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SUBROS LIMITED

Feasibility Study Report


Bus Air Conditioner Market – Strategy & Plan
Summer Training Project
on

Feasibility Study & Market entry strategy for


Bus Air Conditioner Market

submitted by:

Sachin Gupta (09FT-128)

student of:

IMT - Ghaziabad

to the:
Marketing Department,

Subros Limited, Noida (Uttar Pradesh)

June, 2010
CERTIFICATE OF APPROVAL

The following Summer Project Report titled

1 Feasibility study for entry into Bus Air Conditioner Market

2 Market Entry strategy and plan for Bus Air Conditioner Market

3 To create a Future State Map for the compressor value stream.

is hereby approved as a certified study in management carried out and presented in a


manner satisfactory to warrant its acceptance as a prerequisite for the award of Post-
Graduate Diploma in Management-Full Time for which it has been submitted. It is
understood that by this approval the undersigned do not necessarily endorse or approve any
statement made, opinion expressed or conclusion drawn therein but approve the Summer
Project Report only for the purpose it is submitted.

Summer Project Report Examination Committee for evaluation of Summer Project Report

Name Signature

Faculty Examiner ____________________ _________________

PG Summer Project Co-ordinator ____________________ _________________

____________________ _________________
CERTIFICATE

This is to certify that Mr. Sachin Gupta, 09FT-128, a student of the Post-Graduate
Diploma in Management-Full Time, IMT Ghaziabad, has worked under our guidance and
supervision. This Summer Project Report has the requisite standard and to the best of our
knowledge no part of it has been reproduced from any other summer project, monograph,
report or book.

------------------------------- ------------------------------- -------------------------------


Dr Rakesh Chopra, Mr. Kanan Mr Pankaj Mehra
Professor Senior Manager Assistant General Manager
IMT Ghaziabad The Industrial Engineering NBD, AM & Communication
Subros Limited Subros Limited

11 June 2010 11 June 2010 11 June 2010


ACKNOWLEDGEMENT

The euphoria and satisfaction that is associated with the successful completion of this
project would not have been there, had it not been without the kind and helpful assistance by
my guide Mr.Pankaj Mehra, Assistant General Manager - NBD, AM & Communication,
Subros Limited, Noida.

I would like to heartily thank them for giving me the wonderful opportunity on working on a
business critical and challenging project. The entire duration of two months of working on the
project has been an enlightening experience. I would also like to extend my gratitude to Mr.
Karan Bains and Mr. Yogesh Singh who has been a constant source of help and guidance,
and all the team members at Marketing and TIE for the support extended.

I would also like to thank my faculty guide Dr. Rakesh Chopra for sparing time to help me
during the difficult phases of my project and providing his valuable insights on how I could
tackle them. His valuable suggestions helped me in channelling my effort in the right
direction and take a right approach in initializing and completing the project.
Table of Contents

Executive Summary .............................................................................................................. 1

1 Subros – The Company ................................................................................................. 5

1.1 Company Background ............................................................................................ 5

1.1.1 Client base....................................................................................................... 5

1.1.2 Financial Performance..................................................................................... 5

1.2 Subros Corporate & Divisional Planning ................................................................. 7

1.2.1 Corporate Mission............................................................................................ 7

1.2.2 Company Business Units................................................................................. 7

1.2.3 Growth opportunities........................................................................................ 7

2 Introduction.................................................................................................................... 9

2.1 Rationale of Study .................................................................................................. 9

2.2 Scope of the Study ................................................................................................. 9

2.3 Deliverables.......................................................................................................... 10

2.4 Methodological Roadmap for the Study ................................................................ 10

2.5 Data Source.......................................................................................................... 10

2.6 Limitations ............................................................................................................ 10

3 Bus Market – Market Insights....................................................................................... 11

3.1 Demand Review ................................................................................................... 11

3.2 Bus Market Share ................................................................................................. 11

3.3 Market Structure Forecast .................................................................................... 12

3.3.1 Segment Based Classification ....................................................................... 12


3.3.2 GVW Based Classification ............................................................................. 14

3.3.3 Application Based Classification .................................................................... 21

3.4 Growth Driver ....................................................................................................... 33

3.5 Emerging Trends in Bus Market............................................................................ 35

4 Bus Air Conditioner: Demand Measurement ................................................................ 37

4.1 Air Conditioned Buses Classification..................................................................... 37

4.1.1 AC Sleeper .................................................................................................... 37

4.1.2 AC Bus .......................................................................................................... 38

4.1.3 AC Sleeper Seater......................................................................................... 38

4.1.4 Volvo AC ....................................................................................................... 39

4.2 Bus Air Conditioner............................................................................................... 39

4.2.1 Home/ Office Air Conditioning........................................................................ 39

4.2.2 Automotive Air-conditioning Industry.............................................................. 40

4.2.3 Shopping Centre............................................................................................ 41

4.3 Analysis ................................................................................................................ 42

4.3.1 Methodology .................................................................................................. 42

4.3.2 Data Analysis................................................................................................. 42

4.3.3 Result ............................................................................................................ 43

5 Analysis – Customer Market ........................................................................................ 45

5.1 Customer Distribution ........................................................................................... 46

5.1.1 Coach Work Factories ................................................................................... 46

5.1.2 Workers Employed ........................................................................................ 47

5.1.3 Gross Output ................................................................................................. 47


5.2 Customer Value Analysis...................................................................................... 49

5.2.1 Research Methodology.................................................................................. 49

5.2.2 Results .......................................................................................................... 50

5.2.3 Conclusion..................................................................................................... 52

5.3 Customer Satisfaction Measurement .................................................................... 53

5.3.1 Literature Review........................................................................................... 53

5.3.2 Research Methodology.................................................................................. 54

5.3.3 Result ............................................................................................................ 55

6 Market Segmentation & Targeting................................................................................ 61

6.1 Market Segmentation............................................................................................ 61

6.1.1 Segment A..................................................................................................... 62

6.1.2 Segment B..................................................................................................... 62

6.1.3 Segment C..................................................................................................... 62

6.1.4 Summary ....................................................................................................... 63

6.2 Market Targeting................................................................................................... 63

7 Analysis: Competitive Force......................................................................................... 65

7.1 Analysis ................................................................................................................ 65

7.1.1 Industry Competitors...................................................................................... 65

7.1.2 Industry Product ............................................................................................ 71

7.1.3 Industry Suppliers .......................................................................................... 74

7.1.4 Industry New Entrants ................................................................................... 75

7.1.5 Industry Customers........................................................................................ 75

7.1.6 Industry Substitutes ....................................................................................... 76


7.2 Competitive Force Analysis Summary .................................................................. 77

Appendix 1: Company viz sales figure for passenger vehicle in India ................................. 79

Appendix 2: Company viz bus production by various OEM’s in India .................................. 81

Appendix 3: Company viz production figure of Buses having GVW < 5 tons ....................... 83

Appendix 4: Registered Motor Vehicles (Category-wise) in India by States/Uts .................. 85

Appendix 5: Calculation for total number of annual tourist bus trips required ...................... 87

Appendix 6: Technical Details for available AC Product Range for Small Buses................. 89

Appendix 7: Technical Details for available AC Product Range for Medium Buses ............. 91

Appendix 8: Technical Details for available AC Product Range for Large Buses................. 92

Appendix 9: Field Survey 1 - Questionnaire ........................................................................ 93

Appendix 10: Cluster Analysis for field survey 1.................................................................. 95

Appendix 11: Field Survey 2 - Questionnaire ...................................................................... 99

Appendix 12: Principal Component Analysis for expected after sales service ................... 103

Appendix 13: Principal Component Analysis for perceived after sales service .................. 113
List of Tables

Table 1-1: Subros Balance Sheet Financial Analysis ............................................................ 6

Table 3-1: Bus production data for respective GVW............................................................ 14

Table 3-2: Bus production data for GVW < 5T .................................................................... 15

Table 3-3: Bus production figure and market share............................................................. 15

Table 3-4: Models available for buses with GVW < 5T ........................................................ 16

Table 3-5: Models available for buses with GVW < 7.5T ..................................................... 17

Table 3-6: Models available for buses with GVW < 12T ...................................................... 19

Table 3-7: Models available for buses with GVW > 12T ...................................................... 20

Table 3-8: Various types of buses registered in major metro cities in India ......................... 21

Table 3-9: Various types of buses registered in Delhi ......................................................... 21

Table 3-10: School Bus classification.................................................................................. 30

Table 3-11: Popular available options for school bus application ........................................ 31

Table 3-12: Major Indian Economic Data ............................................................................ 33

Table 3-13: Ongoing bus project as on June 2010.............................................................. 36

Table 4-1: Household appliances industry size ................................................................... 40

Table 4-2: Data for Air Conditioner surrogate variables....................................................... 42

Table 5-1: Number of coach work factories in operation...................................................... 46

Table 5-2: Employees employed in coach building factories ............................................... 47

Table 5-3: Gross Output (in lakhs) of coach work factory .................................................... 47

Table 5-4: Gross value of plant and machinery ................................................................... 48

Table 5-5: Delhi AC Bus Body Builder Contact List ............................................................. 49


Table 5-6: Result of Cluster analysis................................................................................... 51

Table 5-7: Cluster Vs Population Attribute Mapping ............................................................ 51

Table 5-8: Principal Component Analysis Factors for expected after sales service ............. 57

Table 5-9: Factor Score for expected after sales service component .................................. 57

Table 5-10: Principal Component Analysis Factors for perceived after sales service .......... 59

Table 5-11: Factor score for perceived value of after sales service..................................... 59

Table 6-1: Bus Air Conditioner market segments ................................................................ 61

Table 6-2: Summary for Market Segment ........................................................................... 63


List of Charts

Chart 1-1: Client –Revenue Mix 5

Chart 1-2: Segmental revenue breakup 7

Chart 3-1: Number of buses in India 22

Chart 3-2: Region viz distribution of SEZs 23

Chart 3-3: International Tourist Arrival in India 24

Chart 3-4: Domestic Tourist Visit in India 25

Chart 3-5: Fleet size of STUs in major Indian States 26

Chart 3-6: Distribution of medical emergencies in India 27

Chart 3-7: Ambulance type distribution in India 28

Chart 3-8: Urban Population growth rate 33

Chart 4-1: Weighted market capitalisation for Air-Conditioner & Refrigerator Industry 40

Chart 4-2: Automobile Air Conditioner Projection 41

Chart 5-1: After Sales Service Weightage Boxplot 55

Chart 5-2: Customer Expectations for After Sales Service 58

Chart 5-3: Customer perceived value for After Sales Service 60


Summer Project Report 1
Market Feasibility Study and to prepare a Market Entry Strategy for Bus Air
Conditioner Market

Executive Summary

Introduction

Subros Limited to achieve a figure of annual revenue of 2500 crores from current figure of
1000 crores has decided to look into other business opportunities like railways, buses,
refrigerated trucks, tractors, containers and truck cabins. At present bus air-conditioning
penetration level is only 4-6% and market experts expects it to grow at a rate of 35% in
coming years.

Hence this project was initiated by company to do a feasibility study for entering into the bus
air-conditioner market.

Approach

This study will analyze different market growth drivers to provide an estimate for bus air
conditioner growth rate and market size in coming years. Also the regional trends would be
analyzed to find the lucrativeness of different regions across the geography of country. The
projection will include demand from institution, tourist operators, private operators and state
transport undertakings (STUs).

This study will also propose a market entry strategy for this market. For this first of all in
order to identify order qualifiers and order winners, an analysis of customer buying behaviour
would be done

At second step, an analysis of customer expectation and preference data would be


analyzed. This will help in identifying the gaps with in which company can make an inroad
into this market. This analysis will also help in segmenting the existing market and to make
market target plan.

At third step market competitive forces would be analyzed to formulate a market positioning
strategy and plan for the company.

Limitations

Summer Project Report 1


The needed primary data was collected from Delhi/NCR region which cannot be taken as a
representative sample for whole country. Also looking into the unorganised nature of market
sample space analyzed size was small in size. A due attention was given while selecting
statistical tools to analyze the data.

Opportunities

Due to the strong support from government and rise in per capita income because of strong
economic growth rate demand of deluxe buses is growing at a very high rate. To meet the
rise in demand all the major original equipment manufacturers have initiated number of
projects to increase installed capacity. Also because of new government policies with
regards to health care and school buses demand for buses from them has also increased
manifold. In 2009 in total 103083 buses were sold in India.

Also because of tourism ministry efforts to increase tourist traffic, will gives a boost to
demand for luxury buses.

Market Entry Strategy

For this a market survey was done. On statistical analysis of obtained data after sales
service and cooling efficiency were identified as order qualifiers. A second level survey was
conducted to understand the customer expectations for after sales service.

Using SPSS on the data obtained from second market survey, two major factors were
identified – Responsiveness and Effectiveness. Market was segmented on this two
parameters To formulate a market targeting strategy statistical analysis was done on
customers perceived value. The results obtained have shown that for most of the customers
there is no major difference between expected and perceived value of service. So we cannot
enter the market only with strong after sales service proposition. To tap this market we have
to look into second order qualifier i.e. cooling efficiency. For this further study can be
undertaken to compare competitors market offering technical details.

After doing competitive force analysis it was found that there are few suppliers which are
particularly strong in Northern India. Further study can be done to analyze other regions also
so as to formulate a national level strategy.

Conclusion

Summer Project Report 2


Bus air conditioner market has a very huge potential and is expected to grow at a very high
growth rate. But looking into the wide spread out nature of market, company should give due
attention and care while allocating the needed resource. Company should give more
attention to cooling efficiency and after sales service. Customers expect a high degree of
responsiveness and effectiveness from their supplier. So it should be taken care of while
designing distribution network to meet customer requirements.

Future Scope

 Study of OEMs (Tata Motors, Ashok Leyland etc).


 Analyzing competitors’ product offerings and company offering. For this QFD tool may be
use.
Study of other part of countries i.e. East, West and South.

Summer Project Report 3


Summer Project Report 4
1 Subros – The Company

1.1 Company Background


Established in 1985 as a joint venture with Denso Corporation and Suzuki Japan, Subros
has moved across the manufacturing chain from assembly operations to becoming the
largest and only integrated manufacturing unit in India for Auto air conditioning systems. The
company has grown its capacity from 15,000 AC units at inception, to 750,000 AC units
currently. The company has the capabilities to manufacture compressors, condensers, heat
exchangers and all connecting elements that are required in the AC loop. Subros is in
collaboration with its strategic partners, Denso and Suzuki, for technological expertise for the
manufacture of AC systems. Further, in view of growing passenger vehicle (PV) volumes,
the company has ramped up capacity to 7,50,000 units per annum and proposed to further
expand capacities to 1,000,000 units per annum.

1.1.1 Client base


The company's business model is heavily reliant on a narrow set of clients, including 71% of
revenues coming from its oldest client, Maruti Suzuki. Its customer base has grown to
include auto heavyweights like Tata Motors (18%) and Mahindra & Mahindra (5%). The
company currently caters majorly to the passenger vehicles segment, but plans to diversify
its market base with the foray into the commercial vehicle segment, going ahead, with the
supply of cabin ACs to high tonnage trucks and buses (for Ashok Leyland, Eicher and
Volvo).
Chart 1-1: Client –Revenue Mix

Source: Subros Limited

1.1.2 Financial Performance


Subros is the market leader in the 1.5 million units Indian auto air-conditioning Industry, with
a 41% marketshare, followed by other players like Visteon, Behr, Sanden and Denso. The
management has guided further penetration to around 43%, over the next couple of years,
as it is well placed to cash in on the recovery cycle in the Auto industry, owing to its sound
client base, technological edge and better operating leverage.

Summer Project Report 5


Table 1-1: Subros Balance Sheet Financial Analysis

Y/E March (Rs cr) Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sales (Rs) 787.63 774.21 755.26 657.21
DPS (Rs) 0.5 0.8 4 3.5
EPS (Rs) 2.19 4.76 23.69 20.72
Operating Margin (%) 9.09 12.58 11.7 11.23
Gross Profit Margin (%) 4.55 7.67 7.45 6.93
Net Profit Margin (%) 1.92 4.31 4.38 4.28
Debt/Equity 0.73 0.63 0.83 0.63
Long Term debt/Equity 0.37 0.25 0.36 0.27
Current Ratio 1.51 2.01 2.23 2.04
Quick Ratio 0.79 0.77 0.85 0.79
Inventory Turnover Ratio 10.04 9.09 8.23 8.26
Source: http://money.rediff.com/companies/subros-ltd/10630002/results-annual
http://www.moneycontrol.com/financials/subros/profit-loss/S07

Their is a sharp decrease in EPS for the year 2008 which can be attributed to the share split
of 1:5. Company has very strong financial health. Debt/Equity ratio for company is quite low.
As cost of debt is low in comparison to cost of equity so company can borrow more to finace
its expansion plan. But looking into earning per share, it has drastically reduced from 4.76 in
2008 to 2.19 in 2009 though operating income has increased from 774.21 to 787.63. It can
be attributed to increase in cost of good sold and increased interest payout.

Subros interest coverage ratio has decline from 6.01 in 2007 to 2.15 in Mar 2009. Also
company’s current assets are highest at Rs 175.49 crores in 2009 in compare to Rs 145.58
crores in Mar 2008. Company’s PBDITA also stoods low at Rs 70.28 crores in Mar 2009 as
compare to Rs 87.94 crores in Mar 2008. So we may say that the comapny is facing a
financial problem. And company PE ratio has also dropped to 6.59 in Mar 2009 from 10.19 in
Mar 2007. So company has somewhat looses its investors confidence.

Summer Project Report 6


1.2 Subros Corporate & Divisional Planning

1.2.1 Corporate Mission


Subros mission is - “To be world class Auto Air-Conditioning System manufacture having
global competitiveness”.

Company management has set a goal for coming 5 years and named it ‘1525’. The goal is to
achieve an annual sales figure of 2500 crores from present 1000 crores by 2015.

1.2.2 Company Business Units


Subros manufactures Air Conditioning units, HVAC and Fan Motor Assembly units
(Ventilators) for the passenger vehicle segment. Auto Air-Conditioning products contribute to
a substantial 90% of the company's revenue pie.

Chart 1-2: Segmental revenue breakup

Source: Research, Angel

The companyhas classified its businesses into two strategic business units on the product
basis:

 Automobile Air Conditioner


 HVAC

Automobile air conditioner consist of compressor, condenser, evaporator, cooling fan, blower
and heater unit.

HVAC is an acronym that stands for the closely related functions of "Heating, Ventilating,
and Air Conditioning" - the technology of indoor or automotive environmental comfort. It is
particularly important in the design of medium to large industrial and office buildings such
as skyscrapers and in marine environments such as aquariums, where safe and healthy
building conditions are regulated with temperature and humidity, as well as "fresh air" from
outdoors.

1.2.3 Growth opportunities


Assessing growth opportunities company has adopted intensive growth strategy. In this
company tries to improve its existing businesses by reviewing opportunities. To understant
this we will use “product-market expansion grid”.

