.
• The group has managed to run 33 companies that account for a
combined turnover of nearly $3 billion.
• TVS Motor Company is the 3rd largest two-wheeler manufacturer in
India and one among the top ten in the world, with annual turnover
of more than USD 1.4 billion in 2011-2012, and is the flagship
company of the, USD 7.29 billion, TVS Group.

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4 Mahindra & Mahindra
• Mahindra & Mahindra Limited (M&M) is an Indian multinational
automobile manufacturing corporation headquartered in the
Mahindra Towers in Mumbai. It is one of the largest vehicle
manufacturers by production in the Republic of India.
• The company was founded in 1945 in Ludhiana as Mahindra &
Mohammed by brothers K.C. Mahindra and J.C. Mahindra and
Malik Ghulam Mohammed. The company changed its name to
Mahindra & Mahindra in 1948.
• Mahindra & Mahindra was set up as a steel trading company in
1945. Over the past few years, the company has taken interest in
new industries and in foreign markets.
• They entered the two-wheeler industry by taking over Kinetic
Motors in India. M&M also has controlling stake in REVA Electric
Car Company and acquired South Korea's SsangYong Motor
Company in 2011.

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5 Suzuki
• Suzuki Motor Corporation is a Japanese multinational corporation
headquartered in Minami-ku, Hamamatsu, Japan, which specializes
in manufacturing automobiles, four-wheel drive vehicles,
motorcycles, all-terrain vehicles (ATVs), outboard marine engines,
wheelchairs and a variety of other small internal combustion
engines.
• In 1909, Michio Suzuki (1887–1982) founded the Suzuki Loom
Works in the small seacoast village of Hamamatsu, Japan.
Business boomed as Suzuki built weaving looms for Japan's giant
silk industry.
• In 1929, Michio Suzuki invented a new type of weaving machine,
which was exported overseas. Suzuki filed as many as 120 patents
and utility model rights. In 2011, Suzuki was the 10th biggest
automaker by production worldwide.
• Suzuki employs over 45,000 and has 35 main production facilities in
23 countries and 133 distributors in 192 countries. According to
statistics from the Japan Automobile Manufacturers Association
(JAMA), Suzuki is Japan's second-largest manufacturer of small
cars and trucks.

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1.3 Product Profile (Major Products)

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SPECIFICATIONS ACTIVA DEO AVIATOR ACTIVA
3G
ACTIVA i
PRICE IN INDIAN
RS. (ON ROAD)
54989* 53774* 56276* 56216* 52524*
FUEL ECONOMY 45-50
kmpl
40-45
kmpl
45-50
kmpl
60 kmpl 60 kmpl
COLORS Pearl
Sunbeam
White,
Black,
Grey
Metalic
Pearl
Sunbeam
White,
Trance
Yellow,
Sports
Red
Colors
Royal
Gold
Metallic,
Pearl
Sunbeam
White,
Trance
Blue
Metallic,
Lusty
Red
Metallic,
Gene
Grey
Metallic,
Black,
and Pearl
Amazing
White
Beige,
White,
Purple,
Red
ENGINE TYPE 4-Stroke,
OHC, Air
Cooled
109cc, 4-
Stroke
Engine
109cc, 4-
Stroke
Engine
109 Cc
and
125cc ,
DOHC
engine
109cc
Air
cooled
DISPLACEMENT
POWER
110cc
8 bph@
7500 rpm
109cc
8 bhp at
7500 rpm
109cc
8 bhp at
8000
rpm
109cc
8@bhp
7500
PS@RPM
109cc
8 bhp
@
7500
rpm
FUEL TANK
CAPACITY
5.3 litres 6.00
Litres
6.00
Litres
5 litres 5 Litres

