Industry Analysis Report Of AUTOMOBILE INDUSTRY (TWO WHEELERS) Submitted To Department of Business Administration By B.SANTHOSH KUMAR 08D31E0040
INDUR INSTITUTE OF ENGINEER & TECHNOLOGY (Affiliated to JNTU) Ponnala (V), Siddipet (M), Medak – 502 277 AP (2008-2010)
CERTIFICATE
This is to certify that the Industry Analysis entitled “TWO WHEELER INDUSTRY” submitted by B.SANTHOSH KUMAR to Indur Institute of Engineering and Technology is a record of independent analysis report done during the Academic Year 2009-2010.
Head of the Department
IndustryAnalysis Guide
Mr.Dr.R.Suresh Kumar
Mr.venkateshwer rao
M.B.A (Professor)
M.B.A(AssistantProfessor)
DECLARATION
I B.SANTHOSH KUMAR, here by declare that the industry entitled “TWO WHEELER
INDUSTRY”,
submitted
to
INDUR
INSTITUTE
OF
ENGINEERING AND TECHNOLOGY. Drafted by me is an original work of my own and has not been submitted to any college/university earlier. This industry analysis has been written & submitted by me under the guidance of Mr.venkateshwer rao, department of management Indur institute of Engineering and Technology, Ponnal, Siddipet, Medak Dist.
Place: SIDDIPET
Date:
B.SANTHOSHKUMAR
(08D31E0040)
ACKNOWLEDGEMENT
For completing this Industry analysis, a few people have been very helpful. I would like to lay the word of gratitude for them imprinted. First of all I would like to thank sincerely to our H.O.D, Mr. Dr.R.Suresh Kumar for his encouragement, motivation and kind of help to complete this analysis. I would like to thank my college faculty, and internal guide .venkateshwer rao for her guidance, suggestions, help, support and encouragement. Finally I would like to extend my sincere thanks to my friends and relatives for their valuable help.
Place: SIDDIPET Date:
B.SANTHOSH KUMAR (08D31E0040)
CONTENTS
PAGE NO.
CHAPTER-I
INTRODUCTION
Industry origin and growth CHAPTER-II
INDUSTRY ANALYSIS
Government rules and Regulations SWOT Analysis Industry present and future trends Major firms in an industry Firms or Company strategies CHAPTER-III
DESIGN OF THE STUDY
Objectives Scope Methods of data collection Data analysis Limitation of the study CHAPTER - IV
DATA ANALYSIS
Data analysis & interpretation CHAPTER-V Findings Suggestions Conclusions BIBLOGRAPHY
CHAPTER-I
INTRODUCTION
Industry origin and growth;The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now Prime Minister of India. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of twowheelers produced and the sales of two-wheelers respectively. In the year 20052006, the annual production of two-wheelers in India stood at around 7600801 units. The trend of owning two-wheelers is due to a variety of facts peculiar to India . One of the chief factors is poor public transport in many parts of India . Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50’s. Until 1958, API and Enfield were the only producers of two-wheelers in India. However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of motorcycle manufacturers was no different. Until the mid 80’s, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield . The two-wheeler market was opened to
foreign manufacturers in the mid 80’s. The industry, which had seen a smooth ride before, faced fierce foreign competition. Motorcycle companies like the Yamaha, Honda, and Kawasaki , set up shop in India in collaboration with various Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke bikes at that time, gained massive popularity. In the mid 80’s, Kinetic introduced a variomatic gearless scooter in collaboration with Honda. This scooter became instantly popular with the younger generation, especially people who found it difficult to use geared scooters. The introduction of scooterettes created another segment for people such as women and teenagers who could not get used to driving either motorcycles or gearless scooters. Many companies such as Kinetc, TVS, and Hero also started manufacturing mopeds that proved immensely popular with people who wanted a simple riding machine. The change in the government’s policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus , Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. The latest trend in the two-wheeler market is the introduction of electrically operated vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from convenient household electrical points. The only disadvantage is speed, which is restricted to around 25 miles per hour. Currently, the motorcycle market is witnessing a demand for higher volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered. However, the market is maturing fast. Sensing this
movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi) technology.
The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now Prime Minister of India. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of twowheelers in the world. It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-wheelers in India stood at around 7600801 units. The trend of owning two-wheelers is due to a variety of facts peculiar to India . One of the chief factors is poor public transport in many parts of India . Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50’s. Until 1958, API and Enfield were the only producers of two-wheelers in India. However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of motorcycle manufacturers was no different. Until the mid 80’s, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield . The two-wheeler market was opened to foreign manufacturers in the mid 80’s. The industry, which had seen a smooth ride before, faced fierce foreign competition.
Motorcycle companies like the Yamaha, Honda, and Kawasaki , set up shop in India in collaboration with various Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke bikes at that time, gained massive popularity. In the mid 80’s, Kinetic introduced a variomatic gearless scooter in collaboration with Honda. This scooter became instantly popular with the younger generation, especially people who found it difficult to use geared scooters. The introduction of scooterettes created another segment for people such as women and teenagers who could not get used to driving either motorcycles or gearless scooters. Many companies such as Kinetc, TVS, and Hero also started manufacturing mopeds that proved immensely popular with people who wanted a simple riding machine. The change in the government’s policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus , Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. The latest trend in the two-wheeler market is the introduction of electrically operated vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from convenient household electrical points. The only disadvantage is speed, which is restricted to around 25 miles per hour. Currently, the motorcycle market is witnessing a demand for higher volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered. However, the market is maturing fast. Sensing
this movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi) technology.
