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
1
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.
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 stationar
y 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-
2
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.
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
3
(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
➢ 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
4
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.
5
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.
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.
6
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.
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,
7
A motorcycle transmission and disc brake system.
8
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.
9
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.
A. Broadcast Media:
• Television
• Radio
• Cinema
B. Print media:
• Newspapers
• Magazines
• Leaflets
C. Outdoor media:
• Posters and billboards.
1. 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.
2. 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.
3. 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:
10
• Direct mail.
• Telemarketing.
• Door to door selling.
• Direct response advertising: ‘phone now’ or ‘fill in the coupon ads’
• Home shopping of various types.
11
Factors that guide a marketer’s decision in selecting a promotion mix:

a) Nature of product
b) Overall marketing strategy
c) Buyer readiness stage
d) Product life cycle stage
1. 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.
2. 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.
12
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:
13
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
14
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.
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
15
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.
➢ 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:-

○ Bajaj Auto Ltd.
○ TVS motors Ltd.
○ Yamaha Motors India.
○ 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.
16
➢ 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?
3.1.4 Product Range:
Scooters
1. Hero Honda Pleasure:

Production: 2005 Present
Price: Rs. 37,990
Engine: 102 cc, 7bhp@ 7000 rpm,
Torque: 0.78 kgm @5000 rpm
Motorcycles:
1. Hero Honda CD Delux:
Production: 2001 present
Price: Rs.35642
Engine: 97.cc,7.5bhp@8000rpm,
4stroke engine, single cylinder
2. Hero Honda Ambition:

Price: Rs.49000
Engine: 135 cc, four-stroke engine,
single piston, kick start11bhp
3. Hero Honda CD Dawn:

Price: Rs. 33542
17
Engine: 97 CC, 7.5 bhp @8500 rpm,

4 stroke engine,
Torque: 8.05 Nm @ 5,500 rpm
4. Hero Honda Passion Plus:

Price: Rs. 46275
Engine: 97 CC, 4-stroke engine,
single cylinder
Power: 7.4 bhp @8000 rpm
5. Hero Honda CBZ Extreme:

Price: Rs. 62000
Engine: 149.2 cc, four-stroke cycle, single
piston
Power: 14.2 bhp @ 8500 rpm
Torque: 1.26 kgm @ 6500rpm
6. Hero Honda Spelendor NXG:

Price: Rs. 48,600
Engine: 124.7 CC, 4 stroke engine
Power: 9 bhp @ 7000 rpm
Torque: 8.05 Nm at 5,500 rpm
7. Hero Honda Achiever:

Price: Rs. 51298-56022
Engine: 149.1 CC, 4-stroke engine,
single cylinder
18
8. Hero Honda Glamour:

Price: Rs 49777-56529
Engine: 124.7 cc, four-stroke cycle,
single piston, kick start
Power: 9 bhp @7000 rpm
9. Hero Honda Hunk:

Price: Rs. 64000
Engine: 149.2 cc, four-stroke cycle, single
piston
Power: 14.2 bhp hp @ 8500 rpm
Torque: 1.26 kgm @ 6500rpm
10. Hero Honda Karizma R
Price: Rs. 76393
Engine: 223cc, 4 – Stroke
Power: 12.68 KW (17 PS) @ 7000 rpm
11. Hero Honda Karizma ZMR

Price: Rs.98000
Engine: PGM-Fi 223cc, 4-stroke
Power: 17.6 Bhp @ 7000 rpm
Torque: 18.35 Nm @ 6000 rpm
19
3.1.5 Balance sheet of Hero Honda Motors Ltd.

As on 31st march 2006 (Rs. In crores)
Table 1.1
Particulars Schedule 31st march2006 31st march2005
Shareholders’ funds:
Share capital 1 39.94 39.94
Reserve & surplus 2 1969.39 1453.44
Loan funds: 3
Unsecured 185.78 201.76
Deferred tax liabilities 8 120.10 101.53

Total 2315.21 1796.67
Application of funds:
Fixed assets 4
Gross block 1471.97 1104.19
Less: depreciation 522.6 429.71
949.37 674.48
Capital working process 44.19 40.85

Net block 993.56 715.33
Investment 5 2061.89 2026.65
Deferred tax assets 8 1.32 0.63
20
Current assets, loan & advances: 6