34. Page | 34
PRIMARY STUDY
CHAPTER-2
Introduction of the Study

35. Page | 35
• The two wheeler industry has been in the country since 1955. It
generally consists of three segment mopeds, motorcycle &
scooters. Two wheelers have played a pivotal role in the rising
growth of the Indian automobile industry. The non gear two
wheeler markets have witnessed a sea change over the years. In
the past Indians preferred scooters but with rising income level &
standard of living there is a remarkable rise in the demand for non
gear which along with serving the purpose of a vehicle as become
a style statement for the youth of the country.
• In general SATISFACTION is a person’s feeling of
pleasure or disappointment resulting from comparing a
products perceived performance (or outcome) in relation to his
or her expectations. As this definition makes clear, satisfaction
is a function of received performance and expectations. If
the performance falls short of expectations, the customer is
delighted. High satisfaction or delight creates an emotional bond
with the brand, not just a rational preference. The result is high
customer loyalty. The Indian non gear market has grown
immensely and the preference for variety looks, design has
brought in a number of models in the market. Today India is
the second largest manufactures of two wheelers in the world. It
stands next only to Japan and China in terms of number of two
wheelers produced and sold. Presently many international brands
like Honda, Suzuki, etc. are competing with Indian brands such as,
Bajaj, and T V S, Kinetic etc. to capture Indian markets. Each
product offering is now designed to meet and exceed the
expectations of the customers. The present study was
conducted to know the customer satisfaction and the various
factors which influence the customers to purchase the two-
wheeler.

36. Page | 36
2.1 Literature Review
Siddhartha and S Mukherjee (2012):
• The study reveals that the two-wheelers in India are used for
variety of work such as visiting people, outdoor jobs like selling
and buying. In rural areas it helps people to travel more
frequently to nearby towns to their daily satisfied customer
needs. The two wheeler has becomes a valuable support for
increasing productivity and in turn the profit, besides helping as a
personal mode of transportation.
V.G.RAMAKRISHANAM (2011)
• The two-wheeler market that has seen an explosive rise in sales
over the last few years which created an opportunity for various
companies to enter the after sales business of two wheeler,
Honda and TVS, a company well known, has entered into the
motorcycle servicing business.

37. Page | 37
BISWAJIT MAHANTY & VIRUPAXI BAGODI (2010):
• More than 55 million two-wheelers are moving on Indian roads.
Accordingly,two-wheeler service sector should have generated
revenue amounting to INR 100,000 million per year, but in
reality, this has not been realized in the organized service sector,
the Indian two-wheeler service industry has not considered
servicing as a line of business and providing conveniently reliable
services is most important in two-wheeler services in India to
capture the market.
Prof. S. Saaravanan & Prof . N. Panchanatham (2009):
• They discussed the essentials for promotion of a product. The
result shows that a customer considers all factors at the time
of purchasing a two wheeler, although majority of customers give
importance to the brand image. This study also describes the
socio-economic factors which satisfy two wheeler customers and
that the employees and students crave for show room services.

38. Page | 38
Mrs. M.L. kamaeswari (The Indian Journal Marketing –
Oct - 2009):
• He has expressed that, industrialization has bought vast
changes in the automobile industry, because and development
of any area requires appropriate transportation facilities,
automobile industry in one of the fastest growing sectors in our
country. The rapid growth of middle class section is the primary
reason for the growth of two – wheeler industry people in rural
and semi urban areas are trying to devote their life style and
people in metropolitan cities are completely disappointed with the
public transport system.

39. Page | 39
2.2 Background of the Study
• Automobile industry in India is an important industry as many
private players are entering into Indian market with variety of
strategies to capture the market. The players are using
innovative strategies to attract the consumers and increase their
market share. Advertising and Promotion is an integral part of the
industry with which the companies try to attract consumers with
lucrative offerings.
• Satisfaction plays an important role in various offerings of the
company to the consumers. Satisfaction of the consumers hence
turns out to be an important aspect to be studied as consumers
in automobile industry takes decisions based on performance
of product and brand image of companies.
• Hence in this study efforts are made to identify the a study on
consumer satisfaction towards non-gear two wheeler with special
reference to Honda Brand

40. Page | 40
2.3 Problem Statement
• The main reason behind to undertake the research is to know consumer
satisfaction towards non-gear two wheeler of Honda.
2.4 Objectives of the Study
Primary objective:
• To measure satisfaction level of consumer using non gear two
wheeler of Honda.
Secondary Objective:
• To know customer preference while buying of Non-gear two
wheeler of Honda.
• To know which category of people are mostly using Non-Gear
Two wheelers of Honda.
• To find out the factors that influence on customers, when
they are purchasing non gear two wheeler of Honda

