A case Study of Yo Bykes In Indian Market

Submitted by:

(Patel Kaushal j)

Enrollment No.: 137294585004

IN PARTIAL FULFILMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE

OF

IMBA

( Semester-9 )

Submitted to:

LJ Institute Of Management Studies

Gujarat Technological University, Ahmedabad.

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 DECLARATION

I hereby declare that this Case titled A case Study of Yo Bykes In Indian Market
submitted by me to the L J Institute Of Management Studies is a bonafide work
undertaken by me and it is not submitted to any other University or Institution for the
award of any degree diploma / certificate or published any time before.

Date:

Place

Signature of the Student

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 CERTIFICATE

This is to certify that Mr. Patel Kaushal j. has worked and completed his project work
for sem 9 IMBA programme, on title of A case Study of Yo Bykes In Indian Market
under my supervision. It is his own work and facts reported by his personal finding and
investigations.

Name of guide :

Signature of guide :

Date of submission :

Name & signature of the Director :

Stamp of the Institute :

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 ACKNOWLEDGEMENT

I have put all the efforts for this project, however it would not have been possible without
the kind support and help of many individuals and organizations. I would like to extend
my sincere thanks to all of them.

My highly indebted thanks to Gujarat Technological University, my institute

L.J.INSTITUTE OF MANAGEMENT STUDIES, my guide Prof. Nishma Shah for her
guidance and constant supervision as well as for providing information regarding the
project and also for their support in completing the project. I also express my gratitude
to all those people, who have provided me all the necessary information throughout the
infrastructure to carry out the project and people who were directly and indirectly
instrumental in enabling me to stay committed for the project.

Further I would like to thank our director Dr. Viral Shah and our dean Prof. Nikita
Mcquin for all their support and constant motivation.

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 INDEX
Declaration
Certificate
Acknowledgement
Sr No. Particular Page No.

1 Introduction 6

2 Product 7

3. Why Product Fails In The Market? 9

4 SWOT Analysis 11

5 How It can be re launch in the market? 12

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1. Introduction

YO Bykes are manufactured by Electrotherm at a 288,000 annual capacity factory

in Kutch District of Gujarat, India.

Electrotherm India Limited is a leading engineering conglomerate based in Gujarat.

YObykes is a brainchild of Mukesh Bhandari, the Chairman and CTO of
Electrotherm. YObykes is a brand name under which, electric automobiles are
designed and manufactured by the Automotive Division of Electrotherm. In 2004, the
company started its R&D operations for developing the electric vehicles and after
two years, it launched its first series of electric scooters in India. YObykes was the
first company to introduce electric two-wheelers in India in 2006.

Today, with a great use of technology and manpower, YObykes has introduced a
new range of efficient electric scooters called ECO-FLEET. The company is also
working on manufacturing electric three-wheelers and hybrid electric bus. This way,
YO is emerging as one of the market leaders in electric vehicle segment in India.

YOEXL ER from YObykes is the first ever electric scooter to scale the world's
highest known motorable road 'Khardung La Pass' at the height of 18380 feet in Leh.
On 14 September 2015, this mission was successfully accomplished by this solar
charged electric scooter in joint efforts by Electrotherm (India) Limited and Global
Himalayan Expedition. In this entire expedition, 100% renewable energy was used.
The key focus of this ride was to promote the environment-friendly transportation
while curbing the major concern of air pollution.

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 Products

YO EXL

Powered by 100% renewable energy, YoEXL is a no-petrol electric bike. It is the

first electric bike to reach worlds highest motorable road Khardungla Top, Leh in
India. This has become possible due to its advanced technology, 40 Ah battery and
highly efficient motor. Unlike other battery bikes, YoEXL can be driven at the
maximum speed of 55 km/Hr which is a good speed as far as electrically powered
vehicles are concerned. It comes with a rechargeable battery and if once it is fully
charged; it can go up to 60 km in one go.

Specifications:
Battery capacity: 48V, 48Ah
Electricity consumption: 3.25 Units/Full charge
Maximum speed: 55 km/Hr
Maximum range: 60 km/Full charge
Pay load capacity: 130 kg
YO Spark
Specifications:
Battery capacity: 48V, 33Ah
Electricity consumption: 2.1 Units/Full charge
Maximum speed: 45 km/Hr
Maximum range: 60 km/Full charge
Pay load capacity: 130 kg
YO Xplor
Specifications:
Battery capacity: 48V, 24Ah
Electricity consumption: 1.25 Units/Full charge
Maximum speed: 25 km/Hr
Maximum range: 60 km/Full charge