Inventories 226.55 204.26
Sundry debtors 158.66 89.55
Cash and bank balances 15872 17.6
Loans and advances 273.78 239.61
Other current assets 3.53 3.51
Less: current liabilities & provisions 7

Current liabilities 1072.88 1015.76
Provisions 489.92 484.71
1562.8 1500.47
Net current assets 741.56 945.94
3.1.6 Profits & LOSSES A/C OF HERO HONDA LTD.
Year 2005-06 (Rs. In crores)
Table 1.2
Particulars schedule 31st march 31st
2006 march2005
INCOME
Gross sales 10086.16 8596.81

Less: excise duty 1372.18 1175.16
Net sales 9 8713.98 7421.65
Other incomes 15628.00 136.9
TOTAL 8870.26 7558.55
EXPENDITURES
Manufacturing and 10 7349.53 6253.01

Other expenses
Depreciation 4 114.62 89.38
Net interests 11 6.13 1.09
TOTAL 7458 6341.30
Profit before tax 1412.24 1217.25
Profit for taxation
21
Current 415.85 395.22

Deferred 1788 11.56
Fringe benefits 7.17 0
Profit after tax 971.34 810.47
Balance of profit b/d 808.1 538.53
Balance available for appropriation 1779.44 1349
APPROPRIATION
Proposed dividend 399.38 399.38

Tax on dividend 56.01 56.52
Transferred to general reserve 100 85
Balance carried to balance sheet 1224.05 808.1
Basic and diluted earnings per share face values

Rs. 2/each
22
3.1.7 Board of Directors

Table 1.3
No. Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director
3 Mr. Toshiaki Nakagawa Jt. Managing Director
4 Mr. Takao Eguchi Whole-time Director
5 Mr. Sunil Kant Munjal Non-executive Director
6 Mr. OmPrakash Munjal Non-executive Director
7 Mr. TatsuhiroOyama Non-executive Director
8 Mr.MasahiroTakedagawa Non-executive Director
9 Mr. NarinderNathVohra Non-executive & Independent Director
10 Mr. PradeepDinodia Non-executive & Independent Director
11 Gen.(Retd.) Ved Prakash Non-executive & Independent Director
Malik
12 Mr. Analjit Singh Non-executive & Independent Director
13 Dr. Pritam Singh Non-executive & Independent Director
14 Ms. ShobhanaBhartia Non-executive & Independent Director
15 Dr. Vijay LaxmanKelkar Non-executive & Independent Director
16 Mr. Sunil Bharti Mittal Non-executive & Independent Director
23
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
24
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 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.
Location
CPM
MLCommercial
-Marketing
Customer
-Account
Sr.
Business
Business
Ops.
Biz.
Head
Ops. - Head
For
Head
the
Development
Executives
Managers
Relations
Dept.
(India)
State
3.2.1 Organizational Structure of Bajaj Auto Ltd.
Largest Export
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
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
25
➢ 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.
26
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.
27
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
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 DTSi
180 DTSi
220 DTSi
Price: Rs. 58655-83885
Engine: 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 2010
Price Rs. 58000
Engine: 4 Stroke, Air Cooled, DTS-i
Power: 13 Bhp @ 9000 rpm
Torque: 11.4 Nm @ 7500 rpm
3. Bajaj Discover’s:
Discover 135 DTSi
28
Discover 135 DTS-Si

Price: Rs. 48000 – 52000
Engine: 135 cc Air-cooled, four-stroke
Power: Up to 13bhp @ 8500 rpm
4. Bajaj Avenger:
Avenger 200
Avenger 220
Price: Rs. 70000
Engine: 17.51ps @ 8500 rpm, DTSi
Torque: 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, President
Veloleda Consulting Group, Inc
World Class Value Chain Management
Suite 14F, Yan-DangPlaza
107 Yan-Dang Roa
Shanghai 200020, P R China
Tel.: +86(0)21 63725393/63840513
Mobile : 1(915) 9206150
Fax : 86(0)21 6327617
E-mail: vcgi@ix.netcom.com/rvilledaconsulting.com
Website : www.villedaconsulting.com
29
3.2.6 Balance Sheet of Bajaj Auto Ltd. 2005-06

