3. Two Wheel Automobile Industry

Study on Two Wheeler Automobile Industry in Mumbai

1. Overview of Two-wheeler Industry:

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.

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 are running on Indian roads today.

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

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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.

Royal Enfield was the name under which the Enfield Cycle Company (a division of the British arms-making company Royal SmallArmsFactory in Enfield Lock),

made motorcycles, bicycles, lawnmowers and stationary engines. This legacy of weapons manufacture is reflected in the logo, a cannon, and their motto "Made like a gun, goes like a bullet". Use of the brand name Royal Enfield was licensed by the Crown in 1890. The original Redditch, Worcestershire based company was sold to E. & H. P. Smith in 1963 and then to Norton-Triumph-Villiers (NVT). Production ceased in 1970 and the company was dissolved in 1971.

In 1955 Enfield of India started assembling Bullet motorcycles under licence from UK components, and by 1962 was manufacturing complete bikes. India bought the rights to use the Royal Enfield name in 1995. Royal Enfield production, based in Chennai, continues and Royal Enfield is now the oldest motorcycle brand in the world still in production with the Bullet model enjoying the longest motorcycle production run of all time.

The Two-wheeler industry is known for its inherent cyclical feature with 18 months of growth followed by 18 months of degrowth. The industry had outperformed thebroader market in the latter half of FY (Financial Year) 06. FY07 was a period of consolidation with the big players capturing a larger market share among their niche segments. Thereon it continued to underperform the broader market with the exception of Q3FY09. BSE Auto Index has seen a fall of >30% in the last quarter and has hit an all-time low of 2444 points which has not been seen in the past 4 years. We believe the industry is ready to pick up from a lower base, which keeps its downside capped. Sale volumes of the industry would continue to replicate a seasonal trend. Though the sale volumes have witnessed a decline for more than a year, its revival would be a slow and steady process, which would be delayed on account of the unfavorable macro-economic conditions and depressed consumer sentiments. On one hand the slackening growth in the GDP and IIP would put pressure on the demand factor, whereas the fall in inflation, input costs and crude prices would ease the cost constraints. We can expect the scenario of FY07 to be repeated, wherein the sales and margin would be inversely co-related. Sector incentives and government policies would determine the sector movement going forward.

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1.1Evolution of two-wheeler 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. 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.

1.2Industry Structure:

India is the 2nd largest two-wheeler market in the world with a size of over Rs. 100,000 MN. The total sale of two wheelers in India has touched a figure of 7.9 MN units by March, 2007, up 11.4% from the previous fiscal figure of 7.1 MN units. Production during the period reached 10.8 MN units, entailing a demand ratio of 72%. In terms of sales and market share the major players of the industry are Hero Honda, Bajaj Auto and TVS Motors. Other players include Kinetic Motors, Yamaha Motor and Honda Motorcycle and Scooter India (HMSI). The composition of the industry consists of motorcycles, scooters and mopeds. Over the past decade, there has been a consumer preferential shift from mopeds to scooters and now motorcycles. On account of the shift, the motorcycle segment dominates the two-wheeler industry with a market share of close to 80%. The motorcycle segment is further sub divided into 3 classes, starting from the entry/economy class (Rs. 30,000 – Rs. 40,000), executive class (Rs. 40,000 –Rs. 50,000) and the premium class (>Rs. 50,000). The motorcycle segment is primarily led by Hero Honda with a market share of 59% followed by Bajaj Auto (18%), HMSI (9%), TVS Motors (7%) and Yamaha (5%). On the other hand the scooter segment is led by HMSI which has a dominant share of 63% followed by TVS Motors (16%) and Hero Honda (14%). When it comes to the moped segment, it is primarily dominated by TVS Motors with a market share of 100%.

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

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Mopeds

No. of 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 Mahindra 2 Wheelers

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2. Manufacturing Process:

2.1 Basic Manufacturing Process:

Raw Materials

The primary raw materials used in the manufacture of the body of motorcycle are metal, plastic and rubber. The motorcycle frame is composed almost completely of metal, as are the wheels. The frame may be overlaid with plastic. The tires are composed of rubber. The seat is made from a synthetic substance, such as polyurethane. The power system consists of a four-stroke engine, a carburetor to transform incoming fuel into vapor, a choke to control the air-fuel ratio, transmission, and drum brakes. The transmission system contains a clutch, consisting of steel ball flyweights and metal plates, a crankshaft, gears, pulleys, rubber belts or metal chains, and a sprocket.

The electrical system contains a battery, ignition wires and coils, diodes, spark plugs, head-lamps and taillights, turn signals and a horn.

A cylindrical piston, made of aluminum alloy (preferred because it is lightweight and conducts heat well), is an essential component of the engine. It is fitted with piston rings made of cast iron. The crankshaft and crankcase are made of aluminum. The engine also contains a cylinder barrel, typically made of cast iron or light alloy.

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The Manufacturing Process

1. Raw materials as well as parts and components arrive at the manufacturing plant by truck or rail, typically on a daily basis. As part of the just-in-time delivery system on which many plants are scheduled, the materials and parts are delivered at the place where they are used or installed.

2. Manufacturing begins in the weld department with computer-controlled fabrication of the frame from high strength frame materials. Components are formed out of tubular metal and/or hollow metal shells fashioned from sheet metal. The various sections are welded together. This process involves manual, automatic, and robotic equipment.

3. In the plastics department, small plastic resin pellets are melted and injected into molds under high pressure to form various plastic body trim parts. This process is known as injection molding.

A motorcycle engine

4. Plastic and metal parts and components are painted in booths in the paint department using a process known as powder-coating (this is the same process by which automobiles are painted). A powder-coating apparatus works like a large spray-painter, dispersing paint through a pressurized system evenly across the metal frame.

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5. Painted parts are sent via overhead conveyors or tow motor (similar to a ski lift tow rope) to the assembly department where they are installed on the frame of the motorcycle

6. The engine is mounted in the painted frame, and various other components are fitted as the motorcycle is sent down the assembly line

7. Wheels, brakes, wiring cables, foot pegs, exhaust pipes, seats, saddlebags, lights, radios, and hundreds of other parts are installed on the motorcycle frame. A Honda Gold Wing motorcycle, for example, needs almost as many parts to complete it as a Honda Civic automobile.

The Future

Motorcycles remain popular and the collecting and riding of antique models is just as popular as riding the new versions. While sleek, new versions will continue to be produces,

A motorcycle transmission and disc brake system.

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2.2 Accessories and Finished Products

Side mirrors

Lock box

Tool box

Seat cover

Fog light

Shocker lock

Leg guard

Helmet lock

Stephaney for scooters

Foot rest

2.3Marketing Mechanism

Promotion

Promotion concerns the message the firm sends out to potential consumers. It provides information and persuades people, it creates awareness, stimulates demand and differentiates the product and influences public behavior. Promotion won’t make a bad product that no one wants a success; although the absence of promotion might that a good product is not successful, promotion includes all the activities or tools a company uses to communicate or promote its product in the market.

Promotional tools or promotion mix

1. Personal Selling: It involves personal confrontation either by phone or face; it is an expensive and time-consuming tool of promoting the product.

2. Advertising: It is defined as a paid non-personal communication with a target (usually mass) market. It is cost effective and can reach a large number of people. It can also be used for long term or short term objectives.

There are various forms or mediums through which can advertise.

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A. Broadcast Media: Television Radio Cinema

B. Print media: Newspapers Magazines Leaflets

C. Outdoor media:

Posters and billboards.

3. Public Relations an Publicity:

Public relations are an umbrella term and refer to the totality of the organization’s behavior with respect to the society in which it operates. The maybe regarded as good or bad and is reflected in the company’s reputation and image.

4. Sponshership:

Sponsorship can be seen as a part of public relations and it is certainly the case that some sponsorship goes on to generate positive publicity for the organization.

5. Direct Marketing:

It is an interactive system of marketing which uses one or more advertising media to affect a measurable response at any locations

It includes:

Direct mail. Telemarketing. Door to door selling. Direct response advertising: ‘phone now’ or ‘fill in the coupon ads’ Home shopping of various types.