Growth:Credit Analysis and Research (CARE Ratings) says that the rural India will be the next growth frontier for the Indian two wheeler industry. Domestic two-wheeler sales have grown to around 11.3 million by financial year 2014 from 7.4 million in financial year 2009 is also projected by the credit rating agency’s research arm. “The two-wheeler penetration in rural area is at 211 per thousand, as compared with 644 per thousand in urban areas. That leaves plenty of scope for two-wheeler companies such as Hero Honda, Bajaj Auto, TVS and Honda Motorcycle and Scooter India to expand their footprint there,” says the deputy managing director of CARE Ratings, D R Dogra. In the FY09 a modest annual growth of 2.6% is seen by the domestic two-wheeler industry. Even though a very depressive monsoon is foreseen, still the sales are expected to grow at a faster rate by industry this year as the financing availability is expected to become easier. Revati Kasture, head, CARE Research says that, “Two-wheeler sales are forecast to grow by 6.7 per cent in 2009-10 to 7.9 million units from 7.4 million in 2008-09”. “Positive factors such as the excise duty cut, lower fuel prices and lower interest rates and easing liquidity situation have helped the two-wheeler companies to improve their sales in urban and rural areas in the present financial year. In this background, given already high penetration in urban markets, rural India offers big opportunity to the industry.”
The rating agency’s study also reveals that the growing numbers of working women have also gradually emerged as a large consumer segment, especially for gearless scooterettes. Around 30 per cent of the women in India are earning an independent income, as against 22 per cent in 1990-91 is estimated by CARE. The report says, with the women also joining the workforce, the disposable income of households increased. Better affordability is thus playing a key role in boosting two-wheeler demand. Kasture said, “Rural customers look for sturdiness and high mileage as critical factors that influence their buying decision. Therefore, motorcycles with engine capacity of 75-125 cc have a high demand in these markets”.
History:The Britannica Encyclopaedia describes a motorcycle as a bicycle or tricycle propelled by an internal-combustion engine (or, less often, by an electric engine).
The motors on minibikes, scooters, and mopeds, or motorized
velocipedes, are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the multiple-cylinder motorcycles have displacements of more than 1,300 cubic cm. The automobile was the reply to the 19th-century dream of selfpropelling the horse-drawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle. The first commercial design was a threewheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steerable front wheels and connected by a drive chain to the rear wheel.The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted spark ignition engines. There was then felt the need for reliable constructions.
This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from early two-stroke-cycle designs to supercharged, multivalve engines mounted on aerodynamic, carbon-fibre reinforced bodywork.
Origin of Motor-Scooters:Edward Butler, an Englishman, built the first motor tricycle in 1884. The first gasoline-engine motorcycle to appear publicly was built by Gottlieb Daimler, of Bad Cannstatt, Germany, in 1885. The first practical engines and motorcycles were designed by the French and Belgians, followed by British, German, Italian, and American makers. The popularity of the vehicle grew, especially after 1910. During World War I the motorcycle was used by all branches of the armed forces in Europe, principally for dispatching. After the war it enjoyed a sport vogue until the Great Depression began in 1929. After World War II a revival of interest in motorcycles lasted into the late 20th century, with the vehicle being used for highspeed touring and sport competitions. The practice of attaching auxiliary engines to bicycles in western Europe and parts of the United States led to the development during the 1950s of a new type of light motorcycle, the moped. Originating in Germany as a 50-cubiccentimetre machine with simple controls and low initial cost, it was largely free of licensing and insurance regulations except in Great Britain. The more sophisticated motor scooter originated in Italy soon after World War II, led by manufacture of a 125-cubic-centimetre model. Despite strong competition from West Germany, France, Austria, and Britain, the Italian scooters maintained the lead in the diminishing market. The scooter has small wheels from 20 to 36 cm (8 to 14 inches) in diameter, and the rider sits inside the frame. Power units are placed low and close to the rear wheel, which is driven by
bevel gearing or chain. Capacities vary from 50 to 225 cubic cm, and four-speed gearing is common.
History of E-Bikes:The concept of E-bike is not new. A workable prototype was first produced in America as barley as 1834 till the late 1890’s; E-bikes were considered to be the future. EV in India launch by EKO vehicles private limited in 1983 by the name of product VIDUT 24. it was a technical success but it was failed because of manufacturing system was not perfected and since the sales volumes were low, retail prices could not be brought down.
E-bikes Market:In 2008-09 more then 11 millions two wheelers were sold in country. Of these, 7.81 millions were motorcycles or step-thoughts, 11.08 lakh were largely scooterettes and another 5.32 lakh were mopeds. A bare 70,000 were electric two wheelers. By the end of this financial year in March, two wheeler sales will surge past the 8 million mark, and EV sales should be 3 lakh vehicles in India the years.
Overview:Electric vehicles are virtually maintenance free. It has no gears, no engine, no belt or chain drive, zero emission, no pollution, electronic start and accelerator, besides it is exempted from the Central Vehicles registration act by the Automotive Research Association of India (ARAI) and does not require any registration or license. These bikes are usually chargeable at 220V which your refrigerator requires. For charging bikes require special adapter. Batteries, Motors and other electrical kits are imported from china and other countries whereas
mechanical design and assembly of these bikes are done here. Electric bikes target School students, women and who are under 18 years of age. Following is the review on some of the manufacturers and their products in India.