Table 1.4
Mar ' 06 Mar ' 05

Sources of funds
Owner’s funds
Equity share capital 101.18 101.18
Share application money - -
Preference share capital - -
Reserves & surplus 4,669.55 4,033.17
Loan’s funds
Secured loans 0.02 -
Unsecured loans 1,467.13 1,226.99
Total 6,237.88 5,361.34
Uses of funds
Fixed assets
Gross block 2,894.22 2,765.17
Less : revaluation reserve - -
Less : accumulated depreciation 1,761.22 1,628.64
Net block 1,133.00 1,136.53
Capital work-in-progress 24.18 8.36
Investments 5,753.45 4,560.58
Net current assets
Current assets, loans & advances 3,062.22 2,662.65
Less : current liabilities & provisions 3,734.97 3,006.77
Total net current assets -672.75 -344.12
Miscellaneous expenses not written - -
Total 6,237.88 5,361.34
Notes:
Book value of unquoted investments 247.22 253.59
30
Market value of quoted investments 7,303.41 5,033.64

Contingent liabilities 719.06 573.24
Number of equity sharesoutstanding (Lacs) 1011.84 1011.84
31
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
32
3.2.7 Board of Directors:

Table 1.6
Board of Direct
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman & Whole-Time Director
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Whole-Time Director
Kantikumar R. Podar Director
Shekhar Bajaj Director
D.J. BalajiRao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. SumanKirloskar Director
Naresh Chandra Director
NanooPamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director
33
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
34
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.
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
35
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.
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 160
Apache RTR 160 Fi
Apache RTR 180
Price: Rs. 62000 – 72000
Engine: 160cc/ 160 fi / 180cc air – cooled
Four – stroke
Power: Up to 17.3 bhp @ 8500 rpm
Torque: Up to 15.5NM @6500 rpm
2. TVS Scooty Pep Plus:

Price: Rs.38853
Engine: 4 stroke,87.8 cc
Power: 3.68kw (5 bhp) @ 6500rpm
36
3. TVS Star City:

Price: Rs. 42856
Engine: 4 – Stroke,99.7 CC
Power: 7.5 bhp / 5.50 kW @ 7500 rpm
4. TVS Victor GLS:

Price: Rs. 46570-48986
Engine: 4 – Stroke,124.8 CC
Power: 10 bhp / 6.77 kW @ 7500 rpm
5. TVS Jive:
Price: Rs. 42235
Engine: 4 – Stroke, 109.7 CC
Power: 8.4 bhp / 6.18 KW @ 7500 rpm
6. TVS Flame DS:

Price: Rs.48,990 onwards
Engine: 4 – Stroke CC-VTi, 124.8 CC
Power:10.3 bhp / 7.7 KW @ 7500 rpm
37
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
38
3.3.5 Balance Sheet & Profit and Loss A/c of TVS Motors:
39
40
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 1.7
Official Name Honda Motorcycle & Scooter India Pvt. Ltd.
Established 20th Aug, 1999
Place Manesar, District Gurgaon, Haryana, India
Investment Rs. 300 Crore
Representative Mr. Shinji Aoyama, President & CEO
Factory Location Manesar, District Gurgaon, Haryana, India
Production 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
41
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 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
42
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
43
➢ 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
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:
Price: Rs. 48500
Engine: 110cc 4 stroke air cooled
Power: 8bhp @ 7500 rpm
Torque: 9NM @ 8500rpm
44
2. Honda Dio:
Price: Rs. 44000
Engine: 4 – Stroke 102cc OHC
Power: 7bhp@7000rpm
Motorcycles
1. Honda Unicorn:
Price: Rs. 67000
Engine: 4 – stroke 149.1cc
Power: 13.3 bhp @ 8000rpm
Torque: 1.3kgm @ 5500rpm
2. Honda Shine:
Price: Rs.56200
Engine: 4-Stroke 124.6 cc
3. Honda CBF Stunner:

Price: Rs. 52800
Engine: 124.7cc 4 stroke
Power: 11bhp @ 8000rpm
Torque: 11Mn @ 6500rpm
4. Honda CB Twister:
Production: Jan 2010
Price: Rs. 53000
45
Engine: 109cc, 4 - stroke OHC