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Factors that guide a marketer’s decision in selecting a promotion mix:a) Nature of productb) Overall marketing strategyc) Buyer readiness staged) Product life cycle stage

6. Sponsorships:

The company has not left any stone untamed in sponsoring the major events both globally and domestically. The biggest of all is the sponsorship of the “WORLD CUP” for which Hero Honda has the credit of being the only two-wheeler company in the world to do so. Besides this, the company has also sponsored events like “Master Golf”, television academy awards, etc.Thus the company has gained a lot of reputation by doing so.

7. Discounts/Offers:

The company has started giving discounts and other offers to the customers on the purchase of a new bike, for instance, with the World Cup offer, in which the consumer was to get a 1 gm gold coin with every purchase.

But after all these schemes and benefits may be because of cut-throat competition in the segment with heavyweight competition such as Bajaj, kinetic, Yamaha, and TVS the company (HERO HONDA) officially says:

“Our aim is to proactively and consistently deliver value to the customer. We are giving back to the customer after becoming successful. Most companies give discounts only when their products are not doing well in the market. There is loss of competition in the segment, especially from Bajaj. But the reason for Hero Honda’s success it that we are consumer-focused while other companies such as Bajaj tends to be more competitor-focused.

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3. Company Profiles:

3.1 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.

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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.''

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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.

3.1.1 Hero Hondas 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

3.1.2 S.W.O.T Analysis:

Strengths:

Hero Honda introduced First stroke bike in the Indian market. Hero Honda gives 80 Km/Liter Avg. Huge sale network (3500 Dealers). Better sale service. It has the highest share in automobile sector. It has a good brand image. It gives better service for customers. Best customer preference. Debt equity ratio is only 0.1. The company has clarified about its intention of setting a third plant in

addition to its existing two plants. The company has embarked upon a green field expansion plan and has earmarked Rs 2 bn for the same. It should be noted that the company has a strong cash flow position; it generated Rs 9 bn from operation in FY04 and is virtually a debt free company.

Weakness:

Suppose to be very sophisticated. Not fit for ruler India.

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They have big gap between cubic capacities of its products. Its market share is reducing from last few years. Spare parts are too costly.

Opportunities:

Hero Hondas the first manufacture to launch ecofriendly bikes with 4-stroke engines. They have attained a stronger good will and popularity in the industry and the consumers.

They should go in new segments of bikes. There is large no. of young consumers in the market. Company has to

focus on them. They have big opportunities in heavy bike segments. As government policies are amended against pollution in metro cities,

Hero Honda being 4 stroke bike manufacture has great opportunities to explore its new innovations and technologies.

Threats:

Main threats to Hero Honda are their competitors like:-o Bajaj Auto Ltd.o TVS motors Ltd.o Yamaha Motors India.o Honda motorcycle and scooter India.

The cost of the product is very high in comparison to other companies. Decreasing market share.

3.1.3 Hero Hondas Core Values

Respect for Human Beings. Is a responsive organization? Is a boundary less organization? Is striving for excellence. Provide fearless, enjoyable working environment. Is self-reliant. Providing learning environment. Is a caring organization? Enables relationship buildings. Prompts transparency & trust. Is creativity promoting. Is performance oriented?

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3.1.4 Product Range:

Scooters

1. Hero Honda Pleasure:Production: 2005 Present Price: Rs. 37,990Engine: 102 cc, 7bhp@ 7000 rpm, Torque: 0.78 kgm @5000 rpm

Motorcycles:1. Hero Honda CD Delux:Production: 2001 presentPrice: Rs.35642Engine: 97.cc,7.5bhp@8000rpm,

4stroke engine, single cylinder

2. Hero Honda Ambition:Production: 2004 presentPrice: Rs.49000Engine: 135 cc, four-stroke engine,

single piston, kick start11bhp

3. Hero Honda CD Dawn:Production: 2004 PresentPrice: Rs. 33542Engine: 97 CC, 7.5 bhp @8500 rpm,

4 stroke engine,Torque: 8.05 Nm @ 5,500 rpm

4. Hero Honda Passion Plus: Production: 2006 PresentPrice: Rs. 46275Engine: 97 CC, 4-stroke engine,

single cylinderPower: 7.4 bhp @8000 rpm

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5. Hero Honda CBZ Extreme:Production: 2005 presentPrice: Rs. 62000Engine: 149.2 cc, four-stroke cycle, single pistonPower: 14.2 bhp @ 8500 rpmTorque: 1.26 kgm @ 6500rpm

6. Hero Honda Spelendor NXG:Production: 2004 presentPrice: Rs. 48,600Engine: 124.7 CC, 4 stroke enginePower: 9 bhp @ 7000 rpmTorque: 8.05 Nm at 5,500 rpm

7. Hero Honda Achiever:Production: 2006 presentPrice: Rs. 51298-56022Engine: 149.1 CC, 4-stroke engine,

single cylinderPower: 3.4 bhp @ 8000 rpm

8. Hero Honda Glamour:Production: 2005 presentPrice: Rs 49777-56529Engine: 124.7 cc, four-stroke cycle,

single piston, kick startPower: 9 bhp @7000 rpm

9. Hero Honda Hunk:Production: 2008 presentPrice: Rs. 64000Engine: 149.2 cc, four-stroke cycle, single piston

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Power: 14.2 bhp hp @ 8500 rpmTorque: 1.26 kgm @ 6500rpm10. Hero Honda Karizma RProduction: 2005 presentPrice: Rs. 76393Engine: 223cc, 4 – StrokePower: 12.68 KW (17 PS) @ 7000 rpm

11. Hero Honda Karizma ZMRProduction: 2010 presentPrice: Rs.98000Engine: PGM-Fi 223cc, 4-strokePower: 17.6 Bhp @ 7000 rpmTorque: 18.35 Nm @ 6000 rpm

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3.1.5 Balance sheet of Hero Honda Motors Ltd.

As on 31st march 2006 (Rs. In crores)

Table 1.1Particulars Schedule 31st march2006 31st march2005Shareholders’ funds:Share capital 1 39.94 39.94Reserve & surplus 2 1969.39 1453.44

Loan funds: 3Unsecured 185.78 201.76

Deferred tax liabilities 8 120.10 101.53Total 2315.21 1796.67Application of funds:Fixed assets 4Gross block 1471.97 1104.19Less: depreciation 522.6 429.71

949.37 674.48

Capital working process 44.19 40.85Net block 993.56 715.33

Investment 5 2061.89 2026.65

Deferred tax assets 8 1.32 0.63

Current assets, loan & advances: 6Inventories 226.55 204.26Sundry debtors 158.66 89.55Cash and bank balances 15872 17.6Loans and advances 273.78 239.61Other current assets 3.53 3.51

Less: current liabilities & provisions 7Current liabilities 1072.88 1015.76Provisions 489.92 484.71

1562.8 1500.47Net current assets 741.56 945.94

3.1.6 Profits & LOSSES A/C OF HERO HONDA LTD.Year 2005-06 (Rs. In crores)Table 1.2Particulars schedule 31st march 31st

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2006 march2005INCOME

Gross sales 10086.16 8596.81Less: excise duty 1372.18 1175.16Net sales 9 8713.98 7421.65Other incomes 15628.00 136.9TOTAL 8870.26 7558.55

EXPENDITURES

Manufacturing andOther expenses

10 7349.53 6253.01

Depreciation 4 114.62 89.38Net interests 11 6.13 1.09TOTAL 7458 6341.30Profit before tax 1412.24 1217.25Profit for taxationCurrent 415.85 395.22Deferred 1788 11.56Fringe benefits 7.17 0Profit after tax 971.34 810.47Balance of profit b/d 808.1 538.53Balance available for appropriation 1779.44 1349

APPROPRIATION

Proposed dividend 399.38 399.38Tax on dividend 56.01 56.52Transferred to general reserve 100 85Balance carried to balance sheet 1224.05 808.1

Basic and diluted earnings per share face values Rs. 2/each

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3.1.7 Board of DirectorsTable 1.3