Yo Bykes: Indus - division of Electrotherm a gujrat based company is the recent player in electric vehicle market. It offers two scooterette and four bikes models with the motor power range 200-250W. YO-smart scooter model from Indus come with a very compact dimension. The vehicle weighs less and has a payload of 75kg. YO-smart vehicle clocks a top speed of 25km/hr and the vehicle offers a range/charge mileage of 75km. Charge duration required is 6 – 8hours. Electrotherm’s YOBikes are ranged between Rs 13,999 and Rs 23,249.
EKO vehicle:EKO vehicle a Bangalore based company offers EKO cosmic –I scooter and EGO bike. This company has been in this business for a long time and has dealers in various locations in India than its counterparts. Battery weighs at 28kgs and has a life of 12000 – 15000kms. The company offers a rapid charger which will charge the bike at 10 – 15 minutes (good for intuitional consumers). Cosmic offers a variable mileage depends on your payload. The maximum speed is 40 km/hr and Cosmic noise is less than 60decibel. Cosmic is offered in five colours and is exported many countries.
Hero/ultra motors:Hero cycles (Hero Honda group) - UK Ultra Motor Group will launch electric three wheeler by the end of fiscal 2007. Hero - Ultra also has plans to tap the nascent electric vehicle market in a big way. Hero - Ultra plans to sell 1lakh electric vehicles by 2008. They have launched India’s first exclusive electric vehicle showroom in New Delhi. By April 2007 they also plan to establish 15 more dealership in North India. Investment for a dealership requires 15-20 lakhs.
Currently Hero - Ultra offers E-Bikes in the range of 14500 - 19000 and EScooters in the range of 22500 - 28000.
China’s Shenzhen Zhongmo Technology Co Ltd:In West Bengal Battery-operated bikes to flood soon, It will get from kolkata, Burdwan, Durgapur & etc. Bengal Enamel Works Ltd. with a venture in the automobile sector with China’s Shenzhen Zhongmo Technology Co Ltd to launch light battery-operated two-wheelers developed by Benlin Electric Cycles Company of Japan. This e-bikes has all total 43 models now starts with 8 Models. These new gearless bikes should be able to travel 45 km to 100 km on a single charge. Being below 250 watt, it will have a top speed of 25 km/h. it requires no registration, driving neither license nor payment of road taxes. BENLIN E-bikes starts with 8 Models priced at Rs. 18600/- to Rs. 45200/-(it has with disk break)
ACE motors:Pune based Ace motors manufacturers e-bike (electric bike) and the majority of the components of this bike are imported from China based company Changtong E Bike Company Ltd. The e-bikes from Ace Motors weigh almost 60kg. The bike offers a load-carrying capacity of 100-140 kg. To cover a distance of 220 km, you need to charge the bike for 6 - 8 hours at 220 volts. The maximum speed of the bike is 25 km/hr and is priced at Rs 26,500.
Verdict:“It is estimated that India’s fossil fuel dependency on other countries currently from 70% to 82% in 2012. If we can have three lakh Electric Vehicles on the roads by 2020, including three-wheelers, cars, and scooters, this could result in a reduction of over 16 lakh metric tons of CO, NOx and HC by 2020,
savings of over Rs 3,700 crore in foreign exchange and significant health costs savings”—- automonitorGovernment has reduced the custom duty on three of the imported components in battery operated vehicles (BOV) to 10%.Excise duty reduced on electric vehicles from 16% to 8% in 2004 budget. But the industry feels that the efforts are not
sufficient.
Toyota Prius the model which accounts for nearly 80 per cent of the hybrid vehicle sold globally is about Rs 10 lakh in the US. In India at current levels of duty, it could cost anywhere between Rs 20-25 lakh because of the high import duty. At present total import duty is 111% (60% on CBU imports plus countervailing duties and other levies). According to A Toyoshima, managing director, Toyota Kirloskar, the Indian government should relax the duty structure for such hybrid vehicles to promote eco-friendly technology in the country. Honda said that the new small car it plans to offer in 2009 would be a hybrid if the government makes required tax sops. If government wishes a greener future it has to take necessary actions to encourage the industry, if you want to save the earth buy an e-vehicle.
About Indus: Indus Elec-trans, a division of Electrotherm (ET), is formed to manufacture electric vehicles and hybrid electric vehicles. Its vision is 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. Fuelled by Innovation, INDUS will strive to provide the futuristic driving solutions through unconventional, environment friendly, innovative yet reliable technology and enduring products.
Based upon innovative, novel ideas and best quality practices, INDUS will bring a revolutionary change in Indian Automobile Market. The expertise in power electronics and electrical technology has lead ET into this motoring venture. ET’s excellent practices for customer care will continue to be the backbone. However, the biggest strength lies in the visionary people who have given ET the international repute for the futuristic products. Currently INDUS has commenced manufacture of hi-tech electric two wheelers, YObykes at the state-of-the-art plant at Kutch in Gujarat. Development of Electric three wheelers, four wheelers and hybrid electric low floor buses are on anvil for future.
CHAPTER-II
INDUSTRY ANALYSIS
Government Policies Towards Indian Automobile Industry
Automobile industry in India also received an unintended boost from stringent government auto
emission regulations over the past few years. This
ensured that vehicles produced in India conformed to the standards of the developed world. Though it has an advantage in India, thanks to low costs and government policies it soon faces stiff competition from it multinational competitors all eyeing for a share in the ever growing Indian auto sector. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. •
Bring in a minimum foreign equity of US $ 50 Million if a joint venture involved majority foreign equity ownership
•
Automatic approval for foreign equity investment upto 100% of manufacture of automobiles and component is permitted
•
FIIs including overseas corporate bodies (OCBs) and NRIs are permitted to invest up to 49 per cent of the paid-up equity capital of the investee company, subject to approval of the board of directors and of the members by way of a special resolution. .
