Marketing Analysis of Hero Honda by Neeraj Pant

NEERAJ PANT
MARKETING PU
PIN:17506000765
ANALYSIS OF HERO BBA
HONDA
BBA
A PROJECT REPORT FOR BBA FINAL
THIS REPORT IS BASED ON THE MARKETING
ANALYSIS OF HERO HONDA ON CONSUMER
RESPONSE WITH THE ASSISTANCE OF MISS RENUKA,
LECTURAR OF PROFESSIONAL STUDIES IN DAV
COLLEGE, AND SOME HELP FROM THE INTERNET.
Chapter number Chapter’s name
Chapter-1 Introduction to two wheeler industry
Chapter-2 Profile and history of HERO HONDA
Chapter-3 Board of members
Chapter-4 Achievements
Chapter-5 General introduction to market
analysis
Chapter-6 Market analysis of HERO HONDA
Chapter-7 Swot analysis of HERO HONDA
Chapter-8 Consumer response on HERO
HONDA
Chapter-9 Findings and recommendations
Chapter-10 Consumer satisfaction
Chapter-11 Future of two wheeler industry in
India
Chapter-12 conlusion
BIBLIOGRAPHY
ANNEXURE
ACKNOWLEDGEMENT
It gives me pleasure and satisfaction categorically
state that Project is not solo effort. So many people
have contributed there bit to it. The task of
completing this project would have been difficult if
it was not for timely help, support and
encouragement given to me by numerous people.
The project would not have taken shape without
the constant guidance, advice and insight of Ms.
RENUKA , whom I express my sincere thanks for
their guidance.
NEERAJ PANT
P.U PIN: 1750600765
B.B.A. 3rd Year

DECLARATION
This is to certify that the Project work entitled

‘MARKET ANALYSIS ON HERO HONDA ’ done by me
Neeraj Pant for degree of B.B.A. III D.A.V. College,
Sector 10, Chandigarh is not copied and is result of
my own efforts and some help from internet.
NEERAJ PANT
P.U PIN: 17506000765
BBA Final Year
PREFACE
BBA is stepping stone to management career. In
order to achieve practical positive and concrete
results, the classroom learning needs to be
effectively feed to the realities of situation existing
outside the classroom. This is particularly true for
management.
Project work is a part of our curriculum,

which help us to get depth knowledge of the related
field correlate our theoretical concept with practical
experience. I prepared this report for my three year
course of “Bachelor of Business administration”. I
was awarded the topic of ‘market analysis through
consumer response on hero Honda”.
Market analysis means to analyze the

market such as market demand, price, consumer
etc. This project shows the market share of two
wheeler products of Hero Honda.
So every effort is made to clearly study market

share of Hero Honda and the different policies,
milestones followed by Hero Honda to grow and
sustain its position.
CHAPTER 1
INTRODUCTION TO TWO
INDIAN TWO WHEELER INDUSTRY- A
PERSPECTIVE
Automobile is one of the largest industries in global
market. Being the leader in product and process
technologies in the manufacturing sector, it has been
recognised as one of the drivers of economic growth.
During the last decade, well¬-directed efforts have been
made to provide a new look to the automobile policy for
realising the sector's full potential for the economy. Steps
like abolition of licensing, removal of quantitative
restrictions and initiatives to bring the policy framework in
consonance with WTO requirements have set the industry
in a progressive track. Removal of the restrictive
environment has helped restructuring, and enabled
industry to absorb new technologies, aligning itself with
the global development and also to realise its potential in
the country. The liberalisation policies have led to
continuous increase in competition which has ultimately
resulted in modernisation in line with the global standards
as well as in substantial cut in prices. Aggressive
marketing by the auto finance companies have also played
a significant role in boosting automobile demand,
especially from the population in the middle income group.
Evolution of Two-wheeler Industry in
India
Two-wheeler segment is one of the most important
components of the automobile sector that has undergone
significant changes due to shift in policy environment. The
two-wheeler industry has been in existence in the country
since 1955. It consists of three segments viz. scooters,
motorcycles and mopeds. According to the figures
published by SIAM, the share of two-wheelers in
automobile sector in terms of units sold was about 80 per
cent during 2003-¬04. This high figure itself is suggestive
of the importance of the sector. In the initial years, entry
of firms, capacity expansion, choice of products including
capacity mix and technology, all critical areas of
functioning of an industry, were effectively controlled by
the State machinery. The lapses in the system had invited
fresh policy options that came into being in late sixties.
Amongst these policies, Monopolies and Restrictive Trade
Practices (MRTP) and Foreign Exchange Regulation Act
(FERA) were aimed at regulating monopoly and foreign
investment respectively. This controlling mechanism over
the industry resulted in: (a) several firms operating below
minimum scale of efficiency; (b) under-utilisation of
capacity; and (c) usage of outdated technology.
Recognition of the damaging effects of licensing and
fettering policies led to initiation of reforms, which
ultimately took a more prominent shape with the
introduction of the New Economic Policy (NEP) in 1985.
However, the major set of reforms was launched in the

year 1991 in response to the major macroeconomic crisis
faced by the economy. The industrial policies shifted from
a regime of regulation and tight control to a more
liberalised and competitive era. Two major results of policy
changes during these years in two-wheeler industry were
that the, weaker players died out giving way to the new
entrants and superior products and a sizeable increase in
number of brands entered the market that compelled the
firms to compete on the basis of product attributes.
Finally, the two-¬wheeler industry in the country has been
able to witness a proliferation of brands with introduction
of new technology as well as increase in number of
players. However, with various policy measures
undertaken in order to increase the competition, though
the degree of concentration has been lessened over time,
deregulation of the industry has not really resulted in
higher level of competition.
A Growth Perspective
The composition of the two-wheeler industry has
witnessed sea changes in the post-reform period. In 1991,
the share of scooters was about 50 per cent of the total 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.
National Council of Applied Economic Research (NCAER)

had forecast two-wheeler demand during the period
2002¬-03 through 2011-12. The forecasts had been made
using econometric technique along with inputs obtained
from a primary survey conducted at 14 prime cities in the
country. Estimations were based on Panel Regression,
which takes into account both time series and cross
section variation in data. A panel data of 16 major states
over a period of 5 years ending 1999 was used for the
estimation of parameters. The models considered a large
number of macro-economic, demographic and socio-
economic variables to arrive at the best estimations for
different two-wheeler segments. The projections have
been made at all India and regional levels. Different
scenarios have been presented based on different
assumptions regarding the demand drivers of the two-
wheeler industry. The most likely scenario assumed
annual growth rate of Gross Domestic Product (GDP) to be
5.5 per cent during 2002¬-03 and was anticipated to
increase gradually to 6.5 per cent during 2011¬-12. The
all-India and region-wise projected growth trends for the
motorcycles and scooters are presented in Table 1. The
demand for mopeds is not presented in this analysis due
to its already shrinking status compared to' motorcycles
and scooters.
It is important to remember that the above-mentioned

forecast presents a long-term growth for a period of 10
years. The high growth rate in motorcycle segment at
present will stabilise after a certain point beyond which a
condition of equilibrium will set the growth path. Another
important thing to keep in mind while interpreting these
growth rates is that the forecast could consider the trend
till 1999 and the model could not capture the recent
developments that have taken place in last few years.
However, this will not alter the regional distribution to a
significant extent.
Table 1 suggests two important dimensions for the two-
¬wheeler industry. The region-wise numbers of
motorcycle and scooter suggest the future market for
these segments. At the all India level, the demand for
motorcycles will be almost 10 times of that of the
scooters. The same in the western region will be almost 20
times. It is also evident from the table that motorcycle will
find its major market in the western region of the country,
which will account for more than 40 per cent of its total
demand. The south and the north-central region will follow
this. The demand for scooters will be the maximum in the
northern region, which will account for more than 50 per
cent of the demand for scooters in 2011-12.
Table 1: Demand Forecast for Motorcycles

and Scooters for 2011-12
2-Wheeler Regions
Segment East &
North- All
South West North-
Central India
East
2835 4327 2624 883 10669
Motorcycle
(12.9) (16.8) (12.5) (11.1) (14.0)
203 219 602 99 1124
Scooter
(2.6) (3.5) (2.8) (2.0) (2.08)
Note: Compound Annual Rate of Growth during

2002-03 and 2011-12 is presented in parenthesis
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.
Indian Two Wheeler Industry
Indian Two wheeler industry, Key players and Types of two-

wheelers
India is the second largest producer and manufacturer of two-wheelers

in the world. Indian two-wheeler industry has got spectacular growth
in the last few years. Indian two-wheeler industry had a small
beginning in the early 50's. The Automobile Products of India (API)
started manufacturing scooters in the country.
Bikes are a major segment of Indian two wheeler industry, the other
two being scooters and mopeds. Indian companies are among the
largest two-wheeler manufacturers in the world. Hero Honda and Bajaj
Auto are two of the Indian companies that top the list of world
companies manufacturing two-wheelers.
The two-wheeler market was opened to foreign companies in the mid

1980s. The openness of Indian market to foreign companies lead to
the arrival of new models of two-wheelers into India. Easy availability
of loans from the banks, relatively low rate of interest and the discount
of prices offered by the dealers and manufacturers lead to the
increasing demand for two-wheeler vehicles in India. This lead to the
strong growth of Indian automobile industry.
Kinetic Honda was introduced in the Indian market during the mid 80s.
The main feature of Kinetic Honda is its ease of use. This helped the
youngsters and the women to buy scooters.
Key players in the Two-wheeler Industry :

After facing its worst recession during the early 1990s, the two-
wheeler industry bounced back with a 25% increase in volume sales in
February 1995. The scooters are considered as family vehicles. There
are many two-wheeler manufacturers in India. Major players in the 2-
wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd
Motorcycles in India :
Bikes comprise a major segment of Indian two wheeler
industry.
Company : Bajaj Auto