Power: 9bhp @ 8000rpm
Torque: 9Nm @ 6000rpm
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. 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:
46
2-1-1 Minami Aoyama, Minato-kuTokyo 107-8556, Japan

Tel: +81-(0)3-3423-1111
47
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
48
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.
3.5.1 Organization chart
49
Table 1.9
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
50
➢ 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: 2010
Price: Rs. 54000
Engine: 123cc, 4 - stroke SOHC
Power: 11 bhp @ 7500rpm
51
2. Yamaha SZ – Series
Yamaha SZ-X
Yamaha SZ-R
Production: 2010
Price: Rs. 58000-63000
3. Yamaha FZ – Series
Yamaha FZ - 16
Yamaha FZ - S
Yamaha FZ – Fazer
Production: 2008 to present
Price: Rs. 73000-81000
4. Yamaha R15
Production: 2008 to present
Price: Rs. 1,12,000
Engine: 153cc, liquid colled, 4 - stroke
52
3.5.4 Corporate Profile:

Table 1.10
Name: Yamaha motors ltd.
Location: 2000-1 Iwai, IwataCity, Shizuoka Pref.
Post Code: 438-0016
Telephone: 0538-39-2213 Facsimile: 0538-
39-2219
Board of director: President and Representative
Director@YasuharuTerai
Director: Takuya Watanabe
TetsuroNabata
Mitsuyoshi Suzuki
Takeya 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.
53
3.5.5 Balance Sheet of Yamaha Motors India:

ASSETS (Amt. in Millions)
Table 1.11
Mar. Mar. Dec. Dec. Dec.
2003 2004 2004 2005 2006
Current Assets
Cash and deposits in bank 25,475 37,318 37,194 38,809 79,299
Trade notes and accounts
135,012 137,027 145,582 206,213 223,082
receivable
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
49,388 49,436 50,618 76,630 91,548
assets
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
20,823 12,690 8,190 20,885 8,568
debt
Current portion of
24,326 - 10,000 5,000 -
convertible bonds
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
54
Long-term liabilities
Bonds 44,893 23,712 8,001 295 63
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 1.12
Owners' equity
Common Stock , with
23,251 43,439 46,362 47,879 48,168
no par value
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 - - - - 18,442
2)
Minority Interest Note
- - - - 30,421
1)
Total shareholder's
180,151 249,406 293,761 383,895 501,054
equity
55
Graph 1.2
Market share of tw o w heeler automobile

sector
Hero Honda
35.60% 27.50% B ajaj M otors
T V S M otors
Yam aha
M otors
Honda M otors
O thers
9.50% 16%
4% 7%
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.
56
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
57
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.
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.
58
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
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
59
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.
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.
60
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.
“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.
61
62
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 1.13
Age Groups Number of Persons
18 – 24 45
24 – 30 3
30 Above 2
The gender wise bifurcation of the target audience is as under:

Table 1.14
Age Male Female Total
Groups
63
18 – 24 40 5 45
25 – 30 3 0 3
30 Above 2 0 2
50
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.
64
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.

Graph 1.3
Table 1.15
No. of Total
Respondent
Respondent Percentage
Male 45 90
Female 5 10
100
dent
Graph 1.4
pon
Res
No.
of
s
Age Groups
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
65
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.
5.2 Bike Owned Graph 1.5
Table 1.16
No. of Total
Respondent
Yes 50 100
No 0 -
100
Graph 1.6
onden
Resp
No.
of
ts
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.
Age Groups
Age Groups
66
5.3 Brand of Bike Owned
Table 1.17
Respondent No. of Respondent Total Percentage
Hero Honda 10 19
Honda 13 25
Yamaha 11 21
TVS 2 4
Bajaj 10 19
Royal Enfield 5 10
Suzuki 1 2
100
Graph 1.7
mpa
nies
Co
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.
Total No. of bikes owned
67
5.4 Class of Bike
Table 1.18
100cc – 135c 17 33
150cc – 160cc 22 42
180cc – 200cc 3 6
200cc and above 10 19
100
ne
ke
of
bi
o.
Graph 1.8
N
d
o
s
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.
Class of Bike
68
5.5 Performance over Mileage?