41. Page | 41
CHAPTER-3
Research Methodology

42. Page | 42
3.1 Research Design
• Descriptive research studies are those studies which are concerned with
describing the characteristics of a particular individual, or of a group, whereas
diagnostic research studies determine the frequency with which something
occurs or its association with something else.
• Research design is the arrangement of conditions for collection and analysis
of data in such a manner that aims to combine relevance to the research
purpose in accordance with the research procedure.
3.2 Sources of Data
• We have collected primary data by having convenient sampling method and
by asking the people to fill our questionnaire. We asked the people to fill up
the questionnaire on the spot. Secondary data will be collected from following
sources:
• Books
• Magazines
• Newspapers
• Websites

43. Page | 43
3.3 Data Collection Method
• The task of data collection begins after a research problem has been defined
and a research design has been chalked out. While designing about the
method of data collection, the researcher should keep in mind two types of
data:
PRIMARY DATA
• The data which are collected for the first time, directly from the respondents to
the base of knowledge and belief of the research are called Primary Data.
Primary Data means the data which we actually gather by making the survey
or field work.
• For this project, we have selected questionnaire method for primary survey
because out of all these methods, questionnaire is more flexible to collect the
information from the investors. It collect almost all the information that we
want for our survey by making a good format of questionnaire.
SECONDARY DATA
• The data which are collected and complied in a published nature is called
secondary data. Secondary data is the data which we actually collects
from the books, magazines, internet, newspaper or any other sources. It
is the data which we take for our reference for making the further analysis
of the project.

44. Page | 44
3.4 Population
• People of Rajkot city who are using Non gear two wheeler of Honda.
3.5 Sampling Method
• I have selected convenient sampling method for conducting research.
People were selected randomly and asked their view about Investment. At
same time Area Sampling is also taken into consideration.
• Because total area of interest happens to be big One Convenience
method of sampling is used to collect the data from the respondents.
Researchers or field workers have the freedom to choose whomever they
find, thus the name “convenience”.
3.6 Sampling Size
Total sample size we have taken for the survey are 200 people
using two wheeler non gear vehicle of Honda in Rajkot city.

45. Page | 45
3.7 Sampling Frame
• Total sample size which I have taken for the survey is 100 users.
• We have taken 4 groups of 25 respondents
i.e. Age group of 19-29
Age group of 30-39
Age group of 40-49
Age group of 50 or above
3.8 Data Collection Instrument
• Questionnaire
1. Research Technique : Questionnaire
2. Type of Questionnaire : Structured

46. Page | 46
CHAPTER-4
Data Analysis and Interpretation

47. Page | 47
1. Specify the name of Non-Gear vehicle of HONDA you’ve used/are
using.
On the basis of data analysis we interpret that most of customers
who are using activa model are 82 out of 200 because of
performance. And only 19 and 26 of customer out of 200 are using
activa i and activa 3G respectively.
82
28
45
26
19
Activa
Dio
Aviator
Activa 3G
Activa i
Activa 82
Dio 28
Aviator 45
Activa 3G 26
Activa i 19

48. Page | 48
2. Through which media do you get information about
purchasing your Non-Gear vehicle of HONDA?
From the above chart we can conclude that 35.5% of respondent
purchased or get information of non Gear vehicle of Honda through the
Advertisement. 29.5% of respondent purchased through knowing or get
information about the Family & friends, 22.5% of respondent purchased
through a Brand image of Honda, rest of the 6.5% & 5.5% of
Respondents purchased non gear vehicle through Electronic Media &
Trade shows.
71
11 13
45
59
1
Advertisement 71
Trade show 11
Electronic media 13
Brand Image 45
Family and Friends 59
Other 1

