CHAPTER - 1

INDUSTRY PROFILE
AUTOMOBILE INDUSTRY:

Automobile industry, all those companies and activities involved in the manufacture

of motor vehicles, including most components, such as engines and bodies, but
excluding tires, batteries, and fuel. It is one of the world's largest industries by
revenue.

HISTORY OF AUTOMOBILE INDUSTRY:

In 1769, French inventor Nicholas-Joseph Cugnot built a three-wheeled steamer to

help the French army haul artillery pieces. Although his contraption was considered to
be too slow and impractical, Cugnot is still regarded as the creator of the first
motorized road vehicle. In 1805, Oliver Evans, who built an incredibly slow machine
designed to work on both land and in water for the City of Philadelphia
Department of Health, is considered to be the first American to create a motorized
road vehicle. Commercial production of automobiles began in 1896 in the United
States, ten years after Karl Benz received a German patent for his invention of the
first automobile powered by an internal combustion engine. Along with his wife,
Bertha, he founded the German automobile manufacturer Mercedes-Benz.

The early 1900s boomed with various types of motorized vehicles being developed
around the world. In the United States Ransom E. Olds and his Olds Motor Vehicle
Company (later known as Oldsmobile) dominated this era of automobile
production. As a result of superior promotional and marketing efforts, sales of the
Oldsmobile approached 5,000 in 1904 which, at the time, was unheard of in the
industry.  The Thomas B. Jeffrey Company developed the world's second mass-
produced automobile called the Rambler. In 1902, 1,500 Ramblers were built and
sold, and by 1904 production reached 2,342 units. 

Perhaps the most famous car of all time is Henry Ford's Model T. In order to keep
costs low, Ford focused efforts on improving production methods. His moving
assembly line began operation in 1913-1914 making it possible to lower the cost of
the Model T and, as a result, increase sales and potential customers. In response to
consumer demands manufacturers have reinvented the automobile numerous times
over.

From the development of anti-lock braking systems, to hybrid vehicles, to the first
highway-capable all electric vehicle, the automobile industry continues to create,
innovate and transform the way we live.

AUTOMOBILE INDUSTRY IN INDIA:

India’s annual production of automobiles in FY21 was 22.65 million vehicles, and 13
million vehicles were produced between April-October 2021.

The two wheelers segment dominates the market in terms of volume owing to a
growing middle class, and a huge percentage of India’s population being young.
Moreover, the growing interest of the companies in exploring the rural markets further
aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for
the near future. In addition, several initiatives by the Government of India and major
automobile players in the Indian market is expected to make India one of the leaders
in the two-wheeler and four-wheeler market in the world by 2022.
MARKET SIZE:

 For the calendar year (CY) 2021, all segments showed growth, and total sales
increased by 5.8% to 18.49 million units, compared to 17.47 million units in
January-December 2020.
 In CY21, passenger vehicles sales increased by 26.6% to 3.08 million units,
up from 2.43 million units in CY20. The total number of commercial cars sold
was 677,119, up 34% from 505,102 in the previous year.
 In FY21, the total passenger vehicles production reached 22.65 million
vehicles.
 Two wheelers and passenger vehicles dominate the domestic Indian auto
market. Passenger car sales are dominated by small and mid-sized cars. Two
wheelers and passenger cars accounted for 81.21% and 14.56% market share,
respectively, accounting for a combined sale of over 17.8 million vehicles in
FY21.

 In January 2022, Total production of passenger vehicles*, three-wheelers, two

- wheelers and quadric cycles reached 1,860,809 units.
 In December 2021, the luxury car market registered sales of 2,259 units, a
growth of 19.7%, with Mercedes Benz being the highest-selling luxury car
manufacturer.
 Passenger vehicle sales stood at 761,124 units for Q3 FY22.
  Automobile exports reached 4.13 million vehicles in FY21, growing at a
CAGR of 3.47% during FY16-FY21. Two wheelers (79.38%), passenger
vehicles (9.79%) and three wheelers (9.52%) made up the majority of exports
from India.
 3680 premium motorcycles were sold in India in the year 2021. This was a
21% increase over the 2020 numbers.

GOVERNMENT INITIATIVES:

Some of the recent initiatives taken by the Government of India are -

 In February 2022, MR. NITIN GADKARI, Minister of Road Transport and

Highways, revealed plans to roll out Bharat NCAP, India’s own vehicle safety
assessment program.