•
Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts.
•
Specific component of excise duty applicable to large cars and utility vehicles will be reduced to 15,000 rupees per vehicle from 20,000 rupees earlier.
•
The Proposal by the Govt. to set up an expert group to advise on a viable and sustainable system of pricing petroleum products, as this will surely had an impact on the Automobile Industry.
•
The announced reduction on the basic customs on bio-diesel is great news for all companies working on environmental saving technologies.
Rules and Regulations for Importing Bikes in India :Bike enthusiasts from different corners of India have been importing highperformance bikes to satiate their zeal for high-speed biking. Notwithstanding their astronomical price tags, these cult machines do have a fair number of admirers in India. Post Dhoom, the Bollywood potboiler which featured John Abraham in a Suzuki Hayabusa, this small community of high-power bike aficionados is growing with every passing day. To import a brand new bike, one will have to pay 105 percent duty and 100 percent on a used one. The Exim Policy 2001 lifted quantitative restrictions on the import of second-hand vehicles. The import of vehicles shall be subject to the following guidelines of the Government of India: 1 (I) A new imported vehicle shall mean a vehicle that: Has not been manufactured/assembled in India; and Has not been sold, leased or loaned prior to importation into India; or
Has not been registered for use in any country according to the laws of that country, prior to importation into India. 1. (II) The import of new vehicles shall be subject to the following conditions: The new vehicle shallHave a speedometer indicating the speed in km / h; Have right hand steering, and controls (applicable on vehicles other than two and three wheelers); Have photometry of the headlamps to suit "keep-left" traffic; and Be imported from the country of manufacture. (b) In addition, the new vehicle shall conform to the provisions of the Motor Vehicles Act, 1988 and the rules made there under, as applicable, on the date of import. (c) The import of new vehicles shall be permitted only through the Customs port at Nhava Sheva (Mumbai), Calcutta and Chennai. 2. (I) A second hand or used vehicle shall mean a vehicle that :Has been sold, leased or loaned prior to importation into India; or Has been registered for use in any country according to the laws of that country, prior to importation into India; 2. (II). The import of second had or used vehicles shall be subject to the following conditions:The second hand or used vehicle shall not be older than three years from the date of manufacture; The second hand or used vehicle shall: Have right hand steering, and controls (applicable on vehicles other than two and three wheelers); Have a speedometer indicating the speed km / h; and Have photometry of the headlamps to suit "keep left" traffic. In addition, the second hand or used vehicle shall conform to the provisions of the Motor Vehicle Act, 1988 and the rules made there under, as applicable, on the date of import.
Import of second hand vehicles shall be allowed only through the customs port at Mumbai. The second hand or used vehicles imported into India should have a minimum roadworthiness for a period of 5 years from the date of importation into India with assurance for providing service facilities within the country during the five year period. For this purpose, the importer shall, at the time of importation, submit a declaration indicating the period of roadworthiness in respect of every individual vehicle being imported, supported by a certificate issued by any of the testing agencies, which the Central Government may notify in this regard. The vehicle has to be submitted for testing to Vehicle Research and Development Establishment (VRDE), Ahmednagar, of the Ministry of Defence or the Automotive Research Association of India, Pune or the Central Farm and Machinery Training and Testing Institute, Budni, Madhya Pradesh, and such other agencies as may be specified by the Central Government, for granting a certificate by that agency as to the compliance of the provisions of the Motor Vehicles Act, 1988 and any rules made there under.
SWOT Analysis
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. SWOT analysis of the Indian automobile sector gives the following points:
Strengths:•
Large domestic market
•
Sustainable labor cost advantage
•
Competitive auto component vendor base
•
Government incentives for manufacturing plants
•
Strong engineering skills in design etc
Weaknesses:•
Low labor productivity
•
High interest costs and high overheads make the production uncompetitive
•
Various forms of taxes push up the cost of production
•
Low investment in Research and Development
•
Infrastructure bottleneck
Opportunities:•
Commercial vehicles: SC ban on overloading
•
Heavy thrust on mining and construction activity
•
Increase in the income level
•
Cut in excise duties
•
Rising rural demand
Threats:•
Rising input costs
•
Rising interest rates
•
Cut throat competition
Industry present and future trends:Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognised as one of the drivers of economic growth. During the last decade, well¬directed efforts have been made to provide a new look to the automobile policy for realising the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realise its potential in the country. The liberalisation policies have led to continuous increase in competition which has ultimately resulted in modernisation in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.
Evolution of Two-wheeler Industry in India:Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-¬04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies,
Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalised and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-¬wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition.