49. Page | 49
3. After test ride what do you feel about the driving comfort Non-Gear
vehicle of HONDA?
As per the survey we came to know that after the test drive 40.5%
Respondent feel Excellent to driving comfort, 27% respondent feel
Good, 22.5% respondents feel Average, 5.5% respondents feel
Okay and Rest of 4.5% feel Poor which is negligible. So we can
conclude that comfort level is excellent.
81
54
45
11 9
Excellent
Good
Average
Okay
Poor
Excellent 81
Good 54
Average 45
Okay 11
Poor 9

50. Page | 50
4. What are the reasons that you are going to purchase or used Non-
gear two wheeler of HONDA?
Price 15
Performance 65
Appearance 29
Brand name 79
After sales service 11
Genuine parts of availability 1
In our Survey we found that 39.5% respondents are going to
purchased because of Honda’s Brand image. 32.5% respondents
are going to purchase due to Honda’s performance & Mileage,
14.5% of our respondent to give reason that he purchased or used
Honda to its appearance and rest of 7.5% and 5.5% of respondents
gives reason that purchased due to price and after sales service.
15
65
29
79
11
1
Price
Performance
Appearance
Brand name
After sales service
Genuine parts of
availability

51. Page | 51
5. Rate the following benefits based on your satisfaction level.
FEATURES SATISFIED NEUTRAL DISSATISFIED
Comfort Level 162 31 7
Luggage Space 123 72 5
Looks 84 93 23
Performance 91 90 19
Pricing 50 82 68
Mileage 64 78 58
After Sales Services 105 77 18
This data suggest that features of comfort level, luggage space,
and performance and after sales service give full satisfaction to
customers While pricing of Honda brand is neutral or almost to
dissatisfied by customers.
162
123
84 91
50 64
105
31
72
93 90
82
78
77
7 5
23 19
68 58
18
0
50
100
150
200
250
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
DISSATISFIED
NEUTRAL
SATISFIED
FEATURES

52. Page | 52
6. What are the main purposes to buy Non-gear two wheeler of
HONDA?
For female members in the house 54
For children 27
For easy driving 61
For intercity travelling 57
Other 1
From the above chart we can conclude that based on
respondent views 27% of respondents main purpose to buy for
Female members in the house and 30% for easy driving each.
28.5% of respondent’s main purpose to buy for intercity travelling
and 13.5% to buy for his/her children to non gear two wheeler of
Honda and Rest of 0.5% of respondent to buy Non gear two
wheeler of Honda for other purpose.
54
27
61
57
1
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7 8 9 10

53. Page | 53
7. Rate the service provided by HONDA on the following scale:
Fully satisfied Satisfied Good Moderate Dissatisfied
5 4 3 2 1
57 66 59 17 1
As per our survey the rate of service provided by Honda 33% of
respondents are satisfied, 28.5% are fully satisfied & good , 8.5%
are moderate and only 0.5% is Dissatisfied for service provided by
Honda.
57
66
59
17
1
Fully satisfied
Satisfied
Good
Moderate
Dissatisfied

54. Page | 54
8. Rate the parameters for buying a vehicles on the following scale
Fully satisfied Satisfied Good Moderate Dissatisfied
65 63 54 17 1
As per our survey the rate of parameters for buying a vehicles by
Honda 32.5% of respondents are fully satisfied, 31.5% are
satisfied & 27% good , 8.5% are moderate for buying a vehicles of
Honda
65
63
54
17
1
Fully satisfied
Satisfied
Good
Moderate
Dissatisfied

55. Page | 55
9. If you contacted HONDA customer service, have all problems been
resolved to your complete satisfaction?
Yes, by the company or its
representatives
142
Yes, by me or someone outside the
company
43
No, the problem was not resolved. 15
The data of respondent says that majority 71% of customers
satisfied and very few 7.5% customers dissatisfied with the service
provide by company and problem solved by its representative
142
43
15
Yes, by the company or its
representatives
Yes, by me or someone
outside the company
No, the problem was not
resolved.