Company : HERO HONDA
Ltd
* Hero Honda Achiever
* Hero Honda CD Dawn
* Bajaj Avenger
* Hero Honda CD Deluxe
* Bajaj CT 100
* Hero Honda Glamour
* Bajaj Platina
* Hero Honda Glamour-Fi
* Bajaj Discover DTSi
* Hero Honda Karizma
* Bajaj Pulsar DTSi
* Hero Honda Passion Plus
* Bajaj Wave
* Hero Honda Pleasure
* Bajaj Wind 125
* Hero Honda Super Splendor
* Sonic DTSi
* Hero Honda Splendor NXG
* Hero Honda CBZ X-Treme
Company : TVS Company : Yamaha

Company : Kinetic MOTOR Motor India
Motor Company
* Kinetic Aquila
* Kinetic Boss * TVS Apache
* Kinetic Challenger * TVS Centra * Yamaha CruxS
* Kinetic Comet * TVS Fiero * Yamaha G5
* Kinetic GF * TVS Star * Yamaha Gladiator
* Kinetic Stryker * TVS Victor
* Kinetic Velocity
Scooters in India :
The scooter and the scooterette share in the Indian two
wheeler market is 13.4%. The main models available in
India are Bajaj Chetak, Honda Eterno, Kinetic Blaze, LML
NV SPL and LML Select II.
Scooterettes/Mopeds :
TVS Motors launched India's first 50cc, 2 seater moped:
TVS Moped 50. TVS also launched India's first indigenous
scooterette: Scooty in 1994. This segment has about one-
fourth share in the Indian two wheeler industry. The major
models available in India are Bajaj Wave, Bajaj Kristal
DTSi, Bajaj Blade DTSi, Hero Honda Pleasure, Kinetic Kine,
Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range,
Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo
Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.
http://www.automobileindia.com/two-wheelers/statistics/
TwoWheelers »Statistics
Two Wheeler Statistics
The automobile industry in general and two
wheeler industry in particular has shown a
tremendous growth over the recent years.
According to the Society of Indian automobile
Manufactures (SIAM) the industry has grown
by 16% in the year 2003/2004.Two Wheeler
segment as a whole during the year 2004/05
grew by over 15%.This growth has been due
to the Government's initiative on rural roads
and better connectivity with major towns and
cities, improved agricultural performance,
upward trend of purchasing power in the
hands of rural people.The two wheeler
industry was able to achieve the record
performance of crossing 6 million two wheelers with exact

sales standing at 6,208,860 during the year 2004-05
Though the metal bodied geared scooters have fallen out of

favour of the Indian two-wheeler user their upward trend in
growth has been due to rise in the sales of scooterettes and
Motor scooters. Bajaj Auto has been able to sell 152,936 units
in the year 2004/2005 of two wheelers which don't include
motorcycles. They have shown a negative trend in the two
wheeler segment other than the motorcycles. This goes on to
show that Bajaj Auto has lost its supremacy in the scooter and
moped segment as they have shifted focus to motorcycles.
2001- 2002- 200 200 2005-06

4-
02 03 3-04
05
435 519
290632 38761
516 389 6201214
3 75
8 4
motorcycles as has been mentioned through out this website

have become the most preferred choice among all two-
wheeler users. They account for nearly 80% of the total two
wheeler sales in the country. This trend is set to continue as
more and more models of this hot set of two wheelers enter
the market. Bajaj Auto one of the largest manufactures of two
wheelers in the country has managed to sell about 1,449,710
units of motorcycle in the year 2004/2005. hero honda which
claims to be the largest manufacturer of two-wheeler in the
world was able to sell 2.62 million motorcycles during the year
2005/2005. The company also accounts for half the market in
the motorcycle segment.
200
2002- 200
2001-02 4- 2005-06
03 3-04
05
8484 935 987
937506 1020013
34 279 498
Manufacturers of two wheelers india

1. Bajaj Auto
2. Royal Enfield Motors
3. Hero Honda Motors
4. Honda Motors
5. Kinetic Motors
6. LML India
7. Suzuki Motors
8. TVS Motors
9. Yamaha Motors
CHAPTER 2
PROFILE AND HISTORY OF
Hero Honda Motors Ltd.
Public company BSE:HEROHONDA

Type
M
January 19, 1984 in Gurgaon,

Founded
Haryana, India
Headquarte
New Delhi, India
rs
Brijmohan Lal Munjal (chair and

founder)
Key people Toshiaki Nakagawa (joint managing
director)
Pawan Munjal (CEO)
Industry Automotive
Products Motorcycles, Scooters
Revenue U$ 2.8 billion
Website www.Herohonda.com
http://en.wikipedia.org/wiki/Hero_Honda
Hero Honda Motors Limited, based in
Delhi, India, is the world's third largest
manufacturer of motorcycles after
Honda and Yamaha. Hero Honda is a joint
venture that began in 1984 between the
Hero Group of India and Honda of
Japan. It has been the world's biggest
manufacturer of 2-wheeled motorized
vehicles since 2001, when it produced
1.3 million motorbikes in a single year.
Hero Honda's Splendor is the world's
largest selling motorcycle. Its 2 plants are
in Dharuhera and Gurgaon, both in India.
Third plant at Haridwar, Uttaranchal has
also started production by April, 2008. It
will have production facilities such as Lean
Manufacturing concept, more flexible lines
& stream line material flow, within &
proximity (planning to set vendors in
nearby locations constituting HHML Park)
to achieve just-in-time
manufacturing. It specializes in dual
use motorcycles that are low powered but
very fuel efficient.
Contents
• 1 Company
profile
• 2 History
○ 2.1 Growth
○ 2.2 Just-in-
Time
Manufacturi
ng
○ 2.3
Ancillarisati
on
○ 2.4 Labor
relations
○ 2.5
Diversificati
on
○ 2.6
Criticism
Company profile
“Hero” is the brand name used by
the Munjal brothers in the year
1956 with the flagship company
Hero Cycles. The joint venture
between India's Hero Group and
Honda Motor Company, they are
related to Jagdish Lal Munjal
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
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.
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 stockists 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.
History
Hero Honda is worlds third largest two wheeler maker. India has the
largest number of two wheelers in the world with 41.6 million vehicles.
India has a mix of 30 percent automobiles and 70 percent two wheelers in
the country. India was the second largest two wheeler manufacturer in the
world starting in the 1950’s with the birth of Automobile Products of
India (API) that manufactured scooters. API manufactured the
Lambrettas but, another company, Bajaj Auto Ltd. surpassed API
and remained through the turn of the century from its association with
Piaggio of Italy (manufacturer of Vespa scooters).
The license raj that existed between the 1940s to 1980s in India did not
allow foreign companies to enter the market and imports were tightly
controlled. This regulatory maze, before the economic liberalization,
made business easier for local players to have a seller’s market.
Customers in India were forced to wait 12 years to buy a scooter from
Bajaj. The CEO of Bajaj commented that he did not need a marketing
department, only a dispatch department. By the year 1990, Bajaj had a
waiting list that was twenty-six times its annual output for scooters.
The motorcycle segment had the same long wait times with three
manufacturers: Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield
made a 350cc Bullet with the only four-stroke engine at that time and took
the higher end of the market but there was little competition for their
customers. Ideal Jawa and Escorts took the middle and lower end of the
market respectively.
In the mid-1980s, the Indian government regulations changed and
permitted foreign companies to enter the Indian market through minority
joint ventures. The two-wheeler market changed with four Indo-Japanese
joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic
Motor Company (Kinetic Honda). The entry of these foreign
companies changed the Indian market dynamics from the supply side to
the demand side. With a larger selection of two-wheelers on the Indian
market, consumers started to gain influence over the products they bought
and raised higher customer expectations. The industry produced more
models, styling options, prices, and different fuel efficiencies. The foreign
companies new technologies helped make the products more reliable and
with better quality. Indian companies had to change to keep up with their
global counterparts.
The 2006 Forbes 200 Most Respected companies list has Hero Honda
Motors ranked at 108. [1]
Growth
Hero Honda experienced great growth throughout its early days. The
Munjal family started a modest business of bicycle components. By 2002
Hero Group had sold 86 million bicycles producing 16000 bicycles a day.
Today Hero Honda has an assembly line of nine different models of
motorcycles available. It holds the record for most popular bike in the
world by sales for Its Splendor model. Hero Honda Motors Limited was
established in joint venture with Honda Motors of Japan in 1984, to
manufacture motorcycles. It is currently the largest producer of Two
Wheelers in the world. It sold 3 million bikes in the year 2005-2006.
Recently it has also entered in scooter manufacturing, with its model
PLEASURE mainly aimed at girls. HUNK is the latest offering from the
HHML stable.
A Hero Honda "Splendor" bike
Just-in-Time Manufacturing
The Hero Group through the Hero Cycles Division was the first to
introduce the concept of just-in-time manufacturing. The Group
boasts of superb operational efficiencies. Every assembly line worker
operates two machines simultaneously to save time and improve
productivity. The fact that most of the machines are either developed or
fabricated in-house, has resulted in low inventory levels.
In Hero Cycles Limited, the just-in-time inventory principle has been
working since the beginning of production in the unit. This is the Japanese
style of production. In India, Hero is probably the only company to have
mastered the art of the just-in-time inventory principle.
Ancillarisation
An integral part of the Group strategy of doing business differently was
providing support to ancillary units. There are over 300 ancillary units
today, whose production is dedicated to Hero's requirements and also a
large number of other vendors, which include some of the better known
companies in the automotive segment.
Labor relations
In Hero Group there is no organized labor union and family members
of employees find ready employment within Hero. The philosophy with
regard to labor management is "Hero is growing, grow with Hero." Hero
workers receive a uniform allowance, as well as House Rent Allowance
(HRA) and Leave Travel Allowance (LTA). Extra benefits include
medical check-ups not just for workers, but also for the immediate
family members. For the majority of the production workers, who are
hired through contractors, these benefits are out of reach. This and other
problems lead to a strike and factory occupation by 4,000 temp workers in
the Gurgaon plant in spring 2006.
Diversification
Throughout the years of enormous growth , the Group Chairman, Mr. Lall
has actively looked at diversification. A considerable level of vertical
integration in its manufacturing activities has been ample in the
Group's growth and led to the establishment of the Hero Cycles Cold
Rolling Division, Munjal and Sunbeam Castings, Munjal Auto
Components and Munjal Showa Limited amongst other component-
manufacturing units.
Then there were the expansion into the automotive segment with the
setting up of Majestic Auto Limited, where the first indigenously
designed moped, Hero Majestic, went into commercial production in
1978. Then came Hero Motors which introduced Hero Puch, in
collaboration with global technology leader Steyr Daimler Puch of
Austria. Hero Honda Motors was established in 1984 to manufacture 100
cc motorcycles.
The Hero Group also took a venture into other segments like exports,
financial services, information technology, which includes customer
response services and software development. Further expansion is
expected in the areas of Insurance and Telecommunication.
The Hero Group's phenomenal growth is the result of constant
innovations, a close watch on costs and the dynamic leadership of the
Group Chairman, characterized by a culture of entrepreneurship, of right
attitudes and building stronger relationships with investors, partners,
vendors and dealers and customers.
Criticism
There is a frequent complaint that the biking enthusiasts in India make in
many Auto-related forums which is related to Hero Honda not making
serious efforts to upgrade its models as frequently as its competitors like
Yamaha,Bajaj and TVS. Many bike enthusiasts in India feel that Hero
Honda only upgrades the "stickers" along with the names of its
bikes.'Sticker' upgrading can be easily noticed by observing the technical
specifications of the models Splendor, Splendor Plus, Passion, Passion
Plus, Karizma, Karizma R. Another frequent complaint made by Bike
enthusiasts is that Hero Honda has too many bike models with exactly
same or similar engines despite of the company claiming that it caters to
'all segments'. While Bajaj rolls out new models with many
improvements, there have been very less new or feature-upgraded models
from Hero Honda.The latest bike from Hero Honda is Hunk which again
has an engine more or less similar to CBZ-Xtreme and now Yamaha has
launched two new bikes YFZ-R15 and FZ16 to compete with Hero Honda
and Bajaj.
CHAPTER 3
BOARD OF DIRECTORS
N Name of the Designation
o Directors
.
1 Mr. Brijmohan Lall Chairman &