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 Pay load capacity: 75 kg
YO Electron ER
Specifications:
Battery capacity: 48V, 24Ah
Electricity consumption: 1.25 Units/Full charge
Maximum speed: 25 km/Hr
Maximum range: 70 km/Full charge
Pay load capacity: 75 kg

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WHY PRODUCT FAILS IN THE MARKET?
Battery Problem
Unavailability Of Spare Parts
Speed (Max 60)
Few Service centre
Body disassemble after some time due to cracking joints ex headlamp box, under
seat etc.
Refuse to climb
Due to high-maintenance nature of few of the firstly launched electric scooters in
India, it is now a popular belief that electric scooters a have a very low battery life
and high maintenance cost is required. Another misconception is about low
maximum speed which the electric scooters can attain. This belief has actually
reduced the adoption rate of electric vehicles. It is worth noticing that, if maintained
as per the company guidelines and warranty terms, e-scooter and bike sealed lead
acid batteries can last for up to 12-15 months without any problems. Electric vehicles
have the highest torque level, even greater than that of vehicles with IC engines, as
there is no loss of energy by combustion of fuel.
It is a popular belief that electric scooters are very expensive which in fact is just a
myth. Typically, the average price of an electric scooter ranges between Rs30,000 to
Rs50,000. And after the subsidy by Indian government, the prices have slashed to a
low value. These prices are comparably low when compared to motorcycles which
usually cost more than 50,000
Most of the electric scooters running on the roads are not manufactured in India. The
production companies actually build parts in China and import them to assemble in
here. Also, these companies aim to provide scooters for people who cannot afford
entry-level petrol scooter. This actually results in compromise in the quality of the
built scooter- range and maximum speed is low, suspension and battery life is of
poor quality etc. also, these scooters fail to meet design requirements and
accordance to run on Indian roads when they are only assembled here.
Despite all the efforts of Indian government, sales of the electric vehicles
have reduced in the country. As per the reports, in year 2014, the industry was

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expected to sell around 24,000 units as compared with 43,000 units sold in 2013
which is almost half of the total sales in 2013 (including two-wheelers and four-
wheelers). Also, the number of electric scooter manufacturers (vehicles in general)
reduced drastically in the country.
Customer Review
I purchase YOBIKE SMART (Electronic Bike - Saving money) on 25 July 2007, after
that battery failed on 15 December 2008, company representative said that you have
to replace your battery with new battery and its costing you Rs. 7200=00. On that
day i decided to change the battery & i done all procedure.
Again same problem arise on 15 June 2009. I contact representative of yobike, they
said please send battery for checking & for that you have to pay Rs. 120(Only for the
report about battery). More and more request they check battery and give report that
all battery (included 4 battery) are fired and failed. You have to again buy new
battery of Rs. 7200=00. I ask him about battery failing reason. They just say We
don't no about that, Sorry.
What can i do.
Rakesh Dave
Source: https://www.consumercomplaints.in/complaints/yo-bike-from-electrotherm-
c221121.html

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LACK OF PROPER SERVICE
Case:-
a man has purchased YO-EXL electric bike from Veradale dealer for YO Bikes,
Gujarat before one year. He was given two years warranty for the battery. Recently
the battery is not getting full charge and the drive range is utmost 10 km. He have
complained many times to the dealer. He understood the dealer has closed the
dealership of Yo bikes. Now he has no one to complain and his bike is lying idle.
He tried to complain YO bikes but no response from the customer care. He
frustration grew due to insensitivity of YO bike service team and planning to file a
case of YO BIKE company in consumer court.

SWOT ANALYSIS
STRENGTH:-
Eco friendly(less noise, air pollution
No License and Registration Require (In Selected Models)
High Payload Capacity up to 130 kg
Cheap Running and Maintenance Cost
Sleek and Stylish Design
Low Price
No competitors
WEAKNESS:-
Battery problem
Speed problem
The scooters range is much less than claimed by the company
Not only battery, Each and every part is very costly compared to other Electrike bike
vendors. Some parts are not available to purchase ( eg: head light bulb).
poor service

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OPPORTUNITIES:-
Yo bikes have ability to turn automobile sector
To offer an efficient, economical and eco friendly future to the Indian transportation.
This new Auto division will cater to the common man's need for both individual and
mass transportation.
To provide the futuristic driving solutions through unconventional, environment
friendly, innovative yet reliable technology and enduring products.
THREATS:-
No effective advertisement
Large no. of domestic competitors
Lack of electricity
Increasing cost of raw material

HOW IT CAN BE RE-LAUNCHED IN MARKET

Improve battery quality.
Improve service center.
Direct company contact.
Change the logo(get ready to switch to a better way, a green way).
Promotion in ladies magazine, big bazaar, multiplex.
Save money.
Change Brand Ambassador.
Advertising concentrated to family.

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