Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Of
AUTOMOBILE INDUSTRY
(TWO WHEELERS)
Submitted
To
By
B.SANTHOSH KUMAR
08D31E0040
(Affiliated to JNTU)
(2008-2010)
CERTIFICATE
Date: (08D31E0040)
ACKNOWLEDGEMENT
For completing this Industry analysis, a few people have been very helpful. I
would like to lay the word of gratitude for them imprinted. First of all I would like
to thank sincerely to our H.O.D, Mr. Dr.R.Suresh Kumar for his
encouragement, motivation and kind of help to complete this analysis. I would
like to thank my college faculty, and internal guide .venkateshwer rao for her
guidance, suggestions, help, support and encouragement. Finally I would like to
extend my sincere thanks to my friends and relatives for their valuable help.
Date: (08D31E0040)
CONTENTS PAGE NO.
CHAPTER-I INTRODUCTION
Industry origin and growth
CHAPTER-V
Findings
Suggestions
Conclusions
BIBLOGRAPHY
CHAPTER-I INTRODUCTION
The two-wheeler industry in India has grown rapidly in the country since
the announcement of the process of liberalization in 1991 by the then finance
minister Dr. Manmohan Singh, now Prime Minister of India.
The two-wheeler industry in India has grown rapidly in the country since the
announcement of the process of liberalization in 1991 by the then finance minister
Dr. Manmohan Singh, now Prime Minister of India.
The change in the government’s policy owning to pollution control norms and the
Kyoto agreement saw the phasing out of two stroke two-wheelers from
production. Currently there are around 10 two-wheeler manufacturers in the
country, they being Bajaj, Hero, Hero Honda, Honda, Indus , Kinetic, Royal
Enfield, Suzuki, TVS, and Yamaha.
Growth:-
Credit Analysis and Research (CARE Ratings) says that the rural India
will be the next growth frontier for the Indian two wheeler industry.
“Positive factors such as the excise duty cut, lower fuel prices and
lower interest rates and easing liquidity situation have helped the two-wheeler
companies to improve their sales in urban and rural areas in the present financial
year.
In this background, given already high penetration in urban markets, rural India
offers big opportunity to the industry.”
The rating agency’s study also reveals that the growing numbers of
working women have also gradually emerged as a large consumer segment,
especially for gearless scooterettes. Around 30 per cent of the women in India are
earning an independent income, as against 22 per cent in 1990-91 is estimated by
CARE.
The report says, with the women also joining the workforce, the
disposable income of households increased. Better affordability is thus playing a
key role in boosting two-wheeler demand.
Kasture said, “Rural customers look for sturdiness and high mileage as
critical factors that influence their buying decision. Therefore, motorcycles with
engine capacity of 75-125 cc have a high demand in these markets”.
History:-
Origin of Motor-Scooters:-
History of E-Bikes:-
E-bikes Market:-
Overview:-
Yo Bykes:
EKO vehicle:-
Hero/ultra motors:-
Hero cycles (Hero Honda group) - UK Ultra Motor Group will launch
electric three wheeler by the end of fiscal 2007. Hero - Ultra also has plans to tap
the nascent electric vehicle market in a big way. Hero - Ultra plans to sell 1lakh
electric vehicles by 2008. They have launched India’s first exclusive electric
vehicle showroom in New Delhi. By April 2007 they also plan to establish 15
more dealership in North India. Investment for a dealership requires 15-20 lakhs.
Currently Hero - Ultra offers E-Bikes in the range of 14500 - 19000 and E-
Scooters in the range of 22500 - 28000.
ACE motors:-
Pune based Ace motors manufacturers e-bike (electric bike) and the
majority of the components of this bike are imported from China based company
Changtong E Bike Company Ltd. The e-bikes from Ace Motors weigh almost
60kg. The bike offers a load-carrying capacity of 100-140 kg. To cover a distance
of 220 km, you need to charge the bike for 6 - 8 hours at 220 volts. The maximum
speed of the bike is 25 km/hr and is priced at Rs 26,500.
Verdict:-
• FIIs including overseas corporate bodies (OCBs) and NRIs are permitted
to invest up to 49 per cent of the paid-up equity capital of the investee
company, subject to approval of the board of directors and of the members
by way of a special resolution. .