Munjal Whole-time
Director
2 Mr. Pawan Munjal Managing Director

& CEO
3 Mr. Toshiaki Joint Managing

Nakagawa Director
4 Mr. Sumihisa Technical Director

Fukuda
5 Mr. Om Prakash Non-executive

Munjal Director
6 Mr. Sunil Kant Non-executive

Munjal Director
7 Mr. Masahiro Non-executive

Takedagawa Director
8 Mr. Satoshi Non-executive

Matsuzawa Director
(Alternate Director
to Mr. Takashi
Nagai)
9 Mr. Pradeep Non-executive &

Dinodia Independent
Director
1 Gen.(Retd.) Ved Non-executive &

0 Prakash Malik Independent
Director
1 Mr. Analjit Singh Non-executive &

1 Independent
Director
1 Dr. Pritam Singh Non-executive &

2 Independent
Director
1 Ms. Shobhana Non-executive &

3 Bhartia Independent
Director
1 Mr. Sunil Bharti Non-executive &

4 Mittal Independent
Director
1 Mr. Meleveetil Non-executive &

5. Damodaran Independent
Director
1 Mr. Arun Nath Non-executive &

6. Maira Independent
Director
BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL
Mr. Brijmohan Lall Munjal is the founder

Director and Chairman of the Company
and the $ 2.8 billion Hero Group. He is the
Past President of Confederation of Indian
Industry (CII), Society of Indian
Automobile Manufacturers (SIAM) and
was a Member of the Board of the
Country's Central Bank (Reserve Bank of
India ). In recognition of his contribution
to industry, Mr. Lall was conferred the
Padma Bhushan Award by the Union
Government.
Mr. Brijmohan Lall Munjal is currently on

the board of the following companies:
N Name of Company Nature of

o Office
.
1 Hero Honda Motors Chairman and

Limited Whole-time
Director
2 Hero Cycles Limited Chairman and

Director
3 Hero Honda Finlease Chairman and

Limited Director
4 Munjal Showa Chairman and

Limited Director
5 Sunbeam Auto Chairman and

Limited Director
6 Easy Bill Limited Director
7 Hero Financial Director

Services Limited
8 Munjal Auto Director

Industries Limited
9 Shivam Autotech Director

Limited
1 Daimler Hero Director

0 Commercial Vehicles
Limited
MR. PAWAN MUNJAL
Mr. Pawan Munjal is the Managing

Director and CEO of the Company. He is
responsible for growth and strategic
planning for the entire Group. A graduate
in mechanical engineering, Mr. Munjal has
been instrumental in bringing about
technological and managerial excellence
in the Company's operations. He has
been the Chairman of several Committees
of CII.
He is also on the board of Indian Institute

of Management, Lucknow . An avid golfer,
Mr. Munjal is Past Chairman of the Asian
PGA Tour Board of Directors and the Past
President of Professional Golfers
Association of India (PGAI). Under his
guidance, Hero Honda launched the Hero
Indian Sports Academy (HISA) in
collaboration with Laureus Foundation to
provide equal opportunities in sports to
various communities and to reward talent
in the country.
Mr. Pawan Munjal is currently on the

Board of the following companies:

o Office
.
1 Hero Honda Motors Managing

Limited Director
2 Hero Honda Finlease Director

Limited
3 Daimler Hero Commercial Director

Vehicles Limited
MR. TOSHIAKI NAKAGAWA
Mr. Toshiaki Nakagawa joined the

Company as Joint Managing Director on
February 1, 2006.
He joined Honda Motor Co., Ltd, Japan in

April 1973 and later on took various
assignments at Senior Positions in world
wide Honda net work, such as staff
member of UK, Hongkong and President
of Honda Czech Republic, Honda France
and General Manager of Honda Beijing
Office.
Before joining the Company, he held the

position as General Manager of Operating
Office of China, ASEAN succeeding by
Operating Office No.1 (North America,
South America and Europe) at Honda
Head Office, Japan.
His specialization is “Overseas Sales of

Automobiles and Motorcycles.”
Mr. Nakagawa is currently on the Board of

the following companies:
o Office
.
1 Hero Honda Motors Joint Managing

Limited Director

Limited
MR. SUMIHISA FUKUDA
Mr. Sumihisa Fukuda was appointed as an

Additional and Technical Director in the
Whole-time employment of the Company
by way of passing a resolution by
Circulation on May 13, 2008 . Mr. Fukuda
was born on December 12, 1955 at
Nagasaki , Japan and after completing a
course in Mechanical Engineering, he
joined Honda Motor Co., Ltd., Japan as an
Engineer & has completed various
assignments in Honda. In recent past, he
was working as Manager – Asian
Autoparts Co. Ltd., Thailand . He brings
with him rich experience of more than 30
years.
Mr. Fukuda is currently on the Board of
the following companies:

o Office
.
1 Hero Honda Motors Whole-time

Limited Director

Limited
MR. OM PRAKASH MUNJAL
Mr. Om Prakash Munjal is also founder

Director of the Company. He is the Co-
Chairman and CEO of Hero Cycles
Limited, the largest producer of bicycles
and bicycle components in the world.
Under his leadership, Hero Cycles has
found its way into the Guinness Book of
World Records. In 1990, Mr. Munjal was
awarded the "Indira Gandhi National Unity
Award" by the President of India.
Mr. Om Prakash Munjal is currently on the

N Name of Nature of Office
o Company
.
1 Hero Cycles Co-Chairman and

Limited Managing Director
2 Majestic Auto Chairman & Director

Limited
3 Hero Financial Chairman & Director

Services Limited
4 Hero Motors Director

Limited
5 Munjal Auto Director

Industries
Limited
6 Shivam Autotech Director

Limited
7 Highway Director
Industries
Limited
8 Hero Global Director

Design Limited
1 Hero Honda Director

0 Motors Limited
1 Finlease Limited
MR. SUNIL KANT MUNJAL
Mr. Sunil Kant Munjal born on December

14, 1957 , at Ludhiana is aged 49 years.
After his graduation he underwent
training in the field of Mechanical
Engineering. Presently he is Managing
Director of Hero Cycles Ltd. (C.R. Division)
and Hero Corporate Services Limited.
In 2004-05, Mr. Munjal became the

President of Confederation of Indian
Industry (CII), India 's premier business
association. He is also on the Board of
Indian School of Business, Hyderabad and
is visiting faculty at various Business
Schools and Corporate. His specialization
is in Business Studies and Holistic
Management Practices. Apart from the
above he is a member of Prime Minister's
Council on Trade and Industry,
Consultative Group on Industry, Planning
Commission, Government of India and
SEBI Committee on Disclosures. He has
made significant contributions to some of
the National-level Economic and Labour
reforms in India either by chairing some
of the reforms Committee or as a
member.
Mr. Sunil Kant Munjal is currently on the

board of the following companies:

o Office
.
1 Hero Management Chairman &

Service Limited Managing
Director
2 Hero Corporate Chairman

Service Limited
3 Shivam Autotech Chairman

Limited
4 Hero Cycles Limited Managing

Director
5 DCM Shriram Director

Consolidated Limited
7 Hero Honda Motors Director

Limited
8 Hero Motors Limited Director

9 Satyam Auto Director
Components Limited
1 Flourish Director
0 Manufacturing &
Automotive Ltd.
1 Daimler Hero Director

1 Commercial Vehicles
Limited
1 Abhayuday Director
2 Manufacturing &
Automotive Ltd
1 Arrow Infrastructure Director

3 Limited
1 Hero Mindmine Director

4 Institute Limited
1 Hero Ergo Life Director

5 Insurance Company
Limited
MR. MASAHIRO TAKEDAGAWA

Mr. Masahiro Takedagawa was appointed
as an Additional Director on the Board of
the Company w.e.f. May 30, 2006 . He
joined Honda Motors Co., Ltd, Japan as an
Area Manager in the Car Retail
Operations. He was thereafter deputed in
the Sales & Marketing Division of Honda
Motors at USA , Italy & Thailand . Before
joining Honda Siel Cars India Limited as
President & CEO in April 2005, he was
stationed at the Product Planning &
Marketing office at Tokyo.
Mr. Takedagawa holds the directorship

and membership of the Committee(s) of
the Board of the following companies:

o Company
.
1 Honda Siel Cars President & CEO

India Limited
2 Honda Siel Power Director Member-

Products Limited Audit Committee

Limited
MR. TAKASHI NAGAI

Mr. Takashi Nagai has been appointed as
an Additional Director on the Board of the
Company w.e.f May 11, 2007. After
completing his graduation from Keio
University, Japan in the year 1982, he
joined Honda Motors Co., Ltd, Japan.
Presently, he is working as Executive Vice
President, Asian Honda Motor, Thailand .
Mr. Nagai brings with him vast experience
in Automobile Industry.
Mr. Nagai is on the board of the following

companies.:
o Office
.