No. Name of the Directors Designation1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director2 Mr. Pawan Munjal Managing Director3 Mr. Toshiaki Nakagawa Jt. Managing Director4 Mr. Takao Eguchi Whole-time Director5 Mr. Sunil Kant Munjal Non-executive Director6 Mr. OmPrakash Munjal Non-executive Director7 Mr. TatsuhiroOyama Non-executive Director8 Mr.MasahiroTakedagawa Non-executive Director9 Mr. NarinderNathVohra Non-executive & Independent Director10 Mr. PradeepDinodia Non-executive & Independent Director11 Gen.(Retd.) Ved Prakash

MalikNon-executive & Independent Director

12 Mr. Analjit Singh Non-executive & Independent Director13 Dr. Pritam Singh Non-executive & Independent Director14 Ms. ShobhanaBhartia Non-executive & Independent Director15 Dr. Vijay LaxmanKelkar Non-executive & Independent Director16 Mr. Sunil Bharti Mittal Non-executive & Independent Director

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3.2 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-wheelers

KHI 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 built 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

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ML - Business Head (India)

CPM - Business Head (India)

Location Head - For the State

Account Managers

Account Executives

Sr. Ops. Executives

Ops. Executives

Commercial Dept.Customer Relations

Biz. Development Marketing Dept.


and regulations. They always believe in providing the customer 'value for money' and keep a special eye upon quality, safety, productivity, cost and delivery.

Bajaj Auto 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.3.2.1 Organizational Structure of Bajaj Auto Ltd.

Largest Export

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Bajaj Auto continued to be India’s largest exporter of two wheelers. During 2005-06, it exported 75297 two which represented a growth of 33 per cent over 2004-05.Graph 1.1

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

0

50000

100000

150000

200000

14917 15602 2969153366

90210130945

174907

TOTAL EXPORT OF TWO WHEELERS

Two wheeler

Years

Nu

mb

ers

of w

hee

lers

3.2.2 SWOT Analysis

Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths, weaknesses, threats and opportunities available.

Strengths

Highly experienced management. Product design and development capabilities. Extensive R & D focus. Widespread distribution network. High performance products across all categories. High export to domestic sales ratio. Great financial support network (For financing the automobile) High economies of scale. High economies of scope.

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Weaknesses

Hasn't employed the excess cash for long. Still has no established brand to match Hero Honda's Splendor in

commuter segment. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki)

Opportunities

Double-digit growth in two-wheeler market. Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles. The growing gearless trendy scooters and scooterette market. Growing world demand for entry-level motorcycles especially in

emerging markets

Threats

The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Margins getting squeezed from both the directions (Price as well as Cost)

3.2.3 The Inevitable Change

Bajaj on internal analysis found that it lacked –

1. The technical expertise to deliver competitive goods.2. The design know-how.3. And the immediate inability to support the onslaught of competitors.

All these forced Bajaj to look for an international partner who could bring in technology and also offer some basic platforms to be manufactured and marketed in India. Kawasaki of Japan is a world-renowned manufacturer of high performance bikes. Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its product line and knowledge up-gradation to support long-term strategies.

This served the purpose of sustaining the market competition for a while. From 1996 to 2000, Bajaj invested hugely in infrastructure while simultaneously developing product design and innovation capabilities, which is the prime reason behind the energetic Bajaj of 21st century. Bajaj introduced a

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slew of products right from entry-level motorcycle to the high premium segment right from 2001 onwards, and since then its raining success all the way for Bajaj.

Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when the largest manufacturer grew at just 6%. This stands a testimony to the various important strategic decisions over the past decade.

3.2.4 Product Range

Motorcycles

1. Bajaj Pulsar’s:150 DTSi180 DTSi220 DTSiProduction: 2001 PresentPrice: Rs. 58655-83885Engine: 150 cc/180 cc//220 cc Air-cooled, four-stroke cycle.Power: Upto 21 bhp (14.8 kW) @8500 rpm

2. Bajaj Pulsar 135 LS:Production: Feb 2010Price Rs. 58000Engine: 4 Stroke, Air Cooled, DTS-iPower: 13 Bhp @ 9000 rpmTorque: 11.4 Nm @ 7500 rpm

3. Bajaj Discover’s:Discover 135 DTSiDiscover 135 DTS-Si Production: 2004 presentPrice: Rs. 48000 – 52000Engine: 135 cc Air-cooled, four-strokePower: Up to 13bhp @ 8500 rpm

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4. Bajaj Avenger:Avenger 200Avenger 220Production: 2008 presentPrice: Rs. 70000Engine: 17.51ps @ 8500 rpm, DTSiTorque: 16.78NM @ 6000 rpm

3.2.5 Exports:

Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt

Overseas Businessman

Mrs. & Mr. Ramiro Villeda, Phd.CPIM, PresidentVeloleda Consulting Group, IncWorld Class Value Chain ManagementSuite 14F, Yan-DangPlaza107 Yan-Dang RoaShanghai 200020, P R ChinaTel.: +86(0)21 63725393/63840513Mobile : 1(915) 9206150Fax : 86(0)21 6327617E-mail: [email protected]/rvilledaconsulting.comWebsite : www.villedaconsulting.com

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3.2.6 Balance Sheet of Bajaj Auto Ltd. 2005-06Table 1.4

Mar ' 06 Mar ' 05Sources of fundsOwner’s fundsEquity share capital 101.18 101.18Share application money - -Preference share capital - -Reserves & surplus 4,669.55 4,033.17Loan’s fundsSecured loans 0.02 -Unsecured loans 1,467.13 1,226.99Total 6,237.88 5,361.34Uses of fundsFixed assetsGross block 2,894.22 2,765.17Less : revaluation reserve - -Less : accumulated depreciation 1,761.22 1,628.64Net block 1,133.00 1,136.53Capital work-in-progress 24.18 8.36Investments 5,753.45 4,560.58Net current assetsCurrent assets, loans & advances 3,062.22 2,662.65Less : current liabilities & provisions 3,734.97 3,006.77Total net current assets -672.75 -344.12Miscellaneous expenses not written - -Total 6,237.88 5,361.34Notes:Book value of unquoted investments 247.22 253.59Market value of quoted investments 7,303.41 5,033.64Contingent liabilities 719.06 573.24Number of equity sharesoutstanding (Lacs) 1011.84 1011.84

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3.2.7 Profit & Loss Account of Bajaj Auto Ltd.Table 1.5

Particulars Mar ' 06 Mar ' 05

Incomes:

Operating income 7,572.62 5,852.36

Expenses:

Material consumed 5,397.61 4,151.31

Manufacturing expenses 138.59 132.38

Personnel expenses 282.45 250.59

Selling expenses 258.92 257.40

Administrative expenses 240.02 207.78

Expenses capitalized -24.81 -19.84

Cost of sales 6,292.78 4,979.63

Operating profit 1,279.84 872.73

Other recurring income 369.99 297.93

Adjusted PBDIT 1,649.83 1,170.66

Financial expenses 0.34 0.67

Depreciation 191.00 185.37

Other write offs 4.05 4.04

Adjusted PBT 1,454.44 980.59

Tax charges 479.11 319.63

Adjusted PAT 975.33 660.96

Non recurring items 88.91 87.11

Other non cash adjustments 59.03 -18.91

Reported net profit 1,123.27 729.16

Earnings before appropriation 1,123.27 729.16

Equity dividend 404.74 252.96

Preference dividend - -

Dividend tax 56.76 35.48

Retained earnings 661.77 440.72

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3.2.7 Board of Directors: Table 1.6Board of DirectRahul Bajaj ChairmanMadhur Bajaj Vice Chairman & Whole-Time DirectorRajiv Bajaj Managing DirectorSanjiv Bajaj Executive DirectorD.S. Mehta Whole-Time DirectorKantikumar R. Podar DirectorShekhar Bajaj DirectorD.J. BalajiRao DirectorJ.N. Godrej DirectorS.H. Khan DirectorMrs. SumanKirloskar DirectorNaresh Chandra DirectorNanooPamnani DirectorManish Kejriwal DirectorP Murari DirectorNiraj Bajaj Director