Graph 1.9
Table 1.19
No. of Total
Respondent
Yes 38 76
No 12 24
100
Re
on
de
sp
of
nt
o.
N
s
Graph 1.10
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.
Age Groups
69
5.6 Price Range Graph 1.11
Table 1.20
No. of Total
Respondent
Less than
2 4
50000
50000 –
23 46
75000
75000 –
16 32
90000
More than
9 18
90000
100
dent
pon
Res
Graph 1.12
No.
of
s
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 toAge seventy
Group 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.
Price Range
70
5.7 Brand Loyalty

Table 1.21
Hero Honda 10 18
Honda 17 31
Yamaha 10 19
TVS 2 4
Bajaj 8 15
Royal Enfield 6 11
Suzuki 1 2
100
Graph 1.13
No.
ned
Tot
bik
ow
es
of
al
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.
5.8 Satisfactory after sales service
Graph 1.14
Table 1.22
No. of Total
Respondent
respondent Percentage
Companies
Yes 43 86
No 7 14
100
Graph 1.15
dent
pon
Res
No.
of
s
71
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.
Age Groups
72
5.9 Looks in a bike
Table 1.23
Respondent No. of respondent Total Percentage
Performance 20 29
Mileage 10 14
Styling 15 21
Technology 5 7
Pricing 1 2
All of the Above 19 27
100
Respond
No. of
Graph 1.16
ents
Segments
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.
73
5.10 Will you wait? Graph 1.17
Table 1.24
No. of Total
Respondent
Yes 34 68
No 16 14
100
Graph 1.18
dent
pon
Res
No.
of
s
Age Groups
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.
74
5.11 Safety Features

Graph 1.19
Table 1.25
No. of Total
Respondent
Yes 40 80
No 10 20
100
Graph 1.20
Age Groups
dent
pon
Res
No.
of
s
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.
75
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.
6.1.11 Given 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
76
Conclusion:
6.1.1 The study which conducted on the two wheeler automobile sector is a
very important topic of automobile sector.
6.1.2 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.
6.1.3 Throughout 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.
6.1.4 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.
6.1.5 With newer and better models are coming up customer has better and
bigger choices to choose from.
6.1.6 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.
6.1.7 Even many dealers are in view that today Hero Honda and Bajaj, thrives
on competition.
6.1.8 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 especially Yamaha Motors after its
launch of two new bikes in the 150cc segment the FZ -16 and the YZF
R15.
6.1.9 Companies 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.
77
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.
78
WEBLIOGRAPHY:
www.fadaweb.com
www.automobileindia.com
www.managementparadise.com
www.vicky.in
www.bikeadvice.in
www.bikeindia.com
www.auto.indiamart.com
www.autos.maxabout.com
www.herohonda.com
www.honda2wheelersindia.com
www.bajajauto.com
www.tvsmotor.in
www.yamaha-motor-india.com
79
ANNEXURE
Annexure – I(copy of questionnaire)
Questionnaire
Topic: Study on Two Wheeler Industry in Mumbai
Subject: Research Methods in Business
1. Age: _______
2. Sex: __________
3. Do you own a bike?

 Yes No
1. Which brand of bike do you own?

Hero Honda Honda
Yamaha Tvs
Bajaj Royal Enfield
Suzuki Others
2. Which class of bike do you own?
100cc – 135cc 150cc – 160cc
180cc – 200cc 200cc and above
3. Would you prefer performance over mileage (average)?
Yes No
4. At what price range would you buy a bike?
Below Rs. 50,000 Rs. 50,000 – 75,000
Rs.75,000 – 90,000Rs. 90,000 and more
5. Towards which brand are you loyal to?
Hero Honda Honda
Yamaha Tvs
Bajaj Royal Enfield
80
Suzuki
6. Are you satisfied with the after sales services provided by your bike manufacturer?
Yes No
7. What do you look for in a bike?
Performance Mileage
Styling Technology
Pricing All of the above
Others
_____________________________________________________________________
8. 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
9. Do you think bikes should come up with safety features such as ABS brakes as a
standard option?
Yes No
Any other safety feature:
_____________________________________________________________________
_____________________________________________________________________
Comments:
Suggestions/ Complaints:
81
Annexure – II (Pictures)
82
List of
Tables
Title Page No.
1.1 Balance sheet Hero Honda motors 27
1.2 Profit and loss a/c Hero Honda motors 28
1.3 Board of directors 29
1.4 Balance sheet Bajaj auto 36
1.5 Profit and loss a/c Bajaj auto 37
1.6 Board of directors Bajaj auto 38
1.7 About Honda 45
1.8 Hondas organization structure 47
1.9 Yamaha’s organization chart 53
1.10 Corporate Profile 54
1.11 Balance sheet Yamaha motors 55
1.12 Net Assets 56
1.13 Target audience 58
1.14 Gender wise bifurcation 59
1.15 Total population 60
1.16 Bike owned 61
1.17 Brand of bike 62
1.18 Class of bike 63
1.19 Performance over mileage 64
1.20 Price range 65
1.21 Brand loyalty 66
1.22 Satisfactory after sales service 67
1.23 Looks in a bike 68
1.24 Will you wait 69
1.25 Safety features 70
83
List of Graphs
Title Page No.
1.1 Total export 32
1.2 Market share 57
1.5 Bike owned 61
1.6 Bike owned 61
1.7 Brand of bike 62
1.8 Class of bike 63
1.11 Price range 65
1.12 Price range 65
1.13 Brand loyalty 66
1.16 Looks in a bike 68
84