Limited
MR. SATOSHI MATSUZAWA

Mr. Satoshi Matsuzawa aged 48 years has
been appointed as an Alternate Director
to Mr. Takashi Nagai w.e.f. April 24,
2008 . He was born on March 2, 1960 at
Tokyo , Japan . After completing his
graduation in Science and Engineering
from Waseda University , Japan in the
year 1982, he joined Honda Motors Co.,
Ltd, Japan . Currently, he holds the
position of General Manager, Overseas
Operations.
Mr. Matsuzawa is on the board of the

following companies.:

o Office
.

Limited
MR. PRADEEP DINODIA

Mr. Pradeep Dinodia was appointed as an
Additional Director on the Board of the
Company on March 31, 2001 . Mr. Dinodia
is a fellow member of The Institute of
Chartered Accountants of India and a
senior partner in the Delhi-based
Chartered Accountancy firm M/s. S.R.
Dinodia & Company. He has considerable
experience in corporate affairs and allied
legal and taxation matters.
Mr. Dinodia holds the directorship and

membership of the Committee(s) of the
o Company
.
1 DCM Director
Shriram Chairman - Shareholders
Consolidate & Investors Grievance
d Limited Committee
Member- Audit
Committee
Member - Committee of
Board for payment of
Remuneration to
Managing Director and
Whole-Time Director
2 DFM Foods Director

Limited Chairman - Audit
Committee
3 Hero Director
Corporate Chairman - Audit
Services Committee
Limited

Motors Chairman- Audit
Limited Committee
Member - Shareholder &
Investors Grievance
Committee
Member -Remuneration
Committee
5 Micromatic Director
Grinding
Technologie
s Limited
6 Ultima Director
Finvest
Limited
7 Shriram Director
Pistons & Chairman - Audit
Rings Committee
Limited Member - Remuneration
Committee
8 RSWM Director
Limited
9 SPR Director
Internationa
l Auto
Exports
Limited
GEN. (RETD.) VED PRAKASH MALIK

Gen. (Retd.) Ved Prakash Malik was
appointed as an Additional Director on
the Board of the Company on May 4,
2001 . Gen. Malik retired as Chief of the
Indian Army in September, 2000. During
his distinguished military career, he
received number of awards including the
Ati Vishista Seva Medal (AVSM) and the
Param Vishishta Seva Medal (PVSM) - the
highest National award for distinguished
services.
He holds the directorship and

membership of the Committee(s) of the

o Company
.

Motors Member- Audit
Limited Committee
Member- Remuneration
Committee
2 Reliance Director
Energy Member- Audit
Limited Committee
Member-
Remuneration/Nominati
on Committee
Member- Safety &
Environment
Committee
3 BSES Director
Rajdhani
Power Limited
4 BSES Yamuna Director

Power Limited
MR. ANALJIT SINGH

Mr. Analjit Singh was appointed as an
Company on September 28, 2004 . He is
currently Chairman of Max India Limited,
New Delhi.
Mr. Singh brings with him rich and varied
experience in businesses like
Pharmaceuticals, telecom services,
packaging, specialty plastic products and
electronic components.
Mr. Singh is currently on the board of the

following companies:

o Office
.

Limited
2 Max India Limited Chairman
3 Max New York Life Chairman

Insurance Company
Limited
4 Max Healthcare Chairman

Institute Limited and Mg.
Director
5 IDBI Limited Director
6 Max Medical Services Chairman

Limited
7 Acquire Talent Services Director

Limited
8 Max Health Staff Chairman

International Limited
9 Malsi Holdings Limited Chairman
1 Malsi Estates Limited Director

0
1 Hero Corporate Services Director

1 Limited
1 Vodafone Essar Limited Director

2
1 Neeman Medical Chairman
3 International (Asia)
Limited
DR. PRITAM SINGH

Dr. Pritam Singh was appointed as an
Company on September 28, 2004 . He is
author of seven academically reputed
books and over 50 research papers. Dr.
Pritam Singh is one of the pioneers of
Management Education in India who has
devoted his life to the development of
Management Education in India and
abroad. Dr. Singh received the "Padam
Shri" award in 2003 for his contributions
in this field.
He is also on the Board of the following

companies and their committees:

o Company
.

Limited Member - Audit
Committee
Member -
Shareholder's
Grievance
Committee
2 Parsvnath Director
Developers Limited
3 Dish TV India Director

Limited
4 Indian Medicines Director

Pharmaceuticals
Corporation Ltd.
5 Delhi Stock Director

Exchange Limited
6 Godrej Properties Director

Limited
MRS. SHOBHANA BHARTIA

Mrs. Shobhana Bhartia was appointed as
Company on March 24, 2005 . She
belongs to the distinguished Birla family
and has married into another major
industrial family, the Bhartia Group.
Currently, she is the Vice Chairperson and
Editorial Director of HT Media Limited.
She has been conferred the "Padam Shri"
by the Union Government for her
contribution to the media. Mrs. Bhartia is
also the Chairperson of International
Press Institute (India Chapter).
Mrs. Bhartia is director on the Board of

the following companies and their
committee(s):

o Company
.

Motors Limited
2 Air Travel Bureau Director

Limited
3 Britex (India) Director

Limited
4 Goldmerry Director
Investment &
Trading Co.
Limited
5 HT Media Limited Director

Chairperson –
Compensation
Committee
6 HTL Investment & Director

Trading Co.
Limited
7 Nilgiri Plantations Director

Limited
8 Ronson Traders Director

Limited
9 Shradhanjali Director
Investment
& Trading Co.
Limited
1 The Hindustan Director

0 Times Limited Member – Audit
Committee
Chairperson –
Nomination
Committee
1 H.T. Music and Director

1 Entertainment Chairperson - Audit
Limited Committee
1 Udit (India) Director

2 Limited
1 Usha Flowell Director

3 Limited
1 Yashovardhan Director
4 Investment
& Trading Co.
Limited
1 Medialab Web Director

5 Solutions Limited
MR. SUNIL BHARTI MITTAL

Mr. Sunil Bharti Mittal was appointed as
Company on December 30, 2005. He is
the Founder Director of Bharti Tele-
Ventures Limited. He is also a member of
the Prime Minister's Council on Trade &
Industry and has headed various telecom
industry associations. Mr. Mittal is also
the Honorary Consul General of the
Republic of Seychelles in India and has
won a number of national and
international awards for his contributions
to business such as the Asia Businessman
of the Year, 2006 by Fortune magazine,
Asia Pacific CEO of the Year by Frost and
Sullivan 2006 etc. Mr. Mittal has been
conferred with one of the highest civilian
award “Padma Bhushan” for his immense
contribution to the Indian Industry.
Mr. Mittal is currently on the board of the
following companies:

o Office
.
1 Bharti Airtel Limited Chairman and

Mg. Director
2 Bharti Telecom Limited Chairman
3 Bharti Teletech Limited Chairman
4 Bharti Telesoft Limited Chairman
5 Bharti Telesoft Chairman

International Limited
6 Bharti AXA Life Director

Insurance Company
Limited

Limited
MR. MELEVEETIL DAMODARAN

Mr. Meleveetil Damodaran has been
appointed as an Additional Director w.e.f.
June 16, 2008 in the category of Non-
Executive and Independent Director. Mr.
Damodaran, aged 61 years was born on
May 4, 1947 and belongs to the Indian
Administrative Service, Manipur-Tripura
Cadre. He had held various coveted
positions in Government / Public Sector
and Regulatory Bodies.
In the past he held the position of Joint

Secretary (Banking Division) in the
Ministry of Finance, Chairman Unit Trust
of India. He headed the IDBI bank before
being appointed as the Chairman of the
Securities and Exchange Board of India
(SEBI), the country's financial market
watchdog. He was also appointed as
officer on special duty with the Reserve
Bank of India dealing primarily with the
restructuring of three identified weak
public sector banks.
Mr. Damodaran is currently on the board

of the following companies:

o Office
.

Limited
2 Tech Mahindra Limited Director

MR. ARUN NATH MAIRA
Mr. Arun Nath Maira has been appointed
as an Additional Director w.e.f. December
20, 2008 in the category of Non-Executive
and Independent Director. Mr. Maira,
aged 65 years got his Master’s Degree in
Physics from St. Stephen's College, Delhi.
Mr. Maira has a work span of over 35
years in creating and transforming
organizations all across the globe. After
receiving his degrees, he joined Tata
Administrative Service and served the
Tata group for 25 years. Subsequently,
Mr. Maira worked with Arthur D Little
(ADL) USA, for 10 years as the Leader of
ADL's Global Organisation Practice and as
a Managing Director of Innovation
Associates - ADL's subsidiary.
Mr. Maira has been a member of The

Confederation of Indian Industry’s (CII)
National Council for many years, as well
as Chairman of several of CII’s National
Councils, including the National Council
for Corporate Governance, and Chairman
of CII’s Leadership Summit.
He is also on the Board of the following

companies:

o Company
.

