16.

GLOBAL SCENARIO & MARKET POTENTIAL

ABSTRACTS

The summer project was taken up in Premier Instruments and Controls Ltd,
Coimbatore. Pricol is an auto component manufacturing company which manufactures
automotive components like, instrument clusters, oil pumps, sensors, etc., Pricol is the market
leader in India for its instrument clusters. Almost all the leading automobile manufacturers in
India are customers of Pricol for its various products. The global two wheeler market is in a
growing stage which has a high scope for pricol’s products globally.

The project “A Study on Global Scenario of Two Wheeler Market, Assess the Potential
Market in Asean and European Region for Pricol's Products” was taken up. Objectives were
clearly framed with the help of organisational guide. The procedure was to collect the
information about the two wheeler market in the ASEAN and the European region and find the
best market for pricol’s products using various analyses.

Exports have grown at a massive rate over the last few years. These rose from $625
million in 2000-01 to $1,800 billion in 2004-05(provisional). And this is not even one per cent
of the global trade, which is estimated at $1trillion.

More over PRICOL Ltd does not have its presence in most of the ASEAN Countries
baring Indonesia, Malaysia, and Myanmar etc.., and its presence is almost negligible or absent in
the rest of the ASEAN.

ASEAN is a massive market for the auto component manufacturers. ASEAN also has a
large replacement market for auto components and hence there is a large scope of exports to the
ASEAN for the Two-wheeler segment.

Thus India with its expertise in design and cost effective technology is seen as the major
source to outsource these products for the Two-wheeler. As PRICOL is the market leader in this
segment in India it has a wide scope to spread itself in the ASEAN Union.
RESEARCH DESIGN

The research is descriptive research.

TOOLS FOR DATA COLLECTION

Secondary Data

Internal sources
Information about PRICOL was collected from the company’s annual
report and web site.

External sources

Secondary data was collected using the internet, books, journals

and magazines.

ANALYTICAL TOOLS

 PEST ANALYSIS
 SWOT ANALYSIS
 INDUSTRIAL ANALYSIS
 ANSOFF MATRIX
 REGRESSION METHOD

The market was identified by analyzing the sales of two wheelers and projecting it using
the regression method. The identified market is analysed by using various analysis like PPEST
analysis, SWOT analysis and the Industrial analysis using the Porter’s Five Force model. These
three analyses take almost all the major factors into consideration to start a new manufacturing
company in a country.

The recommendations were made from the analysis and the market entry strategy was
framed with the help of Ansoff matrix. If the recommendations given in the study are
incorporated, Pricol can enter into new global markets.