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http://www.bajajauto.com/1024/aboutbajaj/niraj.asp

http://www.bajajauto.com/1024/aboutbajaj/pmurari.asp

http://www.bajajauto.com/1024/aboutbajaj/manish.asp

http://www.bajajauto.com/1024/aboutbajaj/nanoo.asp

http://www.bajajauto.com/1024/aboutbajaj/naresh.asp

http://www.bajajauto.com/1024/aboutbajaj/suman.asp

http://www.bajajauto.com/1024/aboutbajaj/shkhan.asp

http://www.bajajauto.com/1024/aboutbajaj/jngodrej.asp

http://www.bajajauto.com/1024/aboutbajaj/balajirao.asp

http://www.bajajauto.com/1024/aboutbajaj/shekhar.asp

http://www.bajajauto.com/1024/aboutbajaj/kantikumar.asp

http://www.bajajauto.com/1024/aboutbajaj/dsmehta.asp

http://www.bajajauto.com/1024/aboutbajaj/sanjiv.asp

http://www.bajajauto.com/1024/aboutbajaj/rajiv.asp

http://www.bajajauto.com/1024/aboutbajaj/madhur.asp

http://www.bajajauto.com/1024/aboutbajaj/rahul.asp


3.3 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 two-wheeler 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.

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3.3.1 Organizational structure of TVS motors company ltd.

3.3.2 SWOT Analysis:

Strengths

Ability to understand customer’s needs and wants Recognized and established brand name Effective advertising capability

Weaknesses

They have big gap between cubic capacities of its products. Its market share is reducing from last few years. Bikes are not attractive as compare to there competitors.

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Opportunities

Global expansion Expansion of target market (include women) Become India’s leader in the scooter market

Threats

Suzuki Motorcycles can take away market share and cause joint venture to go sour

Bajaj Motors and Hero Honda is a strong competitor.

3.3.3 Products:

1. TVS Apache’s:Apache RTR 160Apache RTR 160 FiApache RTR 180Production: 2004 presentPrice: Rs. 62000 – 72000Engine: 160cc/ 160 fi / 180cc air – cooled

Four – strokePower: Up to 17.3 bhp @ 8500 rpmTorque: Up to 15.5NM @6500 rpm

2. TVS Scooty Pep Plus:Production: 2004 presentPrice: Rs.38853Engine: 4 stroke,87.8 ccPower: 3.68kw (5 bhp) @ 6500rpm

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3. TVS Star City:Production: 2004 presentPrice: Rs. 42856Engine: 4 – Stroke,99.7 CCPower: 7.5 bhp / 5.50 kW @ 7500 rpm

4. TVS Victor GLS:Production: 2004 presentPrice: Rs. 46570-48986Engine: 4 – Stroke,124.8 CCPower: 10 bhp / 6.77 kW @ 7500 rpm

5. TVS Jive:Production: 2010 presentPrice: Rs. 42235Engine: 4 – Stroke, 109.7 CCPower: 8.4 bhp / 6.18 KW @ 7500 rpm

6. TVS Flame DS:Production: 2010 presentPrice: Rs.48,990 onwards Engine: 4 – Stroke CC-VTi, 124.8 CCPower:10.3 bhp / 7.7 KW @ 7500 rpm

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3.3.4 Board of Directors:

No. Name of the Directors Designation

1 Mr. VenuSrinivasan Chairman & Managing Director

2 Mr. GopalSrinivasan Director

3 Mr. T.K.Balaji Director

4 Mr. T. Kannan Director

5 Mr. N. Ganga Ram Director

6 Mr. C.R.Dua Director

7 Mr. H. Lakshmanan Director

8 Mr. T. R. Prasad Director

9 Mr. K.S.Bajpai Director

10 Mr. K.N. Radhakrishnan President

11 Mr. S. G. Murali Sr.Vice President – Finance

12 Mr. T.S.Rajagopalan Secretary

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3.3.5 Balance Sheet & Profit and Loss A/c of TVS Motors:

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3.4 Honda Motorcycles and 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.Table 1.7Official Name Honda Motorcycle & Scooter India Pvt. Ltd.Established 20th Aug, 1999Place Manesar, District Gurgaon, Haryana, IndiaInvestment Rs. 300 CroreRepresentative Mr. Shinji Aoyama, President & CEOFactory Location Manesar, District Gurgaon, Haryana, IndiaProduction Capacity 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

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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 widevariety 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

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Organization Structure:Table 1.8

3.4.1 SWOT Analysis

Strength

Reliable brand name Affordable price Honda have a big share of market in scootreats segment Honda is the first company who introduced the technology of central

shock absorption in India Honda having high tech engines HMSI is the subsidiary company of Honda Motors Ltd. Which is the

largest company in the proposed sector

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Weakness

Less number of service center Market share very less as compare to there competitor Spares parts are not easily available Low product range Maintenance cost is very high

Opportunity

Increase in product range Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles Honda can be use brand image of Hero Honda

Threats

There is high competition in the market Threat of cheap imported motorcycles and components from China

3.4.2 Products:

Scooters

1. Honda Activa:Production: 2004 presentPrice: Rs. 48500 Engine: 110cc 4 stroke air cooledPower: 8bhp @ 7500 rpmTorque: 9NM @ 8500rpm

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2. Honda Dio:Production: 2004 presentPrice: Rs. 44000Engine: 4 – Stroke 102cc OHCPower: 7bhp@7000rpm

Motorcycles1. Honda Unicorn:Production: 2004 presentPrice: Rs. 67000Engine: 4 – stroke 149.1ccPower: 13.3 bhp @ 8000rpmTorque: 1.3kgm @ 5500rpm

2. Honda Shine:Production: 2004 presentPrice: Rs.56200Engine: 4-Stroke 124.6 ccPower: 10.3 bhp @ 7500 rpm

3. Honda CBF Stunner:Production: 2009 presentPrice: Rs. 52800Engine: 124.7cc 4 strokePower: 11bhp @ 8000rpmTorque: 11Mn @ 6500rpm

4. Honda CB Twister:Production: Jan 2010Price: Rs. 53000Engine: 109cc, 4 - stroke OHCPower: 9bhp @ 8000rpmTorque: 9Nm @ 6000rpm

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3.4.3 Global Expansion

As seen above HMSI has its networks world wide.

Corporate Details

HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.Plot No. - 1, Sector - 3 IMT Manesar,Distt. GurgaonHaryana - 122 050Phone: + 91 - 124 -6290911, 6290919, and 6290926-28Fax: +91 - 124 - 6290891, 6290890

HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.406, Level Four, Prestige Centre PointEdward RoadBangalore 560 046Phone : +91 - 80 - 2282419, 2384090, 2384091Fax : +91 - 80 - 2282409

Head Office:

2-1-1 Minami Aoyama, Minato-kuTokyo 107-8556, JapanTel: +81-(0)3-3423-1111

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3.5 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.

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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.

3.5.1 Organization chartTable 1.9

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3.5.2 SWOT Analysis

Strengths Yamaha motors India is the subsidiary company of Yamaha motors ltd,

which is the MNC company having a good brand name. Good share in Indian two wheeler automobiles sector It is the one of the oldest company in the Indian market. Bikes are available at competitive price. Popular in rural area.

Weakness

No presences in scooter segment. No presences in above 150cc bike segment. Decreasing market share Limited network. Less average

Opportunities

Above 150cc bike segment having full of opportunities. Set targets on scooters segment. Target youth. Large market is available for consumption.

Threats

Large no, of competitors present in the market. New companies are watching Indian market. People are going for good average and stylish bikes. E-bikes are also in the market.