56. Page | 56
10.Based on your experience with HONDA, how likely are you buy
again this brand?
Defiantly will 85
Probably will 51
Might or might not 44
Probably will not 13
Defiantly will not 7
From the survey we found that based on the respondent experience
with Honda 42.5% respondents are like to purchase again this
brand because of superiority of brand, 25.5% are like to probably
purchase, 22% customers are might or Might not buy again,
and rest of 6.5% and 3.5% of respondents are purchase
probably will not or Definitely will not.
85
51
44
13
7
Defiantly will
Probably will
Might or might not
Probably will not
Defiantly will not

57. Page | 57
11.Rate or Impact of service provided by Honda on customer satisfaction
As per our survey the Impact of service provided by Honda on customer
satisfaction are 32% of respondents are satisfied, 30.5% are fully satisfied &
27.5% good , 9.5% are moderate, and only 0.5% dissatisfied.
61
64
55
19
1
0
10
20
30
40
50
60
70
Fully satisfied Satisfied Good Moderate Dissatisfied
Fully satisfied Satisfied Good Moderate Dissatisfied
61 64 55 19 1

58. Page | 58
12.Performance has significant impact on customer satisfaction
Satisfaction Neutral Dissatisfaction
98 85 17
As per our survey t he Impact of Performance significant of Honda on
customer satisfaction are 49% of respondents are satisfied, 42.5% are
Neutral & 8.5% are dissatisfied.
98
85
17
Satisfaction Neutral Dissatisfaction

59. Page | 59
13. Have you purchased on the basis of celebrity endorsement?
Yes 53
No 147
From the above research we can conclude that, most of that respondents
have purchase not on the basis of celebrity endorsement i.e.73.5%. while only
26.5 % respondents considered celebrity endorsement.
53
147
Yes
No

60. Page | 60
14. Have you purchased on the basis of other customers opinion?
Yes 92
No 108
From the above research we can conclude that, respondents who have
purchase on the basis of other customer opinion are 46%. while 54 %
respondents have purchased directly.
92
108 Yes
No

61. Page | 61
CHAPTER-7
RESULTS AND FINDINGS
From all of the above findings and analysis of table and charts we
came to know that most of our respondents are existing user of
Non-gear vehicles
Most of the people influence their purchase because of
advertisement & Brand Image.
When we want to know the overall preference while purchasing new
vehicle & satisfaction level of the respondents we came to know
that Activa wins the race against the all other Non-gear vehicles in
existing satisfaction level as well as future purchase intention of
respondents.
Out of 100 respondent 40 customers have activa. performance,
comfort level(81%) and luggage space(63%) of brand Honda give
full satisfaction while in price and mileage customer somehow
dissatisfied or neutral.
New introduced activa 3G have grab attention of customers
because of new look and updated version launched by Honda.

62. Page | 62
CHAPTER-8
LIMITATIONS OF THE STUDY
The sample size is very less; if sample size and duration of the study is
increased the results may be generalized to larger population.
There was lack of time and resources that prevented from
carrying out an in depth study.
The responses were not satisfactory.
The findings of the survey are based on the subjective opinion
of the respondent and no way of assessing truth of the
statements is considered in the study.
As it is a perpetual research study the responses may be biased
& would differ from person to person.
Lastly, some amount of error existing in the data filling process
because of the following reasons:
Influence of others,
Time barrier,
Misunderstanding of the concept.
Hurried filling of the questionnaire.

63. Page | 63
CHAPTER-9
SUGGESTIONS AND CONCLUSIONS
SUGGESTIONS:
Honda should introduce a low price moped.
For the promotion, company show make road-show that will
increase the sales. The company should give more concentrate on
the advertisement.
Honda Company should implement a new strategy to reduce the
competition and lead into the bike market.
As people expect more mileage per kilometer, company should
increase the mileage of the Honda Moped.
Honda should make a sports looks in moped so that male
influenced to purchase.
As already discussed the sample size is a limitation besides
some of the participants were not the actual owner of the
vehicle. But they are the consumer.
we suggest that honda give instant delivery of activa to
customers and not charged on price to customers.

64. Page | 64
CONCLUSIONS:
The results clearly show that honda has got a lot of way to
establish itself in the market.
Besides the price and mileage the common customer doesn’t
find anything attracting. Also the number of male preferring
honda is very less and that segment of customer has the major
market potential.
Only that passion toward the brand will help them succeed and
capture the Market share.
Advertisement gives information to customer about Honda brand.