 In February 2022, 20 carmakers, including Tata Motors Ltd, Suzuki Motor

Gujarat, Mahindra and Mahindra, Hyundai and Kia India Private Ltd, were
chosen to receive production-linked incentives (PLI) as part of the government's plan
to increase local vehicle manufacturing and attract new investment. The 20
automobile companies have proposed a total investment of around Rs. 45,000 crore
(US$ 5.95 billion).

 In the Union Budget 2022-23, the government laid out the following initiatives:

 The government introduced a battery-swapping policy, which will allow

drained batteries to be swapped with charged ones at designated charging
stations, thus making EV’s more viable for potential customers.
 India’s National Highways would be expanded by 25,000 km in 2022-23
under the Prime Minister’s GATI SHAKTI PLAN.

 In November 2021, the Union Government added >100 advanced

technologies, including alternate fuel systems such as compressed natural gas
(CNG), Bharat Stage VI compliant flex fuel engines, electronic control units
 (ECU) for safety, advanced driver assist systems and e- Quadri cycles, under
the PLI scheme for automobiles.

 In September 2021, the Union Minister for Road, Transport and Highways,
MR. NITIN GADKARI announced that government is planning to make it
mandatory for car manufacturers to produce flex-fuel engines after getting
the required permissions from the Supreme Court of India.

ACHIEVEMENTS:

Following are the achievements of the Indian automotive sector:

 India enjoys a strong position in the global heavy vehicles market as it is

the largest tractor producer, second-largest bus manufacturer, and third-largest heavy
trucks manufacturer in the world.

 In September 2021, Power Grid Corporation of India Limited (POWERGRID)

laid the foundation stone of the first EV charging station in Meghalaya at its office
complex at Lapalang , Shillong.

 In July 2021, India inaugurated the NATRAX, which is Asia’s longest high-
speed track and the fifth-largest in the world.

 Investment flow into EV start-ups in 2021 touched an all-time high,

increasing nearly 255% to reach Rs. 3,307 crore (US$ 444 million).

 Under NATRIP, following testing and research centres have been

established in the country since 2015.

 International Centre for Automotive Technology (ICAT), Manesar

 National Institute for Automotive Inspection, Maintenance & Training

(NIAIMT), Silchar

 National Automotive Testing Tracks (NATRAX), Indore

 Global Automotive Research Centre (GARC), Chennai

 CHAPTER – 2

COMPANY PROFILE
COMPANY PROFILE:

T V Sundram Iyengar & Sons Limited, established in 1911, is the parent company
of the TVS Group and is a leading automobile distribution company in India. TVS &
Sons distributes Commercial Vehicles, Multi Utility & Sports Utility vehicles,
three wheelers, passenger cars representing various leading automobile vehicle
manufacturers such as Ashok Leyland, Mahindra & Mahindra, Mahindra
Navistar, Mercedez-Benz, General Motors, Honda, Renault, Volkswagen and off
highway equipment manufactured by Escorts, JLG, Ingersoll Rand, Pal Finger
& Leyland Deere. The company has more than 150 outlets and sells around 60,000
vehicles and services more than 600,000 vehicles per annum being the leading
automobile distribution company in India. We have nine retail fuel outlets in Tamil
Nadu representing Bharat Petroleum Corporation Ltd.
Registered Name: T V Sundram Iyengar & Sons Private Limited
Founded in:  1911 (111 yrs old).

MAJOR GROUP COMPANIES:

 Auto (India) Engineering Limited

 Axles India Limited
 Brakes India Limited
 Delphi-TVS Diesel System Limited
 India Motor Parts and Accessories
 India Nippon Electricals Limited
 Irizar TVS Private Limited
 Royal Sundaram Alliance Insurance Co Ltd
 Sundaram Brake Linings Limited
 Sundaram Clayton Limited
 Sundaram Fasteners Limited
 Sundaram Finance Limited
 Sundaram Home Finance Limited
 TVS Auto parts P Limited, Srilanka
 TVS Electronics Limited
 TVS Motor Company Limited
 TVS Lunka Private Limited
MAJOR SUBSIDIARY COMPANIES:

 Lucas TVS Limited

 Lucas Indian Service Limited
 Madras System and Allied services
 Sundaram Industries Limited
 Southern Roadways Limited
 Sundaram Textile Limited
 TVS Automotive Europe Limited UK
 TVS CJ Components Limited, UK
 TVS Interconnect Systems Limited
 TVS Logistics Iberia SL, Spain
 TVS Logistics Services Limited
 TVS Logistics Siam Limited, Thailand
 TVS Automotive Systems Limited
 TVS Auto SERV GMBH, Germany.