3.5.3 Products:

1. Yamaha YBR Production: 2010Price: Rs. 54000Engine: 123cc, 4 - stroke SOHCPower: 11 bhp @ 7500rpm

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2. Yamaha SZ – SeriesYamaha SZ-XYamaha SZ-RProduction: 2010Price: Rs. 58000-63000 Engine: 153cc, 4 - stroke SOHCPower: 12 bhp @ 7500rpm

3. Yamaha FZ – SeriesYamaha FZ - 16Yamaha FZ - SYamaha FZ – FazerProduction: 2008 to presentPrice: Rs. 73000-81000 Engine: 153cc, 4 - stroke SOHCPower: 14 bhp @ 7500rpm

4. Yamaha R15Production: 2008 to presentPrice: Rs. 1,12,000 Engine: 153cc, liquid colled, 4 - strokePower: 17 bhp @ 8500rpm

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3.5.4 Corporate Profile:Table 1.10

Name: Yamaha motors ltd.Location: 2000-1 Iwai, IwataCity, Shizuoka Pref.

Post Code: 438-0016Telephone: 0538-39-2213 Facsimile: 0538-39-2219

Board of director: President and Representative Director@YasuharuTerai

Director: Takuya WatanabeTetsuroNabataMitsuyoshi SuzukiTakeya Harada

Employees: 245 (As of January, 2006)

Sales: 4.5 billion yen (As of FY ended December, 2005)6 billion yen (Projected FY ending December, 2006)

Offices: Head office (IwataCity, Shizuoka Pref.)Iwata Office (IwataCity, Shizuoka Pref.)

Overseas subsidiary Yamaha Motor Solutions Co., Ltd. Xiamen (Location: Amoy City, Fujian Prov.)Yamaha Motor Solutions India Pvt. Ltd. (Location: Surajpur (UP state), India )

3.5.4 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 lvoryCoast. The export Product line boasts of RX 100, Crux, YD 125, Enticer and Libero.

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.

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http://www.ymsl.jp/global/overseas/india/index.html

http://www.ymsl.jp/global/overseas/india/index.html

http://www.ymsl.jp/global/overseas/china/index.html

http://www.ymsl.jp/global/overseas/china/index.html


3.5.5 Balance Sheet of Yamaha Motors India:ASSETS (Amt. in Millions)Table 1.11

Mar. 2003

Mar. 2004

Dec. 2004

Dec. 2005

Dec. 2006

Current Assets

Cash and deposits in bank 25,475 37,318 37,194 38,809 79,299

Trade notes and accounts receivable

135,012 137,027 145,582 206,213 223,082

Inventories 160,232 159,235 204,232 251,227 297,853

Other 43,724 41,085 43,414 58,673 70,785

Total current assets 364,444 374,666 430,424 554,924 671,021

Fixed assets

Tangible fixed assets 280,950 274,863 283,411 323,846 361,837

Intangible fixed assets 4,303 2,957 3,273 3,075 4,281

Total investments and other assets

49,388 49,436 50,618 76,630 91,548

Total fixed assets 334,642 327,256 337,303 403,552 457,667

Total assets 699,087 701,923 767,727 958,476 1,128,688

LIABILITIES

Current liabilities

Notes and accounts payable 112,934 132,291 143,531 176,000 187,419

Short-term loans 48,073 49,639 71,390 100,097 127,341

Current portion of long-term debt

20,823 12,690 8,190 20,885 8,568

Current portion of convertible bonds

24,326 - 10,000 5,000 -

Commercial Paper 21,376 8,500 7,000 6,991 15,000

Other 126,248 131,030 132,971 164,246 180,195

Total current liabilities 353,784 334,151 373,083 473,221 518,525

Long-term liabilities

Bonds 44,893 23,712 8,001 295 63

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Long-term debt 39,935 23,994 16,064 20,747 44,235

Other 68,120 56,493 57,064 55,587 64,809

Total long-term liabilities 152,951 104,200 81,129 76,629 109,108

Total liabilities 506,735 438,351 454,213 549,850 627,633

Minority Interest Note 12,199 14,165 19,752 24,730 -

NET ASSETS (SHAREHOLDER'S EQUITY)Table 1.12Owners' equity

Common Stock , with no par value

23,251 43,439 46,362 47,879 48,168

Capital surplus 34,419 54,618 57,543 60,361 60,651

Other 122,481 151,348 189,855 275,655 343,371

Total owners' equity - - - - 452,190

Valuation and translation adjustment 2)

- - - - 18,442

Minority Interest Note 1)

- - - - 30,421

Total shareholder's equity

180,151 249,406 293,761 383,895 501,054

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Graph 1.2

Graph 1.2 shows the overall market share of two wheeler sector in India. The market is dominated by Hero Honda by 35.60% share followed by Bajaj in the second place with 27.50% market share. TVS motors stands in third place with 16% share and the rest occupy a combined of 20.5% share.

3.6 Current Sales of Two Wheeler’s in India:

As seen in the graph below, it is clearly visible that Hero Honda is still leading the two wheeler market both in Mumbai as well as in India with majority of d sales coming from major metropolitan cities. There has been huge boost in the two wheeler industry over the past couple of years. More emphasis is being laid on the youth of the country.

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Market share of two wheeler automobile sector

35.60% 27.50%

16%

7%4%9.50%

Hero Honda

Bajaj Motors

TVS Motors

YamahaMotorsHonda Motors

Others


3.7 Retailing Strategies:

Hero Honda: On the back of the festive season Hero Honda the world’s no.1 two wheeler company, has posted its highest ever monthly sales figure. Hero Honda total sales grew by massive 42.75% in October 2010 compared to October 2009. Total sales stood at5,05,553 units of two wheelers in October 2010 compared to 3,54,156 units in October 2010. Hero Honda recorded sales of 4,35,990 units in May 2010 which was its previous highest monthly sales figure. This is by far highest ever monthly sales for any Indian two wheeler company till the date. The company also reported month on month basis sales growth of 16.58% due to festive season. Last month the company sold 4,33,641 units. The company sold 30,25,536 units during April 2010 to October 2010 up 13.89 % compared to 26,56,378 units in the same period last year.

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Commenting on the record sales, Anil Dua, Sr. Vice-President (Marketing & Sales), Hero Honda Motors Ltd said, “This record of over half –a-million sales in a single month created by the company is extremely encouraging as it clearly demonstrates the confidence our customers have in our brands. Sales of over five lakh units in a month with a 42.7 % growth over the large base of the previous year is a testimony to the winning strategy that we have been following over the past few years. A refreshed product range coupled with innovative branding and marketing initiatives – particularly revolving around the Commonwealth Games Delhi 2010 – can duly be attributed to this success. FY’ 2011 has been a magnificent run for Hero Honda as we have been consistently scaling new heights. The company has been on a record sales run of over four lakh units each month since May, capping it off with the 5-lakh plus mark in October. Going forward, we are hopeful of continuing the momentum by staying true to the same winning strategy.”

Hero Honda which has launched 6 new models in the last six months which includes refreshed model of Glamour and Glamour FI, Super Splendour, Hunk, Passion Pro and Splendour Pro. Recently launched Splendour Pro which now comes with APDV (Advance Pro Series Digital Variable Ignition System) engine has witnessed good nos. Beside this Hero Honda has launched Passion Pro Commonwealth Games Limited Edition.

Notably the company has installed capacity of 5.6 million units per annum with 3 manufacturing plants and it has goal of selling 5 million units in current fiscal up 8.7% from last year. The company is also looking for setting up 4th manufacturing plant.

Bajaj Auto: On the back of strong festive season Bajaj auto reported its highest ever monthly sales. Bajaj auto reported sales growth of 32.21% in the month of October 2010 compared to October 2009. The company sold 3,70,816 units in October 2010 compared to 2,80,455 units in the October 2009 which is highest ever in the company history. Motorcycle accounted 3,29,776 units in the month of October 2010 up 32.08% compared to 2,49,681 units in October 2009. Month on month basis the company has reported 4.85% growth in October 2010 compared to September 2010. The company sold 3,14,515 units in the month of September 2010.

The company has exported record 1,10,387 units in September 2010 up 31.39% compared to 84,012 units in the same period last year. The company has reported motorcycle sales of 20,41,661 units during April to October 2010 up 53.27% compared to 13,32,049 units sold in the same period. The company has attributed it strong sales to Pulsar and Discover brand. The company posted

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highest ever sales of Pulsar 94,598 units and discover around 1,45,000 units in the October 2010. The rest of the sales shared equally between Boxer and Platina brand. The company is aiming to sell 3,50,000 motorcycle a month from January 2011.