Summer Project Report 7


Figure 1-1: Product-Market Expansion grid

 Market Penetration Strategy: To gain more market share with its current products in
their current markets (Maruti, Tata etc), company has started improving its vendor rating.
By this they are able to get a large portion of available pie by delivering high quality
product at desired cost. Company has also expanded its installed capacity to 0.75 million
and is planning to increase it further to 1 million units per annum. Alos company has set
up two new plants i.e. at Manesar and Pune.

 Product Development Strategy: Company has developed a new generation energy


efficient swash plate compressors from 83cc – 138cc to meet all customer needs. It wiil
help to further increase its market share. Company has also start manufacturing HVACs
to meet its eisting customer needs. Also company has set up new design centre and tool
room to strengthen up is R&D arm.

 Market Development Strategy: Company has started exploring new OEMs (like M&M,
Reva) for its existing product line.

 Diversification Strategy: Company has started exploring new avenues for further
growth like railways, refrigerated trucks, tractors and buses. It has started manufacturing
air conditione units for tractors and mini buses.

Summer Project Report 8


2 Introduction

Subros is a largest and only integrated manufacturing unit in India for Auto Air Conditioning.
The company has the capability to manufacture compressors, condensers, heat exchangers
and al the connecting elements that are require to complete the AC loop.

To improve its current business company is planning to enter into below listed air conditioner
market.

 Truck Cabins
 Railways
 Tractor
 Refrigerated Trucks

2.1 Rationale of Study

The India bus industry forms an important part of the automobile industry in the country.
Over the last few years, the bus industry has grown to a great extent and new types of buses
with better facilities have come up. Due to the development of infrastructure and more roads,
more and more people from the rural areas are also nowadays availing of the bus services.
With the recent innovations, more buses are being introduced into the market. These buses
are spacious and comfortable. They are also eco friendly and the mileage is also pretty
good. Nowadays, new types of buses are being introduced which are equipped with
advanced facilities and services such as air-conditioners, passenger information system, air
suspension system, high quality engines and transmission systems and so on. With more
such buses being introduced, the customer base is also expected to rise pretty well over the
few years.

Considering the growing middle and upper class, rise in per capita income, strong GDP
growth rate of the country; we can say that there is a very huge market for air conditioned
buses and hence bus air conditioners. But there is no reliable database or a previous study
on air conditioned buses and their emerging trends.

The objective of propose study is -

 To do a feasibility study for entry into air conditioned bus market and prepare a report for
the same.
 To prepare a market entry strategy and plan for the air conditioned bus market.

2.2 Scope of the Study

The scope of this study is


 To study the emerging trends with in different segments of bus market
 To study the customer buying behaviour.
 To study current market offerings from existing players.
 To do a competitor analysis.
 And to formulate a market targeting and positioning strategy for company’s product if
they enter into it.

Summer Project Report 9


2.3 Deliverables

To attain the aforesaid, the deliverable is the bus segment to enter into and the market
positioning strategy for the same.

2.4 Methodological Roadmap for the Study

Looking into geography of India, we can say that air condition bus is still a niche segment.
As no data is readily available for the same, CMIE and Indiastat database will be use to
study the demand drivers for various segments of bus market. Also various magazine
sources like Commercial Vehicle, Auto Monitor, Motor India and other will be followed to
study the market forecasts.

For further analysis, two level of study will be carried out. During first stage interviews and
field survey will be conducted with different stakeholders like Bus operators, Institutional
buyers, Bus bodybuilders and competitors’ sales agent. By this we will try to identify various
parameters which play a role of order qualifiers and order winners while making a purchase
decision for a bus AC.

In second stage on the basis on the basis of results obtained for order qualifier in first stage,
questionnaire will be designed. After analysing the result, criteria for market segmentation
will be identified and accordingly market targeting and positioning strategy would be
formulated.

2.5 Data Source


 Secondary Research (Trade magazine, Journals, company brochures, company reports,
company websites, market experts interviews, periodicals, white papers etc)
 Primary Research (Questionnaire Method and Personal Interviews)

2.6 Limitations
Field Survey is conducted only in Delhi NCR region. Regional pattern may exist across the
geography of India.

Summer Project Report 10


3 Bus Market – Market Insights

CRISIL in its annual report 2009-10 has estimated that the domestic passenger vehicle
segment will grow at a CAGR of 7-8 %. Growing population and urbanisation are driving up
demand for the bus segment. At the same time, higher usage of personal modes of transport
is leading to a lower preference for public transport. The LCV bus segment is expected to
grow at a CAGR of 8-9 %, whereas the MHCV bus segment is expected to increase at a
CAGR of 6-7% in next 5 years.

3.1 Demand Review

Demand for buses is primarily determined by increase in population, household incomes,


and industrial and commercial activity in a country. Public transport systems in India have
not been able to to keep pace with the rapid and substantial increase in demand over the
past decades. Moreover a large number of passengers are turning to personalised modes of
transport, indicating the growing need for an improved urban transportation. The government
initiative through JNURM scheme is expected to provide an impetus to the MHCV bus
segment sales. Demand from private operators has been increasing on the back of increase
in inter-city travel on luxury buses. However due to the introduction of metro rails in Delhi,
Mumbai, Hyderabad, Bangalore and Kolkata will lead to decrease in demand for buses in
these cities.

The Jawaharlal Nehru Urban Mission (JNNURM) scheme was introduced by the government
in December 2005 for 7 years. It is a prominent centrally sponsored scheme with sector
specific focus on urban infrastructure. Improving the urban infrastructure is one of the
important focus of the scheme. Under this scheme states will be provided financial
assistance for procuring urban buses for their respective state transportation. In union
budget 2009-10 government has increased the outlay under this scheme by 87%. LCVs are
primarily demanded by schools and corporate sectors like IT/ITes.

3.2 Bus Market Share

The below drawn pie graph shows the overall bus market share for 2008-09.

Summer Project Report 11


3.3 Market Structure Forecast

CMIE in its annual forecast report for commercial vehicles has projected North India to be
the key market for trucks and buses.

Segment Share (%)


North 36
East 17
West 24
South 23
Source: CMIE Database

We have classified Indian bus market as discussed below:

3.3.1 Segment Based Classification


Buses can be classified into four segments, which can be further subdivided into two sub
segments:

1. Route
a. Intra-City
b. Inter-City
2. User
a. Public
b. Corporate
3. Ownership
a. State Transport Undertakings (STUs)
b. Private Operators
4. Vehicle
a. Light Commercial Vehicles (LCVs)
b. Medium & Heavy Commercial Vehicles (MHCVs)

There is a high degree of overlap among the above four segments. Each individual segment
would account for the entire population of buses at any given point of time.

3.3.1.1 Route Based

This segment includes buses which ply on intra-city and inter-city routes across the country.
Demand drivers for this classification of buses are:

Inter-City Intra-City
Improving road infrastructure Urban Congestion
Propensity to travel Improving road infrastructure
Better quality buses Safer Travel
Economical over short distances
Low cost of setting up infrastructure
Growth in urban population and increasing
working age population

Summer Project Report 12


3.3.1.2 User Based

This segment includes demand of buses from public and corporate, including demand from
niche segment such as BPO industry, school buses and executives. Demand drivers for this
classification of buses are:

Public Corporate
Economical mode of transport Fast growing BPO industry (on city
outskirts)
Better connectivity and flexibility Demand from schools and executive travels
Urban congestion Better connectivity and flexible timings
Improving road infrastructure Growth in urban population and increasing
working age population
Demand from SEZs, EPZs etc.

3.3.1.3 Ownership Based

This segment includes demand for buses from the state transport undertakings (STUs) and
private operators. Demand drivers for this classification of buses are:

STUs Private
Growth in urban population and increasing Demand from corporate
working age population
Fleet replenishment Comfortable travelling
Social obligation Customised Service
Low vehicle maintenance cost Better connectivity and flexible timings

3.3.1.4 Vehicle Based

This segment includes LCV and MHCV buses. The following are the demand drivers for
these two sub categories:

LCV MHCV
Fast growing BPO industry Export Demand
Demand from schools and executive sales. Inter-City travel
Better cost economics

Summer Project Report 13


3.3.2 GVW Based Classification
The classification of commercial vehicles as per the Motor Vehicle Act is based on the Gross
Vehicle Weight (GVW). For passenger carriers the classification is listed below:

GVW Segment Description

< 5 tons A1, Light Commercial Vehicles

5 - 7.5 tons A2, Light Commercial Vehicles

7.5 – 12 tons B1, Medium & Heavy Commercial Vehicles

12 – 16.2 tons B2, Medium & Heavy Commercial Vehicles

> 16.2 tons B3, Medium & Heavy Commercial Vehicles

The below listed table give a brief of total number of buses produced by various OEM’s. The
percent share of buses with GVW < 5 tons is highest i.e. 44% followed by 28% for 12-16.2
tons.

Table 3-1: Bus production data for respective GVW

Year <5T 5–7.5T 7.5 –12T 12-16.2T >16.2T Total

Total Buses Produced (in number)


2006 64230 15831 4517 24411 0 108989
2007 55985 17868 4947 32433 0 111233
2008 50838 16333 6770 29135 21 103097
2009 45768 19430 8515 29292 78 103083
Total Buses Produced (in %)
2006 0.59 0.15 0.04 0.22 0.00 1.00
2007 0.50 0.16 0.04 0.29 0.00 1.00
2008 0.49 0.16 0.07 0.28 0.00 1.00
2009 0.44 0.19 0.08 0.28 0.00 1.00
Source: Indiastat

Summer Project Report 14


On further classification of buses with GVW < 5 tons on the basis of seats:

Table 3-2: Bus production data for GVW < 5T

Year < 13 Seats > 13 Seats Total

Bus manufactured with GVW < 5 tons (in numbers)


2006 56791 7439 64230
2007 46795 9190 55985
2008 40289 10549 50838
2009 33575 12193 45768
Bus manufactured with GVW < 5 tons (in %)
2006 0.88 0.12 1.00
2007 0.84 0.16 1.00
2008 0.79 0.21 1.00
2009 0.73 0.27 1.00
Source: Indiastat

So from this data we can say that though % share of buses with GVW < 5 tons is highest but
maximum proportion of it is of buses with GVW < 5 tons and seats < 13 seats. Also even
though the % share of these buses are decreasing over the years but that of buses having
seats more than 13 seats is increasing continuously from 12% to 27% of total these segment
bus sales.

Table 3-3: Bus production figure and market share

Year <= 5T and > 13 Seats 5-7.5 T 7.5-12 T 12-16.2 T >16.2T Total

Total Buses Produced (in number)


2006 7439 15831 4517 24411 0 52198
2007 9190 17868 4947 32433 0 64438
2008 10549 16333 6770 29135 21 62808
2009 12193 19430 8515 29292 78 69508
Total Buses Produced (in %)
2006 0.14 0.30 0.09 0.47 0.00 1.00
2007 0.14 0.28 0.08 0.50 0.00 1.00
2008 0.17 0.26 0.11 0.46 0.00 1.00
2009 0.18 0.28 0.12 0.42 0.00 1.00
Source: Indiastat

So from above table we can say that bus segment with GVW in between 12 – 16.2 tons is
largest with 42 % followed by 5-7.5 tons. Also bus segment with GVW between 5 – 7.5 tons
and seat capacity more than 13 is growing continuously over the years.

Market experts estimate that the LCV segment will increase at an annual growth rate of 16%
and M&HCV by 12%.

Summer Project Report 15


3.3.2.1 Less than 5 tonnes category (6-16 Seaters)

This category forms the 38.5 % of the total LCV sales (buses with GVW < 7.5 tons). The
leading company in this segment is Tata Motors with a share of 15.1% followed by Force
Motors with a share of 14.9% of the total segment sales. Tata Motors is continuously
increasing its share from 7.9% in 2006 to15.1% in 2009. The below listed table shows the
various available models available from various OEMs in this segment:

Table 3-4: Models available for buses with GVW < 5T

Company Name 6 - 16 Seaters Length (in mm) Wheel Base (in mm)
Traveller Smooth 5885 3700
Traveller Mini Bus 4755/ 5235 3050/3350
Citiline 16 + D 3420
Force Motors
Citiline School Bus (16 + D) 3420
Traveller Ambulance 5235 3350
Traveller Luxury 5415 3350
RTV Ranger
Hindustan Motors RTV School Bus
RTV Custom Bus
Mahindra Mahindra FJ Minibus
Magic 3790 2100
Winger Standard 4520 2800
Starbus 16 5125 2750
Tata Motor
Winger DLX Non AC 4920 3200
Winger DLX AC 4920 3200
Winger Luxury 4920 3200
Source: Company websites

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3.3.2.2 5 – 7.5 tonnes category (17-35 Seaters)

This category forms the 61.4 % of the total LCV sales (buses with GVW < 7.5 tons). The
leading company in this segment is Tata Motors with a share of 40.1% followed by Mahindra
with a share of 7.26% of the total segment sales. This segment caters to the fast growing
BPO industry, Executive staff and School Bus. The below listed table shows the various
available models available from various OEMs in this segment:

Table 3-5: Models available for buses with GVW < 7.5T

Company Name 17 - 35 Seaters Length (in mm) Wheel Base (in mm)

Citiline School Bus (25 + D)


Force Motors Citiline (25 + D)
Commuter (32 + D)
Mahindra Tourister
Mahindra
Mahindra FJ 470
Globus 13 6235 3100
Globus 18 7355 3800
Starbus 20 5605 3100
Starbus 32 7395 3800
Starbus 18 CNG 5705 3100
Tata Motor
Starbus Dlx 18 6400 3800
Starbus Dlx 20 6175 3100
Starbus Dlx 28 7325 3800
Starbus Skool 17 5910 3100
Starbus Skool 32 7395 3800
Eicher Starline Route Permit 7485 4050
Eicher Skyline Bus 7485 4050
Eicher Starline 10.5E 5800 3350
Eicher Starline 10.75H 7485 4050
Eicher Skyline Executive Bus 10.75H 7485 4050
Eicher Motors Eicher Starline Standard 10.5E 5800 3350
Eicher Starline Standard 10.75H 7485 4050
Eicher 10.75E Bus Chasis 6365 3350
Eicher 10.75H Bus Chasis 7485 4050
Eicher 10.50C Bus Chasis 4885 2750
Eicher 10.50E Bus Chasis 5800 3350
Ashok Leyland Stag BS II 7164 / 7644 / 8124 3600/3900/4200
Ambulance T3500/WT48D 4919 2515
Ambulance WV26 Model low/high roof 5509 2815
Swaraj Mazda
WT-50A NG Bus 6380 3335
WT-50L WB NG Bus 7348 3940

Summer Project Report 17


WR50 6380 3335
WT 50LB 7348 3940
WV-26 5548 2815
WT-48 4992 2515
Source: Company websites

Summer Project Report 18


3.3.2.3 7.5 - 12 tonnes category (36-52 Seaters)

This category forms the 22.4 % of the total MHCV sales (buses with GVW > 7.5 tons). The
leading company in this segment is Tata Motors with a share of 11.7% followed by Swaraj
Mazda with a share of 4.04% of the total segment sales. This segment caters to the needs of
Corporate, Intra-city bus and School Bus. The below listed table shows the various available
models available from various OEMs in this segment:

Table 3-6: Models available for buses with GVW < 12T

Company Name 36 - 52 Seaters Length (in mm) Wheel Base (in mm)
Globus 20 8620 4200
Tata Motor
Starbus DLX 35 8620 4200
Eicher Starline 10.90K 8677 4800
Eicher Skyline 10.90 8677 4800
Eicher Skyline Executive Bus 10.90K 8677 4800
Eicher Motors Eicher Starline Standard 10.90H 8677 4800
Eicher Cruiser CNG School Bus 8677 4800
Eicher 11.10H Bus Chasis 8080 4300
Eicher 10.90K Bus Chasis 8677 4800
Ashok Leyland Lynx BS II 7486 / 7966 3900/4200
Swaraj Mazda ZT54E-D-EL WB NG Bus 8660 4760
Source: Company websites

Summer Project Report 19


3.3.2.4 >12 tonnes category (52-64 Seaters)

This category forms the 77.5 % of the total MHCV sales (buses with GVW > 7.5 tons). The
leading company in this segment is Tata Motors with a share of 37.88% followed by Ashok
Leyland with a share of 37.36% of the total segment sales. This segment mostly caters to
the needs of private operators and STUs for Inter-city travel. The below listed table shows
the various available models available from various OEMs in this segment:

Table 3-7: Models available for buses with GVW > 12T

Company Name 52 - 64 Seaters Length (in mm) Wheel Base (in mm)
Globus 45 11950 6200
Starbus 54 10384 5334
Starbus 67 11950 6200
Tata Motor
Starbus LF 11255 5875
Starbus ULF CNG 11980 6200
Starbus Skool 52 9645 5195
Eicher 20.15 Bus Chasis 20.15M 10044 5340
Eicher Motors Eicher 20.15 Bus Chasis 20.15N 11444 5840
Eicher 11.10K Bus Chasis 9475 4650
12 M Bus 12000 6200
222 CNG Bus
Airport Tarmac Coach 11000 5200
Cheetah BS I & II 9575 / 9857 5156 / 5334
Double Decker 8890 5080
Panther Luxury 11070 5568
Viking BS I & II 10816/10325 5639/5334
Viking BS - II 10816/10325 5639/5334
Ashok Leyland Viking BS - III 10816/10325 5639/5334
Viking SLF BS - III 10960 5639
Viking CNG BS - III 10816/10325 5639/5334
12 M Bus - BS II 11800 6200
Cheetah BS – II 9575/9857 5156/5334
Cheetah BS – III 9575 5156
Panther BS – II 11070 5568

Fr. axle to middle axle 4826


Vestibule Bus - BS III 16000 Mdle axle to rear axle 7431.
Volvo 8400
Volvo India
Volvo 9400
Source: Company websites

Summer Project Report 20


3.3.3 Application Based Classification
For buses classification done on the basis of application is mentioned below:

Type 1 Buses for intra city application

Type 2 Buses for stage carrier intra urban

Type 3 Inter city coaches

Type 4 Special Application (School, Tourist, Ambulance, Sleeper etc.)

As on 2006 data available from IndiaStat for the various type of bus registration in India’s
major cities is given in below listed table.

Table 3-8: Various types of buses registered in major metro cities in India

Cities Stage Carriages Contract Carriages Private Service Other buses


AHMEDABAD 19488 2831 2572 …
BENGALURU 10429 326 2479 …
BHOPAL 2704 55 … …
CHENNAI 3870 14051 1674 9021
COIMBATORE 869 430 549 1315
HYDERABAD 58 744 1235 748
MUMBAI 5536 4465 1402 853
PUNE 4998 2408 1208 278
Source Indiastat

The below listed table list the various types of bus registration in Delhi as on 1st Jan 2009.