TVS MOBILITY PRIVATE LIMITED:

T V Sundram Iyengar and Sons Limited changed the name of TVS MOBILITY
PRIVATE LIMITED. TVS Mobility Private Limited is a Private incorporated on 26
February 2018. It is classified as Non-govt Company and is registered at Registrar of
Companies, Chennai. Its authorized share capital is Rs. 40,000,000 and its paid up
capital is Rs. 25,077,454. It is involved in Sales, maintenance and repair of
Commercial Vehicles, Multi Utility & Sports Utility vehicles, three wheelers,
passenger cars and related parts and accessories.

TVS Mobility Private Limited's Annual General Meeting (AGM) was last held on
01 November 2021 and as per records from Ministry of Corporate Affairs (MCA),
its balance sheet was last on filled 31 March 2021.
Directors of TVS Mobility Private Limited are Narayanan Krishnamoorthy,
Santhanagopalan.

PRODUCTS AND SERVICES:

 Dealership for automobile vehicle

 Distribution of spares for after market
 Sales and services
 Support for garage equipment.
 Product for off highway application like construction
 Materials handling.

TVS MILESTONES:

 1911 TVS & SONS established in a Madurai, Tamil Nadu.

 1912 Starts first rural bus service in Southern Tamil Nadu.
 1919 Forays into vehicle sales, service and spare parts.
 1929 Forays in to Dealership Business representing General Motors.
 1930 Bus Body Building operations started.
 1936 Madras Auto Service acquired.
 1939 Southern Roadways started & Built TVS Service Station, Biggest Asia.
 1943 Designs a unique gas plant that uses charcoal gas as fuel instead of petrol
which was in short supply during World War II.
 1945Sundaram Motors formed.
 1956 T V Sundram Iyengar was honoured by the Union Government of India
by unveiling busts in Bronze and the Marble in the city of Madurai (Tamil
Nadu).
 1996 Enter logistics business.
 2003 Enter customer centric car service business under brand name “MY
TVS”.
 2004 logistics business was hived off as a separate company called “TVS
logistics services limited”.
 2008 Forays into parts retail business for Heavy & light commercial vehicles
under brand name “TVS PartSmart”.
 2011 My TVS, the customer centric car services business was hived off as a
separate company called “TVS Automobile Solutions Limited”.
 2012 The all car services business of TVS Automobile Solutions Limited
expanded its network into Kolkata & Gujarat through separate JV’s.
 2012 Acquisition of Universal Component, United Kingdom.
OBJECTIVES OF THE TVS GROUPS:

 In enterprise and in business, as in life, it is the team spirit that succeeds.

Setting out aims and objectives in words, may limit our targets. Yet, we may
state, what we firmly believe in.
 To place at the service of the public all our technical equipment and
intelligence in automobiles and allied industries at a truly national cost – a cost
that is commensurate with the interest of the employees and shareholders.
 To provide the greatest satisfaction possible to our employees within our
Competitive economy through proper personal practices.
 To be a good member of the community and the nation.
 By implementing every one of the above three objectives to nurture the Moral
fibre of the TVS Organization.

VISION:

To create integrated supply chain for their customer by providing a high quality
and cost effective logistics services globally this will be of its class in the industry
with respect to practices and procedure.

MISSION:

To remain in the prime position in the field of automobile distribution business

by extending dedicated services to its clients. The aim of the company is to profit
from 40 crores to 125 crores.

QUALITY OBJECTIVES:

 Enhancing the satisfaction level of customers by meeting or exceeding their

needs and expectation on quality of servicing, delivery and cost.
 Continuous improvement of the performance and skills of employees through
active training programmes.
 Implementing atleast one continual improvement project per quarter.
 To improve the responsiveness to address customer needs.
 Achieving enhanced business targets.

ISO 9001: 2000

QUALITY POLICY:

We are committed to achieve and sustain excellence in service and retain the
customers through continual improvements.
ETHICS:

From service, Customer sees value and then comes trust

By good service you Achieve Customer Satisfaction.