A Growth Perspective:The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's gaining importance during this period is exhibited by
the Figures 1, 2 and 3 depicting total sales, share and annual growth during the period 1993-94 through 2003-04. National Council of Applied Economic Research (NCAER) had forecast twowheeler demand during the period 2002¬-03 through 2011-12. The forecasts had been made using econometric technique along with inputs obtained from a primary survey conducted at 14 prime cities in the country. Estimations were based on Panel Regression, which takes into account both time series and cross section variation in data. A panel data of 16 major states over a period of 5 years ending 1999 was used for the estimation of parameters. The models considered a large number of macro-economic, demographic and socio-economic variables to arrive at the best estimations for different two-wheeler segments. The projections have been made at all India and regional levels. Different scenarios have been presented based on different assumptions regarding the demand drivers of the two-wheeler industry. The most likely scenario assumed annual growth rate of Gross Domestic Product (GDP) to be 5.5 per cent during 2002¬-03 and was anticipated to increase gradually to 6.5 per cent during 2011¬-12. The all-India and region-wise projected growth trends for the motorcycles and scooters are presented in Table 1. The demand for mopeds is not presented in this analysis due to its already shrinking status compared to' motorcycles and scooters. It is important to remember that the above-mentioned forecast presents a longterm growth for a period of 10 years. The high growth rate in motorcycle segment at present will stabilise after a certain point beyond which a condition of equilibrium will set the growth path. Another important thing to keep in mind while interpreting these growth rates is that the forecast could consider the trend till 1999 and the model could not capture the recent developments that have taken place in last few years. However, this will not alter the regional distribution to a significant extent. Table 1 suggests two important dimensions for the two-¬wheeler industry. The region-wise numbers of motorcycle and scooter suggest the future market for these segments. At the all India level, the demand for motorcycles will be almost 10 times of
that of the scooters. The same in the western region will be almost 20 times. It is also evident from the table that motorcycle will find its major market in the western region of the country, which will account for more than 40 per cent of its total demand. The south and the north-central region will follow this. The demand for scooters will be the maximum in the northern region, which will account for more than 50 per cent of the demand for scooters in 2011-12. -------------------------------------------------------------Source: Indian Automobile Industry: Optimism in the Air, Industry Insight, NCAER The present economic situation of the country makes the scenario brighter for short-term demand. Real GDP growth was at a high level of 7.4 per cent during the first quarter of 2004. Both industry and the service sectors have shown high growth during this period at the rates of 8.0 and 9.5 per cent respectively. However, poor rainfall last year will pull down the GDP growth to some extent. Taking into account all these factors along with other leading indicators including government spending, foreign investment, inflation and export growth, NCAER has projected an average growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09. Very recently, IMF has portrayed a sustained global recovery in World Economic Outlook. A significant shift has also been observed in Indian households from the lower income group to the middle income group in recent years. The finance companies are also more aggressive in their marketing compared to previous years. Combining all these factors, one may visualise a higher growth rate in two-wheeler demand than presented in Table 1, particularly for the motorcycle segment. There is a large untapped market in semi-urban and rural areas of the country. Any strategic planning for the two¬-wheeler industry needs to identify these markets with the help of available statistical techniques. Potential markets can be identified as well as prioritised using these techniques with the help of secondary data on socio-economic
parameters. For the two-wheeler industry, it is also important to identify the target groups for various categories of motorcycles and scooters. With the formal introduction of secondhand car market by the reputed car manufacturers and easy loan availability for new as well as used cars, the two-wheeler industry needs to upgrade its market information system to capture the new market and to maintain its already existing markets. Availability of easy credit for two-wheelers in rural and smaller urban areas also requires more focussed attention. It is also imperative to initiate measures to make the presence of Indian two-wheeler industry felt in the global market. Adequate incentives for promoting exports and setting up of institutional mechanism such as Automobile Export Promotion Council would be of great help for further surge in demand for the Indian two-wheeler industry.
Major firms in an industry:Major players in the two wheeler automobile sector (India): Hero Honda motors ltd. Bajaj auto ltd. TVS motors company ltd. Yamaha motors India Honda motorcycle and scooters India Royal Enfield Suzuki Motors LML
Basic Data of Sector:Broad product range Over the last decade, the two wheeler automobile sector has successfully changed its image. Its product range encompasses Scooterettes, Scooters and
Motorcycles. The main product ranges of two wheeler automobile sector are as follows: Scooters Motorcycles Scooterettes
Hero Honda Motors Limited:Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. In 1985 production began with the launch of its first motorcycle, the CD100, which gave 80 km to the liter. In 1987 the engine plant was started and in 1989 the Company produced its 3,00,000th motorcycle. In 2001 Hero Honda manufactured its 50,00,000th motorbike. Hero Honda has a reputation of being the most fuel-efficient and the world's single largest two wheeler Company. Shri Brijmohan Lall Munjal is the chairman and managing director of this Company. As early as in 1960’s very few Indian bicycle manufacturers were interested in exports. However, the hero groups foray into the overseas markets in 1963 pioneered Indian exports in the bicycle segment. It was more prompted essentially by the need to remain attuned to the global marketplace. While initial exports were restricted to Africa and the middle east, today more than 50% of the exports from Hero Cycles Ltd. Meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that hero offers.. Hero Honda has grown like no other company in the auto business. Several times in the path, savvy observers have insisted that it has grown just too big and that no company its size can continue to show growth rates. But Hero
Honda has ignored that opinion and continued growing at the place it has set many years ago. Hero Honda today faces more competitor than it has ever in the history. Now that is the undisputed two wheeler Numero Uno in the country. Every single two wheeler manufacturer in India if looking market share away from it. More over for the first time there are so many four- stroke challengers in the market. And Hero Hondas best selling products are ageing.
Corporate Profile:The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together! Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million two wheelers in a single month—a feat unparalleled in global automotive history.
Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per year. A third state of the art manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope with sustained customer demand. Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies. Hero Honda values its relationship with customers. Its unique CRM initiative Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors. Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered India’s motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.''