Table 3-9: Various types of buses registered in Delhi

Delhi: Permit Type as on 01.01.2009


1 Contract Carriage Permit (Including AITP) 10277
2 Inter State CC Permit 5435
3 Stage Carriage Permit 5632
4 School Bus Permit 106
5 National Permit 25760
6 Local Permit 29049
Grand Total 76259
Source: http://transport.delhigovt.nic.in/transport/tr0g.htm#5

As per the central institute of road transport, buses play a dominant role in the passenger
transportation among the different modes of transport available in roadways. The value is
estimated to be about 41% of total roadways distribution. In India only 0.75 buses are
available for every 1000 people in India whereas in Brazil 1.5 buses are being estimated.
The growing demand is not only from cities but is also from other section of Indian economy.
Indian government efforts to promote tourism have also given a major boost to luxury buses

Summer Project Report 21


segment. For the detailed data available from various states and union territories and the
total number of buses owned by public and private sector in India refer figure.

Chart 3-1: Number of buses in India

Source: CMIE Database

3.3.3.1 Intra City Service

This buses are use to travel within a city/ state. Mostly they have a seating capacity varying
17-45. They are in great demand from institutional players, corporate, BPOs and STUs. So
for our further analysis we may classify them into public and private sector on the basis of
their possession type.

Public Bus Service

In India still public transportation is a preferred mode of transportation. It can be attributed to


large low and middle class, low fare, high cost of owning, running and maintaining personal
vehicle. But because of poor public bus service, people have started to shift from public to
personal mode of transportation. To overcome this emerging trend and to decongest the
roads, government has started given the due attention to this sector. The upcoming metro
rails, mono rails, BRTS and improved public bus fleet has somewhat started blocking this
emerging trend. As per the data available from Delhi metro, the daily commuters using metro
rail service is 950000. Government is trying to install a hub and spoke model for metro rail,
where LCVs will be use to ferry commuters to and fro from nearby metro station to their

Summer Project Report 22


destination. So market experts expect a great increase in demand for LCVs i.e. vehicles
having seat capacity up to 30. Presently Delhi metro has 120 Non-AC and 300 AC buses.

The ever expanding boundaries of our cities because of increase in population have also
increased the demand for intra-city bus service. As per the report available from transport
ministry the average distance travel by a daily passenger is estimated at 60-80 kms per day.
Considering Delhi, emergence of Greater Noida, Manesar, Sonepat as a satellite town will
lead to an increase in demand for public bus service to these places. For eg for a route
length of 30 kms between Bhajan Pura (Delhi) and Noida (Uttar Pradesh), DTC is plying in
total 50 buses of which 15 are public and 35 private buses. For a route length of 34 kms
between Mehrauli (Delhi and Noida (Uttar Pradesh), they are plying in total 59 buses of
which 20 are public and 39 are private buses.

Private Bus Service

In this demand from corporate, executives, BPOs, IT/ITes plays a major role. The
emergence of SEZ/ EPZ/ Software parks on the outskirts of cities has provided a major
boost to demand for intra city bus service. As per the information available from
www.sezindia.com, there are 580 formally approved SEZs of which 353 have been notified.
The below drawn chart give an overview of the regional distribution for the same.

Chart 3-2: Region viz distribution of SEZs

Source: http://sezindia.nic.in/writereaddata/pdf/StatewiseDistribution-SEZ.pdf

NASSCOM has reported that the demand for IT professionals is expected to reach 430000
by 2011-12 with the corresponding figures on indirect employment being 1,72,0000. Keeping
in line with the expansion/entry plans of major IT/ITES companies, IT parks and townships
are being built. As most of this software and IT parks are generally on the peripherals of the
cities, so this will provide a demand stimulus for the air conditioned buses.

Summer Project Report 23


3.3.3.2 Inter City Service

These buses are used to travel between states or cities. Mostly they have a seating capacity
varying 40-64. They are available in different variants like Economy, Deluxe, Semi Deluxe,
A/C Deluxe and Sleeper. Market experts expect a strong growth rate in this application.

Tourist Bus Service: Between 2000 and 2009, foreign tourist arrival in India has increased
by 48% from about 26 lakhs in 2000 to 51 lakhs in 2009. As per the annual report from
ministry of tourism, air continued to be the predominant travel for the tourists coming to
India. Arrival by sea is negligible and share of arrivals through land routes comprises tourist
mainly from Bangladesh and Pakistan. The percentage of tourist arrival by land route is
estimated to about 3.7%.

Chart 3-3: International Tourist Arrival in India

Source: CMIE Database

For domestic tourism with in India growth rate from 2000 to 2008 is estimated to about
156%. As per the latest figures available from ministry of tourism for 2008, domestic tourism
is estimated at 562.92 millions. About 39.4% of domestic tourists use bus as a preferred
mode of transportation. Average number of trips per household in the country was 1.17. Top
five states ranked according to trips per 1000 tourist households are Himachal Pradesh,
Karnataka, Punjab, Madhya Pradesh and Maharashtra.

Summer Project Report 24


Chart 3-4: Domestic Tourist Visit in India

Source: CMIE Database

According to the information available from ministry of tourism for distribution of tourism
according to mode of transportation 39.4% of domestic tourists and 3.7% of international
tourists use bus as preferred mode of transportation. On analysing the available data for
number of tourists arrived, we can say that nearly 55497292 annual bus trips are required.
For detailed calculation refer appendix.

As on 31st Dec 2003, 186 travel agents, 340 tour operators, 154 tourist transport operators
and 13 adventure tour operators are registered with ministry of tourism.

State Transport Undertakings (STUs)

Government sponsored JNNURM scheme has given a major boost to demand from various
state governments. Improving road infrastructure and booming economy has increased the
demand for road transportation. Apart from this Supreme Court verdict to government to
strengthen up their fleet size so as to meet the increased demand has also work as a stimuli
for the demand. Currently as far as interstate bus service is concerned, public sector is the
leading player.

Summer Project Report 25


Chart 3-5: Fleet size of STUs in major Indian States

Source: CMIE Database

The above drawn graph shows the public sector buses in various major states of India.
Under JNURM scheme various state governments have ordered a total of 11185 buses.
Such orders include AC & non AC, low floor buses, semi low floor buses and mini buses.

Summer Project Report 26


3.3.3.3 Medical Service

Global standards talk about medical standards which would demand basic life support
systems for patient within 15-20 minutes of an accident. India witnesses three lakhs
emergencies daily. According to experts to meet the set standards of 2 ambulances per
50km the country would require132000 ambulances.

Chart 3-6: Distribution of medical emergencies in India

Source: NCRE

Vehicles Classification: The below table highlights ambulance vehicle classification based
on application.

Type Application Features

1 Patient Transport Ambulance, (PTS) Stretcher, single long seat, non A/C, oxygen cylinder (optional),
saline hook (optional), scoop stretcher for highway application
(optional).
2 Basic Life Support System, (BLS) All PTS optional features are compulsory. Wash basin, medical
rack, doctor seat, A/C (optional), Defibrillator (optional), Suction
apparatus (optional)
3 Advance Life Support System All BLS optional features are compulsory. Monitor
(ALSS) (compulsory), ventilator, head immobiliser, individual seats,
high intensity focus lights, ECG and other specific requirements
of the customer

4 Crash Ambulance (CA) 4-12 stretchers with hydraulic lifts used in airport/ factories/
military accident recovery zone.

5 Specials like speciality diagnostic Customised requirement.


centre, cardiac unit, dental vans,
blood collection vans, mobile eye
testing centre.

Summer Project Report 27


Product Matrix

Category PTS BLS ALSS CA Specials

LCV (<7.5T) Force Travelller, Tata Winger, Maruti, Not viable Body built on Tata, Ashok
Mahindra, AL Stag, Mahindra Tourister, Leyland and Mahindra
Eicher 10.50, Swaraj Mazda Tourister chasis

LCV (>7.5T -12T) Not viable Not viable Body built on Tata 1109 and Eicher 10.75 chasis
MCV (>12 – 16.2T) Not viable Not viable Body built on Ashok Leyland chasis
HCV (>16.2T) Not viable Not viable Not presently available in India. Mercedes has a model in
other countries for airport/ military/ factories accident
recovery zone.

Application Split: The emergency vehicles (BLS & ALSS) have the major share of more
than 60% due to emerging private profit and non-profit emergency service organizations.

Chart 3-7: Ambulance type distribution in India

Source: Race

Vehicle platform: Force motor has 70% of ambulance market in India followed by Tata
motors at 19%.

Current Scenario: The government and foreign investments on medical emergency


services like ‘Call 1298’ in Mumbai has received $1.5 mn funding from New York Acumen
Fund, EMRI started in 2005 with $35 million from Satyam has increased the demand for
ambulance in India.

EMRI has planned to have 11000 vehicles by end of 2011 for India’s 1.1 billion populations.
Today an ambulance is also positioned as a mode of increasing brand equity for the
hospitals.

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Changing Trends: Customers prefer a completely integrated vehicle that complies with
industry standards. This poses an important challenge and need for greater participation
between major stakeholders like body builders, OEMs and equipment suppliers. The
privatisation of emergency services in India has increased the quality of ambulances in India.
Government has also drafted a bill for National Road Safety and Traffic management Board.
It is proposed that a national road safety fund be created to make the board financially
independent.

Nashik based automakers body private limited is a leading manufacturer of ambulances,


dental vans, blood collection vans and mobile eye clinic. It is planning an aggressive foray in
both domestic and as well as international market. It is under talk with companies based out
of UK and Spain to fashion joint manufacturing arrangements for ambulances and medical
vans in India. The current Nashik plant has a capacity to manufacture 25 to 30 bodies a
month. Black Motors is also planning to venture into this application.

Summer Project Report 29


3.3.3.4 School Bus

Globally, school buses remain the safest form of surface transportation, far safer than cars,
truck, public transport buses, or trains. School buses are designed and manufactured
specifically for the safety and protection of the vulnerable passengers. However in today's
scenario a school bus is more than often looked as a commercial product, without regard for
safety, comfort, hygiene and reliability. The school bus market is expected to see an addition
of 10,000-12,000 buses in 2009-10. Over a five year (2010-15) horizon, market experts
expect a growth rate of 25 percent.

Vehicle Classification: In India, school buses are basically classified based on key
parameters like overall length, number of seats, power and comfort. The below table
illustrates the school bus market:

Table 3-10: School Bus classification

Range Length (in m) Seats HP Range Comfort


LLCB <5m Upto 14 Upto 80 Economy
LCB 5-7 m, 8m 16 – 45 90 – 120 Economy, (NDX), SDX, DLX,
ACX
MCB 9m, 11m, 12m 39 – 45 120 – 230 Economy, (NDX), SDX, DLX,
ACX
HCB Upto 15m 36 – 64 160/180 – 230 Economy, (NDX), SDX, DLX,
ACX

Note: LLCB -Lowest Light commercial bus, NDX: Non Deluxe Bus – bus designed for basic comfort levels
LCB – Light commercial bus SDX: Semi Deluxe Bus – bus designed for a slightly higher
MCB - Medium commercial Bus, comfort level and with provision for ergonomically designed
HCB - Heavy commercial Bus seats.
DLX: Deluxe Bus – bus designed for a high comfort level and
individual seats and adjustable for seat back, improved
ventilation and pleasing interiors.
ACX: A. C. Deluxe Bus – Deluxe Bus which is air conditioned

Current Scenario: India already has 5 lacs schools and colleges across India and the
school bus penetration level is estimated to be just 20%. Add to this, the growing number of
private schools and colleges being added every year and the potential for the school bus
segment is huge. This segment has been growing at a CAGR of 10-15% from the recent
past.

Source: Commercial Vehicle Magazine, April 2010, pg 23.

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Major OEM’s who have already penetrated the school bus market include Tata Motors,
Ashok Leyland, Mahindra Navistar, VECV and Swaraj Mazda. The below listed chart
highlights the market share of major OEM’s, where Swaraj Mazda is a market leader with
35% market size, followed by VECV with 30% and Mahindra Navistar with 20% in 2009-10.

Demand Review: The Indian school bus market is estimated to be worth some 10000 –
15000 units each year on total bus sales of some 60000 units. According to industry experts
of the 3 lacs school in India, only third of them use schoool buses. Since children need to be
picked up from multiple points on school route, so they predominantly demand ‘functional’
15-40 seaters (5-9 tonnes) mini buses. According to the experts, the size of 7 -11 m school
bus is only about 4000 units.

The below listed table gives an overview of the various available options in this segment.
Table 3-11: Popular available options for school bus application

Company Name Model Name Seat Capacity GVW (in kg)


28 + D
Stag BS II Fully Built
34 + D
7500
28 + D
Stag BS III Fully Built
34 + D
Stag 40 + D 9300
Ashok Leyland
37 + D
Lynx BS II fully built
41 + D
11000
37 + D
Lynx BS III fully built
41 + D
Lynx 49 + D 10850
Sartaj
7.5 – 10
Swaraj Mazda Prestige 25 – 40
Pestige AC 14 – 15
Skyline 10.75H 34 + D 7450
Skyline 10.90K 40 + D 8720
VECV – Eicher Starline 10.50E 25 + D 5400
Starline 10.75H 32 + D 7450
Starline 10.90K 40 + D 8720
Tourister 25 5440
Tourister 32 7450
Mahindra Navistar Tourister 40 7850
Tourister CNG .. 5700
Vikrant 14 + D 3550
Starbus Skool 16 4800
Starbus Skool 20 5300
Starbus Skool 24 6520
Starbus Skool 36 7490
Tata Motors
Starbus Skool 40 9000
Starbus CNG 40 9400
Starbus Skool 52 14160
Winger School Van .. 2670
Low Floor .. 16200
Guide .. ..
CERITA/JCBL
Pride .. ..
Wish .. ..
Source: Motorindia Magazine, March 2010

The extent of fully built school bus is 80-90%. Their is a huge demand for more compact
school buses. Take Force Motors Traveller for instance.

Summer Project Report 31


Changing Trends and Way Forward: City limits are getting expanded and parents want to
send their children to the best educational institutes. According to a survey, the average
distance travelled by a student today is 11 km. This distance is only expected to rise in the
near future. Also school bus as a product is becoming a mobile building tool for most school
and colleges.
S. S. School Transport (P) Ltd. is a dedicated fleet management company based in
Chennai for school transportation. Currently they have a fleet size of 75 with 3000 students
using this service. Mr Shivarman, MD S. S. School Transport, in his interview with CV
magazine has sad that they plan to scale up their fleet size to 300. Some of these ideas may
be getting support from government.
The recent guidelines from the Maharashtra government in January 2010, has
specified transportation of students by school bus to be made mandatory in all school in
Mumbai for the academic year.

Summer Project Report 32


3.4 Growth Driver

The surrogate variables taken to estimate the growth rate for luxury bus segment are:
 Increasing Urbanization
 Government Support
 Improving Road Infrastructure
 Special Economic Zones

Increasing Urbanization: The people in rural areas have started migrating to urban areas
due to which there is urban congestion and also the cities are expanding leading to which
there is a need for intra-city, special application buses like institutions etc and thereby
creating an attraction towards mass transport which is also economical. The below listed
graph show the projection for the population lives in urban.

Chart 3-8: Urban Population growth rate

Source: Indiastat Database

Indian economy is witnessing a strong year on year GDP growth rate. It has lead to an
increase both in per capita income and consumption.

Table 3-12: Major Indian Economic Data


Particulars 2005-06 2006-07 2007-08 2008-09 2009-10
GDP at Market Prices 9.3 9.4 9.6 5.1 6.8
Per capita income 7.6 7.9 8.1 3.7 5.3
Consumption (Private) 9.0 8.2 9.8 6.8 4.1
Consumption (Govt) 8.3 3.8 9.7 16.7 8.2
Source: Indiastat Database

Summer Project Report 33


Government Support: There are large numbers of government schemes that have been
initiated to improve infrastructure. Under JNNURM-I government has allocated about Rs
50000 crores for urban infrastructure. It will increase the demand for intra-city buses. Now
government has initiated JNNURM-II and has allocated about one lakh crores rupees which
will act as a strong driver for inter-city and intra-city buses from all over the country. Apart
from this, as part of this scheme bus transport system is being developed. And under NHDP
and RIDF both urban and rural infrastructure in terms of roads, highways and bridges is
being undertaken.

Improving Road Infrastructure: As per the latest information available from the ministry of
transport and surface, length of national highway has been increased by about 33% i.e. from
49585 kms in 2000 to 65590 kms in 2008. It will be further increased because of government
sponsored schemes like golden quadrilateral, North – South and East - West corridor and
many more. All these initiatives will enhance the passengers to travel long distance through
roadways.

Special Economic Zone: As per the information available from ministry of commerce and
industry, there are nearly 568 formally approved and about 291 notified SEZ’s as on 31st Mar
2009 in India. This is going to increase the demand for buses in India from corporate sector
movement.

Summer Project Report 34


3.5 Emerging Trends in Bus Market

The luxury bus segment in India is expected to be around 25,000 to 30,000 units per annum.
Customers in this segment mostly buy chasis from the manufacturer and build the bus
bodies at an independent body building unit. The topless luxury segment is estimated to be
around 500-600 units per annum.

The leading Indian commercial vehicle manufacturers have line up a capacity expansion
programmes for the upcoming years

Manufacturer Capacity Expansion (nos) Investment (Rs bn)


Tata Motors 70,000 3.50
Ashok Leyland 25,000 5.00
M&M-ITEC 25,000 3.70
Force & MAN 24,000 6.75
Swaraj Mazda 24,000 2.50
Volvo NA 15.00

To tap this market international leading players have formulated their market entry strategy.
Volvo which soon expects a whooping sales figure of around 1000 buses in India have
shown there keen interest to bring in their articulated buses into India. The population of
Volvo in India is expected to exceed 2000 units by Jan 2010. Volvo India is partner with nine
major cities including Bangalore, Chennai, Pune, Hyderabad, Mumbai and
Thiruvananthapuram, for supply of modern buses for city and inter-city transport system.
Recently Volvo has made its foray into North India with a committed supply of 15 buses for
Faridabad inter-city bus service. Kolkata too will get 60 Volvo buses and; Gujarat and
Karnataka are going to introduce there sleeper coaches in their respective inter-city bus
service.

Turkish bus maker Temsa has also reinforced its commitment to India. So far as India is
concerned, Temsa is to locally manufacture its Safari RD integral coach, most likely in
collaboration with auto component major, JBM group.

Swedish CV maker Scania is currently undertaking a feasibility study to examine the


possibility of entering the Indian bus market. Indications are that an intercity coach may be
on Indian roads by 2011. Currently company sells the P380 mining tipper in India, in
partnership with L&T.

Irizar-TVS, a joint venture company of Ashok Leyland, T V Sundram Iyengar & Sons Ltd,
and Irizar S Coop of Spain, has opened its new state of art facility at Viralimalai near Trichy.
The new facility has a capacity to produce 180 buses per month. With this Irizar-TVS has
expanded its capacity from 1200 to 2200 buses per annum. They have the capacity and
expertise to build the complete range of buses, starting from top end luxury coach to low
floor and semi low floor city buses. Ashok Leyland has targeted sale of 18000 to 20000
buses during 2010-11, of which 50-60 percent will be fully built buses. In the next 3 to 4
years percentage of fully built buses could increase it to 90%. Irizar-TVS has also launched
iT09 luxury coach for inter city transportation.