65. Page | 65
CHAPTER-9
Bibliography
References
• V.G.Ramakrishnan (2003): Vehicle Servicing in India -
Transformation in progress, Frost & Sullivan Market Insight, pp 05.
• Biswajit Mahanty and Virupaxi Bagodi (2007-08): Two-wheeler
service sector in India: factors of importance for sustainable
growth, Journal of Advances in Management Research, Vol 5,
pp 21 – 27 International Journal of Services and Standards, Vol
3, pp 39 - 63.
• Prof.S. Saaravanan and Prof. N. Panchanastham, (2009): customer
behavior toward showroom services of two wheeler,
international cross-industry Journal–Perspectives of Innovations,
Economics & Business.
• Mrs. M.L. kamaeswari (The Indian Journal Marketing – Oct - 2009):
• Dhananjoy datta stated (2010): factors influencing customers
buying behavior of two-wheeler at agratala, Tripura, ICFAI
University journal.

66. Page | 66
• Media Reports, Press Releases, Department of Industrial Policy
and Promotion(DIPP), Automotive Component Manufacturers
Association of India (ACMA), Society of Indian Automobile
Manufacturers (SIAM), Union Budget 2014-15.
Web sites:
https://www.honda2wheelersindia.com/products/scooter
https://www.honda2wheelersindia.com/about-us/factory
http://yes.honda.co.in/honda-motorcycle-scooter.aspx
http://yes.honda.co.in/about-us.aspx
www.StudyMode.com
www.autocarpro.in

67. Page | 67
CHAPTER-10
Annexure
Personal Details
1. Name :-
2. Gender:- Male ( )
Female ( )
3. Age:- 18-24 years ( )
25-34 years ( )
35-44 years ( )
45-54 years ( )
55-64 years ( )
65-74 years ( )
4. Occupation : Student ( )
Professional ( )
Employment ( )
Business ( )

68. Page | 68
1. Specify the name of Non-Gear vehicle of HONDA you’ve used/are
using.
2. Through which media do you get information about
purchasing your Non-Gear vehicle of HONDA?
3. After test ride what do you feel about the driving comfort Non-Gear
vehicle of HONDA?
Activa
Dio
Aviator
Activa 3G
Activa i
Advertisement
Trade show
Electronic media
Brand Image
Family and Friends
Other
Excellent
Good
Average
Okay
Poor

69. Page | 69
4. What are the reasons that you are going to purchase or used Non-
gear two wheeler of HONDA?
Price
Performance
Appearance
Brand name
After sales service
Genuine parts of availability
5. Rate the following benefits based on your satisfaction level.
FEATURES SATISFIED NEUTRAL DISSATISFIED
Comfort Level
Luggage Space
Looks
Performance
Pricing
Mileage
After Sales Services

70. Page | 70
6. What are the main purposes to buy Non-gear two wheeler of
HONDA?
For female members in the house
For children
For easy driving
For intercity travelling
Other
7. Rate the service provided by HONDA on the following scale:
Fully satisfied Satisfied Good Moderate Dissatisfied
8. Rate the parameters for buying a vehicles on the following scale
Fully satisfied Satisfied Good Moderate Dissatisfied
9. If you contacted HONDA customer service, have all problems been
resolved to your complete satisfaction?
Yes, by the company or its
representatives
Yes, by me or someone outside the
company
No, the problem was not resolved.

71. Page | 71
10.Based on your experience with HONDA, how likely are you buy
again this brand?
Defiantly will
Probably will
Might or might not
Probably will not
Defiantly will not
11.Rate or Impact of service provided by Honda on customer satisfaction.
Fully satisfied Satisfied Good Moderate Dissatisfied
12.Performance has significant impact on customer satisfaction.
Satisfaction Neutral Dissatisfaction
13. Have you purchased on the basis of celebrity endorsement ?
Yes
No
14. Have you purchased on the basis of other customers opinion ?
Yes
No