Mission statement:Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.
This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.
HERO HONDA'S MANDATE:Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.
Registered & Corporate Office:-
34, Community Centre Basant Lok, Vasant Vihar New Delhi - 110057 Tel.: +(91)-(11)-26142451 - 59 Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 / 2132
Work Station:-
69 Km Stone New Delhi-Jaipur Highway Daruhera - 121106, Haryana
Bajaj Auto Ltd. Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has already given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber series, and Wind125 Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The technologies of KHI have redefined space systems, aircrafts,
jet engines, ships, locomotive, energy plants, automation system, construction machinery, and of course high reliability two-wheelersKHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real cruiser bike, redefines the pleasure of "biking" in looks
as
well
as
performance.
Corporate Profile 'Inspiring Confidence,' the tagline, has build up confidence, through excitement engineering, not only to domestic consumers but also internationally. Established just eight decades back in 1926 by Jamnalal Bajaj, the company has been vested with India's largest exporter of two and three wheelers, 196,710 units in 2004-05, a great 26 per cent jump over the previous year. Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year 2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The gross operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive 80 per cent. The strength of the company is its quality products, excellence in engineering and design, and its ability to delight the customers. The Pulsar, introduced in November 2004, is continually dominating the premium segment of the motorcycle market, helping to maintain the market superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc motorcycle. BAL is committed to prevention of pollution, continual improvement of environment performance and compliance with all environmental legislation and
regulations. They always believe in providing the customer 'value for money' and keep an special eye upon quality, safety, productivity, cost and delivery.
BAJAJ AUTO’S MISSION:We at Bajaj Auto continue to firmly believe in providing the customer Value for money, for years through our products and services. This we shall maintain and improve, In our decision making, quality, safety and service will be given as much consideration as productivity, cost and delivery. Quality shall be built into every aspect of our work life and business operations. Quality improvements and customer satisfaction shall be the responsibility of every employee.
REGISTERED OFFICE:-
ADDRESS:
Akurdi,
Pune – 411035, India
TELEPHONE: + (91)-(20)-27472851 FAX:
+ (91)-(20)-27473398
E-MAIL:
[email protected]
WEDSITE:
http://www.bajajauto.com\
PLANTS: Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136 .
TVS Motors Ltd.:-
Profile:-
TVS Motors Company, a leading two wheeler company began with the vision of the founder of the Sundaram Clayton Group, the late T.S. Srinivasan 'to design, develop and produce an affordable moped for the Indian family. This vision was realized in 1980 when TVS 50, India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. A byword for ruggedness and reliability, the TVS 50 proved to be a promising success and paved the way for many successes for TVS Suzuki ever since. TVS, the first in the country to introduce computerization, achieve high productivity, low cost and consistent high quality, now included extensive programme to install computers at all workstations.
Background Originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in twowheeler industry. However, disagreement on several aspects including development of TVS brand and exports lead to severance of ties with the joint venture partner in 2002. This forced the company to develop its own R&D expertise and commit itself to sizeable investment. It has presence in all the segments viz. motorcycle, scooterettee and moped. TVS Scooty (scooterettee) and TVS Victor (Executive segment - motorcycle) are its key brands. The company has also launched 2 new fuel-efficient bikes - `Centra' and `Star'.
Vision
Our vision is the creation of an India which is a global destination for innovative product development and thought leaders in integrated product and process development with a focus on improving the quality of life, including that of the poorest of the market segments at the bottom of the pyramid.
Mission Our mission is to improve the capabilities of people engaged in the design and development of new products and services, to encourage innovation in product development and effective management of the product development processes.
HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.
Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support. About Honda Motorcycle & Scooter India Pvt. Ltd. Official Name Established
Honda Motorcycle & Scooter India Pvt. Ltd. 20th Aug, 1999
Place Investment Representative Factory Location Production Capacity
Manesar, District Gurgaon, Haryana, India Rs. 300 Crore Mr. Shinji Aoyama, President & CEO Manesar, District Gurgaon, Haryana, India 10,000,00 Units per Year
Honda's dream for India is to not only manufacture 2-wheelers of global quality; but also meet and exceed the expectations of Indian customers with outstanding after sales support. They aim to produce technologically superior, efficient and reasonably priced 2-wheelers, with Honda tested technology, backed up with after sales service of Honda's global standard.
CORPORATE PROFILE
Honda Motor Co., Ltd., operates under the basic principles of "Respect for the Individual" and "The Three Joys"-commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating. Respect for the Individual" reflects our desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. Based on this foundation of Respect for the Individual, "The Three Joys" expresses our belief and desire that each person working in, or coming into contact with our company, directly or through our products, should share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda Motor Co., Ltd., has remained on the leading edge by creating new value by providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society.
The Company has grown to become the world's largest motorcycle manufacturer and one of the leading automakers. With a global network of 454* subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide.