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Mercedes-Benz has developed its bus platform specially suited to the Indian requirement. It
has launched its much-awaited 3-axle intercity luxury coach which comes with its O 500
RSD 2436 chassis and the body assembled by the Indian partner company Sutlej Motors
Ltd.

Ashok Leyland had launched a luxury vehicle, Exuba, priced at Rs 3 millions. The vehicle is
aimed at the tourism industry and institutional buyers. It also targeted the film industry and
adventure seekers. The company had plans to produce only 400 Exubas annually at its
Hosur plant. Lately, the company is coming up with CNG-fuelled CVs.

Some of the ongoing bus projects are listed in table given below.

Table 3-13: Ongoing bus project as on June 2010

Project Cost
Company Name Project Name
(in Rs cr)
Ashok Leyland Ltd. City Buses Project N.A.
Caparo India Pvt. Ltd. Luxury Bus Manufacturing Facility Project 80
Electrotherm (India) Ltd. Hybrid Buses Project 100
Force Motors Ltd. Pithampur Buses Project 1845
Irizar T V S Ltd. Viralimalai New Assembly Line Project 30
Swaraj Mazda Ltd. Bus Manufacturing Project 260
Ural India Ltd. Haldia Eighty Seater Bus Manufacturing Project 150
Ashok Leyland Ltd. Alwar Bus Body Building Project 40
Automobile Corpn. Of Goa Ltd. Bus Bodies Expansion Project 17.87
Volvo India Bus Technologies Ltd. Hoskot Bus Body Project 80
Ahmedabad Municipal Corpn. Ahmadabad Brts Phase-I Project 500
Andhra Pradesh State Road Transport Bus Purchase Project 400
Bangalore Metropolitian Transport Corpn. Volvo Bus Project N.A.
Brihan Mumbai Electric Supply & Transport Fleet Expansion Project N.A.
Brihan Mumbai Electric Supply & Transport Mumbai Fleet Expansion Project 320
Delhi Transport Corpn. New Buses Acquisition Project 1800
Government Of Uttar Pradesh Agra Eco-Friendly City Bus Service 260
Government Of Uttar Pradesh Ghaziabad CNG Bus Service To Metro Stations 10
Gujarat State Road Transport Corpn. Fleet Expansion Project 153
Source: CMIE database

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4 Bus Air Conditioner: Demand Measurement

Companies can prepare as many as 90 different types of demand estimates. Demand can
be measured for six different product levels, five different space levels, and three different
time levels. Each demand measures specific purpose.

World
Space Level

India
Region
Territory
Customer
All Sales
Product Level

Industry Sales
Company Sales
Product line sales
Product Item
Sales
Short Run Medium Run Long Run
Time Level

The size of a market hinges on the number of buyers who might exist for a particular market
offer. But there are many productive ways to break down the market:

 The potential market is the set of consumers who profess a sufficient level of interest in a
market offer. Potential consumers must have enough income and must have access too
the product offer.
 The available market is the set of consumers who have interest, income and access to a
particular offer. The eligible adults constitute the qualified available market – the set of
consumers who have interest, income, access and qualification for the particular market
offer.
 The target market is the part of qualified available market the company decides to
pursue. The company will end up selling to a certain number of buyers in its target
market.
 The penetrated market is the set of consumers who are buying company’s product.

4.1 Air Conditioned Buses Classification

4.1.1 AC Sleeper
AC Sleeper buses provide dual comforts of an AC bus with sleeper berths. AC Sleeper
buses are today the most preferred bus type for long distance road travel. Operating mostly
as overnight buses on road routes across states, interstate AC sleeper bus services connect
major cities across various regions. AC Sleeper buses are specially designed for a
comfortable bus travel experience and like trains have berths instead of seats. Each
passenger is assigned a berth to sleep on during the journey. Most sleeper buses feature

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bunk beds with two or three berths each and feature window curtains as well. Commercial,
religious as well as major tourist destinations are connected to metropolitan cities by sleeper
buses amongst others. The air conditioning ensures passengers enjoy a pleasant bus ride to
their preferred destination, unaffected by weather conditions outside the AC Sleeper bus. AC
Sleeper buses are available on all important road routes, connecting all main cities to major
tourist, commercial and religious destinations. AC bus services are available from all major
cities including Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Pune, Ahmedabad, Kolkata
and many more. For the most convenient booking experience, book your AC Sleeper bus
tickets online and enjoy a hassle free experience. Opt from a range of bus operators while
you book your AC Sleeper bus ticket through the online bus ticket booking system. You can
as opt for your preferred berth and get your confirmed tickets instantly.

4.1.2 AC Bus
AC bus services are offered by state road transport corporations as well as private bus
operators and bus travel companies. Air conditioned buses generated a wave of relief when
they were introduced into the passenger road transport industry over two decades ago. Prior
to that, passengers had to bear the extreme weather conditions prevalent in the regions that
they travelled across. Ever since the introduction of AC bus services, passengers enjoy a
pleasant bus ride to their preferred destination, unaffected by weather conditions outside the
AC bus. For a comfortable travel experience, AC buses are fitted with upholstered seats that
can be reclined. Windows have curtains to block out the sun while some AC buses also play
music or movies for entertainment of passengers. AC buses are available on all important
road routes, connecting all main cities to major tourist, commercial and religious
destinations. AC bus services are available from all major cities including Delhi, Mumbai,
Bangalore, Chennai, Hyderabad, Pune, Ahmedabad, Jaipur, Kolkata, Chandigarh, Shimla,
Agra, Dehradun and many more. Even smaller towns are connected by interstate AC buses.
For the most convenient booking experience, book your AC bus tickets online and enjoy a
hassle free experience.

4.1.3 AC Sleeper Seater


With increasing demand for modes of road transport, design concept for buses are changing
rapidly with concentration on increasing seating capacity and yet offering comfort and
convenience. The latest combination of the two has resulted in the introduction of air
conditioned seater cum sleeper buses that offer passengers the choice of seats and berths
within the same bus. A typical seater cum sleeper bus has two rows of seats that regular
buses feature and in addition it also features a row of berths above the seats on each side of
the aisle. In seater cum sleeper buses, the overhead luggage storage space is missing,
hence passengers would be required to submit their baggage to be kept in the external
luggage storage compartments. Since the fare for a seat is less than that of a berth in a
seater cum sleeper bus, depending on their budget and duration of travel, passengers can
now opt for either a seat or a sleeper berth on seater cum sleeper buses. The air
conditioning ensures passengers enjoy a pleasant bus ride to their preferred destination,
unaffected by weather conditions outside the bus. Private bus operators in various

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metropolitan cities as well as small towns offer seater cum sleeper bus services that run on
most road routes connecting major cities.

4.1.4 Volvo AC
With the introduction of AC Volvo bus services on major important road travel routes, bus
travel in the country has come of age. The air conditioned Volvo buses are the most popular
mode of public transport amongst the metropolitan travellers. The super luxury AC Volvo
buses by Swedish auto company Volvo offer spacious reclining seats with adequate leg
room to stretch out besides additional comforts like window curtains and matted screens to
block out light. Features such as overhead reading lamps, powerful air conditioning with
individual controls and superior air suspension make the AC Volvo buses ideal for long
journeys where comfort is of utmost importance. Most new AC Volvo buses also offer
entertainment options like dual LCD screens for better viewing besides central audio system
for music. AC Volvo bus services are available on major intercity and interstate routes and
from all major cities including Delhi, Bangalore, Chennai, Mumbai, Hyderabad, Pune, Jaipur,
Ahmedabad and many more. While some state road transport corporations like that of
Rajasthan and Himachal Pradesh offer AC Volvo bus services, most other routes are
covered by private bus operators. The online booking system is the most convenient for
booking AC Volvo bus tickets as it allows you to choose from a range of bus travel operators
as well as choose your preferred seat.

4.2 Bus Air Conditioner


The penetration level of bus air-conditioning is approximately 4-6 per cent, which is low by
international standards, but has increased from less than 2 per cent, in a period of the last 5
years. Industry experts estimate that it is likely to grow at 35% growth rate in coming years.

The Golden Quadrilateral highway network and the introduction of fully built luxury buses by
large OEMs, as well as the entry of foreign bus manufacturers, has led to a quantum jump in
the quality of buses. More and more passengers are discovering the comforts of air
conditioned bus travel in city transport and in intercity travel, and passenger expectations are
rising. The increase in grants for the JNNURM scheme announced by the Indian
Government in the Budget will ensure that demand for bus air-conditioning compressors will
continue to remain strong going forward.

Bus air conditioner demand is directly related to overall expectation of air conditioning in
homes, offices, cars and shopping centres.

4.2.1 Home/ Office Air Conditioning


The CMIE Cospi Index for air conditioners & refrigerators stands at 1541.43 in May 2010.
CMIE Cospi Index is a set of 2500 companies with high stock market liquidity and good
disclosure. It is weighted by market capitalisation

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Chart 4-1: Weighted market capitalisation for Air-Conditioner & Refrigerator Industry

Source: Business Beacon

The above graph shows a strong growth rate in this sector over the last year.

Table 4-1: Household appliances industry size

Value (Rs billion)


2006-07 2007-08 2008-09
CTV 96 96 110
Refrigerators 41 48 51
Room Air conditioners 33 42 47
Washing machines 16 20 21
Household appliances 186 206 229
Source: CRISIL Research

Analyzing the above listed table we can say that there is a huge increase in demand for air-
conditioners and refrigerators.

4.2.2 Automotive Air-conditioning Industry


The Indian Automotive Air-conditioning is a niche industry, with few established players such
as Subros (market leader), Visteon, Behr, Sanden and Denso, and with new entrants like
Calsonic. The industry operates at an approximate capacity of 1.5 million units, in which
Subros currently has the leading market share of 41%. The competition in the industry is
intensifying, with players facing pricing pressures in the past few years. The Auto Air-
conditioning industry volumes are primarily driven by sales to OEMs (97-98%), and the
residual sales are based on replacement market demand.

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Chart 4-2: Automobile Air Conditioner Projection

Source: Company, Angel Research

4.2.3 Shopping Centre


There has been a spiralling growth in the number of shopping malls in India from none in
2000 to nearly 100 within five years, most malls Mumbai which has share of 31% and
then Delhi NCR which has share 21%, with 360 malls anticipated across India by 2007 and
up to 600 malls by the end of 2009. Bangalore accounts for another 15%. Even Hyderabad
and Kolkata have a 12% chunk each in the country’s mall space. The growth was fuelled by
rising incomes, greater availability of credit and busier lifestyles.

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4.3 Analysis

4.3.1 Methodology
To validate the reasoning for increase in demand for AC Buses data for per capita GDP,
Industrial Refrigerator & Air conditioning production and cooling tower produced will be used.

Table 4-2: Data for Air Conditioner surrogate variables

Year Per capita GDPfc Refrigerators & air-conditioning production Cooling towers production
Unit Rupees Rs.lakh Rs.lakh
Mar-00 17847.41 7332.86 14070
Mar-01 18891.24 6027.76 12546
Mar-02 20170.44 4894.76 13980.66
Mar-03 21414.91 4758.89 14197.7
Mar-04 23676.96 5298.58 15186
Mar-05 26425.17 5370.07 22729
Mar-06 29677.98 6351.22 20538
Mar-07 33684.36 7747.78 28314
Mar-08 37969.17 9668.2 37551
Mar-09 42748.55 12064.15 54661
Mar-10 11751.57 43668
Source: CMIE Database

Cooling towers common applications include cooling the circulating water used in oil
refineries, chemical plants, power stations and building cooling. So they may be use to
estimate the market demand trend for institutional cooling.

4.3.2 Data Analysis


Bivariate Correlation would be use.

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4.3.3 Result

Correlations

Per_Capita Refrigerant Cooling_Tower


** **
Per_Capita Pearson Correlation 1 .833 .948

Sig. (2-tailed) .003 .000

N 10 10 10
** **
Refrigerant Pearson Correlation .833 1 .921

Sig. (2-tailed) .003 .000

N 10 10 10
** **
Cooling_Tower Pearson Correlation .948 .921 1

Sig. (2-tailed) .000 .000

N 10 10 10

**. Correlation is significant at the 0.01 level (2-tailed).

The above listed figure shows the correlation output between per capita income, cooling
tower production and air conditioner production. From these figure we can conclude that
there is a strong positive correlation between per capita income and refrigerant and that this
correlation is significant at the significance level of 0.01. Also same is true for correlation
between cooling tower and per capita income.

So higher is the per capita income, higher will be the demand for domestic air conditioner &
refrigerator and commercial cooling tower. Using these we can also infer that there would be
higher demand for commercial air conditioned buses too.

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5 Analysis – Customer Market

Customers tend to be value-maximizers, within the bounds of search costs and limited
knowledge, mobility and income. They estimate which offer will deliver the most perceived
value and act on it. Whether or not the offer lives up to expectation affects customer
satisfaction and the probability that he or she will purchase the product again.

Customer perceived value is the difference between the prospective customer’s evaluation
of all the benefits and all costs of an offering and the perceived alternatives. The seller must
assess the total customer value and total customer cost associated with each competitor’s
offer in order to know his or her offer rates in the buyer’s mind. The seller who is at a
customer perceived value disadvantage has two alternatives: to increase total customer
value or reducing the buyer’s cost.

Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a


product’s perceived performance in relation to his or her expectations. If performance falls
short of expectations, the customer is dissatisfied. Customer’s form their expectations from
past buying experience, friends’ and associates’ advice and marketers’ and competitors’
information and promises.

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5.1 Customer Distribution
In Indian bus market though OEMs (Ashok Leyland, Tata Motors, Swaraj Mazda, Eicher etc)
have started offering fully built buses but still the large chunk of bus market pie lies with bus
body builders. Here customer buys a bus chasis from the OEM and then he get the bus body
building done as per his requirement and for a luxury bus he also chooses the air conditioner
unit supplier. So for a luxury bus in total three independent parties come into picture – Bus
Chasis Manufacturer, Bus Body Builder, Bus AC Supplier. To identify the customer
distribution across the country, we can take coach work factories as a proxy for them.

So we may study:
 Region wiz number of coach work factories in operation.
 Workers employed in factory.
 Gross Output of factory

For our further analysis we have classified the states of India into four regions i.e. North,
South, East and West. The classification is as per the below listed table.

East North South West


Jharkhand Uttar Pradesh Andhra Pradesh Rajasthan
Bihar Haryana Tamil Nadu Madhya Pradesh
Assam Delhi Kerala Gujarat
Goa Maharashtra

5.1.1 Coach Work Factories


As per the data available from CMIE Database, as on 2005 there were 342 registered bodies
coach work factories in operation.

Table 5-1: Number of coach work factories in operation

State Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05


Jharkhand 12 7 7 17 10 11 11
Assam 3 3 3 3 3 3 3
Uttar Pradesh 10 9 12 31 5 7 16
Punjab 15 19 30 20 27 24 21
Haryana 5 10 11 9 7 8
Delhi 6 3 3 7 18
Andhra Pradesh 24 54 32 40 45 43 49
Tamil Nadu 31 32 32 31 57 51 40
Kerala 5 4 3 3 12 10
Karnataka 49 32 20 28 19 19 23
Goa 3 3 3 3 3 4
Rajasthan 19 13 14 17 13 15 14
Maharashtra 160 118 76 78 43 51 85
Madhya Pradesh 19 42 41 26 20 18 18
Gujarat 13 11 5 9 10 11 7
Source: CMIE Database

On analysing the data we have found that there were 126 coach building factories in South
Region, 124 in west, 63 in North and 14 in east. Maharashtra has the highest number of
Summer Project Report 46
coach building factories i.e. 85 in India. So we can say that that South and West Indian
Region are most popular region for coach building. It may be because of large customer
base in this region.

5.1.2 Workers Employed


Number of coach building factories cannot be taken as a proxy of large customer base, as it
may be the case that the installed capacity across them varies a lot. So to overcome this we
will study the employee strength in these factories.

Table 5-2: Employees employed in coach building factories

State Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05


Andhra Pradesh 959 1301 866 1185 1537 1420 3198
Assam 157 143 144 142 128 105 133
Bihar 27
Delhi 21 55 39 68 254
Goa 37 92 72 82 79 72
Gujarat 172 1083 723 1279 1806 735 543
Haryana 356 6917 5967 669 600 4026
Karnataka 1442 2740 552 1577 1191 1449 1926
Kerala 52 60 65 64 179 119
Madhya Pradesh 322 2346 1048 830 843 1018 2119
Maharashtra 4931 6300 3772 3927 5135 4136 4603
Punjab 681 1021 1171 985 2433 2540 1529
Rajasthan 857 563 397 1183 926 936 1034
Tamil Nadu 7824 1074 2174 2176 4205 4453 4475
Uttar Pradesh 0 210 914 543 137 396 393
Jharkhand 738 523 1171 1145 789 1492 1388
Source: CMIE Database

In South India maximum number of employees i.e. 9790 were employed in coach work
factories. It was followed by west region which had 8299 employees, then north region at
6202 and then east region at 1521. So it again strengthen our belief that south and west
region have the highest commercial vehicle demand in India.

5.1.3 Gross Output


To identify the relative size of market we can study the gross output of coach work factories.

Table 5-3: Gross Output (in lakhs) of coach work factory

State Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05


Assam 429 421 337 284 298 302 323
Jharkhand 1970 3262 3156 3394 3505 6360 6686
Bihar 198
Uttar Pradesh 0 1493 5330 2897 556 3140 3288
Punjab 3562 3618 6285 6252 43563 56612 11825
Haryana 2585 651039 711172 5661 6091 1126672
Delhi 148 278 69 139 1354
Karnataka 5593 15440 2677 7522 8670 17812 16311
Kerala 100 127 116 105 1927 198
Tamil Nadu 13708 2426 5018 3369 5304 13442 15868

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Goa 102 270 321 427 490 785
Andhra Pradesh 1291 3757 3399 3119 5373 6439 23712
Rajasthan 1284 2127 1152 3475 3197 4215 48411
Maharashtra 33150 36678 21637 18090 20237 36066 53046
Madhya Pradesh 749 5794 2765 2888 2985 5148 11321
Gujarat 855 7290 2262 8086 42427 6402 6125
Source: CMIE Database

Analyzing the data we can see that the relative size of northern region is highest i.e.
1143139 lakhs followed by west region at 118903 lakhs. Haryana has emerged out as a
market leader in terms of gross sales at Rs 1126672 lakhs. Also the gross value of plant and
machinery for Haryana is highest i.e. Rs 449737 lakhs followed by West Bengal at Rs 19263
lakhs.