• Investments in making auto parts by a foreign vehicle maker will also be
considered a part of the minimum foreign investment made by it in an
auto-making subsidiary in India. The move is aimed at helping India
emerge as a hub for global manufacturing and sourcing for auto parts.
• Specific component of excise duty applicable to large cars and utility
vehicles will be reduced to 15,000 rupees per vehicle from 20,000 rupees
earlier.
• The Proposal by the Govt. to set up an expert group to advise on a viable
and sustainable system of pricing petroleum products, as this will surely
had an impact on the Automobile Industry.
• The announced reduction on the basic customs on bio-diesel is great news
for all companies working on environmental saving technologies.
Strengths:-
Weaknesses:-
Threats:-
However, the major set of reforms was launched in the year 1991 in response to
the major macroeconomic crisis faced by the economy. The industrial policies shifted
from a regime of regulation and tight control to a more liberalised and competitive era.
Two major results of policy changes during these years in two-wheeler industry were that
the, weaker players died out giving way to the new entrants and superior products and a
sizeable increase in number of brands entered the market that compelled the firms to
compete on the basis of product attributes. Finally, the two-¬wheeler industry in the
country has been able to witness a proliferation of brands with introduction of new
technology as well as increase in number of players. However, with various policy
measures undertaken in order to increase the competition, though the degree of
concentration has been lessened over time, deregulation of the industry has not really
resulted in higher level of competition.
A Growth Perspective:-
The composition of the two-wheeler industry has witnessed sea changes in the
post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-
wheeler demand in the Indian market. Motorcycle and moped had been experiencing
almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of
motorcycles increased to 78 per cent of the total two-wheelers while the shares of
scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear
picture of the motorcycle segment's gaining importance during this period is exhibited by
the Figures 1, 2 and 3 depicting total sales, share and annual growth during the period
1993-94 through 2003-04.
Table 1 suggests two important dimensions for the two-¬wheeler industry. The
region-wise numbers of motorcycle and scooter suggest the future market for these
segments. At the all India level, the demand for motorcycles will be almost 10 times of
that of the scooters. The same in the western region will be almost 20 times. It is also
evident from the table that motorcycle will find its major market in the western region of
the country, which will account for more than 40 per cent of its total demand. The south
and the north-central region will follow this. The demand for scooters will be the
maximum in the northern region, which will account for more than 50 per cent of the
demand for scooters in 2011-12.
--------------------------------------------------------------
Source: Indian Automobile Industry: Optimism in the Air, Industry Insight,
NCAER
The present economic situation of the country makes the scenario brighter for
short-term demand. Real GDP growth was at a high level of 7.4 per cent during the first
quarter of 2004. Both industry and the service sectors have shown high growth during
this period at the rates of 8.0 and 9.5 per cent respectively. However, poor rainfall last
year will pull down the GDP growth to some extent. Taking into account all these factors
along with other leading indicators including government spending, foreign investment,
inflation and export growth, NCAER has projected an average growth of GDP at 6.7 per
cent during the tenth five-year plan. Its mid-term forecast suggests an expected growth of
7.4 per cent in GDP during 2004-05 to 2008-09. Very recently, IMF has portrayed a
sustained global recovery in World Economic Outlook. A significant shift has also been
observed in Indian households from the lower income group to the middle income group
in recent years. The finance companies are also more aggressive in their marketing
compared to previous years. Combining all these factors, one may visualise a higher
growth rate in two-wheeler demand than presented in Table 1, particularly for the
motorcycle segment.
There is a large untapped market in semi-urban and rural areas of the country.
Any strategic planning for the two¬-wheeler industry needs to identify these markets with
the help of available statistical techniques. Potential markets can be identified as well as
prioritised using these techniques with the help of secondary data on socio-economic
parameters. For the two-wheeler industry, it is also important to identify the target groups
for various categories of motorcycles and scooters. With the formal introduction of
secondhand car market by the reputed car manufacturers and easy loan availability for
new as well as used cars, the two-wheeler industry needs to upgrade its market
information system to capture the new market and to maintain its already existing
markets. Availability of easy credit for two-wheelers in rural and smaller urban areas also
requires more focussed attention. It is also imperative to initiate measures to make the
presence of Indian two-wheeler industry felt in the global market. Adequate incentives
for promoting exports and setting up of institutional mechanism such as Automobile
Export Promotion Council would be of great help for further surge in demand for the
Indian two-wheeler industry.