Tvs Motors:TVS Motors has reported its highest ever monthly sales on the back of festive seasons. The company two wheeler sales grew by 46.40% in the month of October 2010 compared to October 2009. The company sold 1,91,822 units of two wheeler in the month of October 2010 compared to 1,31,029 units in the month of October 2009. The company’s total sales stood at 1,95,271 units in the month of October 2010 up 48.00% compared to 1,31,941 units in the month of October 2009. However the company has reported month on month basis sales growth of 3.81%. The company sold 1,84,783 units in the month of September 2010. Cumulative two wheeler sales for the period April to October 2010 stood at 11,62,861 units up by 33.89% compared to 8,68,509 units in April to October 2009.

Domestic sales stood at 1,73,771 units in the month of October 2010 up by 45% compared to 1,18,563 units in the month of October 2009. Export stood at 18,051 units in the month of October 2010 up by 45% compared to 12,466 units in the month of October 2009. Motorcycle sales stood at 84,233 units in the month of October 2010 up by 49% compared to 56,465 units in the month of October 2009. Scooter sales stood at 44,659 units up by 58% compared to 28,301 units in the month of October 2010.

HMSI:India’s largest scooter manufacturing company Honda Motorcycle & Scooter India Ltd reported growth of 148% in the month of October 201 0. The company reported sales of1,48,861 units in the month of October 2010 compared to 60,055 units in the October 2009. It is to be noted that last year the production was very low due to strike by workers for wage dispute. On month on month basis the company reported sales growth of 20 %. The company sold 1,23,831 units in the month of September 2010. The company sold9,58,492 units during April 2010 to October 2010 up 47 % compared to 6,51,575 units during the same period last month.

On the back of strong demand for its 100 cc CB Twister HMSI posted sales of 68,332 units of Motorcycle in October 2010 up by 215% compared to 21,721 units sold in October 2009. The scooter segment also witnessed sales of 80,529 units in October 2010 up by 110% compared to 38,334 units sold in October 2009.

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HMSI is growing at very fast rate but the sales are constrained by capacity. It has expanded its capacity form current 1.6 million units to 2.2 million units but it seems that the company has to go for another capacity expansion as demand remain strong in Indian two wheeler industry. It is also to be noted that company is planning to launch a new 100cc bike which is priced lower than its current 100cc offering CB Twister.

Yamaha India:Yamaha India has reported sales growth of 19.21% in the month of October 2010 compared to October 2009 on the back of new launches like SZ and SZ-X. Total sales stood at 37,251 units in the month of October 2010 compared to 31,247 units last year in the same period. The company reported month on month basis sales growth of 9.74%. The company sold 33,944 units in the September 2010. Domestic sales stood at 31,791 units up by 18.27% compared to 26,879 units in the month of October 2009. Export stood at 5,460 units up by 25.00% compared to 4,368 units in the month of October 2009. The company sold 2,09,521 units during April to October 2010 period up by 25.56% compared to1,66,868 units during the same period last year.

On the announcement of monthly sales figure, Koji Arai, Director – Sales & Marketing, India Yamaha Motor said, “We are overwhelmed with the encouraging response we have been receiving for our premium segment bikes such as YZF-R15 & FZ series including new limited edition FZ series bikes. Our recently launched powerful commuter SZ models and entry level bikes – YBR 125 and YBR 110 have also been acknowledged in the market and have boosted our sales. We are trying our level best to fulfill the huge orders and meet the expectations of our esteemed customers this festive season.”Yamaha India wants to establish itself as a global brand among the Indian consumers. The company is doing it by conducting various marketing activities such as Yamaha R15 One Make Race, Yamaha Safe Riding Science (YSRS) for college students & kids.

Suzuki Motorcycles:With the successful launch of Suzuki Slingshot Suzuki Motorcycle India reported massive growth of 60.51% in the month of October 2010 compared to October 2009. The company’s total sales stood at 25,439 units in the month of October 2010 compared to15,849 units in the month of October 2009. The company has reported month on month basis sales growth of 12.89%. The company sold 22,534 units in the month of September 2010. Suzuki motorcycle sold 1,46,157 units during April to October 2010 up 53.07% compared to 95,717 units in the same period last year.

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“We have received very good response from the market to all our products including the newly-launched, Suzuki SlingShot. We are committed to continue this growth momentum in future.” Suzuki Motorcycle India Vice President (Sales and Marketing) Atul Gupta said in a statement.The company attributed its growth to the good response from its motorcycle GS150R, scooter Access125 and the recently launched bike SlingShot.

Mahindra Two Wheelers:World’s fastest growing two wheeler company Mahindra two wheeler reported growth of 212% in the month of October 2010 compared to October 2009. Total sales stood at21,204 units in the month of October 2010 compared to 6,804 units in the month of October 2009. The scooter sales stood at 18,540 units in the month of October 2010 up by 172.49% compared to 6,804 units in the month of October 2009. In the motorcycle segment where Mahindra Two wheeler has launched two new bikes Sattalio and Mojo on September 29 2010 reported sales of 2,664 units. Month on Month basis the company has reported sales growth of 28%. The company sold 16,569 month last month. Total cumulative sales from April to October 2010 stood at 92,034 units up by 304% compared to 22,758 units for the same period last year.

“Consumers have laid their trust in the Mahindra Two Wheeler brand and this is borne out from the momentum that is reflected in our monthly sales figures. We have achieved a double digit market share in scooters last month and our consumer base is growing rapidly. This month we have also embarked on our motorcycle journey with the launch of Stallio and the initial response has been very encouraging.” said Mr Anoop Mathur, President Two Wheeler Sector and Member of Group Executive Board Mahindra & Mahindra.

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4. Consumer Profile:

One of the key reasons for the increased consumption of two wheelers is the impressive growth of the middle class. Bikes play a key role in the life of a middle class person. It allows a middle class person to compute from one place to another while not being very heavy on the pocket.

A two wheel automobile is highly favored by the young age mass because it’s easier for them to compute from one place to another without being much burden on the financial level. The youth prefer it more also because it helps them to cut through traffic without waiting much in the heavy city traffics.

Many cant effort the big sports bikes like the R1, Hayabusa or the Ducati, so consumers go for the commuter level of motor cycle fulfilling part of owing a sports bike. Looking at this scenario manufacturers are coming up with sports model of Indian bikes which is just a younger sibling of the sports bikes which the consumers can effort to buy and use it on a day to day level. For e.g Yamaha R15 which is replicate of the Yamaha R1 and also Kawasaki Ninja 250 which has a smaller engine compared to the older sibling Ninja ZR 1000.

Keeping in mind the following thoughts a survey was conducted targeting the youth mass specially college going students of middle class mostly to find out which bike they owned, what do they look for in a bike and many other reasons. The sample size is large enough to gauge the views of the people belonging to various age groups and thus enable us to get an unbiased opinion.

The target audience has been divided into three different age groups for analyzing. The age groups are as follows:

Table 1.13Age Groups Number of Persons

18 – 24 4524 – 30 3

30 Above 2

The gender wise bifurcation of the target audience is as under: Table 1.14

Age Groups

Male Female Total

18 – 24 40 5 4525 – 30 3 0 3

30 Above 2 0 250

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The majority of the people interviewed were male and in the age group 18 – 24. The main reason behind it being because of the craze, passion and enthusiasm which the youngsters have in them for Bikes.

Based on the interview of the target audience the researcher was able to come up with the various analysis and interpretation to support the hypothesis. The findings are mentioned in the next chapter.

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5. Analysis and Interpretation:

After preparing the questionnaire and compiling all data collected, the researcher interpreted the various data in the following manner.

5.1 Total population and age wise classification.

Table 1.15

RespondentNo. of

RespondentTotal

Percentage

Male 45 90

Female 5 10

100

Table 1.1 shows the no. of respondent and the total percentage. The researcher has found that ninety percent are male and ten percent are female. The X-axis depicts the age groups and the Y-axis depicts the total no. of respondents. The total no. of respondents wasfifty out of which forty five were males and five were females. They were divided under the age groups 18-24, 25-30 and 30 above. The majority of the people interviewed were male and in the age group 18 – 24. The main reason behind it was because of the craze, passion and enthusiasm which the youngsters have in them for Bikes.