Table 5-4: Gross value of plant and machinery

State Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05


Assam 28 33 29 30 30 31 33
West Bengal 1960 19463 19345 19402 19447 19414 19263
Jharkhand 65 162 261 348 366 895 573
Haryana 314 353620 402921 802 743 449737
Punjab 306 1780 1786 1822 4261 4586 2512
Uttar Pradesh 0 8 1877 1002 103 599 392
Tamil Nadu 5185 661 638 535 668 705 690
Kerala 0 0 0 4 5 111 10
Karnataka 496 706 267 529 464 979 1485
Andhra Pradesh 83 171 342 27 317 504 364
Goa 1 31 35 37 39 38
Madhya Pradesh 70 1400 665 752 1879 2024 4397
Maharashtra 34498 34084 32721 36395 96083 41414 9273
Rajasthan 55 136 173 84 293 161 682
Gujarat 574 80 98 1126 710 1696 116
Source: CMIE Database

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5.2 Customer Value Analysis
To identify the major attributes, performance and benefits levels the customer looks for in
choosing a product survey was conducted.

5.2.1 Research Methodology

5.2.1.1 Sampling Method


The participants for this research will be AC bus body builders, institutional bus buyers and
private bus operators. In Delhi there are 26 bus body builders both registered and non-
registered. Out of these only 13 bus body builders manufactures air conditioned buses. The
contact detail and address of all these body builders is given in below listed table.

Table 5-5: Delhi AC Bus Body Builder Contact List

Company Name Address

Azad Body Builder Sanjay Nagar, Gulabi Bagh


Golden Coach Builders Near Gurudwara Nanak Piao
Jagan Coach Builders H. O. 78, Sukhdev Vihar
Sheena Enterprises C-132, Naraina Indl Area – I
Bright India Body Builders 1 Surat Nagar, Near Nanak Piao
Guru Ram Dass Body Builders Naresh Park Extn, Najafhgarh Rd
Puran Singh & Sons Plot No 2, Niranjan Park, Nangali Dairy
Bishan singh & Sons A-95/6, Wazirpur Industrial Area
Rama Automobiles A-15, Wazirpur Industrial Area
Rama Coach Industries A-17, Wazirpur Industrial Area
Baldev Body Builders D-12, Tpt Centre, Timarpur
New Dhanjal Body Builders 18-B Gokhale Market
Raja Coach Builders Janta Bus Body Market, Mandoli

For our research all of these 13 AC bus body builders will be approached.

In Delhi there are large numbers of AC Bus operators for which no complete information is
available. For AC Bus Private Operators snowball sampling will be used. This sampling
method is generally use when researcher does not have access to sufficient people with the
required characteristics. So here we ask them to refer other people who fit our study
requirements, then follow up with these new people. For institutional buyers and competitors
sales person judgment sampling approach will be followed.

5.2.1.2 Sample Size


Respondent Classification Sample Size
Bus Body Builders 13
Institutional Bus Buyers 27
Private Bus Operator 29
Competitor Sales Person 8

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5.2.1.3 Data Collection
For Bus body builders, institutional buyers and private bus operator primary data was
collected through questionnaires. A questionnaire was prepared, containing fifteen
questions. A pilot survey was conducted with 3 bus body builders in Delhi. Their inputs were
incorporated to prepare the final questionnaire. The data collected was analysed and
inferences were drawn, as discussed in the next section. The questions in the questionnaire
were designed using Nominal Scale and Ordinal Scale. Sample questionnaire is being
attached in Appendix.

For company sales person personal interviews were conducted.

5.2.1.4 Data Analysis


 Descriptive statistics.
 Cluster Analysis

5.2.2 Results
Out of approached persons only 9 bus body builders, 4 sales person, 5 institutional buyers
and 11 private ac bus operators agreed to participate in our study.
The participants for this survey were bus body builders, institutional bus buyers and private
bus operators. During this survey questionnaire approach was being followed.

It was observed that bus body builders have lesser role in purchase decision. Most of the
times they are guided by customer himself about the brand of ac to be install. But if
sometimes customer is quite confused while selecting then they do recommend them. Sales
person of different available brand do visit them on continuous basis and offer them the
margin money on amount of sales they have helped in.

Institutional buyers and Private bus operators have rated cooling efficiency and after sales
service as the most important factor they consider while selecting a particular make of bus
AC.

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The result of cluster analysis is being attached in Appendix.

Table 5-6: Result of Cluster analysis

Respondent Type
Cluster Number
Institutional/ Private Attribute
Institutional (School) Fleet Size < 5, Experience< 5 year
1
Institutional (School) Fleet Size < 10, Experience < 5 year
Private Fleet Size < 5, Experience < 10 year
Private Fleet Size < 10, Experience < 5 year
2 Private Fleet Size > 15, Experience < 5 year
Private Fleet Size < 10, Experience < 10 year
Private Fleet Size < 10, Experience < 15 year
Institutional (School) Fleet Size < 20, Experience < 10 year
Private Fleet Size < 5, Experience < 10 year
3 Private Fleet Size > 20, Experience > 20 year
Private Fleet Size < 5, Experience < 5 year
Private Fleet Size < 5, Experience < 5 year
Institutional (School) Fleet Size < 5, Experience < 5 year
4 Institutional (School) Fleet Size < 5, Experience < 5 year
Private Fleet Size < 5, Experience < 10 year

On analysis we have found following attributes for different clusters.

Table 5-7: Cluster Vs Population Attribute Mapping

Cluster
Attributes
1 2 3 4
After Sales Service 1 1 1 1 Order
Cooling Efficiency 1 1 1 1 Qualifier
Body Builder Recommendation 1
Peer Recommendation 2 1
Brand Name 1 1 Order
Maintenance Cost 1 1 2 Winner
Mileage 1 1 1
Product Price 1 1

1 Very Important
Colour Coding
2 Important

From above table we can say that institutional buyer gives high importance to bus body
builders and peer recommendation. It can be explained because of their less experience and
also they are not very regular in making purchase decision. So they are not updated with
latest happenings and offers. Because of all these they rely on others to help them in making
decision.

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But private operators are well informed. They look around in whole available range of
options while making purchase decision. They most of the time rely on there knowledge of
industry and hence are less dependent on others recommendation.

Five Competitor Sales person had agreed to participate. For them personal interview was
conducted. They have highlight following as order qualifier for a customer
 After Sale Support
 Product Reliability
 Part Availability
 Part Pricing
 Cooling Efficiency.

5.2.3 Conclusion
Bus air conditioner customer values cooling efficiency and service quality as the most
important attributes while making purchase decision. So we can classify these two as order
qualifier. Apart from this he also looks for maintenance cost, mileage, price and
recommendation. These can be classified as order winner. These parameters matter to
different degrees for different type of customers as per his needs.

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5.3 Customer Satisfaction Measurement
In previous section we have observed that service quality and cooling efficiency plays a role
of order qualifier. Cooling efficiency is a product attribute whereas after sales service
(contemplated, expected and received) is different from perception of quality (contemplated,
expected and received) of after sales service. In this section we would study

 Is there is any mark difference for after sales service expectations across the two group
i.e. institutional buyer and private operators.

 To identify the key after sales service component.

5.3.1 Literature Review


Perception of quality may differ radically from actual quality of the events comprising the
service. Customer criteria determine the definition of quality and variables that affect
perception of quality. The variables may change with circumstance, experience and time.
Service providers may influence the variables that drive customer perception of service
quality, or may influence perceptions of the value of components contributing to the
customer’s perception of expected service quality.

The total perceived value of a service comes from two sources. First, customers perceive
value that originates from service act itself. Second, customers perceive value that originates
from the quality of service act.

According to Saccani et al (2005) in order to evaluate after-sales performance


comprehensively, different levels of analysis (business unit, processes and activities,
organisational units) as well as different performance dimensions (financial and non-
financial, effectiveness- and efficiency-oriented, short-term and long-term oriented) have to
be taken into account.

At the strategic business area level, the overall after-sales financial performance is
considered. It can be measured by indicators such as operating profit, ROA, ROI, etc. It s
important to stress that the financial results are generated both by market results (market
share, market penetration, etc.) that impact on revenue, and by the efficient consumption of
resources (costs). The second level of the framework is the process one. According to Lynch
and Cross (1991), process performance can be measured with regard to customer
satisfaction, flexibility and productivity. The third level considers the performance of the after-
sales organisational unit in dealing with its specific activities. It is useful to distinguish
between front office activities, impacting directly on customer satisfaction, and back office
ones, which are responsible for efficiency and lead times. Five performance dimensions at
the activity level are considered: reliability, responsiveness, internal lead times (which are
mainly measured by non financial indicators), waste, costs and assets utilisation (which is
mostly evaluated through financial indicators). Finally, the fourth level of the framework
proposed by Gaiardelli et al. (2005), assesses the development and innovation dimension
(Kaplan and Norton, 1992), aiming at capturing the drivers of future competitive and financial
results.

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5.3.2 Research Methodology

5.3.2.1 Sampling Method


The participants for this research will be institutional bus buyers and private bus operators.
For the study convenience sampling will be used. It is a type of non probability sampling
which involves the sample being drawn from that part of the population which is close to
hand. In this operators who have agreed to participate in customer value analysis would be
approached.

5.3.2.2 Sample Size


Respondent Classification Sample Size
Institutional Bus Buyers 12
Private Bus Operator 18

5.3.2.3 Data Collection


Primary data was collected through questionnaires. A questionnaire was prepared,
containing twelve questions. A pilot survey was conducted with 2 institutional buyers. Their
inputs were incorporated to prepare the final questionnaire. The sampling was proportional
convenience sampling in nature. The data collected was analysed and inferences were
drawn, as discussed in the next section.

The questions in the questionnaire were designed using various scales like Nominal Scale,
Ordinal Scale and Ratio Scale.

5.3.2.4 Questionnaire Variables


 Part Availability
 Technical Assistance
 Response Time
 Repair Time
 Service Productivity
 Spare Part Cost
 Environment Friendly
 Technical Assistance Cost
 Operator Training
 Application Design
 Service Quality

5.3.2.5 Data Analysis


 Principal component analysis
 Descriptive statistics
 Independent Group T Test
As sample size is small (N:p = 9:14)so strength of data should be check. For this item
communalities should be consistently high.

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5.3.3 Result
1 To test whether there is any difference between institutional buyers and private bus
operator towards the weightage given to service price while making purchase decision.

Null Hypothesis: There is no much difference between institutional buyers and private bus
operator for weightage given to after sales service while making purchase decision.

Alternate Hypothesis: There is much difference between the two groups for the weightage
given to after sales service while making purchase decision.

To check the normality of data obtained for institutional buyer and private bus operator,
boxplot was plotted. The graph obtained is as shown below for the two.

Chart 5-1: After Sales Service Weightage Boxplot

The median for the two boxplot lies in the centre of box. So we can say that data is normal.
Moving ahead to determine whether there is any significant difference between institutional
buyer and private operator for after sale service, an independent group T Test was
conducted. The results obtained are

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Group Statistics

Type N Mean Std. Deviation Std. Error Mean

After Sales Service institutional 3 60.0000 10.00000 5.77350


Weghtage
private operator 11 60.4545 17.67124 5.32808

Independent Samples Test

Levene's Test for Equality of t-test for Equality


Variances of Means

F Sig. t

After Sales Service Equal variances assumed 2.831 .118 -.042


Weightage
Equal variances not assumed -.058

Given that Levene’s test probability is greater than 0.05, we can assume that population
variances are relatively equal. Therefore we would check the t value, df and two tail
significance for the equal variance estimate whether the after sales service weightage
difference exists.
Independent Samples Test

t-test for Equality of Means

df Sig. (2-tailed) Mean Difference

After Sales Service Equal variances assumed 12 .967 -.45455


Weightage
Equal variances not assumed 5.989 .956 -.45455

Independent Samples Test

t-test for Equality of Means

95% Confidence Interval of the Difference

Lower Upper

After Sales Service Weightage Equal variances assumed -24.06931 23.16022

Equal variances not assumed -19.68720 18.77811

The two tail significance for after sale service weightage indicates that p > 0.05 and
therefore is not significant. At 5% significance level we can accept the null hypothesis i.e. the

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two groups must have come from same population. So we can say that there is no much
difference for the weightage given by institutional buyer and private operators.

2 To study the various after sales service component and find the key underline
service attributes

In previous study we have found that there is no much difference between the after sales
service weightage given by institutional buyers and private bus operators. So now we would
try to map the expected and perceived after sales service by these customers.

For this we have use principal component analysis. As the communalities is consistently
high and the number of factors is only 2 we can say that strength of data is strong. So for
this data sample size is less important. Also KMO measure of adequacy is greater than 0.5
i.e. 0.668. So our result is valid. Analyzing the result, two factors seem to emerge out. Factor
1 represents Responsiveness and factor 2 seems to represent effectiveness.

Table 5-8: Principal Component Analysis Factors for expected after sales service
Factor Variables Factor Loading
Application_Design .897
Spare_Part_Cost .884
Responsiveness Technical_Assistance .857
Response_Time .720
Operator_Training .635
Service_Productivity .802
Effectiveness
Repair_Time .802

The obtained factor scores for the respondents are shown in below listed table.

Table 5-9: Factor Score for expected after sales service component

Respondent Responsiveness Effectiveness


1 -1.69999 -1.11146
2 1.13604 -2.67479
3 -0.21866 0.05444
4 0.5564 0.541
5 0.52997 0.04762
6 0.26888 0.619
7 0.23054 0.529
8 -1.71839 1.16119
9 -1.69999 -1.11146
10 0.26888 0.619
11 0.52997 0.04762
12 0.23054 0.529
13 1.31693 0.13081
14 0.26888 0.619

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On plotting this we have obtained the below drawn graph.

Chart 5-2: Customer Expectations for After Sales Service

Though there are few outliners in plot, but most of other respondents lie in somewhat close
range. So we can say that for most of the customers expected after sales service demand
parameters are same.

3 To identify the perceive value of after sales service customers are currently
getting from their existing suppliers.

For this we have had asked respondents to rate various for the current level of after sales
service they are getting from their supplier. To find the underlying components we have
performed principal component analysis. The KMO measure of sampling adequacy is 0.766
which is very good and for these data Bartlett’s test is highly significant (p < .001) and
therefore analysis is appropriate. Also communalities for data is consistently high and
number of components are only 2, so small sample size is not a problem.

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Table 5-10: Principal Component Analysis Factors for perceived after sales service

Factor Variables Loading


Technical Assistance .919
Product Design .766
Repair Time .756
Service_1
Operator Training .754
Parts Availability .718
Response Time .610
Service Quality .910
Service_2
Service Productivity .898

The obtained factor scores for the respondents are shown in below listed table.

Table 5-11: Factor score for perceived value of after sales service

Respondent Service_1 Service_2


1 -0.34058 -2.43002599
2 0.279691 0.135289124
3 -1.24995 1.086727396
4 -2.04668 -1.15549765
5 1.03486 -0.1042743
6 -0.2475 -0.21145068
7 0.72224 0.573040685
8 -0.51637 0.395340728
9 0.728417 -0.71173074
10 1.473132 -0.22593832
11 -0.02925 0.670223998
12 -0.43357 0.160597443
13 -0.69935 1.726055001
14 1.32491 0.09164329

On plotting this we have obtained the below drawn graph.

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Chart 5-3: Customer perceived value for After Sales Service

In the above graph we can see that there is a mark difference between perceived value on
two defined dimensions whereas expected value lies somewhat in close range. So we can
say that there is a huge difference between what customers want and what they are being
delivered.

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6 Market Segmentation & Targeting

6.1 Market Segmentation

In previous chapter we have find that bus air conditioner after sales service has two measure
dimensions – Responsiveness and Effectiveness. As market segment consists of customers
who share a similar set of needs and wants, therefore we can group customers on the basis
of these two dimensions. The four obtained segments are

Table 6-1: Bus Air Conditioner market segments


High

Segment C Segment A
Effectiveness

Low

Segment D Segment B

Low High
Responsiveness

More responsive for them means


 Supplier should help them in designing the bus so that it is more cooling efficient and as
well as cooling effectiveness. It is a proactive strategy rather than reactive. Once
customers have selected there ac supplier they want him to play an active role in
designing the bus body. It will helps in increasing the financial performance as well as
product performance. So this is a win-win situation for both.
 Supplier should provide them needed technical assistance on time to time regarding air
conditioner. It will help in reducing the downtime. It is like a preventive maintenance. So
instead of final breakdown, customers expect them to give them required technical inputs
to check the ac health.
 Supplier response time should be minimum i.e. when contacted they should respond
quickly.
 Supplier should give required basic training so that bus driver can solve the air
conditioner problem (if there is any) by himself. It will helps in reducing the dependency
of operator on AC supplier. The required skill-set expectations differ from respondent to
respondent.

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 Spare part cost should be economical. There should not be any mark difference between
market price and supplier price for the required spare part.

More Effective means


 Supplier should take minimum time to repair the bus air conditioner.
 There should be minimum bus air conditioner downtime or service productivity should be
high.

For our survey we have considered institutional buyers and private bus operators only. We
haven’t taken OEMs (Ashok Leyland, Tata Motors, VECV etc.) and bus body builders. After
analysis we have identified after sales service as one of the critical parameter while making
purchase decision. So for our further discussion we can eliminate fourth segment i.e. low
responsiveness and low effectiveness.

Now we would try to find the size, purchasing power and characteristics of each identified
segment. It is done so as to identify whether each segment is large enough to serve. Also it
will help to craft the strategy to serve them by formulating effective programs.

6.1.1 Segment A

This segment his high on both after sales service attribute i.e. they want the bus ac supplier
to be more responsive and as well as more effective. So the cost of service for this segment
is high. On analyzing the respondent details we have found that this segment constitutes
private operators having medium fleet size (between 10 & 20). Also there are few
institutional buyers also in this segment. Maximum number of respondents in our sample lies
in this segment.

6.1.2 Segment B

This segment is high on responsiveness but low on effectiveness. They want their service
provider to be more of proactive rather than reactive. On analyzing the respondent details
we have found that customers of this segment have medium to low fleet size and majority of
them have less experience. But few of the respondents also have their own full time
workshops. It may be the case that they have diversified business (like car service, truck
service etc) and depends on their supplier for assistance purpose only.

6.1.3 Segment C

This segment is high on effectiveness but low on responsiveness. On analyzing the


respondent details we have found that most of the customers in this segment have a high
experience (> 20). So maybe they depend more on their experience for application design,
technical assistance and spare parts. These customers are less costly to serve as they want
service only when required.

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6.1.4 Summary
Table 6-2: Summary for Market Segment

Market Segment
Features/ Parameters
A B C D
OEMs 1
Segment
Attribute

Low Experience, Fleet Small 1 1


Low Experience, Fleet Large 1
High Experience, Fleet Small 1
High Experience, Fleet Large 1

Responsiveness High High Low Low


Attributes
Effectiveness High Low High Low

Cluster 1 1 1 NA
Analysis
Cluster

Cluster 2 1 NA
Cluster 3 1 1 NA
Cluster 4 1 NA
* NA: Not Applicable

6.2 Market Targeting

In evaluating different market segments, the firm must look at two factors: the segment’s
overall attractiveness and the company’s objectives and resources.

On perception mapping the perceived value by customers for existing level of after sales
service offered by competitors, we have identified that there is no much significant difference
between the perceived and expected after sales service value. So company cannot target
any of the market segments on after sales service criteria.