Over the last decade, the two wheeler automobile sector has successfully
changed its image. Its product range encompasses Scooterettes, Scooters and
Motorcycles. The main product ranges of two wheeler automobile sector are as
follows:
Scooters
Motorcycles
Scooterettes
Hero Honda has grown like no other company in the auto business.
Several times in the path, savvy observers have insisted that it has grown just too
big and that no company its size can continue to show growth rates. But Hero
Honda has ignored that opinion and continued growing at the place it has set
many years ago.
Hero Honda today faces more competitor than it has ever in the history.
Now that is the undisputed two wheeler Numero Uno in the country. Every single
two wheeler manufacturer in India if looking market share away from it. More
over for the first time there are so many four- stroke challengers in the market.
And Hero Hondas best selling products are ageing.
Corporate Profile:-
The joint venture between India's Hero Group and Honda Motor
Company, Japan has not only created the world's single largest two wheeler
company but also one of the most successful joint ventures worldwide.
During the 80s, Hero Honda became the first company in India to prove
that it was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for fuel thrift
and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the
imagination of commuters across India, and Hero Honda sold millions of bikes
purely on the commitment of increased mileage
Over 19 million Hero Honda two wheelers tread Indian roads today. These
are almost as many as the number of people in Finland, Ireland and Sweden put
together!
Hero Honda has consistently grown at double digits since inception; and
today, every second motorcycle sold in the country is a Hero Honda. Every 30
seconds, someone in India buys Hero Honda's top -selling motorcycle – Splendor.
This festive season, the company sold half a million two wheelers in a single
month—a feat unparalleled in global automotive history.
Hero Honda bikes currently roll out from two globally benchmarked
manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These
plants together are capable of churning out 3.9 million bikes per year. A third
state of the art manufacturing facility at Hardwar in Uttranchal will soon be
commissioned to cope with sustained customer demand.
Hero Honda's extensive sales and service network now spans over 3000
customer touch points. These comprise a mix of dealerships, service and spare
points, spare parts stockiest and authorized representatives of dealers located
across different geographies.
Hero Honda values its relationship with customers. Its unique CRM initiative -
Hero Honda Passport Program, one of the largest programs of this kind in the
world, has over 3 million members on its roster. The program has not only helped
Hero Honda understand its customers and deliver value at different price points,
but has also created a loyal community of brand ambassadors.
Mission statement:-
Corporate Profile
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.
In our decision making, quality, safety and service will be given as much
consideration as productivity, cost and delivery.
Quality shall be built into every aspect of our work life and business
operations. Quality improvements and customer satisfaction shall be the
responsibility of every employee.
REGISTERED OFFICE:-
PLANTS:-
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.
Background
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
CORPORATE PROFILE
Honda Motor Co., Ltd., operates under the basic principles of "Respect for
the Individual" and "The Three Joys"-commonly expressed as The Joy of Buying,
The Joy of Selling and The Joy of Creating. Respect for the Individual" reflects
our desire to respect the unique character and ability of each individual person,
trusting each other as equal partners in order to do our best in every situation.
Based on this foundation of Respect for the Individual, "The Three Joys"
expresses our belief and desire that each person working in, or coming into
contact with our company, directly or through our products, should share a sense
of joy through that experience.
In line with these basic principles, since its establishment in 1948, Honda
Motor Co., Ltd., has remained on the leading edge by creating new value by
providing products of the highest quality at a reasonable price, for worldwide
customer satisfaction. In addition, the Company has conducted its activities with a
commitment to protecting the environment and enhancing safety in a mobile
society.
The Company has grown to become the world's largest motorcycle
manufacturer and one of the leading automakers. With a global network of 454*
subsidiaries and affiliates accounted for under the equity method, Honda
develops, manufactures and markets a wide variety of products ranging from
small general-purpose engines and scooters to specialty sports cars, to earn the
Company an outstanding reputation from customers worldwide.
Mission Statement
Head Office:
We are aware of our customers' evolving needs and provide them with quality
products and services of exceptional value that surpass their expectations.
Corporate Profile
Name: Yamaha motors ltd.