Mission Statement Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality at a reasonable price for worldwide customer satisfaction. HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd. Plot No. - 1, Sector - 3 IMT Manesar, Distt. Gurgaon Haryana - 122 050 Phone: + 91 - 124 -6290911, 6290919, and 6290926-28 Fax: +91 - 124 - 6290891, 6290890 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd. 406, Level Four, Prestige Centre Point Edward Road Bangalore 560 046 Phone : +91 - 80 - 2282419, 2384090, 2384091 Fax : +91 - 80 - 2282409
Head Office: 2-1-1 Minami Aoyama, Minato-ku Tokyo 107-8556, Japan Tel: +81-(0)3-3423-1111
Yamaha Motor India (YMI)
Holding the true spirit of commitment to customer satisfaction - Yamaha Motor India is enriching lives of people with the same ingenuity and enthusiasm as its parent company - Yamaha Motor Corporation, Japan. Having operated in India as technology provider for almost two decades, YMI was incorporated in August 2001 as a 100'% subsidiary of YMC, Japan. Since then we have been in the process of redefining our business processes and extending the awe and power associated with the legacy of the Yamaha Group. Adhering to our Corporate Mission - "Creating Kando - Touching Your Heart" we are striving to touch every Heart across the length and breadth of India We firmly believe in “Surpassing Customer Expectations” We are aware of our customers' evolving needs and provide them with quality products and services of exceptional value that surpass their expectations. Establishing a Corporate environment that fosters self-esteem We believe in nurturing and empowering our employees to the fullest. Whilst cultivating our employees’ creativity and all round abilities, we have also established an equitable system of evaluation and rewards to encourage our people to strive towards newer benchmarks. Fulfilling social responsibilities As a good corporate citizen, we continually strive towards creating a better social as well as natural environment.
Vision and Mission:
We conduct our corporate activities with customer satisfaction as our top priority. Our clients in the Yamaha Motor group and many companies outside the group are mostly manufacturers that are involved in programs to improve the full range of their business activities, from product manufacturing, distribution and sales to financing, administration, and corporate governance. We are striving to help these clients achieve a higher level of satisfaction for people using their products. Toward this end we are actively expanding our business in Japan and worldwide. At Yamaha Motor Solutions we are working to become a world-class leader in our field by bringing together the accumulated abilities and skills our individual employee's into dynamic teams capable of creating value that surpasses the expectations of our clients.
Corporate Profile
Name: Location:
Yamaha motors ltd. 2000-1 Iwai, Iwata City, Shizuoka Pref. Post Code: 438-0016 Telephone: 0538-39-2213 Facsimile:
Board of director:
0538-39-2219 President and Representative
Director:
Director@Yasuharu TerIai Takuya Watanabe Tetsuro Nabata Mitsuyoshi Suzuki
Employees: Sales:
Takeya Harada 245 (As of January, 2006) 4.5 billion yen (As of FY ended December, 2005) 6 billion yen (Projected FY ending
Offices:
December, 2006) Head office (Iwata City, Shizuoka Pref.)
Iwata Office (Iwata City, Shizuoka
Overseas subsidiary
Pref.) Yamaha Motor Solutions Co., Ltd. Xiamen (Location: Amoy City, Fujian Prov.) Yamaha Motor Solutions India Pvt. Ltd. (Location: Surajpur (UP state), India )
Exports:YMI is an active player in the exports market. Currently, we export motorcycles to 50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka, Columbia, Dominican Republic, Nigeria and lvory Coast. The export Product line boasts of RX 100, Crux, YD 125, Enticer and LiberoI. To consolidate our position in the exports arena, we are rapidly expanding our presence in Asia, Africa, Central and South America. Strengthening our reputation as an export base for YMC global operations, we are bright and optimistic about our emergence as a top-notch bike exporter of India.
which company's two wheeler are you using?
% of respondent
50 40 30 20 10 0 series
hero
bajaj
tvs
honda
yahaha
45
30
14
5
6
bike
series
Inference:Out of 100%: 45% customers are using Hero Honda two wheeler 30% customers are using Bajaj two wheeler 14% customers are using TVS two wheeler 5% customers are using Honda two wheeler 6% customers are using Yamaha two wheeler
% of Respondent
Model people want to purchase
80 60 40 series
20 0
puls App CBZ unic Gla
series 65
15
13
5
2
Bikes
Inference:Out of 100%: 65% respondents want to purchase pulsar 15% respondents want to purchase apache 13% respondents want to purchase CBZ 5% respondents want to purchase unicorn 2% respondents want to purchase gladitor
Firms or Company strategies :Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company dealing in automobile sector.
The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand. .
Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And created the world's single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today.
Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959
TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry.
Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latest technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan
Honda motors of Japan is not a new name in the two wheeler scenario in the country, they were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world. Though Honda has come on its own on the Indian market yet it will be providing technological support to Hero Honda for the next ten years. Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered the Indian market with Honda Unicorn in 2004.
CHAPTER-III
DESIGN OF THE STUDY
Objective of Study: The main objective is to find out the current trend going on in the industry i.e. (about the product, piece, place and promotion). Other objectives are as follows: To know the image of product in the mind of consumer. To compare the level of satisfaction before purchasing and after purchasing the bike. To find out where people want to see the promotion schemes To find out suitable location and preferred by consumer To know the most popular media for advertisement To check the loyalty of the consumer towards the Hero Honda brand To know the most motivating factor for purchasing the bike To know the preferable price from the customer
Scope:Today, India is well known as a potential emerging automobile market and jobs in the automobile industry are rising. Several foreign companies have their investments in Indian automobile industry. India is the major three-wheeler market and two-wheeler manufacturer in the world. It is also the second largest manufacturer of tractors. India is a home to many Indian and international automobile companies. The candidates who have achieved bachelor's degree in mechanical, electrical or automobile engineering are eligible to get good jobs in these companies.