But looking into the segment attractiveness, we can further analyse Segment B and
Segment C for market entry. As Segment D due to lack of required data is not analyzed so
nothing can be said about it.

Also our survey is being conducted only in Northern region (Delhi/NCR) of India only, so
there may be some regional biases which may not be accounted for in this research.

The second order qualifier was ‘cooling efficiency’. Company should look for new value
proposition in it. For this we may use ‘Quality Function Deployment tool – House of
Quality’. But company then also has to deliver a high quality after sales service to attract the
targeted market share of this market.

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7 Analysis: Competitive Force

Michael Porter has identified five forces that determine the intrinsic long run attractiveness of
a market or market segment: industry competitors, potential entrants, substitutes, buyers
and suppliers. His model is shown in figure 5.1.

Figure 7-1: Five forces determining segment structural attractiveness

Source: http://thomasbarker.com/files/porters.gif

7.1 Analysis

7.1.1 Industry Competitors


Currently there are nearly 14 players in the market and according to industry experts by
2010 there would be 20 players. Below listed table list some of the important players in
Indian bus market.

India Year of Service


Company Nationality
Headquarter incorporation Points
Gurgaon,
Carrier USA 1902 55
Haryana

Mumbai,
Thermoking USA 1938
Maharashtra

Haiger China Delhi 22

Sidwal India Delhi 1974 20

Jingyi China Delhi 1988

Sphero Germany Noida, UP 1956

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Denso Japan 1949

7.1.1.1 Carrier Transicold

It is a business unit of Carrier Corporation, a subsidiary of United Technologies Corporation.


Carrier Corp., headquartered in Farmington, Conn., is the world’s largest provider of heating,
air-conditioning and refrigeration solutions. With 2007 revenues of $14.6 billion, Carrier has
approximately 43,000 employees worldwide and operations in more than 170 countries.

Carrier enjoys a leadership position with a significant market share. They offer a full range of
products specially designed for high ambient temperatures in India. Carrier has been one of
the pioneers in the fields of transport air-conditioning and in cold chain development. For
buses, they have a range of split and roof top systems with cooling capacities ranging from 5
kW to 44 kW, for installation on buses carrying 10 to 100 passengers.

Their manufacturing facility is located in Gurgaon, on the outskirts of New Delhi and the India
sales and distribution Head office is in Bangalore. The Regional Offices are in Delhi,
Mumbai, Bangalore and Kolkata. We also have sales offices at Chandigarh, Pune, and
Chennai. Their service dealer network includes more than 20 company technicians and 60
service dealers spread in all major cities in India, primarily along the main highway routes.

They have set up a state of the art engineering/R&D center at Gurgaon. Their bus air
conditioning equipment is used by almost all State Transport Corporations. They offer
customized solutions, specially adapted to Indian road and ambient conditions; and also
provide strong parts and service support through a countrywide network of service dealers.

Carrier also has a strong leadership position in room air-conditioning as well as air-
conditioning of large buildings and projects.

7.1.1.2 Haiger Refrigeration Private Ltd.


It is one of the early movers in the Indian bus AC segment. It sells the Haiger brand of bus
air-conditioning systems. Haiger was started in 2004 by Mr. Rishi Pathak who comes with
more than 14 years of experience in bus air-conditioning. Haiger is the Indian arm of one of
China’s leading and premium brands of bus air-conditioners selling over 22,000 bus AC units
per annum, with major supplies for KingLong in China.

Haiger plans to set up a manufacturing facility in India, at Baddi in Himachal Pradesh,


spread across an area of about 2.5 acres. In the first phase this factory will have a capacity
to manufacture 4,000 units. Currently products are manufactured at its facility in Shanghai,
China. It has a full-fledged workshop and service facility in Delhi. They are coming up with
an office in Ahmedabad, Bangalore and Kolkata.

The company has established nine service stations in UP alone to provide service support to
UP roadways and other private customers. It has also bagged significant orders from the
Government and private operators in West Bengal, Orissa and Andhra Pradesh. In the

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South, Haiger’s biggest private customer is SRS Travels to which it has supplied close to
150 units till 2008.

Haiger offers a complete product range from 11.6 KW to 50 KW, from 3.3 tonnes to 14
tonnes. It offers solutions for buses starting from 6 m long to 12 m long coaches. Haiger is
an 100 per cent OEM for JCBL and Cerita Motors. Haiger is also considering a entry into the
truck refrigeration market as also cars and rail coach air-conditioning. Haiger India clocked a
turnover of Rs. 12.5 crores in 2007-08.

7.1.1.3 Sidwal Refrigeration Industries Ltd


The Delhi-based Sidwal Refrigeration Industries Ltd. is a leading manufacturer of air-
conditioning units for mobile and stationary units. The company was founded in 1974 by Mr.
Sher. S. Sidhu. The company has an endless list of prestigious projects to its credit which
includes air conditioning of the Shatabdis, Rajdhanis, Palace on wheels given to the
Rajasthan Government, the Deccan Odyssey operated by Maharashtra, the Golden Chariot
of Andhra and the recent order for the air-conditioning of 188 Delhi Metro coaches. For
military, Sidwal has developed cooling units for many important projects including the cooling
units for missile launchers like the Brahmos, military shelters and radars.

Sidwal has also built very strong competency in the Bus air-conditioning business. Sidwal
has the largest range of air-conditioning products for this industry to meet the diversified
needs of customers, starting from trucks, Defence combat vehicles, military ambulances,
free flow units for city ambulances and low-roof mini-buses, and roof top units for small, mid
and large buses having seating capacities from 10 to 72 seaters.

By March 2009, company has fitted over 2000 units on various types of buses including
luxury coaches for long distance travel, for tourist purpose and even some of the Tarmac
coaches for airport applications.

Sidwal is currently a 100 per cent Indian company with no technology tie-ups for any of its
products. The company has three manufacturing facilities in the North. Sidwal employs over
a 1,000 people out of which 400 people are employed in service alone along all the rail
network across the country to provide 24/7 service support for Railways. This is a big
advantage for Sidwal as these service centers can also be used to service its other products.

Sidwal clocked a turnover of Rs. 100 crores in 2007-08 and is looking to double this in the
next couple of years. The company is also closely looking at a possibly entry in the
refrigerated goods storage, displays and transportation business particularly for super
markets and refer trucks and trailers, which is bound to grow in the coming years.

7.1.1.4 Frigid Corporation


Frigid Corpoation represents Thermoking Europe in India for bus air conditioning and truck
refrigeration. Thermo King is the acknowledged World Leader in Transport Temperature
Control Systems. Having its corporate headquarters in Minneapolis, USA, and 14 factories
located all over the world, Thermo King was the first company to produce Truck
Refrigeration unit in 1938 and Bus Air-conditioning unit in 1956. Today Thermo king

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produces nearly 70% of the world’s requirement of Transport Temperature Control Systems.
Thermo king enjoys excellent reputation in terms of product performance, reliability and
durability and is making the world better on every continent and in every type of climate and
terrain.

Thermo King has a very wide range of products, which include Container Refrigeration (sea-
going). Rail Air-conditioning, Truck & Trailer Refrigeration and Bus Air-conditioning units.
In India, we have been promoting a wide range of TK bus airconditioning and truck
refrigeration models to suit the domestic requirements. We have been supplying regularly TK
Truck Refrigeration units to Amalgam, Choice, Devi, Baby, Integrated, Alsa Marine for frozen
fish; Quality Walls and Amul for Ice Creams; Allana, Al-Kabeer, Venkey’s, McDonald’s for
meat & poultry and to hordes of private transports, floriculturists and fish exporters.

7.1.1.5 Spheros Motherson Thermal System Limited


It is a joint venture between Samvardhana Motherson Group and Spheros GmbH of
Germany. Spheros GmbH, previously, a division of Webasto AG. is world's leading
manufacturer of Air Conditioners, Heaters & Hatches for buses and coaches. Spheros is one
of the world's leading manufacturers of air conditioners, heaters and roof hatches for buses.
It partners with all the prominent bus manufacturers in design & development of innovative
temperature control systems.

7.1.1.6 Denso Corporation


A well-established spin-off of Toyota Motor Corporation, the DENSO Corporation (originally
incorporated as the Nippondenso Company) is Japan’s leading producer of automobile
components and the world’s fourth largest. Its products include air conditioners and heaters,
electrical and electronic control products, fuel management systems, radiators, meters, and
filters. General Motors leaders acknowledged DENSO as a model for GM spin-off Delphi
Automotive. As the second-largest member of the Toyota Group, more than half of DENSO’s
products go to Toyota Motor Corporation (TMC), which owns better than 20 percent of
DENSO stock. DENSO also supplies nearly all other major Japanese automakers as well as
numerous U.S. manufacturers, including Ford, General Motors, and Chrysler, and major
European auto manufacturers such as Volvo, BMW, and Fiat. The company’s emphasis on
quality control and improved manufacturing efficiency throughout its history, its aggressive
international expansion program, and its well-funded research-and-development activities
since the 1960s have produced steady sales growth and allowed DENSO to capture
dominant positions in many of its world markets.

7.1.1.7 Trans ACNR Solution


Trans ACNR Solution represents Jingyi, China in India for bus air conditioning. Guangzhou
Jingyi Automobile Air Conditioning Co., Ltd. was established in 1988. Company’s annual bus
air conditioning production capacity of 18,000 sets factory infrastructure in the industry-
leading level.

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7.1.1.8 Strength – Weakness Matrix
Company Name Strength Weakness
Carrier world’s largest
provider of heating, air
conditioning and
refrigeration.
Enjoys leadership position in
Indian market.
Huge range of products
Carrier Transicold
ranging from 5 KW to 44 KW.
Engineering/ R&D centre at
Gurgaon
Working with all major Indian
OEMs
Huge service delivery
netwok.
China’s leading and premium Customers’ resistance to buy
brands of bus air- Chinese products.
conditioners.
Manufacturing unit at Baddi,
Himachal Pradesh with
Haiger installed capacity of 4000
units.
Complete product range from
11.6 KW to 50 KW.
100% OEM for JCBL and
Cerita Motors.
100% Indian company with Poor service network across
zero debt. South India.
Large range of product for
seating capacities from 10 to
72 seaters.
Has been part of many
prestigious projects
Sidwal Huge service network along
all the rail across the country
which can be used to service
its other products
Installed manufacturing
capacity of 10,000 units for
large-sized bus air-
conditioning units.

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Thermoking produces nearly Poor service network.
70% of the world’s
requirement of Transport
Temperature Control
Frigid Corporation
Systems.
OEM for Volvo
Wide range of TK bus air-
conditioning.
JingYi installed capacity of Customers’ resistance to buy
about 25000 units. Chinese products.
Nearly 10 series and 200 New market entrant
Trans ACNR types of bus air conditioning
products.
Low cost advantage Poor service network all over
India.
Spheros Motherson No information available New market entrant.

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7.1.2 Industry Product
Bus air conditioner main components are compressor assembly, condenser, evaporator,
roof-top unit and dash panel.

Figure 7-2: Bus Air Conditioner unit components

Source: http://www.aitransit.com/bus_and_coach/Pictures/SRLT_Bus_Instal_small.jpg

For brief study of available range of bus air conditioners in India, we would classify them into
three segments i.e. Small Bus A/C, Medium Bus A/C and large bus A/C

7.1.2.1 Small Bus Air Conditioner


Small buses can have a seat capacity of up to 20. The available range of most popular
products in this segment is given in below listed table.

Brand Model Rated Capacity Cooling Capacity


(in KW) (in m3/hr)
Denso SD8 18.0 3000

CT-15 6 2030

Carrier CT-20 8 2465

CT-25 10 2465

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415/420 10 3000

S20 5.3 1400


Thermoking
S30 8.1 1487

Sidwal SR10SS 11 2700

Jingyi JYKT-08 8 1500

Haiger Alfa 17 17 NA

In this range all the suppliers provides a one year warranty service. For more details please
look in Appendix.

There is no industry standard for cooling capacity. It all depends on the usage of vehicle and
hence has to be customized as per its need. Also it varies in power consumption and weight.

7.1.2.2 Medium Bus Air Conditioner


They can have a seat capacity of up to 35. The available range of most popular options in
this segment is given in below listed table.

Brand Model Rated Capacity Cooling Capacity


(in KW) (in m3/hr)
Denso MSD8 18 3800

Carrier AC310 24 4000

Thermoking SR 50S 14.5 2720

SR 30S 28 4000
Sidwal
SR 13S 16 4000

Jingyi JYKT 22 28 4200

Haiger Alfa 20 20

CC 170 20.5 4200


Spheros
CC 160 19 4200

In this range all the suppliers provides a one year warranty service. For more details please
look in Appendix.

Considering weight, power consumption and cooling capacity as the parameter there is a
wide range of difference available in the available product range. This can be because of the
wide application for which this range of product is being use. Like if vehicle has a box type
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body building then engine load will not interfere with cabin cooling and so effectiveness of air
conditioner increase.

7.1.2.3 Large Air Conditioner


They can have a seat capacity of up to 55. The available range of most popular options in
this segment is given in below listed table.

Brand Model Rated Capacity Cooling Capacity


(in KW) (in m3/hr)
Denso LD8i 35 6600
136 II 32 6600
136 III 39 6600
Carrier
136 IV 44 8800
353 32 6300
KRS 2139A 34.9 5070
Thermoking KRS 2139B 32.6 5070
KRS 2139C 30.2 5070
Sidwal SR 32S 32 6500
Jingyi JYKT 24 32/38 6300
Haiger Beeta 38 38 6700
AT 350 40 6300
Spheros
AT 300 35 6300

In this range all the suppliers provides a one year warranty service. For more details please
look in Appendix.

Depending upon the application of bus, product has to be designed. So there is a very wide
difference between the product attributes.

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7.1.3 Industry Suppliers
The main components of bus air conditioning units are compressor unit, refrigeration piping,
evaporator, condenser and alternator. Compressor is known as the heart of air conditioning
unit. In India most of the market players source compressor from Blitzer, Germany. Similarly
for other parts also there are common suppliers like Prestolite - UK, SPAL – Italy, Denfos,
Parker/ Minoli, Valeo - Japan etc. So in a way it gives a lot of bargaining power to suppliers.
But considering the still under developed Indian Bus air conditioning market, there is a huge
scope for other players. So witnessing this there are large numbers of international brands
which are planning to enter into huge Indian market.

Indian air conditioner suppliers have a tie up with any one of the strong international player
and hence depends upon them to source critical air conditioner unit components. Hence this
reduces the bargaining power of suppliers.

7.1.3.1 Blitzer International


Bitzer International is the largest manufacturer of transport compressors in the world. In
India, the transport compressor business grew 351 per cent in calendar year 2008 over
2007. Even with the ongoing global slowdown in business, in calendar years 2010 and 2011,
the company expects to grow in three digits. In India, Bitzer offers compressors for bus air-
conditioning, truck refrigeration and railway air-conditioning. The major growth in the past
year has been in the bus air-conditioning segment due to the exponential rise in demand for
air-conditioned buses. Bitzer India caters to the compressor requirement of all major OEMs
in India like Spheros Motherson, Sidwal Refrigeration, Thermoking India, Carrier Transicold,
Trans ACNR to name a few. Bitzer has a comprehensive service network placed around the
country. They have a dedicated service team available at Mumbai. They have a three
authorized service centres at Bangalore, New Delhi and Mumbai. In addition, authorized
service providers are being appointed in ten cities across India.

7.1.3.2 Prestolite Electric


It manufactures alternators and starter motors. These are supplied under the Prestolite
Electric, Leece-Neville and Indiel brand names for original equipment and aftermarket
application on a variety of vehicles and industrial equipment.

7.1.3.3 SPAL Automotive


Founded in Italy, in 1959, it specialized in plastic mold design and production. They have
been designing, producing and marketing high-performance axial fans and centrifugal
blowers vehicular, off-road, industrial, construction and stationary product manufacturers for
more than 30 years.

7.1.3.4 Kendrion LINNIG GmbH


This company is a part of the Kendrion Group, worldwide supplier of electromagnetic
clutches for engine cooling and air-conditioning in city buses, coaches and trucks, in the
luxury segment, and also in specialized vehicles. They are a major supplier of components
to the air-conditioner manufacturers like Carrier, Spheros and Thermoking. Presently they

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are trying to partner with the Indian OEMs like Tata Motors, Ashok Leyland and others and
to cater to the other global manufacturers entering the Indian market.

7.1.4 Industry New Entrants


In an interview given by an bus industry experts to a trade magazine has told that they
expect that by 2010 there would be 20 players in this market.

7.1.4.1 Modine Manufacturing Company


It is a global component major and system supplier of power train cooling components
(PTCs). When Modine entered the Indian market, the company also announced its plans to
enter the bus AC market. It has also acquired a company in Korea which manufactures
HVAC systems for commercial vehicles and passenger cars. The company had planned to
import components from Korea and cater to the growing demand in the Indian Bus AC
market.

7.1.5 Industry Customers


In India Ashok Leyland, Tata Motors, Swaraj Mazda, Eicher, Mahindra and Force Motors are
the major bus manufacturer. Though these players have started offering the complete built
bus but still the major market lies with customers who just buy bus chasis from the
manufacturers and then get body building over it. Because of this there is a lot of disparity in
bus design across the industry. To overcome it government is coming out with body building
code.

Soon coming years we can see a large shift in complete build bus market from small
unorganized players to bus chasis manufacturers. But for a period of time we continue study
both as customer, as still major chunk of market is with these small players.

7.1.5.1 Original Equipment Manufacturers


To meet the increased demand for complete built buses, all present OEMs have started
building up there installed capacity. Some of the latest updates have already being
discussed in Chapter 3. To source their air conditioner requirements, these manufacturers
have formulated a strategic tie up with world class players.

OEMs AC Suppliers

Tata Motors Carrier

Eicher Motors Webesto

Force Motor Carrier

Ashok Leyland Hispanocold/ Modine

Volvo Denso/ Thermoking/ Carrier

JCBL Haiger

Summer Project Report 75


Ashok Leyland is using Hispanocold ACs only for domestic buses, but for export purpose
they are using Modine ACs. Seeng the relative size of these OEMs and their strategic
importance, we can say that they have quite a reasonable bargaining power as customer.

7.1.5.2 Bus Body Builders


In India to fill the gap between local body builders and OEMs, there are few market players
who have started offering fully built buses. Some of them are JCBL India Ltd, Sutlej Motors,
Azad Coach Pvt Ltd, KMS Coach Builders, Bharat Coach Builders, SM Kanappa
Automobiles, Azad Body Builders etc. They have set up the state of art manufacturing unit to
build buses over the chasis. They built buses for number of state roadways, big private
transporters, tour operators and institutions.

Few of them have entered into the strategic partnership with AC Suppliers. Some of the
customers depend on their expertise and source fully built buses from them but some time
they are guided by the end customer for brand of ac unit to be installed. We can say that
they enjoy a strategic location in evolving Indian bus market. So they too have a high
bargaining power.