Limited
2 Mahindra Ugine Director

Steel Company
Limited
3 Aditya Birla Nuvo Director

Limited
4 Patni Computer Director

Systems Limited Member -
Shareholder's
Grievance
Committee
5 Tata Chemicals Director
Limited
Chapter 4
ACHIEVEMENTS OF THE
PROMINENT AWARDS TO
THE COMPANY
Year Awards & Recognitions
200 NDTV Profit Business Leadership
Award 2008 - Hero Honda Wins the
8 Coveted "NDTV Profit Business
Leadership Award 2008"
TopGear Design Awards 2008 -
Hunk Bike of the Year Award
NDTV Profit Car India & Bike
India Awards - NDTV “Viewers’
Choice Award” to Hunk in Bike
category
IndiaTimes Mindscape and Savile
Row ( A Forbes Group Venture )
Loyalty Awards - “Customer and
Brand Loyalty Award” in Automobile
(two-wheeler) sector
Asian Retail Congress Award for
Retail Excellence (Strategies and
Solutions of business innovation and
transformation) - Best Customer
Loyalty Program in Automobile
category
NDTV Profit Car India & Bike
India Awards - Bike Manufacturer of
the year
Overdrive Magazine - Bike
Manufacturer of the year
TNS Voice of the Customer
Awards:
• No.1 executive motorcycle
Splendor NXG
• No.1 standard motorcycle CD
Deluxe
• No. premium motorcycle CBZ
Xtreme
200 The NDTV Profit Car India & Bike
India Awards 2007 in the following
7 category:
• Overall "Bike of the Year" -
CBZ X-treme
• "Bike of the Year" - CBZ X-
treme (up to 150 cc category)
• "Bike Technology of the Year" -
Glamout PGM FI
"Auto Tech of the Year" -
Glamout PGM FI by Overdrive
Magazine.
"Bike of the Year" - CBZ X-

treme by Overdrive Magazine.
Ranked CBZ X-treme "Bike of

the Year" - by B S Motoring
Magazine
“Most Trusted Company” , by

TNS Voice of the Customer
Awards 2006.
CD Deluxe rated as "No 1

standard motorcycle" by TNS
Voice of the Customer Awards
2006.
200 Adjudged 7th Top Indian
6 Company by Wallstreet Journal
Asia (Top Indian Two Wheeler
Company).
One of the 8 Indian companies

to enter the Forbes top 200
list of world’s most reputed
companies.
No. 1 in automobile industry

by TNS Corporate Social
Responsibility Award.
Best in its class awards for each

category by TNS Total Customer
Satisfaction Awards 2006:
• Splendor Plus (Executive)
• CD Deluxe (Entry)
• Pleasure (Gearless Scooters)
Splendor & Passion - Top two
models in two wheeler
category by ET Brand Equity
Survey 2006.
Adjudged 7th Top Indian

Company by Wallstreet Journal
Asia (Top Indian Two Wheeler
Company).
Top Indian company in the

Automobile - Two Wheeler
sector by Dun & Bradstreet -
American Express
Corporate Awards 2006.
Hero Honda Splendor rated as

India's most preferred two-
wheeler brand at the Awaaz
Consumer Awards 2006.
Certificate of Export
Excellence for outstanding
export performance during
2003-04 for two-wheeler &
three- wheelers - Complete
(Non SSI) by Engineering
Export Promotion Council.
The NDTV Profit Car India & Bike

India Awards 2006 in the following
category:
• Bike Maker of the Year
• Bike of the Year - Achiever
• Bike of the Year - Achiever (up
to 150 cc category)
• Bike of the Year - Glamour (up
to 125 cc category)
• NDTV Viewers' Choice Award
to Glamour in the bike category
200 Awaaz Consumer Awards 2005
5 - India's most preferred two-
wheeler brand by CNBC in the
'Automobiles' category.
Bike Maker of the Year Award

by Overdrive Magazine.
ICWAI National Award for

Excellence (Second) in Cost
Management 2004 in the
private sector category by
ICWAI.
10th Motilal Oswal Wealth

Creator Award for as the most
consistent wealth creator for
the period 1991-2005.
200 Winner of the Review 200 -
4 Asia's Leading Companies
Award (3rd Rank amongst the
top 10 Indian companies).
GVC Level 1 (Highest Rating)
by CRISIL for corporate
Governance.
Adjudged as the Best Value

Creator - Large Size
Companies 2003-04 by The
Outlook Money.
Corporate Excellence Award

2004 by Indian Institute of
Materials Management.
Adjudged as the Organization

with Innovative HR Practices
by HT Power Jobs for HR
Excellence.
ICSI National Award for

Excellence in Corporate
Governance 2004 by The
Institute of Company
Secretaries of India.
200 Winner of the Review 200 -
3 Asia 's Leading Companies
Award (3rd Rank amongst the
Most Respected Company in
Automobile Sector by Business
World.
Bike Maker of the Year by

Overdrive Magazine.
200 Bike Maker of the Year by
2 Overdrive Magazine.
Winner of the Review 200 -

Asia 's Leading Companies
Award (4th Rank amongst the
Company of the Year of ET

Awards for Corporate
Excellence.
Ranked 4th in 'Overall Best

Managed Company' category,
ranked 3rd in 'Best Financial
Management' and 'Best
Operational Efficiency'
category, ranked 6th in
'Overall Best Investor
Relations' category, by
Asiamoney.
Highest Wealth Creating
Company of the Year Award
by the Money.
GVC Level 1 (Highest Rating)

by CRISIL for Corporate
Governance.
200 Bike Maker of the Year by
1 Overdrive Magazine.
Winner of the Review 200 -

Asia 's Leading Companies
Award (9th Rank amongst the
top 10 Indian Companies).
Winner of Three Leaves Award

for showing Corporate
Environment Responsibility in
the Automobile Sector by
Centre for Science &
Environment.
199 National Productivity Award
9 for the Best Productivity
Award in the category of
Automobile & Tractor
presented by Vice President of
India.
199 The Analyst Award 1995
5 presented to Hero Honda
Motors Ltd. on being ranked
9th amongst the most investor
rewarding companies in India.
199 National Award for
5 outstanding contribution to
the Development of Indian
Small Scale Industry (NSIC
Award - Presented by
President of India).
199 Economic Times-Harvard
1 Business School Award for
Corporate Performance to
Hero Honda Motors Ltd.
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CHAPTER 5
GENERAL INTRODUCTION TO
MARKET
A Market analysis is a documented investigation of a
Market that is used to inform a firm's planning activities
particularly around decision of: inventory, purchase,
work force expansion/contraction, facility expansion,
purchases of capital equipment, promotional activities,
and many other aspects of a company.
Not all managers are asked to conduct a market
analysis, but all managers must make decisions using
market analysis data and understand how the data was
derived. So all managers need a reasonable
understanding of the tools most used for making sales
forecasts and analyzing markets.
A large number of market analysis techniques are
related to sales forecasting, others are more general
techniques for analyzing markets. The literature defines
several areas in which market analysis is important.
These include: sales forecasting, market research, and
marketing strategy. Sales forecasting and market
analysis are complementary skills that any marketing
manager should possess.
ANALYSIS
CHAPTER 6
MARKETING ANALYSIS OF
MARKET ANALYSIS & COMPARATIVE
STUDY
The Indian auto
industry, worth US$ 34
billion in 2006, has
grown at a CAGR of 14
per cent over the last
five years with total
sales of vehicles reaching around 9 million vehicles in 2005-06.
Presently India is the second largest two-wheeler market in the
world, the fourth largest commercial vehicle market in the
world, the 11th largest passenger car market in the world, and
expected to be the seventh largest by 2016. Looking at auto
sales trends in 2006, industry experts anticipate that sales could
touch 10 million by March 2007, an annual growth rate of 20
per cent.
Auto sector set to touch double-digit

growth again:
The automobile industry is expected to register a
double-digit growth for the third consecutive year in
2006, touching 10.9 million vehicles, up 17% over the
last year. The passenger vehicle market during this
period is likely to close at 1.3 million units against 1.1
million units in 2005, registering a growth of 19%,
said a Society of Indian Automobile Manufacturers
(SIAM) statement on Thursday.
The Supreme Court verdict on overloading, boom in

the economy and improved road network pushed
the growth of multi-axle heavy commercial vehicles
during this calendar year.
The medium and heavy commercial vehicle sales

during this period are expected to record a growth of
30%, with a total sales of 2.58 lakh units against 1.98
units in the previous year. It is expected that while
the goods carriers will be growing at about 34-35%,
the passenger carrier segment will grow only at
about 5-7%.
The light commercial vehicle segment is expected to

close the year with 1.75 lakh units, up 30% over 1.34
lakh units in the last calendar year. The three-
wheeler market during is expected to record a
growth of over 20%, with a total sales of 4.07 lakh
against 3.39 lakh in 2005. The passenger carrier
three-wheelers picked up the growth momentum in
this year and are expected to register a growth of
22% compared to 17% for goods carriers unlike the
previous year when goods carrier grew at a higher
rate than the passenger carrier. Overall, the two-
wheeler market in this year is expected to grow at
15%, with the motorcycles leading the segment. The
two-wheeler sales this year is to reach 84.4 lakh units
against 72.96 units in the last year.
Hero Honda Reports Record Sales In October’06,
Sells Over 3.6 Lakhs Two-Wheelers: Company
launches two new models Passion Plus Limited edition & the New
Glamour with Alloy wheels during the month
Oct'0 Oct'0 FY 05- FY 06-