Location: 2000-1 Iwai, Iwata City, Shizuoka Pref.
Post Code: 438-0016
Telephone: 0538-39-2213 Facsimile:
0538-39-2219
Board of director: President and Representative
Director@Yasuharu TerIai
Director: Takuya Watanabe
Tetsuro Nabata
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 (Iwata City, Shizuoka Pref.)
Iwata Office (Iwata City, 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 )
Exports:-
Strengthening our reputation as an export base for YMC global operations, we are
bright and optimistic about our emergence as a top-notch bike exporter of India.
which company's two wheeler are you using?
50
% of respondent
40
30
20
10
0
hero bajaj tvs honda yahaha
series 45 30 14 5 6
bike
series
Inference:-
Out of 100%:
45% customers are using Hero Honda two wheeler
30% customers are using Bajaj two wheeler
14% customers are using TVS two wheeler
5% customers are using Honda two wheeler
6% customers are using Yamaha two wheeler
Model people want to purchase
80
% of Respondent
60
40
20 series
0
puls App CBZ unic Gla
series 65 15 13 5 2
Bikes
Inference:-
Out of 100%:
65% respondents want to purchase pulsar
15% respondents want to purchase apache
13% respondents want to purchase CBZ
5% respondents want to purchase unicorn
2% respondents want to purchase gladitor
Objective of Study:
The main objective is to find out the current trend going on in the industry
i.e. (about the product, piece, place and promotion). Other objectives are as
follows:
Scope:-
Today, India is well known as a potential emerging automobile market and jobs in
the automobile industry are rising. Several foreign companies have their investments in
Indian automobile industry. India is the major three-wheeler market and two-wheeler
manufacturer in the world. It is also the second largest manufacturer of tractors.
India is a home to many Indian and international automobile companies. The
candidates who have achieved bachelor's degree in mechanical, electrical or automobile
engineering are eligible to get good jobs in these companies.
Automobile Jobs Opportunities:-
Many job opportunities are available for the candidates with diploma courses and
ITI courses. Some of the automobile companies require IT specializations. The technical
education is offered by plenty of engineering and polytechnic colleges in India. The
eligible candidates are selected by the companies and then trained properly. Considering
the wide scope of Automobile sector, it is not surprising that more and more candidates
are dreaming to develop a career in Automobile Industry. Now, with so many foreign
automobile companies like Volkswagen, Audi, Renault etc targeting India as a base for
manufacturing cars, the scope for a career in Automobile Industry is rising rapidly.
Au
tomobile companies in India:-
CHAPTER-V
Findings:-
Suggestions:-
Conclusions:-
The study which we conducted on the two wheeler automobile sector is a
very important topic of automobile sector.
Through out the study we found the Two wheeler manufacturer having
very new and modern technology in their bikes, they have a good market share in
India, many of MNC's like Honda, Yamaha ,Suzuki are also giving large
competition.
Concluding the performance of the company related to two wheeler sector
in India, getting their market share and growth and what are services they are
providing after sales.
Hero Honda has managed to achieve this because its strong brand image
and proven product quality underpinned the performance growth in recent years.
Apart from the strong brand "splendor" the company's performance across the
spectrum of the motorcycle market helped it exploit the growing demand for 4-
stroke motorcycle.
At the lower end the company has CD 100 SS at middle level splendor,
passion and Dawn the CBZ Extreme/ Karizma range is targeted at premium
segment.
Some years back Hero Honda are getting stiff competition because of
Bajaj, TVS and Yamaha have a presence in 125cc bikes segments where Hero
Honda has not any presence in this segment. Now this gap is filling up by Hero
Honda's new Splendor NXG, Glamour. But still there is a gap between 150cc to
225cc segment which is most preferable segment by youth today.
With newer and better models are coming up customer has better and
bigger choices to choose from.
Right now it seems that the real war is between Hero Honda and Bajaj
auto. But one cannot discount the fact that there are other players, who are gaining
strength day by day.
BIBLIOGRAPHY
2.Internet Sites:
www.bajajmotors.com
www.herohondamotors.com
www.indiabike.net.com
www.google.com
www.yahoofinance.com
www.indiaserf.com
www.honda2wheeler.com
www.yamahamotorsindia.com
www.tvsmotorsltd.com