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N o . o f R e s p o n d e n t s

90%

10%

MalesFemales

18-24 25-30 30 & Above05

101520253035404550

MaleFemale

Age Groups

Graph 1.3

Graph 1.4


5.2 Bike Owned

Table 1.16

RespondentNo. of

RespondentTotal

Percentage

Yes 50 100

No 0 -

100

Graph 1.6

Table 1.2 shows the no. of respondent and the total percentage.As seen above in the pie diagram 100 percent of the masses interviewed have a bike. In the below graph the gender wise bifurcation of the same can be seen. The X-axis shows the age groups and the Y-axis shows the total number of respondents. The researcher interviewed majority of male in the age group 18-24 because this age group is the most passionate about bikes.

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100%YesNo

Age Groups

Re

sp on de nts

Age Groups

18-24 25-30 30 & Above0

5

10

15

20

25

30

35

40

MaleFemale


5.3 Brand of Bike Owned

Table 1.17Respondent No. of Respondent Total PercentageHero Honda 10 19

Honda 13 25Yamaha 11 21

TVS 2 4Bajaj 10 19

Royal Enfield 5 10Suzuki 1 2

100

Graph 1.7

Table 1.3 shows the different brand of bikes which the respondents own, the total responses and the total percentage.The X-axis depicts the total no. of bikes owned and the Y-axis depicts the company/brand of bike owned. The researcher found out that Honda out numbers the remaining companies with twenty five percentshare. Only the youth seem to own the Honda. Next to follow Honda is Yamaha with twenty one percent, again majority of it being owned by the youth. Hero Honda and Bajaj share an equal market share of nineteen percent each. Royal Enfield holds a decent ten percent share. Suzuki is the least owned bikes amongst all and it’s owned by the older age group of people.

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Hero Honda

Honda

Bajaj

Yamaha

Royal Enfield

Tvs

Suzuki

0 2 4 6 8 10 12 14

18-2425-3030 & Above

Total No. of bikes owned

C o m p a n i e s


5.4 Class of Bike

Table 1.18Respondent No. of Respondent Total Percentage100cc – 135c 17 33150cc – 160cc 22 42180cc – 200cc 3 6

200cc and above 10 19100

Table 1.4 shows the different class of bikes in the market, the respondents who own them and their total percentage. The X-axis shows the class of bikes owned by the different age groups and the Y-axis shows the number of bikes owned by the people. The researcher has found out that forty one percent of the people have bikes in the class 150cc to 160cc and then followed by thirty four percent of the people holding bikes in the class 100cc to 135cc. The youths dominate in the class 150-160cc along with nineteen percent in the class 200cc and aboveeven thought a less number of youths own it. The drawback here seen is only six percentof the total people interviewed have bikes in the class 180cc – 200cc even though bikes in this class price less than the ones in the 200cc and above category.

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100cc - 135cc 150cc -

160cc 180cc - 200cc 200cc &

Above

0

5

10

15

20

25

30 & Above25-3018-24

Class of Bike

Graph 1.8


5.5 Performance over Mileage?

Table 1.19

RespondentNo. of

RespondentTotal

Percentage

Yes 38 76

No 12 24

100

Table 1.5 shows the total number of respondent and the total percentage. The researcher has found out that seventy six percent of the population interviewed preferred performance i.e. power, speed, pickup over mileage (average). The majority of the population who preferred performance over mileage was found in the age group 18-24 i.e. the youth. The older age of people i.e. in the age group 30 and above were totally against performance, they favored more mileage than performance.

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76%

24%YesNo

18-24 25-30 30 & Above0

5

10

15

20

25

30

35

40

YesNo

Age Groups

Graph 1.9

Graph 1.10


5.6 Price Range

Table 1.20

RespondentNo. of

RespondentTotal

PercentageLess than

500002 4

50000 – 75000

23 46

75000 – 90000

16 32

More than 90000

9 18

100

Table 1.6 shows the price range of bikes, the total number of respondents and the total percentage. The researcher found out that the respondents in the age group 30 and above preferred bikes less than rupees fifty thousand. The most favored price range was between rupees fifty thousand to seventy five thousand and the age group liking it the most was the youth i.e. in the age group 18-24. A large amount of people also favored bikes in the price range seventy five thousand to ninety thousand. Bikes in the price range ninety thousand and above received a decent response.

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4%

46%32%

18% Less than

5000050000-7500075000-9000090000 and more

< 50,000 50,000-75,000

75,000-90,000

> 90,0000

5

10

15

20

25

30 & Above25-3018-24

Price Range

o . o f R e s p o n d

Age Group

Graph 1.11

Graph 1.12


5.7 Brand Loyalty

Table 1.21Respondent No. of Respondent Total PercentageHero Honda 10 18

Honda 17 31Yamaha 10 19

TVS 2 4Bajaj 8 15

Royal Enfield 6 11Suzuki 1 2

100

Table 1.7 shows the different brand of bikes which the respondents are loyal towards, the total responses and the total percentage. The researcher found out that thirty one percent of the respondents are loyal towards Honda; nineteen percent are loyal towards Yamaha, eighteen percent towards Hero Honda and fifteen percent towards Bajaj. Royal Enfield, TVS and Suzuki fail to capture the hearts of the consumers. The respondents in the age group 30 and above preferred Bajaj and Suzuki while the other age group preferred more of Honda, Yamaha and Hero Honda. Yamaha and Hero Honda had a very close margin of loyalty of consumers towards them.

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Companies

o t a l N o . o f b i k

Hero Honda

Honda Bajaj Yamaha Royal Enfield

Tvs Suzuki0

2

4

6

8

10

12

14

16

18

30 & Above25-3018-24

Graph 1.13


5.8 Satisfactory after sales service

Table 1.22

RespondentNo. of

respondentTotal

Percentage

Yes 43 86

No 7 14

100

Table 1.8 shows the total number of respondent and the total percentage. The responder found out that eighty six percent of the respondents were satisfied by the after sales service provided to them by their bike manufacturer. The only group which was not satisfied with the after sales service was the age group 30 and above. In the age group 18-24 ninety percent were satisfied with the after sales service whereas the remaining ten percent weren’t.

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18-24 25-30 30 & Above0

5

10

15

20

25

30

35

40

45

NoYes

Age Groups

N o.

o f R e s p o n d

86%

14%

YesNo

Graph 1.14

Graph 1.15


5.9 Looks in a bike

Table 1.23Respondent No. of respondent Total PercentagePerformance 20 29

Mileage 10 14Styling 15 21

Technology 5 7Pricing 1 2

All of the Above 19 27100

Table 1.9 shows what the respondents want in a bike, the number of respondents and the total percentage. The responder found out that majority gave preference to performance then followed by all of the above features. The all of the above feature included – performance, mileage styling, technology and pricing. After this most preference was given to the styling of the bike. Technology and pricing played a very less role compared to the others.

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Segments

Per-form-ance

MileageStyling

TechnologyPricing

All of the above

02468

101214161820

No.

of

Res

pond

ents

Graph 1.16


5.10 Will you wait?

Table 1.24

RespondentNo. of

respondentTotal

Percentage

Yes 34 68

No 16 14

100

Table 1.10 shows the total number of respondent and the total percentage. The researcher found that sixty eight percent of the respondents were willing to wait for the bikes of their choice if the bikes were in a waiting period. Majority were willing to wait in the age group 18-24. The respondents in the age group 30 and above were not willing to wait for the bikes of their choice if it was not available in the market when required.