5 6 06 07
3020 3634 17320 19481

Total Sales
12 80 04 39
Exports
(incl in 6358 7073 59232 64759
above)
Hero Honda Motors Ltd., the world’s largest two-wheeler

manufacturer, has reiterated its undisputed leadership of the Indian
two-wheeler industry with record sales of 3,63,480 units during the
month of October 2006. This is in line with the company’s strategy
for aggressive top line growth and increased market share, which is
being implemented through the launch of eight new models in
2006, backed by aggressive marketing and communication
campaigns. Hero Honda’s sales for October 2006 have registered a
growth of more than 20 per cent over the corresponding month in
the previous year, when the company sold 302,012 units. The
recently launched CBZ X-treme has received a very encouraging
market response and will help Hero Honda to consolidate and gain
market share in the premium segment. During the month, Hero
Honda announced the launch of two new variants – the new
Glamour and Passion Plus Limited Edition that will positively
impact the volumes in the forthcoming quarter. Hero Honda will
also be increasing its marketing investment in brand building to
drive stronger sales. In the month of October, Hon’ble Prime
Minister Dr. Manmohan Singh laid the foundation stone of the
Company’s new manufacturing plant in Haridwar, Uttaranchal.
The plant will be operational by the middle of 2007 with an initial
capacity of 500,000 units. Hero Honda also became the only two-
wheeler Company to be named amongst the top 10 Companies in
India by the Asia 200 Leadership Report by the Wall Street Journal
Asia, reinforcing the Company’s market leadership.
Judged on the parameters of reputation, financial
soundness, innovation, long-term vision and quality
of products and services, Hero Honda has been
placed overall 7th in the rankings by the prestigious
report. For further information, please contact: Nora
Pradhan / Santanu Gogoi Corporate Voice | Weber
Shandwick Tel: 011 - 26936834-5 M: 9811855834 /
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Hero Honda’s September ’06 Sales Reiterates Its

Market Dominance: Cumulative Sales Jump over
10.8 per cent: Hero Honda Motors Ltd., the world’s largest
two-wheeler manufacturer, has reiterated its undisputed leadership
of the Indian two-wheeler industry by recording an impressive sale
of over 301,577 units during the month of September 2006. This is
in spite of the 15-day long ‘shradh’ period during the month, which
usually witnesses a fall in sales across the industry.
Hero Honda’s sales in September 2006 are 13.34 % higher than its
sales during the corresponding month in the previous year. The
company had sold 2,66,071 motorcycles during September 2005 as
against 301,577 two-wheelers in September 2006.
With September ending, the company’s cumulative sales for the

period April-September 2006 have also jumped to 15,84,659 units,
a significant growth of 10.8% over cumulative sales for the
corresponding period in 2005. Hero Honda had sold 14,29,992
motorcycles during the period April-September 2005. During the
month, Hero Honda, which is one of the Global Partners of ICC,
launched the “Hero for Heroes” campaign which coincided with
the onset of the cricket and the festive seasons.
Hero Honda announced two new brand ambassadors – emerging

cricketers Irfan Pathan and Suresh Raina – to add to its existing
line-up of cricketing heroes – Sourav Ganguly, Virender Sehwag,
Yuvraj Singh, Mohammad Kaif and Rohan Gavaskar. Some of
these cricketers feature in the “Heroes for Heroes” campaign.
Hero Honda Registers 23% Growth In June '06

Records a growth of 21% Sales in Q1 Of 2006-07:
Hero Honda, the 'World No.1' two-wheeler company, continues to
strengthen its leadership in the Indian two-wheeler industry,
registering impressive growth in sales in the first quarter of the FY
2006 - 07.
For the quarter ending June 2006, the company achieved

cumulative sales of 8,32,692 units, recording a growth of 21.29%
compared to the same period last year. During the corresponding
period last Financial Year, the company had recorded sales of
6,86,494 units in the first quarter ending June 2005. In June 2006,
the company sold 2,78,660 units registering an impressive growth
of 23.26% as against 2,26,073 units in June last year. During the
month, Hero Honda launched Glamour FI - India's first Fuel
Injection motorcycle. The new technology eliminates the need for a
carburetor, offers the most comfortable drive and the lowest
emissions, in addition to a host of other features, which is now
available for the first time to Indian two-wheeler riders.
Hero Honda Sells Over 2.50 Lakh Units In February

2006
Cumulative Sales Jump 14.16 %: Hero Honda, the ‘World
No. 1’ two-wheeler company for the fifth year in a row, has
continued to exhibit a leader’s performance in the first couple of
months in 2006. During the month of February 2006, the company
sold 2,50,695 units, as compared to 2,23,546 motorcycles sold
during February 2005. This translates into a growth of 12.14 per
cent in sales volume. The cumulative sales of the company for the
period April 2005 - February 2006 also witnessed a notable jump
of 3,38,632 units, from 23,89,807 to 27,28,439 units during the
corresponding period last year. This reflects a growth of 14.16
percent. In January 2006, Hero Honda rolled out its first 100cc
gearless scooter the “Pleasure” across India. The company also
launched 22 first ever women-exclusive scooter showrooms
“Just4her” across the country. “Just4her” is a unique concept
pioneered by Hero Honda Motors targeting the women customers.
In January 2006, Hero Honda was also conferred the honor of the
“Bike Maker of the Year” by NDTV Profit-Bike and Car for the
year 2005. Additionally its 150 cc offering Achiever received the
coveted ‘Bike of the Year’ award. Achiever and Glamour also
received the best bike awards for their respective categories. The
most desirable amongst these awards, the ‘NDTV Viewers’
Choice’ award in the bike category was also awarded to Hero
Honda Glamour, truly exemplifying the customers’ enduring trust
and faith in the company.
Hero Honda Begins 2006 On A High Note
Cumulative Sales Jump 14 %: Hero Honda, the ‘World No.1’
two-wheeler company for the fifth consecutive year, has continued
to exhibit a leader’s performance in the first month of the New
Year. During the month of January 2006, the company sold
2,49,450 motorcycles, as compared with 2,30,280 motorcycles sold
during January 2005.
This translates into an increase of 8.3 % in sales volume. The

cumulative sales of the company for the period April 2005 -
January 2006 has also increased to 24,77,744 motorcycles, a
notable jump from 21,66,261 motorcycles during the
corresponding period last year. This reflects a growth of 14.3 %. In
the month of January, Hero Honda rolled out its first scooter, the
100cc “Pleasure” and launched 22 women-exclusive scooter
showrooms “Just4her” across the country. The cities where
“Just4her” showrooms were launched include Lucknow, Delhi,
Ahmedabad, Pune (two showrooms), Bangalore, Hyderabad,
Baroda, Madgaon, Chennai (two showrooms), Chandigarh,
Ludhiana, Jaipur, Nagpur, Jamshedpur, Bhubaneswar, Guwahati,
Coimbatore, Cochin, Indore and Raipur.
Hero Honda Motors Scales A New High In Cy ’05

Closes The Year With Sales Of Over 29 Lac Bikes: Hero
Honda, the ‘World No. 1’ two-wheeler company, set precedence in
the industry by registering an unparalleled growth throughout the
calendar year (CY) 2005.
In the year that logged an impressive growth in the two-wheeler

sector, Hero Honda continued to exceed expectations by selling a
staggering 29,16,523 motorcycles during the calendar year 2005.
This converts to a growth of 15.3 per cent over CY ’04 where the
company sold 25,28,699 bikes. Mr. Pawan Munjal, Managing
Director, Hero Honda Motors Ltd., thanked customers for the
company’s continuous brilliant performance. He said “This year
has been exciting for us where we crossed significant milestones.
We fulfilled our commitment to the customers by providing the
latest and global standard products.
We launched several new products this calendar year. It is to the

complete credit of our customers who have shown continued faith
in us and our products that we have achieved the World No. 1 two-
wheeler company year after year." During CY ’05, the company
continued its consistent growth in sales performance. In December
2005, the company sold a total of 2,45,104 motorcycles as
compared with 2,30,751 bikes during the same month last year
which means an increase of 6.2 per cent. With this, the cumulative
tally for the period April-December 2005 stands at 22,31,104 bikes,
clocking a growth of 15.2 percent over the year 2004. The
company sold 19,35,981 motorcycles during the same period last
year. The calendar year 2005 also saw a slew of new launches in
various segments by the company. One of the biggest milestones
was the launch of ‘Pleasure’- the first scooter by Hero Honda.
‘Pleasure’ which is slated to hit the roads in January is targeted
primarily at women. Having established its leadership in the
industry, Hero Honda further consolidated its position by launching
three new motorcycles - ‘Super Splendour’, ‘Glamour’ and
‘Achiever’.
Hero Honda Continues On The Growth Path

Cumulative Sales For The Period Apr-Nov ’05 Grows
By Over 14 %
Hero Honda, the ‘World No. 1’ two-wheeler company, is
continuing to ride high on its steady sales performance month after
month. During November 2005, the company recorded a sales
volume of 2,51,186 motorcycles as compared with 2,35,836
motorcycles sold during the same month last year. This translates
into an increase of 6.5 per cent. The cumulative sales of the
company for the period April-November 2005 has also jumped by
14.7 per cent, increasing from 17,05,230 motorcycles sold during
April– November 2004 to 19,56,416 motorcycles sold during the
same period in 2005.
Retail Sales Escalate To An Unprecedented 4 Lakh +

Units In
Dispatch Crosses The 3-Lakh Landmark: Hero Honda, the
‘World No.1’ two wheeler manufacturer, has set yet another
precedent for the Indian two-wheeler industry by recording
incredible sales in October 2005. The company’s retail sales
crossed the 4-lakh milestone, for the first time ever in the Indian
two-wheeler industry. Additionally, dispatch during the month also
reached an unprecedented high of 3,02,000 units, marking a
remarkable jump of 23.02% as compared with the corresponding
month in 2004.
The company had recorded dispatch of 2,45,475 units in October
2004. Hero Honda’s achievement of the landmark 4 lakh plus retail
sales and 3 lakh plus dispatch, within a single month, is an
extraordinary feat considering the growing competition in the two-
wheeler market and is certain to redefine industry standards. The
company’s sales performance during October 2005 is a testimony
to the success of its customer centric business philosophy. Month
over month, the company has been recording increasing sales, also
signifying the success of its new models launched in the current
year. The company’s sales (dispatch) during the month is up by
13.5%, as compared with the previous month (September 2005),
when the company had recorded sales of 2,66,071 units. With the
first festive month ending, Hero Honda’s cumulative sales
(dispatch) for the period April-October 2005 has also registered a
significant growth of 17.87% over the corresponding period in the
previous year. The company’s cumulative sales tally has thereby
increased to 17,31,992 units, a jump from 14,69,394 units in 2004.
Closes Half Year With Impressive Numbers: Hero Honda,

the ‘World No.1’ two-wheeler company, for the fourth consecutive
year, continued its upswing during the month of September 2005.
The September sales of Hero Honda mark an impressive growth of
22.3 per cent over last year. The company sold 2,66,071 bikes in
September 2005 as against 2,17,507 bikes in the corresponding
month during the previous year. Sales during the month have also
jumped by 9.6 per cent over the previous month (August 2005),
when the company sold 2,46,304 motorcycles. The cumulative
sales of the company for the period April - September 2005 have
also shown a growth of 16.84 per cent over the corresponding
period last year. The cumulative sales during the period have
increased to 14,29,992 motorcycles from 12,23,919 motorcycles
during April-September 2004.
Phased Launch Of 'Glamour' Completed; Over 45,000