Automobile Jobs Opportunities:Many job opportunities are available for the candidates with diploma courses and ITI courses. Some of the automobile companies require IT specializations. The technical education is offered by plenty of engineering and polytechnic colleges in India. The eligible candidates are selected by the companies and then trained properly. Considering the wide scope of Automobile sector, it is not surprising that more and more candidates are dreaming to develop a career in Automobile Industry. Now, with so many foreign automobile companies like Volkswagen, Audi, Renault etc targeting India as a base for manufacturing cars, the scope for a career in Automobile Industry is rising rapidly.
Au tomobile companies in India:As automobile industry is showing rapid growth in India, the country becomes a house to numerous well-established automobile companies. They offer excellent job opportunitiesto develop a career in Automobile Industry. Some of the popular carproducing companies that offer jobs in the automobile industry are- Suzuki, Toyota, Tata, Fiat, Honda, Mahindra & Mahindra, Ford, Hyundai and Skoda. Manufacturing of twowheelers is dominated by the companies TVS, Bajaj Auto, LML, Kinetic, Yamaha and Hero Honda. The tractors are manufactured by the popular companies like Escorts, L&T, Mahindra & Mahindra, Punjab Tractors, John-Deere, New IHolland and ITL-Renault.
Methods of data collection:The whole secondary data were collected from industry profile, books, magazines and internet. While primary data where collected though survey. The customer survey was done though the questionnaire. Question consists of dichotomous multiple questions and 5 point ranking scale. A copy of questionnaire has been attached with the report.
Source of data
There two types of data, primary data and secondary data. Primary data are collected with the help of questionnaire are secondary data was taken from industry profile, books, magazines and internet.
Data analysis :-
Limitation of the study:Despite all possible efforts in conducting the research there was some unavoidable situation, which limited the scope of this dissertation. The limitations of the dissertation fall under the following:1. This dissertation is confined on the basis of secondary data collected only hence it reliable data for the study. 2. As the research is based on the data that already available and collected through various means not includes the survey, hence it imposes limitations, as it is just possible that the secondary data may be unsuitable or may be inadequate in the context of the topic under study. 3. One of the major limitation of the study is that, as the data is collected though the secondary means, hence it creates uncertainties regarding the methods of the data collection, time of data collected, and any bias of the compiler during the pervious research and at the time of data collection. 4. Limitation of time & resources were a major factor influencing the research study.
5. The research guide has helped us though at the project study, yet his busy time schedule restricted as to cut short our discussions though detailed discussions were required for the project.
CHAPTER - IV
DATA ANALYSIS
Data analysis & interpretation:-
CHAPTER-V
Findings:-
Suggestions:No matter how much on organization progresses it always lack something. These are shortcoming of every company. After completing my report on new Hero Honda motors Ltd. I have some suggestions to offer. The suggestions can be proved useful for the company as they have feasibility and viability.
The recommendations are:-
Hero Honda Motors only manufacture a wide rand of 4-stroke bike. But in my opinion 2-stroke bikes have a better pick up. So in order to letter to the need of a large segment of customers, who want a better pick up bike, Hero Honda go into the manufacture of 2-stroke bikes. The company has always targeted urban sector of Indian population. But in the rural sector escorts; Rajdoot enjoys a great market share. So, therefore Hero Honda should target this upcoming market. Hero Honda should keep a strict watch on to competitions. For instance Yamaha has introduced a 4-stroke bike “YBK” whose features are almost same as Splendors. The company should work more on public relation.
Conclusions:The study which we conducted on the two wheeler automobile sector is a very important topic of automobile sector. Two wheeler automobile sector is the backbone of the automobile sector in India. After deep research, analysis and getting information about companies as formulated that the two wheeler automobile companies achieved success in the market. Through out the study we found the Two wheeler manufacturer having very new and modern technology in their bikes, they have a good market share in India, many of MNC's like Honda, Yamaha ,Suzuki are also giving large competition.
Concluding the performance of the company related to two wheeler sector in India, getting their market share and growth and what are services they are providing after sales. Hero Honda has managed to put in spectacular performance going from strength despite increase in competition; the company's sales have witnessed an up trend, registering an average growth of 42% in the three years under review. Hero Honda has managed to achieve this because its strong brand image and proven product quality underpinned the performance growth in recent years. Apart from the strong brand "splendor" the company's performance across the spectrum of the motorcycle market helped it exploit the growing demand for 4stroke motorcycle. At the lower end the company has CD 100 SS at middle level splendor, passion and Dawn the CBZ Extreme/ Karizma range is targeted at premium segment. Some years back Hero Honda are getting stiff competition because of Bajaj, TVS and Yamaha have a presence in 125cc bikes segments where Hero Honda has not any presence in this segment. Now this gap is filling up by Hero Honda's new Splendor NXG, Glamour. But still there is a gap between 150cc to 225cc segment which is most preferable segment by youth today. With newer and better models are coming up customer has better and bigger choices to choose from. It is the competition on various aspects such as price, design technology, after sales services and even purchases offers, which provides to both buyer and seller.
Even many dealers are in view that today Hero Honda and Bajaj, thrives on competition. Right now it seems that the real war is between Hero Honda and Bajaj auto. But one cannot discount the fact that there are other players, who are gaining strength day by day.
BIBLIOGRAPHY
1.We have visited in various showrooms. 2.Internet Sites: www.bajajmotors.com www.herohondamotors.com www.indiabike.net.com www.google.com www.yahoofinance.com www.indiaserf.com www.honda2wheeler.com www.yamahamotorsindia.com www.tvsmotorsltd.com