It is a measure of how well the Product and Services meets Customers Expectations.

What is Customer Expectation?

“QSDFC”

 QUALITY
 SPEED
 DEPENDABILITY
 FLEXIBILITY
 COST

Success in the Right QSDFC can give our organization competitive advantage, and
result in happy, loyal customers and increased profits.

TVS is always known for TRUST VALUE SERVICE

CORE STRATEGY:

 100% effort in all the services.

 Building bonds and trusts with employee and customers.
 Maintaining customer satisfaction.
CORE STRENGTH:

 “Relationship and Trust”

 “Customer Centricity”

5 PILLAR BUSINESS APPROACH

TO BE
LINKED WITH
PROFIT

HAPPINESS

C E S S S
U M U O H
S P P C A
T L P I R
O O L E E
M Y I T H
E E E Y O
R E R L
S S S D
E
R
S
AM
NG

ND
IYE
AN
AR

AR
SO
NS

SU
TV
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ORGANIZATIONAL STRUCTURE
 CHIEF OPEARTING OFFICER (COO)

BOARD OF DIRECTORS

VICE PRESIDENT

ASSISTANT VICE PRESIDENT

FUNCTIONAL DEPARTMENTS

HUMAN FINANCE SALES SERVICE

RESOURCE DEPARTMENT DEPARTMENT DEPARTMENT CEMHS TASL
DEPARTMENT

GENERAL GENERAL GENERAL GENERAL DAL IPM

MANAGER MANAGER MANAGER MANAGER

DEPUTY DEPUTY DEPUTY DEPUTY

MANAGER MANAGER MANAGER MANAGER

MANAGER MANAGER MANAGER MANAGER

ASSISTANT ASSISTANT ASSISTANT SENIOR

MANAGER MANAGER MANAGER SERVICE ENGINEER

HELPER HELPER SALES JUNIOR

CONSULATANT SERVICE ENGINEER

*FITTER
*FITTER ASSISTANT
 CHAPTER - 3

FUNCTIONAL DEPARTMENTS
DEPARTMENTATION:

Departmentation means the process by which similar activities of the business are
grouped into units for the purpose of facilitating smooth administration at all levels.

PROCESS OF DEPARTMENTATION

Departmentation is done through the following process:

 Identification of work.
 Analysis of details of each work.
 Description of the function of the organization.
 Entrusting the function to a separate person who has specialized in the
respective field and providing him with suitable staff.
 Fixing the scope of authority and responsibility of the departmental heads.

IMPORTANCE OF DEPARTMENTATION

 Increases Efficiency
 Fixed Responsibility
 Managerial Appraisal
 Better Budgeting:
 Specialization
 Helps in Human Resources Development 
 Coordination and Control
Functions of various departments

Every organisation is made up of different department.  Each department contributes

to the running of the business. The most common departments are: 

 PRODUCTION/OPERATION DEPARTMENT
 HUMAN RESOURCE DEPARTMENT
 FINANCE DEPARTMENT
 MARKETING DEPARTMENT
 SALES DEPARTMENT
 SERVICE DEPARTMENT
 QUALITY INSPECTION DEPARTMENT
HUMAN RESOURCE DEPARTMENT
HUMAN RESOURCE DEPARTMENT:

The HR department takes care of the organization’s most valuable asset; its
employees. HR professionals make sure that employees have everything they need to
perform their day-to-day tasks and they’re also responsible for creating a healthy work
environment that attracts and retains qualified people.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

HR teams undertake various responsibilities in an organization. They

 Recognize current and future hiring needs.

 Ensure compliance with federal, state, and governmental labour rules and
regulations.

 Attract, recruit, and retain talent.

 Manage compensation and employee benefits.

 Ensure effective employee relations.

 Manage on boarding, training, and learning and development processes to

boost performance.

 Apply health and safety measures.

 Handle administrative tasks, such as payroll and taxes.

 Organize and oversee quarterly or annual performance reviews.

OBJECTIVES OF HUMAN RESOURCE DEPARTMENT:

 To help the organisation to attain its goals effectively and efficiently by
providing competent and motivated employees.

 To utilise the available human resource effectively.

 To increase to the fullest the employee’s job satisfaction and self-
actualisation.
 To develop and maintain the quality of work life (QWL) which makes
employment in the organisation a desirable personal and social situation.
 To help maintain ethical policies and behaviour inside and outside the
organisation.