7.1.5.3 Bus Operators


STUs, Private Transporters, Tour Operators, Institutes and institutions come under this
segment. They are the one who buy only chasis from OEMs and then get body building done
from their preferred bus body builder. They also make a decision regarding the bus ac
supplier. They formulate the largest chunk of demand for ac buses. Considering their relative
size they have quite a high bargaining power. But with bus body building code, this market is
going to shrink considerably.

7.1.6 Industry Substitutes


There are no substitutes available for bus air conditioner. Hence the threat of substitutes is
low.

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7.2 Competitive Force Analysis Summary

Competitive Force Effect Reason


High Product differentiation for a given application is low
Low Nationality viz competitors differs
High Number of competitors are still low
Inter-competitor Rivalry Low Industry growth rate is huge.
High Buyer’s switching cost is low.
High Considering Indian huge market strategic stake is
high
High All major stake holders OEMs, Body builders and
Buyer Power
Bus operators have a high bargaining power.
High Supplier concentration is low
Low International reputation of buyer is quite high.
Supplier Power Low Substitutes are available and hence there is a
threat that buyer may switch over to other
available brands.
High Considering India’s vast and diverse geography
access to distribution channel is difficult
New Entrant Low Switching cost to buyers is low.
Low Product differentiation is low.
Low Government policies also favour new entrant
Substitute Low Not available

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Summer Project Report 78
Appendix 1: Company viz sales figure for passenger vehicle in India

Company 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
% Market Share
Maruti Suzuki India 67.1 52.46 48.04 47.22 43.54 41.71 39.89 40.63 38.8 39.88 38.34
Hyundai Motor India 4.55 13.77 16.97 18.45 19.57 22.12 22.28 23.28 22.46 22.8 29.56
Tata Motors 1.21 9.76 7.33 10.78 12.43 13.95 15 15.24 14.76 12.43 12.85
Honda Siel Cars India 5.55 3.86 4.02 4.61 4.82 6.11 8.12 8.66 11.21 9.86 7.58
Ford India Pvt. Ltd 4.02 2.02 5.33 4.58 4.13 4.43 4.39 4.56 5.81 4.46 3.37
General Motors India Pvt. 2.11 1.24 2.8 3.79 0.79 3.56 2.72 1.82 1.76 3.5 3.01
Toyota Kirloskar Motor Pvt. 0.59 2.93 2.34 2.34 1.58 1.31 1.46
Mahindra Renault Pvt. 2.49 1.23
Sales Value (in Rs crores)
Maruti Suzuki India 7300.9 8540.6 8187.6 8284 8441.2 10355.3 12407.5 13734.2 16034.1 19549 21186.56
Hyundai Motor India 495.11 2242.19 2892.1 3237.41 3794.57 5490.52 6930.17 7867.72 9283.09 11179.41 16336.82
Tata Motors 132 1589.73 1248.42 1890.77 2409.74 3464.24 4664.67 5152.31 6098.51 6092.96 7100
Honda Siel Cars India 603.4 628.24 685.72 808.34 935.29 1516.33 2525.26 2928.83 4634.08 4835.12 4191.08
Ford India Pvt. Ltd 437.95 328.3 908.5 803.41 801.38 1100.23 1365.13 1539.92 2400.78 2188 1865
General Motors India Pvt. 229.12 201.13 476.39 665.22 153 884.44 845.05 614.15 727.42 1716.45 1664.53
Toyota Kirloskar Motor Pvt. 114.47 726.58 726.58 792.12 652.16 641.5 806.71
Mahindra Renault Pvt. 1219.07 677.21
Source: CMIE Database

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Summer Project Report 80
Appendix 2: Company viz bus production by various OEM’s in India

Force General Hindustan Tata Eicher Swaraj Ashok Volvo


Segment Year Toyota Bajaj Mahindra VECV JCBL Total
Motors Motor Motors Motor Motors Mazda Leyland India
A1
2004 4032 25887 8904 567 21157 26367 86914
2005 7607 11631 11 3474 253 16778 26998 66752
2006 10932 11190 232 15753 26123 64230
<= 5
2007 11318 10884 58 11854 21871 55985
2008 10519 7534 6 13347 19432 50838
2009 9900 5690 14 13297 16867 45768
A2
2004 520 6021 1732 2157 354 10784
2005 1346 6990 1483 1939 699 12457
>= 5 & 2006 1560 10049 1460 2331 431 15831
<= 7.5 2007 69 1896 11191 2035 2264 413 17868
2008 194 2498 9695 1275 2084 587 16333
2009 116 2296 12808 731 1883 710 886 19430
B1
2004 899 531 928 2358
> 7.5 & 2005 976 708 1043 743 3470
<= 12 2006 1421 950 1439 707 4517
2007 961 1267 2027 692 4947

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2008 2959 1266 1882 663 6770
2009 4467 439 1531 1005 1072 1 8515
B2
2004 13941 170 12534 300 26945
2005 10071 155 12434 369 23029
>=12 & 2006 13364 438 10361 248 24411
<=16.2 2007 14598 549 17057 229 32433
2008 13410 265 15015 445 29135
2009 14352 31 15 14157 124 127 486 29292
B3
2004 0
2005 75 75
2006 0
>16.2
2007 0
2008 21 21
2009 78 78
Source: Indiastats Database

Summer Project Report 82


Appendix 3: Company viz production figure of Buses having GVW < 5 tons

Year Force Motors General Motor Toyota Bajaj Hindustan Motors Mahindra Tata Motor Total
X No. of seats including driver not exceeding 13
2004 4032 25887 5004 185 18356 22920 76384
2005 4533 11631 11 2174 55 15265 23600 57269
2006 7225 11190 14084 24292 56791
2007 7219 10884 8683 20009 46795
2008 6400 7534 10540 15815 40289
2009 5191 5690 4 10623 12067 33575
2010 (Jan - Mar) 1866 2488 562 2919 NA
Y No. of seats including driver exceeding 13
2004 3900 382 2801 3447 10530
2005 3074 1300 198 1513 3398 9483
2006 3707 232 1669 1831 7439
2007 4099 58 3171 1862 9190
2008 4119 6 2807 3617 10549
2009 4709 10 2674 4800 12193
2010 (Jan - Mar) 1873 4 649 1427 NA
Source: Indiastat Database

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Summer Project Report 84
Appendix 4: Registered Motor Vehicles (Category-wise) in India by States/Uts
As on 31st March 2006 As on 31st March 2005
States Buses Taxis LMV Buses Taxis LMV
Andhra Pradesh 18368 113693 299776 16909 97516 281236
Arunachal Pradesh 682 343 1449 678 334 1441
Assam 11378 12671 34906 10776 11440 32386
Bihar 16271 22698 45365 16158 22271 42050
Chhattisgarh 24955 5036 9194 22294 4736 8219
Goa 5689 9361 10035 5267 9036 9763
Gujarat 54446 47914 336695 52286 43714 296758
Haryana 19986 16344 45858 11297 17294 43239
Himachal Pradesh 6859 14542 2825 6687 14695 3717
Jammu & Kashmir 21435 13656 15919 20735 12344 15054
Jharkhand 10238 24693 46834 9878 23289 40714
Karnataka 40819 67385 213721 38052 56226 202298
Kerala 127574 119753 342527 95486 100012 320851
Madhya Pradesh 27997 72760 51049 25990 67570 47976
Maharashtra 66754 122389 534535 63405 113380 515249
Manipur 2570 377 2721 2480 369 2630
Meghalaya 3497 8432 3569 3285 7180 3001
Mizoram 704 4988 1534 672 4316 1336
Nagaland 4060 5004 9548 3863 4721 9100
Orissa 15996 30426 34360 15012 26365 30310
Punjab 21136 9937 43280 19855 9616 39664
Rajasthan 60979 42679 79576 58092 37761 71711
Sikkim 365 6052 0 355 5467 0
Tamil Nadu 89991 134580 174646 82547 124370 163545
Tripura 1961 1316 13237 1864 1232 11881
Uttarakhand 5949 16069 7906 5279 14605 7060
Uttar Pradesh 26549 28443 91346 25081 27810 80037
West Bengal 43599 68926 40315 33613 65110 56038
TOTAL STATES 730807 1020467 2492726 647896 922779 2337264
Delhi 25963 15569 96149 633 246 2857
Chandigarh 2307 1771 2000 2166 1550 2000
Daman & Diu 420 43 976 156 112 527
A&N 658 246 2997 389 43 942
Lakshadweep 13 0 273 25357 13470 92243
Puducherry 1997 1626 4665 9 0 249
D & N Haveli 176 123 539 1915 1538 4600
UT Total 31534 19378 107599 30625 16959 103418
Source: Indiastat

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Summer Project Report 86
Appendix 5: Calculation for total number of annual tourist bus trips required

Tourist Visit (in no) Pasngrs Travelled By Bus Bus Trip Required
Total
Year Foreign Domestic Trips
Tourist Tourist Foreign Domestic Foreign Domestic
1995 21200000 1366400000 784400 538361600 19610 13459040 13478650
1996 22900000 1401200000 847300 552072800 21182 13801820 13823002
1997 23700000 1598800000 876900 629927200 21922 15748180 15770102
1998 23600000 1682000000 873200 662708000 21830 16567700 16589530
1999 24800000 1906700000 917600 751239800 22940 18780995 18803935
2000 26500000 2201100000 980500 867233400 24512 21680835 21705347
2001 25400000 2364700000 939800 931691800 23495 23292295 23315790
2002 23800000 2696000000 880600 1062224000 22015 26555600 26577615
2003 27300000 3090400000 1010100 1217617600 25252 30440440 30465692
2004 34600000 3662700000 1280200 1443103800 32005 36077595 36109600
2005 39200000 3919500000 1450400 1544283000 36260 38607075 38643335
2006 44500000 4623100000 1646500 1821501400 41162 45537535 45578697
2007 50800000 5265600000 1879600 2074646400 46990 51866160 51913150
2008 53700000 5629200000 1986900 2217904800 49672 55447620 55497292

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Summer Project Report 88
Appendix 6: Technical Details for available AC Product Range for Small Buses

Power
Cooling Capacity Voltage Weight Airflow Price
Company Model Name Compressor Consumption
(in Kcal/hr) (in V DC) (in Kg) (in m3/hr) (in lakhs)
(in Amp)

Alpha 11.6 TM-16 8000 12 50 80 900 1.75


Haiger Alpha 13 1800 2.20
Alpha 17 2700 2.60
SR 15 TM 08HD 3614 24/12 15 27 816
S 20 II TM16HD 4536 13.5/27 30/16 715 2
Thermoking
S 30 II TM16HD 6930 13.5/27 49/25 1408 2.7
S 40 II A6/ TM16HD 8690 13.5/27 76/42 2292 3.4
CT 10 793 1
Carrier CT 15 TM 16 5593 12 14 47 1244 2
CT 20 TM 16 6883 12 20 66 2259 2.25
SR 08S SD 510 8000 12 39 1
Sidwal SR 10SS TM 16 10000 12 54 1.5
SR 10SC TM 16 10000 12 65 2
JYKT06 TM 16 5200 12 40 55 1500
Jingyi
JYKT 08 TM 21 7000 12 86 60 1500
Denso SD8 10P30 13800 24 30 85 3000
CC120 5850 12 1350
Sphero CC125 6883 12 2200
C145 10325 12 2200
Source: Company Website

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Summer Project Report 90
Appendix 7: Technical Details for available AC Product Range for Medium Buses
Power
Cooling Capacity Voltage Weight Airflow Price
Company Model Compressor Consumption
(in Kcal/hr) (in V DC) (in kg) (in m3/hr) (in lakhs)
(in Amp)
Alpha 20 DKS-32/ AK-33 15480 24 60 179 3600 3.00
Haiger
Beta 33 FK 40/ AK 40 25800/22000 24 75 263 4500 5.00
S 45 R TM31 11271 13.5/27 67/37 2292
SR 50C TM31 HD/ TM16 12304 24/12 47 66 2100
SR 50S TM31 HD/ TM16 12304 24/12 51 95 2720
Thermoking MRT I X426/ TM 16 (2) 15120 24 72 212 3500
SRT II A6 10600 27 52 170 2720
Citi RT X430/ S391 20900 24 96 170 3500 5.5
D5 X426/ X430 21421 27.5 95 3740
AC 310 O5K 20650 24 70 200 4000 3.25
Carrier
AC 112 13766 24 65 125 3600 3
SR 13S TM31 16000 12 65 3
Sidwal SR 13SS DKS 32 13000 12 65
SR 13SC DKS 32 13000 12 65
CC 300 25800 24 110 6300
CC 160 12400 24/ 12 62 3200
Sphero
CC 200 16348 24/ 12 75 4200
CC 230 17200 24 75 4200
MSD8 10P30 15500 24 40 100 3800
Denso MSD8 10PA20 10600 25.5 41 100 2800
MD8 10PA20 (2 units) 22600 24 51 140 4500
Source: Company Website

Summer Project Report 91


Appendix 8: Technical Details for available AC Product Range for Large Buses
Power
Cooling Capacity Voltage Weight Airflow Price
Company Model Compressor Consumption
(in Kcal/hr) (in V DC) (in kg) (in m3/hr) (in lakhs)
(in Amp)
Beta 38 FK 40/ AK 40 29420 24 90 294 5400 6.00
Haiger
Gamma 50 FK 40 34400 24 90 430 6300 6.50
LRT I X430/ TM 31 (2) 23900 24 103 265 4900
LRT II X430/ TM 31 (2) 23900 24 103 283 4900
Thermoking
LRT HP X426/X430/ S391/ S616 28980 120 286 5400 5
LRT SP X426/X430/ S391/ S616 23940 110 273 5440 5
AC 353 FK40 27533 24 100 240 6000 5.5
Carrier
AC 410
SR 30S 4PFCY 28000 24 85 28000 5
Sidwal SR 32S Reciprocating 32000 24 90
SR 30SRE Block FK 4 30000 24 85
Aerospace 350 32265 24 115 8400
Aerospace 380 36136 24 115 8400
Sphero Aerospace 400 40438-43880 24 115 8400
Aerospace 300 31400 24 95 7500
CC 350 31310 24 110 6300
JYKT16A TM31 + HD(Oil 500) 16KW 54 180 2400
Jingyi
JYKT 28A FK 40 32 KW 24 100 259 8000
VOLVO B7R 6C 500C 28 KW 24 110 170 6000 3-3.5
Denso LD8i 6C620/ 10P30 (2 units) 30000 24 68 180 6600
LD8i09 6C620 30000 24 65 175 6600
Source: Company Website

Summer Project Report 92


Appendix 9: Field Survey 1 - Questionnaire

Name Company Name


Contact No Address

1. How many AC Buses do you own? _______________________

2. For how many years are you in this business? _______________________

3. In which type of segment do you do your business:

Route Permit Tourist Staff School Others


A/C
Non A/C

4. What are the various factors you consider while selecting bus air conditioner?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

5. Rate the below factors on 5 point scale (1: Low ; 5: High):

Variable 1 2 3 4 5
Price
Maintenance Cost
Brand Name
Mileage
After Sale Service
Body Builder Recommendation
Peer Recommendation
Sale Person Recommendation

6. Maintenance frequency (times in year) : _______________________

7. Maintenance cost (in Rs): _______________________

Summer Project Report 93


8. Preferred bus body builder: _______________________

9. What are the major reasons for breakdown?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

10. According to you what are the areas of improvements?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

11. What are the features you like most in current product?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

12. What are the features you would like to have in new product?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Visiting Card

Thank You

Summer Project Report 94


Appendix 10: Cluster Analysis for field survey 1
Cluster

a
Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

16 100.0 0 .0 16 100.0

a. Average Linkage (Between Groups)

Proximity Matrix

Squared Euclidean Distance

Case 1 2 3 4 5 6 7 8

1 .000 4.000 9.000 10.000 11.000 14.000 11.000 17.000

2 4.000 .000 3.000 4.000 5.000 10.000 9.000 11.000

3 9.000 3.000 .000 1.000 4.000 9.000 6.000 10.000

4 10.000 4.000 1.000 .000 3.000 12.000 9.000 11.000

5 11.000 5.000 4.000 3.000 .000 15.000 8.000 10.000

6 14.000 10.000 9.000 12.000 15.000 .000 5.000 13.000

7 11.000 9.000 6.000 9.000 8.000 5.000 .000 12.000

8 17.000 11.000 10.000 11.000 10.000 13.000 12.000 .000

9 18.000 12.000 7.000 8.000 7.000 16.000 9.000 3.000

10 16.000 8.000 5.000 6.000 7.000 6.000 7.000 9.000

11 12.000 8.000 9.000 8.000 3.000 14.000 9.000 5.000

12 15.000 13.000 6.000 7.000 10.000 15.000 8.000 8.000

13 16.000 14.000 7.000 6.000 11.000 14.000 11.000 11.000

14 15.000 7.000 4.000 3.000 4.000 15.000 12.000 4.000

15 17.000 11.000 6.000 9.000 10.000 9.000 6.000 4.000

16 15.000 7.000 4.000 5.000 8.000 3.000 6.000 8.000

This is a dissimilarity matrix

Summer Project Report 95


Proximity Matrix

Squared Euclidean Distance

Case 9 10 11 12 13 14 15 16

1 18.000 16.000 12.000 15.000 16.000 15.000 17.000 15.000

2 12.000 8.000 8.000 13.000 14.000 7.000 11.000 7.000

3 7.000 5.000 9.000 6.000 7.000 4.000 6.000 4.000

4 8.000 6.000 8.000 7.000 6.000 3.000 9.000 5.000

5 7.000 7.000 3.000 10.000 11.000 4.000 10.000 8.000

6 16.000 6.000 14.000 15.000 14.000 15.000 9.000 3.000

7 9.000 7.000 9.000 8.000 11.000 12.000 6.000 6.000

8 3.000 9.000 5.000 8.000 11.000 4.000 4.000 8.000

9 .000 10.000 6.000 3.000 8.000 3.000 3.000 9.000

10 10.000 .000 8.000 11.000 8.000 7.000 5.000 3.000

11 6.000 8.000 .000 11.000 12.000 5.000 9.000 9.000

12 3.000 11.000 11.000 .000 3.000 6.000 4.000 10.000

13 8.000 8.000 12.000 3.000 .000 7.000 7.000 9.000

14 3.000 7.000 5.000 6.000 7.000 .000 6.000 6.000

15 3.000 5.000 9.000 4.000 7.000 6.000 .000 6.000

16 9.000 3.000 9.000 10.000 9.000 6.000 6.000 .000

This is a dissimilarity matrix

Average Linkage (Between Groups)

Agglomeration Schedule

Cluster Combined Stage Cluster First Appears

Stage Cluster 1 Cluster 2 Coefficients Cluster 1 Cluster 2 Next Stage

1 3 4 1.000 0 0 6

2 10 16 3.000 0 0 9

3 9 15 3.000 0 0 7

4 12 13 3.000 0 0 12

5 5 11 3.000 0 0 10

6 3 14 3.500 1 0 10

7 8 9 3.500 0 3 12

8 1 2 4.000 0 0 15

Summer Project Report 96


9 6 10 4.500 0 2 11

10 3 5 5.500 6 5 13

11 6 7 6.000 9 0 14

12 8 12 6.833 7 4 13

13 3 8 7.760 10 12 14

14 3 6 9.300 13 11 15

15 1 3 11.357 8 14 0

Cluster Membership

Case 6 Clusters 5 Clusters 4 Clusters 3 Clusters 2 Clusters

1 1 1 1 1 1

2 1 1 1 1 1

3 2 2 2 2 2

4 2 2 2 2 2

5 2 2 2 2 2

6 3 3 3 3 2

7 4 3 3 3 2

8 5 4 4 2 2

9 5 4 4 2 2

10 3 3 3 3 2

11 2 2 2 2 2

12 6 5 4 2 2

13 6 5 4 2 2

14 2 2 2 2 2

15 5 4 4 2 2

16 3 3 3 3 2

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Summer Project Report 98
Appendix 11: Field Survey 2 - Questionnaire

Company Name

1. Have you purchased, or participate in the decision to purchase a bus air conditioner in the past 5
years? (Check one)

Yes No

2. How many times have you used warranty service for your bus ac in past 5 years? (Check one)

1 1 2 3 4 5 or more

3. Do you anticipate purchasing, or participating in the decision to purchase, a bus a/c within one
year? (Check one)

Yes No

4. How much information concerning after sales service that typically comes with bus a/c do you
know, in general?

Little or no Great deal


1 2 3 4 5
information information

5. How much experience do you have in evaluating after-sales offerings for bus a/c?

Little or no Great
1 2 3 4 5
experience experience

6. How much information concerning after sales service that accompanies your bus a/c do you
know?

Little or no Great deal


1 2 3 4 5
information information

7. How much expertise do you have as a consumer of after sales service for automobiles?

Little or no Great deal


1 2 3 4 5
expertise of expertise

Summer Project Report 99


8. Please rate the below listed parameters as per the importance you give to it while purchasing a
product:

Not Very
Parameters
Important Important

Parts availability 1 2 3 4 5

Technical assistance 1 2 3 4 5

Operator Training 1 2 3 4 5

Application Design 1 2 3 4 5

Service Productivity 1 2 3 4 5

Service Quality 1 2 3 4 5

Response Time 1 2 3 4 5

Repair Time 1 2 3 4 5

Spare Parts Cost 1 2 3 4 5

Technical Assistance Cost 1 2 3 4 5

Environment Friendly 1 2 3 4 5

9. What are the different services you are getting from your current supplier in general?

10. During commercial phase does your supplier is in constant touch with you?

Not at all Highly


1 2 3 4 5
involved involved

11. Below are product characteristics one might consider when purchasing a bus A/C. Please
distribute 100 points among the four characteristic to you in your decision to purchase?