Units Sold Already: Hero Honda Motors Ltd., the ‘World No.1’
two-wheeler company for the fourth consecutive year, is
continuing with its robust performance month after month.
The company’s emphasis on proactive understanding and

satisfaction of customer needs and desires along with new product
offerings has resulted in the company consolidating its leadership
in the industry.
The company sold a total of 2,46,304 motorcycles during August

2005, thereby registering an impressive growth of 28.5 per cent in
sales over the corresponding month last year. The company had
sold a total of 1,91,635 motorcycles in August 2004.
At the end of August 2005, the cumulative sales of the company

for the period April - August 2005 stood at 11,63,921 motorcycles,
translating into a growth of 15.6 per cent. The company had sold
10,06,412 motorcycles during the corresponding period (April-
August 2004) last year.
Also during the month, Hero Honda completed the phased launch
of ‘Glamour’- its new offering in the 125 cc segment. The bike
comes powered with the futuristic and exemplary Quantum Core
engine, which has been perfected after a series of refinements and
offers customers an unprecedented combination of top-class fuel-
efficiency and high power. The company has already sold over
45,000 units of Glamour since its first launch in South India
towards the end of June, demonstrating a tremendous response
from customers.
Cumulative Sales Cross Nine Lakh Bikes In Four

Months: Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler
company has come to epitomize consistent performance. The
company has, month on month, managed to stand up against all
odds and maintained its leadership in the increasingly competitive
2-wheeler segment.
During the month of July 2005, the company sold 2,30,050 bikes,
as against 2,05,654 bikes in the corresponding period last year, thus
registering a sales growth of 12 per cent. For the period April - July
2005, the cumulative sale of the company stood at 9,17,617 units,
translating into a growth of 12.6% per cent. The company had sold
8,14,777 units during the corresponding period last year.
The company was able to achieve this impressive growth in the

face of continuing supply constraints of components caused by the
volatile labour situation prevailing in parts of the state of Haryana,
where both the manufacturing plants of the company are located.
The adverse situation impacted other industries in the region as
well. Thanks to the initiative taken by the Haryana government, the
situation has improved and production is expected to be back on
track. Market demand for Hero Honda products remains buoyant
and the company launched ‘Glamour’- a new entry by the company
in the premium deluxe segment, in Western India during this
month.
The bike was very successfully launched in South India in the

previous month and has been very well received by the customers
in that region. With this new product in its portfolio, the company
is now looking at consolidating its indisputable leadership in the
market.
CHAPTER 7
SWOT ANALYSIS
➢STRENGTHS
1)Strong brand name
2)Large customer base
3)Enhanced quality and long term service
commitments
4)Product preference by customers
➢WEAKNESSES
1)New products did not embark predicted sales.
2)New / change look is not undertaken in new
products.
➢OPPORTUNITIES
1)Competition is paving way for developing fuel
efficient product like splendor.
2)Upper rich segments are need to be targeted.
3)Stylish look need to be adopted in products as per
youth demanding.
➢THREAT
1)Competition is getting tougher every day.
2)Rival companies are making their every moves to
fight competition.
3)Customers are moving towards four wheeler
segment.
CHAPTER 8
CONSUMER RESPONSE ON
FINDINGS
1. Inference: - As per the survey conducted of the 80

individuals it has been inferred that 68 of the respondents hold
two wheelers while 12 of them are having four wheelers in their
personal and official use. It means there is a need to develop a
strong automobile potential.
2. Inference: - From the 68 individuals, 24 respondents are
driving scooters, whereas 41 respondents are driving
motorbike where as 8 respondents preferably females are non-
gear scooters like Honda Activa for the daily use. It depicts
demand for the Motorcycle is rising above than scooters and
every body is making its choice for the motorcycle only as it is
more stylish, durable and fuel efficient than scoters.
3.
Inference: - Out of the 41 individuals who prefer to ride on

Motor Cycle, respondents prefer HERO HONDA to be their
ultimate choice as can be depicted in the following table.
4. Inference: - HERO HONDA MOTORS has such a strong
presence in all the parts of India that people are more aware
about the branded value of HERO HONDA as the company is
serving generation to generation for years. This can be inferred
when 45 of the individuals know HERO HONDA since 10
years. Indeed a hero on the Indian roads.
5. Inference: People ranked HERO HONDA as a No.1 Two
wheeler company with vast majority of 64 individuals of the
total 80 respondents gav etheir preference ranking in favour of
Hero Honda as No.1 2-wheeler automobile thus signify how
much the goodwill can be measured of the company.
6. Inference: - When further asked from the 41 respondents
about what they liked in HERO HONDA, respondents prefer
the brand name first, then its mileage, thereafter few preferred
Price, service and rest stylish look. There is strong need for a
company to raise more stylish look motor cycles in market.
7. Inference: For Hero Honda people wish even to pay a little
extra for mileage and great look in the coming models of the
HERO HONDA.85% of the respondents owing two wheelers
said yes in favour of it.
8. Inference: Further it was concluded that from all the 80
respondents surveyed, 87% of the people said they are agreed
that Hero Honda has captured the large segment of the Indian
Market with the considerable preference.
CHAPTER 9
FINDINGS AND RECOMMENDATIONS
FINDINGS
1. India is the second largest two-wheeler market in the
world.
2. Two wheeler market has grown at a CARG of 14%

over the last 5 years with total sales of vehicle reaching
around 9 million vehicles in 2005-2006.
3. Hero cycles and Honda motor company of Japan inked
their joint venture in India in April 1984.
4. Hero Honda has relied on 3 r’s – Reach, Research, and
Reliability as its basic building blocks.
5. For the period April- July 2005, the cumulative sale of

the Company stood at 917617 units translating into a
growth of 12.6%.
6. 90% consumer wants to buy Hero Honda.

7. The performance of Hero Honda over the last 5 financial
year has shown a significant rise in the sales and
overall profit of the company.
RECOMMENDATIONS
Following are the recommendations useful for HERO
HONDA:
HERO HONDA requires maintaining its success growth rate

in future as competition is becoming more stiff and
cutthroat.
The company has to implements its strategies in such manner

making every efforts to boost up the sales and net income as
a whole by reaching to every segment of the society.
It needs to develop more fuel-efficient two-wheelers or

motors bikes to facilitate the customers at large, servicing
them promptly.
Needs to open few branches more.
Aggressive selling techniques need to be adopted.
As customers are turning towards Four wheelers, there is a
strong urge to capture rural segments as soon possible with

all possible advantages.
CHAPTER10
CONSUMER SATISFATION
2007 TNS consumer satisfaction ratings
October 16th, 2007 under Auto News and Automobile.
Hero Honda, Bajaj Auto and Enfield motorcycles have come out tops in
the customer satisfaction ratings in the 2007 TNS Motorcycle Total
Customer Satisfaction Study conducted by TNS Automotive. The study
says that newly launched motorcycles including the Splendor NXG and
CBZ Extreme from Hero Honda, Discover 135 from Bajaj Auto and
Bullet 350 from Enfield have been ranked highest in their respective
segmets. The study was conducted by compiling responses of more than
7,000 new motorcycle buyers as regards the performance of more than 50
models across parameters like sales satisfaction, product quality,
motorcycle performance and design, after-sales service, brand image, and
cost-of-ownership. The index score provides a measure of satisfaction and
loyalty that a given model or brand enjoys among its customers. Pradeep
Saxena, senior VP, TNS India - Automotive said: “The continued efforts
of the industry in bringing down the cost of ownership and providing a
good sales experience have clearly borne fruit. A trend that has been
continuing for the past couple of years is the strong performance of new
models. They tend to get high ratings on performance and design, an
indicator of the growing design capability of the Indian industry “.
Saxena adds, “The upper executive segment is a big contributor to the
overall development of the Indian two-wheeler market. The right mix of
performance, product design and cost of ownership is making this the
preferred option among a large segment of Indian motorcycle owners who
plan to buy a motorcycle in future”.
The study also found that the expectation of the buyer of standard
motorcycles (entry level bikes) has gone up from the previous level, now
the buyer also expects similar attention and commitment as the buyer of
higher value bikes. Styling of the bikes in executive segment is gaining
importance in overall customer satisfaction. In transacting with the
service dealer, competitive pricing and explanation have gained
importance as well as have high impact on retention. For the upper
executive segment latest technology and style have gained importance.
Explanation of feature and benefit gained in terms of stated importance
while Salesperson knowledge impacts largely on retention. Premium
segment buyers are at the center of focus for all of the manufacturers that
have educated the customer and empowered him to buy consciously after
comparing all the options, now he expects manufacturers to give him the
best technology, he questions salesperson and look for the best financing
options available and demands quick service.
For future purchases the preference for motorcycles with high engine
capacity (150cc and above) is seen in all four regions of the country
however it is almost 70% in south closely followed by west. Across the
country, close to 24% of current motorcycle owners intend to upgrade to a
four-wheeler as their next vehicle. The propensity to upgrade to a car is
higher in the north as compared to other parts of the country.
FUTURE OF TWO WHEELER
INDUSTRIES IN INDIA
FUTURE OF TWO WHEELER INDUSTRY IN INDIA
India has always been one of the biggest destinations of automobile