Two Wheel Automobile Industry

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Two Wheel Automobile Industry

Transféré par

Droits d'auteur :

Formats disponibles

Study on Two Wheeler Automobile Industry in Mumbai

1. Overview of Two-wheeler Industry:

Hero Honda Motors Limited was established in 1984, as

Yamaha Motor Corporation is the auto mobile company

Honda motors of Japan is not a new name in the two

Royal Enfield was the name under which the Enfield

economic conditions and depressed consumer sentiments. On one hand the

Two-wheeler segment is one of the most important components of the

(14%). When it comes to the moped segment, it is primarily dominated by TVS

No. of players in the two wheeler automobile sector (India):

➢ Hero Honda motors ltd.

A cylindrical piston, made of aluminum alloy (preferred because it is

The Manufacturing Process

A motorcycle transmission and disc brake system.

2.2 Accessories and Finished Products

➢ Stephaney for scooters

Promotion concerns the message the firm sends out to potential

Promotional tools or promotion mix

1. Personal Selling: It involves personal confrontation either by phone or face;

2. Advertising: It is defined as a paid non-personal communication with a

There are various forms or mediums through which can advertise.

• Posters and billboards.

1. Public Relations an Publicity:

Sponsorship can be seen as a part of public relations and it is certainly the

It is an interactive system of marketing which uses one or more advertising

Factors that guide a marketer’s decision in selecting a promotion mix:

“Our aim is to proactively and consistently deliver value to the customer. We

As early as in 1960’s very few Indian bicycle manufacturers were

Having reached an unassailable pole position in the Indian two wheeler

Hero Honda’s mission is to strive for synergy between technology, systems

3.1.1 Hero Hondas Mandate:

Hero Honda is a world leader because of its excellent manpower, proven

➢ Hero Hondas the first manufacture to launch ecofriendly bikes with 4-

➢ Main threats to Hero Honda are their competitors like:-

3.1.3 Hero Hondas Core Values

➢ Respect for Human Beings.

➢ Provide fearless, enjoyable working environment.

3.1.4 Product Range:

1. Hero Honda Pleasure:

2. Hero Honda Ambition:

3. Hero Honda CD Dawn:

Engine: 97 CC, 7.5 bhp @8500 rpm,

4. Hero Honda Passion Plus:

5. Hero Honda CBZ Extreme:

6. Hero Honda Spelendor NXG:

7. Hero Honda Achiever:

8. Hero Honda Glamour:

9. Hero Honda Hunk:

11. Hero Honda Karizma ZMR

3.1.5 Balance sheet of Hero Honda Motors Ltd.

Deferred tax liabilities 8 120.10 101.53

Capital working process 44.19 40.85

Investment 5 2061.89 2026.65

Deferred tax assets 8 1.32 0.63

Current assets, loan & advances: 6

Less: current liabilities & provisions 7

Gross sales 10086.16 8596.81

Manufacturing and 10 7349.53 6253.01

Current 415.85 395.22

Proposed dividend 399.38 399.38

Basic and diluted earnings per share face values

3.1.7 Board of Directors