Brand After Sale


Price Advertising
Name Service
Please make sure that your total equals 100 points.

Summer Project Report 100


12. Please rate the below listed parameters as per your experience with your current supplier:

Highly Highly
Parameters
Dissatisfied Satisfied

Parts availability 1 2 3 4 5

Technical assistance 1 2 3 4 5

Bus Operator Training 1 2 3 4 5

Product Design 1 2 3 4 5

Service Productivity 1 2 3 4 5

Service Quality 1 2 3 4 5

Response Time 1 2 3 4 5

Repair Time 1 2 3 4 5

Spare Parts Cost 1 2 3 4 5

Technical Assistance Cost 1 2 3 4 5

Installation Time 1 2 3 4 5

Cooling Efficiency 1 2 3 4 5

Installation Cost 1 2 3 4 5

Value for Money 1 2 3 4 5

(Visiting Card)
Thank You

Summer Project Report 101


Summer Project Report 102
Appendix 12: Principal Component Analysis for expected after sales service
Factor Analysis

a
Correlation Matrix

Technical_Assistance Operator_Training Application_Design Service_Productivity Response_Time Repair_Time Spare_Part_Cost

Correlation Technical_Assistance 1.000 .377 .626 .113 .642 .113 .769

Operator_Training .377 1.000 .628 -.366 .203 -.366 .369

Application_Design .626 .628 1.000 .093 .528 .093 .769

Service_Productivity .113 -.366 .093 1.000 .417 .417 .209

Response_Time .642 .203 .528 .417 1.000 .417 .575

Repair_Time .113 -.366 .093 .417 .417 1.000 .209

Spare_Part_Cost .769 .369 .769 .209 .575 .209 1.000

Sig. (1-tailed) Technical_Assistance .092 .008 .350 .007 .350 .001

Operator_Training .092 .008 .099 .243 .099 .097

Application_Design .008 .008 .376 .026 .376 .001

Service_Productivity .350 .099 .376 .069 .069 .237

Response_Time .007 .243 .026 .069 .069 .016

Repair_Time .350 .099 .376 .069 .069 .237

Spare_Part_Cost .001 .097 .001 .237 .016 .237

Summer Project Report 103


a
Correlation Matrix

Technical_Assistance Operator_Training Application_Design Service_Productivity Response_Time Repair_Time Spare_Part_Cost

Correlation Technical_Assistance 1.000 .377 .626 .113 .642 .113 .769

Operator_Training .377 1.000 .628 -.366 .203 -.366 .369

Application_Design .626 .628 1.000 .093 .528 .093 .769

Service_Productivity .113 -.366 .093 1.000 .417 .417 .209

Response_Time .642 .203 .528 .417 1.000 .417 .575

Repair_Time .113 -.366 .093 .417 .417 1.000 .209

Spare_Part_Cost .769 .369 .769 .209 .575 .209 1.000

Sig. (1-tailed) Technical_Assistance .092 .008 .350 .007 .350 .001

Operator_Training .092 .008 .099 .243 .099 .097

Application_Design .008 .008 .376 .026 .376 .001

Service_Productivity .350 .099 .376 .069 .069 .237

Response_Time .007 .243 .026 .069 .069 .016

Repair_Time .350 .099 .376 .069 .069 .237

Spare_Part_Cost .001 .097 .001 .237 .016 .237

a. Determinant = .016

Summer Project Report 104


Inverse of Correlation Matrix

Technical_Assistance Operator_Training Application_Design Service_Productivity Response_Time Repair_Time Spare_Part_Cost

Technical_Assistance 3.193 .034 .133 .434 -1.351 .434 -1.976

Operator_Training .034 3.072 -2.103 1.060 -.637 1.060 .379

Application_Design .133 -2.103 4.101 -.442 -.201 -.442 -2.179

Service_Productivity .434 1.060 -.442 1.773 -.869 .059 -.269

Response_Time -1.351 -.637 -.201 -.869 2.683 -.869 .251

Repair_Time .434 1.060 -.442 .059 -.869 1.773 -.269

Spare_Part_Cost -1.976 .379 -2.179 -.269 .251 -.269 4.024

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .668

Bartlett's Test of Sphericity Approx. Chi-Square 40.661

Df 21

Sig. .006

Summer Project Report 105


Anti-image Matrices

Technical_Assistance Operator_Training Application_Design Service_Productivity Response_Time Repair_Time Spare_Part_Cost

Anti-image Technical_Assistance .313 .003 .010 .077 -.158 .077 -.154


Covariance
Operator_Training .003 .326 -.167 .195 -.077 .195 .031

Application_Design .010 -.167 .244 -.061 -.018 -.061 -.132

Service_Productivity .077 .195 -.061 .564 -.183 .019 -.038

Response_Time -.158 -.077 -.018 -.183 .373 -.183 .023

Repair_Time .077 .195 -.061 .019 -.183 .564 -.038

Spare_Part_Cost -.154 .031 -.132 -.038 .023 -.038 .248


a
Anti-image Technical_Assistance .728 .011 .037 .182 -.462 .182 -.551
Correlation Operator_Training .011 .544
a
-.592 .454 -.222 .454 .108
a
Application_Design .037 -.592 .706 -.164 -.061 -.164 -.536
a
Service_Productivity .182 .454 -.164 .556 -.399 .033 -.101
a
Response_Time -.462 -.222 -.061 -.399 .705 -.399 .076
a
Repair_Time .182 .454 -.164 .033 -.399 .556 -.101
a
Spare_Part_Cost -.551 .108 -.536 -.101 .076 -.101 .734

a. Measures of Sampling Adequacy(MSA)

Summer Project Report 106


Communalities

Initial Extraction

Technical_Assistance 1.000 .742

Operator_Training 1.000 .817

Application_Design 1.000 .810

Service_Productivity 1.000 .658

Response_Time 1.000 .740

Repair_Time 1.000 .658

Spare_Part_Cost 1.000 .805

Extraction Method: Principal Component Analysis.

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

1 3.322 47.461 47.461 3.322 47.461 47.461 3.271 46.730 46.730

2 1.907 27.245 74.706 1.907 27.245 74.706 1.958 27.976 74.706

3 .583 8.333 83.040

4 .473 6.756 89.796

5 .416 5.937 95.733

6 .166 2.370 98.103

Summer Project Report 107


7 .133 1.897 100.000

Extraction Method: Principal Component Analysis.

Summer Project Report 108


a
Component Matrix

Component

1 2

Spare_Part_Cost .897

Application_Design .866

Technical_Assistance .858

Response_Time .797

Service_Productivity .765

Repair_Time .765

Operator_Training .501 -.752

Extraction Method: Principal Component Analysis.

a. 2 components extracted.

Summer Project Report 109


a
Rotated Component Matrix

Component

1 2

Application_Design .897

Spare_Part_Cost .884

Technical_Assistance .857

Response_Time .720 .471

Service_Productivity .802

Repair_Time .802

Operator_Training .635 -.643

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 3 iterations.

Component Transformation Matrix

Component 1 2

1 .982 .190

2 -.190 .982

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

Summer Project Report 110


Component Score Coefficient Matrix

Component

1 2

Technical_Assistance .261 .010

Operator_Training .223 -.359

Application_Design .280 -.076

Service_Productivity .003 .409

Response_Time .203 .213

Repair_Time .003 .409

Spare_Part_Cost .267 .041

Summer Project Report 111


Component Score Coefficient Matrix

Component

1 2

Technical_Assistance .261 .010

Operator_Training .223 -.359

Application_Design .280 -.076

Service_Productivity .003 .409

Response_Time .203 .213

Repair_Time .003 .409

Spare_Part_Cost .267 .041

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.
Component Scores.

Summer Project Report 112


Appendix 13: Principal Component Analysis for perceived after sales service
a
Correlation Matrix

Parts Technical Operator Service


Availability Assistance Training Product Design Productivity Service Quality Response Time Repair Time

Correlation Parts Availability 1.000 .726 .717 .577 .467 .674 .559 .552

Technical Assistance .726 1.000 .696 .661 .330 .338 .672 .628

Operator Training .717 .696 1.000 .592 .538 .469 .512 .565

Product Design .577 .661 .592 1.000 .400 .387 .582 .487

Service Productivity .467 .330 .538 .400 1.000 .758 .679 .411

Service Quality .674 .338 .469 .387 .758 1.000 .613 .334

Response Time .559 .672 .512 .582 .679 .613 1.000 .661

Repair Time .552 .628 .565 .487 .411 .334 .661 1.000

Sig. (1-tailed) Parts Availability .002 .002 .015 .046 .004 .019 .020

Technical Assistance .002 .003 .005 .124 .119 .004 .008

Operator Training .002 .003 .013 .024 .045 .031 .018

Product Design .015 .005 .013 .078 .086 .015 .039

Service Productivity .046 .124 .024 .078 .001 .004 .072

Service Quality .004 .119 .045 .086 .001 .010 .122

Response Time .019 .004 .031 .015 .004 .010 .005

Repair Time .020 .008 .018 .039 .072 .122 .005

Summer Project Report 113


a
Correlation Matrix

Parts Technical Operator Service


Availability Assistance Training Product Design Productivity Service Quality Response Time Repair Time

Correlation Parts Availability 1.000 .726 .717 .577 .467 .674 .559 .552

Technical Assistance .726 1.000 .696 .661 .330 .338 .672 .628

Operator Training .717 .696 1.000 .592 .538 .469 .512 .565

Product Design .577 .661 .592 1.000 .400 .387 .582 .487

Service Productivity .467 .330 .538 .400 1.000 .758 .679 .411

Service Quality .674 .338 .469 .387 .758 1.000 .613 .334

Response Time .559 .672 .512 .582 .679 .613 1.000 .661

Repair Time .552 .628 .565 .487 .411 .334 .661 1.000

Sig. (1-tailed) Parts Availability .002 .002 .015 .046 .004 .019 .020

Technical Assistance .002 .003 .005 .124 .119 .004 .008

Operator Training .002 .003 .013 .024 .045 .031 .018

Product Design .015 .005 .013 .078 .086 .015 .039

Service Productivity .046 .124 .024 .078 .001 .004 .072

Service Quality .004 .119 .045 .086 .001 .010 .122

Response Time .019 .004 .031 .015 .004 .010 .005

Repair Time .020 .008 .018 .039 .072 .122 .005

a. Determinant = .002

Summer Project Report 114


Inverse of Correlation Matrix

Technical Service
Parts Availability Assistance Operator Training Product Design Productivity Service Quality Response Time Repair Time

Parts Availability 5.235 -2.487 -1.107 -.214 1.129 -3.495 1.316 -.763

Technical Assistance -2.487 4.988 -1.342 -.596 .925 1.786 -2.729 .114

Operator Training -1.107 -1.342 3.292 -.429 -1.624 .460 1.240 -.504

Product Design -.214 -.596 -.429 2.011 -.006 .063 -.516 .078

Service Productivity 1.129 .925 -1.624 -.006 3.858 -2.203 -1.665 -.032

Service Quality -3.495 1.786 .460 .063 -2.203 4.854 -1.541 .818

Response Time 1.316 -2.729 1.240 -.516 -1.665 -1.541 4.778 -1.421

Repair Time -.763 .114 -.504 .078 -.032 .818 -1.421 2.275

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .766

Bartlett's Test of Sphericity Approx. Chi-Square 59.905

df 28

Sig. .000

Summer Project Report 115


Anti-image Matrices

Parts Technical Operator Service Response


Availability Assistance Training Product Design Productivity Service Quality Time Repair Time

Anti-image Covariance Parts Availability .191 -.095 -.064 -.020 .056 -.138 .053 -.064

Technical Assistance -.095 .200 -.082 -.059 .048 .074 -.114 .010

Operator Training -.064 -.082 .304 -.065 -.128 .029 .079 -.067

Product Design -.020 -.059 -.065 .497 .000 .006 -.054 .017

Service Productivity .056 .048 -.128 .000 .259 -.118 -.090 -.004

Service Quality -.138 .074 .029 .006 -.118 .206 -.066 .074

Response Time .053 -.114 .079 -.054 -.090 -.066 .209 -.131

Repair Time -.064 .010 -.067 .017 -.004 .074 -.131 .440
a
Anti-image Correlation Parts Availability .732 -.487 -.267 -.066 .251 -.693 .263 -.221
a
Technical Assistance -.487 .743 -.331 -.188 .211 .363 -.559 .034
a
Operator Training -.267 -.331 .813 -.167 -.456 .115 .313 -.184
a
Product Design -.066 -.188 -.167 .954 -.002 .020 -.167 .037
a
Service Productivity .251 .211 -.456 -.002 .732 -.509 -.388 -.011
a
Service Quality -.693 .363 .115 .020 -.509 .656 -.320 .246
a
Response Time .263 -.559 .313 -.167 -.388 -.320 .736 -.431
a
Repair Time -.221 .034 -.184 .037 -.011 .246 -.431 .856

Summer Project Report 116


Anti-image Matrices

Parts Technical Operator Service Response


Availability Assistance Training Product Design Productivity Service Quality Time Repair Time

Anti-image Covariance Parts Availability .191 -.095 -.064 -.020 .056 -.138 .053 -.064

Technical Assistance -.095 .200 -.082 -.059 .048 .074 -.114 .010

Operator Training -.064 -.082 .304 -.065 -.128 .029 .079 -.067

Product Design -.020 -.059 -.065 .497 .000 .006 -.054 .017

Service Productivity .056 .048 -.128 .000 .259 -.118 -.090 -.004

Service Quality -.138 .074 .029 .006 -.118 .206 -.066 .074

Response Time .053 -.114 .079 -.054 -.090 -.066 .209 -.131

Repair Time -.064 .010 -.067 .017 -.004 .074 -.131 .440
a
Anti-image Correlation Parts Availability .732 -.487 -.267 -.066 .251 -.693 .263 -.221
a
Technical Assistance -.487 .743 -.331 -.188 .211 .363 -.559 .034
a
Operator Training -.267 -.331 .813 -.167 -.456 .115 .313 -.184
a
Product Design -.066 -.188 -.167 .954 -.002 .020 -.167 .037
a
Service Productivity .251 .211 -.456 -.002 .732 -.509 -.388 -.011
a
Service Quality -.693 .363 .115 .020 -.509 .656 -.320 .246
a
Response Time .263 -.559 .313 -.167 -.388 -.320 .736 -.431
a
Repair Time -.221 .034 -.184 .037 -.011 .246 -.431 .856

a. Measures of Sampling Adequacy(MSA)

Summer Project Report 117


Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

1 4.915 61.434 61.434 4.915 61.434 61.434 3.564 44.553 44.553

2 1.083 13.540 74.975 1.083 13.540 74.975 2.434 30.422 74.975

3 .628 7.851 82.826

4 .488 6.098 88.923

5 .396 4.944 93.868

6 .290 3.628 97.496

7 .117 1.463 98.959

8 .083 1.041 100.000

Extraction Method: Principal Component Analysis.

Summer Project Report 118


Communalities

Initial Extraction
Parts Availability 1 0.721
Technical Assistance 1 0.861
Operator Training 1 0.694
Product Design 1 0.636
Service Productivity 1 0.862
Service Quality 1 0.88
Response Time 1 0.723
Repair Time 1 0.621
Extraction Method: Principal Component Analysis.

Summer Project Report 119


a
Component Matrix

Component

1 2

Parts Availability .847

Response Time .843

Operator Training .817

Technical Assistance .816 -.442

Product Design .749

Repair Time .741

Service Quality .723 .597

Service Productivity .723 .583

Extraction Method: Principal Component Analysis.

a. 2 components extracted.

a
Rotated Component Matrix

Component

1 2

Technical Assistance .919

Product Design .766

Repair Time .756

Operator Training .754

Parts Availability .718 .453

Response Time .610 .593

Service Quality .910

Service Productivity .898

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 3 iterations.

Summer Project Report 120


Component Transformation Matrix

Component 1 2
1 0.805 0.594
2 -0.594 0.805

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization
.

Component Score Coefficient Matrix

Component

1 2

Parts Availability .172 .057

Technical Assistance .376 -.230

Operator Training .223 -.022

Product Design .273 -.114

Service Productivity -.201 .520

Service Quality -.209 .531

Response Time .075 .188

Repair Time .268 -.110

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.
Component Scores.

Summer Project Report 121