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N o . o f R e s p o n d e n t s68%

32%

YesNo

18-2425-30

30 & Above

0

5

10

15

20

25

30

35

YesNo

Age Groups

Graph 1.17

Graph 1.18


5.11 Safety Features

Table 1.25

RespondentNo. of

respondentTotal

Percentage

Yes 40 80

No 10 20

100

Table 1.10 shows the total number of respondent and the total percentage. The researcher found out that eighty percent of the respondents wanted bikes to come up with ABS (Anti-lock Breaking System) breaks as a standard option in bikes. The youth favored it extensively where as some dint like it for their own personal reasons. In the age group 25-30 every one favored for the ABS brakes. Whereas in the age group 30 and above there was an equal balance.

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80%

20%

YesNo

18-2425-30

30 & Above

0

5

10

15

20

25

30

35

40

Yes

No

YesNo

Age Groups

N o . o f R e s p o n

Graph 1.19

Graph 1.20


6. Findings and Conclusion:

6.1Findings:

6.1.1 Every one interviewed had a bike of their own.6.1.2 Majority had Honda followed by Yamaha.6.1.3 The youth preferred Yamaha bikes when it came to performance.6.1.4 The majority of the youth had bikes in the class 150cc – 180cc.6.1.5 The youth clearly wanted performance from their bikes rather than good

mileage.6.1.6 Seventy six percent of the people interviewed favored for performance

over mileage.6.1.7 Majority of the people preferred buying bikes in the class 150cc – 160cc.6.1.8 There also preferred bikes of 200cc and above.6.1.9 When it came to brand loyalty Honda Motors clearly outnumbered over

the rest and being the first choice over the other brands available in the market.

6.1.10 The after sales service provided by the bike manufacturers was satisfactory to eighty six percent of the respondents interviewed.

6.1.11Given the option of performance, mileage, styling, technology, price and all of the above option which of these a consumer would choose while purchasing a bike 27% picked all of the above option. Whereas performance was favored by 29%, styling was favored by 21%, mileage was favored by 14% and pricing and technology had a total of 9%.

6.1.12 68% of the respondents were ready to wait for the bikes of their choice if the bikes were in a waiting period. This just shows that how much loyal they are towards the brand which they are going to buy.

6.1.13 When asked if they would prefer bikes to come up with ABS brakes as a standard option an astonishing 80% of the people wanted manufacture’s to come with this safety option.

6.1.14 They also preferred safety features like: Tubeless tires Free helmets Air bags in bikes Double disc breaks Xenon vision head lights Free leg guards

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Conclusion:

6.1.15The study which conducted on the two wheeler automobile sector is a very important topic of automobile sector.

6.1.16Two 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.

6.1.17Throughout the study I 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.

6.1.18Concluding 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.

6.1.19With newer and better models are coming up customer has better and bigger choices to choose from.

6.1.20It 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.

6.1.21Even many dealers are in view that today Hero Honda and Bajaj, thrives on competition.

6.1.22Right 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 especially Yamaha Motors after its launch of two new bikes in the 150cc segment the FZ -16 and the YZF R15.

6.1.23Companies are now trying to launch bigger capacity bikes in India i.e. 2500cc and above as the craze for sports bikes is increasing day by day in the youth. Bajaj motors has recently launched the Kawasaki Ninja 250 in the collaboration with the Kawasaki Motors Philippines – the official distributor to Bajaj.

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7. Recommendations:

After completing my report on the Two Wheeler Automobile Industry in Mumbai I have the following suggestions/ recommendations to give:

i. The companies should give more emphasis to performance and styling in a bike rather than mileage which is highly favored by the youth.

ii. Companies should come with more 150cc – 160cc bikes which is not heavy on pockets of the middle class people and also gives a satisfying performance out of it.

iii. Safety feature such as ABS brakes should be made as a standard feature which the people want as seen in the survey.

iv. Tubeless tires should also be a standard feature as it enables handling better than normal tube tires.

v. Companies should come up non skidding tires especially for the monsoon where majority of the accidents occur due to poor tires and especially with a person travelling on a two wheeler.

vi. Free helmets should be given while purchasing a new bike which enables safety of the rider.

vii. Also better head lights like the xenon should be given as an additional option to the buyer which enables better vision during the night times.

viii. Hero Honda lags a bike in the 180cc – 200cc segment. The company should come up with a bike in this segment which will increase its market share more as there are new bikes coming from TVS n Bajaj in this segment.

ix. As Yamaha bikes are knows purely from performance point of view, company should soon come with biker capacity bikes in the 200cc and above segment as Bajaj and Hero Honda is only available in this segment. This will increase the competition in this segment and the buyers will have a wider range of bikes to choose from.

x. Last but not the least bikes should be priced at a competitive range which will enable buyers from all class to choose wisely from.

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WEBLIOGRAPHY:

www.fadaweb.comwww.automobileindia.comwww.managementparadise.comwww.vicky.inwww.bikeadvice.inwww.bikeindia.comwww.auto.indiamart.comwww.autos.maxabout.comwww.herohonda.comwww.honda2wheelersindia.comwww.bajajauto.comwww.tvsmotor.inwww.yamaha-motor-india.com

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http://www.yamaha-motor-india.com/

http://www.tvsmotor.in/

http://www.bajajauto.com/

http://www.honda2wheelersindia.com/

http://www.herohonda.com/

http://www.autos.maxabout.com/

http://www.auto.indiamart.com/

http://www.bikeindia.com/

http://www.bikeadvice.in/

http://www.vicky.in/

http://www.managementparadise.com/

http://www.automobileindia.com/

http://www.fadaweb.com/


ANNEXUREAnnexure – I(copy of questionnaire)

QuestionnaireTopic: Study on Two Wheeler Industry in MumbaiSubject: Research Methods in Business

1. Age: _______

2. Sex: __________

3. Do you own a bike?

Yes No

4. Which brand of bike do you own?

Hero Honda HondaYamaha TvsBajaj Royal Enfield Suzuki Others

5. Which class of bike do you own?

100cc – 135cc 150cc – 160cc180cc – 200cc 200cc and above

6. Would you prefer performance over mileage (average)?

Yes No

7. At what price range would you buy a bike?

Below Rs. 50,000 Rs. 50,000 – 75,000Rs.75,000 – 90,000 Rs. 90,000 and more

8. Towards which brand are you loyal to?

Hero Honda HondaYamaha TvsBajaj Royal Enfield Suzuki

9. Are you satisfied with the after sales services provided by your bike manufacturer?

Yes No

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10. What do you look for in a bike?

Performance MileageStyling TechnologyPricing All of the aboveOthers _____________________________________________________________________

11. If the bike of your choice and brand is not available in the market i.e, it has a waiting period will u still buy that bike?

Yes No

12. Do you think bikes should come up with safety features such as ABS brakes as a standard option?

Yes NoAny other safety feature: __________________________________________________________________________________________________________________________________________

Comments:

Suggestions/ Complaints:

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Annexure – II (Pictures)

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List of Tables

Title Page No.1.1 Balance sheet Hero Honda motors 271.2 Profit and loss a/c Hero Honda motors 281.3 Board of directors 291.4 Balance sheet Bajaj auto 361.5 Profit and loss a/c Bajaj auto 371.6 Board of directors Bajaj auto 381.7 About Honda 451.8 Hondas organization structure 471.9 Yamaha’s organization chart 531.10 Corporate Profile 541.11 Balance sheet Yamaha motors 551.12 Net Assets 561.13 Target audience 581.14 Gender wise bifurcation 591.15 Total population 601.16 Bike owned 611.17 Brand of bike 621.18 Class of bike 631.19 Performance over mileage 641.20 Price range 651.21 Brand loyalty 661.22 Satisfactory after sales service 671.23 Looks in a bike 681.24 Will you wait 691.25 Safety features 70

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List of Graphs

Title Page No.1.1 Total export 321.2 Market share 571.3 Total population 601.4 Total population 601.5 Bike owned 611.6 Bike owned 611.7 Brand of bike 621.8 Class of bike 631.9 Performance over mileage 641.10 Performance over mileage 641.11 Price range 651.12 Price range 651.13 Brand loyalty 661.14 Satisfactory after sales service 671.15 Satisfactory after sales service 671.16 Looks in a bike 681.17 Will you wait 691.18 Will you wait 691.19 Safety features 701.20 Safety features 70

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Documents

3. Two Wheel Automobile Industry