majors throughout the world. Not without any reason. It has the
second largest two wheeler market in the world, fourth largest
commercial vehicle market in the world and the eleventh largest
passenger car market in the world. So as it is, it’s a very big and a
potential hub for a lot of market leaders elsewhere in the world to
come and invest.
Auto Expo is here again. And the biggest attraction this time
around is the Rs. 1 lakh people's car from the greatest car
manufacturers in India, the Tatas. Ratan Tata, as promised,
launched the car called "Nano" today on the inaugural day of the
Auto Expo 2008 at New Delhi. With more than 35 new passenger
car models expected to hit the Indian roads in the coming financial
year, it’s going to be rather interesting to watch the scenarios
unfold in the Indian Automobile market.
First and the foremost, the main important question that has
always been raised is, how is going to affect the two wheeler
industry? Well that’s a really interesting and a debatable point. I
have always been very keen to see how it’s going to unfold itself.
With the introduction of the low price car, many feel its going to
affect the two wheeler market. I have more than a couple of reasons
to strongly believe it will not.
One main reason why I believe it is not going to affect too much is
because as quoted by Tata, Rs. 1 lakh is going to be the dealer price
(not ex showroom price) for the car. So lot remains to be added to
it. VAT, excise duty, dealer margin, etc added on will give the ex
showroom price. And on that one has to add the cost of
registration, life tax, etc. So I don’t expect it, to create a hole in the
buyers pocket less than Rs 1.4 lakhs minimum. And that’s only
about the basic model. As the luxury increases, the cost escalates
accordingly. A normal Indian two wheeler comes around a price tag
of around Rs.50000. So I don’t think many people will pay three
times more and go for a car, just because it is cheap.
Secondly, the fuel economy provided by a car. At best 25kmpl.

That’s nowhere compared to what a bike will give. There are
motorcycles in today’s market in India, which give 75kmpl also. So
running cost in case of the car, can simply be taken as three times
of that of a two wheeler. And mind you, the Indian public is very
very damn sensitive about the fuel economy his vehicle gives. I
even remember one of my friends, arguing with me, about a
premium segment bike, something which is designed for power,
pickup and style. Fuel economy is never a criterion while designing
such bikes. But then, that point always remains in one corner of a
general Indian's mind.
Thirdly, giving a car for Rs. 1 Lakh raises a lot of questions about
the reliability and quality of the product. Though the Tata's have
been known for quality and reliability, much remains to be proved.
They have claimed that it conforms to the highest levels of safety
standards; the real test is when the car hits the roads. Any number
on tests on the software, or any number of accelerated tests is not
at all comparable to what actually happens in the field. So frankly
speaking, that’s one more reason.
Fourthly, let’s be a bit practical. Considering the scenario of traffic

and roads in India, and the rate at which infrastructure is growing
in comparison with the market, any fool will prefer to travel in a
two wheeler (for regular use, not for picnic or time pass or once in a
while trips). For the simple reason that, with a two wheeler,
sneaking anywhere is far easier than a four wheeler. And definitely
faster too. And then comes the bigger problem of parking. Two
wheelers can be parked anywhere on the road, but that’s not the
case with a four wheeler. So, the whole point is unless there is some
way where these two issues are addressed, I don’t think anything
significant is going to happen.
People have always argued that, as the country becomes developed,

the number of two wheelers in the country will reduce significantly,
and the number of four wheeler users will increase drastically. I too
used to believe it to some extent. I recently came back from Kuala
Lampur. True to some extent, I hardly found a two wheeler on the
road. Everybody literally had a four wheeler. But then, Malaysia is
Malaysia and India can never become that. For the simple reason
that India is a vast country, with a huge population. With people of
different cultural backgrounds, it’s really going to be difficult to
integrate people. And with the sense of discipline what I have seen
among Indians, I don’t see it happening atleast for the next 50
years. All the technological advances and all have only increased
the gap between the rich and the poor. The rich may be increasing
in the cities. The standards of living may have improved. Everyone
may be having a TV or a computer or whatever these days. But then
there are a different set of people living in the villages, who still
travel on bullock carts even though he knows how to ride a bullet,
people who still use oxen to plough their fields even though they
know there is something called a tractor which can do the same
thing faster and more efficiently. So it’s only that there are still
people who earn less. There still are people who don’t have basic
healthcare within a 5 km radius of where they live. So it’s simply
not easy to integrate India and make it developed. And the politics
and politicians we are having will ensure that it will never happen.
The major reason for the slump in the two wheeler industry
happens to be availability of finance, which itself adds to the fact
that the people here are not all that rich to buy a bike on their own.
And the interest rates are booming so high, and recovery also has
become more and more stringent. So that’s one and probably the
only reason for the small decline in the two wheeler industry. The
point is, even if someone buys a car, he will definitely have a two
wheeler with him. If at all anybody is going to be affected by the
introduction of this new low cost car, I strongly feel its going to be
the small car manufacturers like Maruti and Hyundai, rather than
the Two wheeler Industry as a whole.
CONCLUSION
From the conclusion point of view, I wish to summarize regarding

my project undertaken in HERO HONDA as a great work and
experience achieved under a Indian two wheeler giant. HERO
HONDA as a name itself is a highly marketable and saleable name
in the market of automobiles of two wheelers and four wheelers as
well. The performance over the last 5 financial years has shown a
significant rise in the sales and overall profit of the company.
The Company has made itself sounder despite the rising
competition day-by-day and meting out all the social
responsibilities towards the society and nation honestly. The
company has made itself a lot of achievement and awarded
gracefully for several of its milestones.
At last, I just want to convey that to be the part of company was a
proud matter for me and I wish to foresee my career prospects in
HEROHONDA
BIBLIOGRAPHY
FOLLOWINGS ARE THE REFERNCES WHICH I HAVE
CONSIDERED WHILE MAKING THIS PROJECT.
BOOKS:
1. KOTHARI, C.R., Research Methodology & Management, 5th

Edition
2. KOTLER PHILIP, Marketing Management, 4th Edition

3. RAMASWAMY NAMAKUMARI, Marketing Concepts, 3rd
Edition
NEWSPAPER:
TIME OF INDIA
WEB:
http://prabhunitin.blogspot.com/2008/01/future-of-two-wheeler-industry-in-india.html
http://www.vicky.in/straightfrmtheheart/2007-tns-consumer-satisfaction-ratings/
http://www.scribd.com/doc/8148486/Project-report-on-hero-honda-by-YOONAF-
ISHTIAQ
http://www.herohonda.com/co_board_directors.htm
http://www.herohonda.com/
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBOM3566420
071203
http://search.rediff.com/imgsrch/preview.php?story-url=http%3A%2F
%2Fwww.rediff.com%2Fnews%2F2002%2Fsep%2F07pic4.htm&img-url=http%3A%2F
%2Fim.rediff.com%2Fnews%2F2002%2Fsep%2F07pic4.jpg&search-keyword=hero
%20honda&img-size=20k&img-height=279&img-width=350&img-type=JPEG&thumb-
url=http%3A%2F%2Fimsearch.rediff.com%2Fimages%2Fpreview%3Fi%3Dhttp%253A
%252F%252Fim.rediff.com%252Fnews%252F2002%252Fsep
%252F07pic4.jpg.thumb&addr-url=http%3A%2F%2Fsearch.rediff.com%2Fimgsrch
%2Fdefault.php%3FMT%3Dhero%2520honda&sizeImg=&pos=3&link=thumb
http://www.fadaweb.com/itw_industry.htm
ANNEXURE
QUESTIONNAIRE
Title: -
“MARKET ANALYSIS THROUGH CONSUMER RESPONSE
ON HERO HONDA”
Name of the Contacting Person:

Age:  yrs.
Occupation: - Business  Working  Student  Other
Q.1 Do you Own a
1) Two Wheeler 
2) Four Wheeler 
Q.2 If you Own Two Wheeler, Is it a
1) Scooter 
2) Motor Bike 
3) Non Gear 
Q.3 Does you Two-wheeler belong to:
1) HERO HONDA 
2) TVS 
3) BAJAJ 
4) LML 
5) Any other 
Q.4 Since How long you ago know the name of Hero Honda?
1) More than 10 yrs.

2) 5 yrs 
3) 1 yrs 
4) I don’t know 
Q.5. How do you rank Hero Honda as a Two-wheeler manufacturer?
1) I 
2) II 
3) III 
4) IV 
Q.6 What do you preferred most in Hero Honda?
1) Price 
2) Stylish Look 
3) Brand name 
4) Mileage 
5) Service 
Q.7 Do you wish to pay little more extra if a product from HERO
HONDA offers you the more mileage and great look because of its
branded market value?
1) Yes 
2) No 
Q.8 Do you agree that Hero Honda today has captured a large
majority of share in Indian Two wheeler market specially Motor
Cycle era?
1) Yes 
2) No 
Any Suggestions for improvement of our services:
-
1. ______________________________________
__________
2. ______________________________________
__________
3. ______________________________________
__________
4. ______________________________________
__________
5. ______________________________________
__________

Marketing Analysis of Hero Honda by Neeraj Pant

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NEERAJ PANT

It gives me pleasure and satisfaction categorically

state that Project is not solo effort. So many people

have contributed there bit to it. The task of

completing this project would have been difficult if

it was not for timely help, support and

encouragement given to me by numerous people.

The project would not have taken shape without

the constant guidance, advice and insight of Ms.

RENUKA , whom I express my sincere thanks for

P.U PIN: 1750600765

B.B.A. 3rd Year

This is to certify that the Project work entitled

P.U PIN: 17506000765

BBA Final Year

Project work is a part of our curriculum,

Market analysis means to analyze the

So every effort is made to clearly study market

However, the major set of reforms was launched in the

National Council of Applied Economic Research (NCAER)

It is important to remember that the above-mentioned

Table 1: Demand Forecast for Motorcycles

Note: Compound Annual Rate of Growth during

The present economic situation of the country makes the

There is a large untapped market in semi-urban and rural

Indian Two wheeler industry, Key players and Types of two-

India is the second largest producer and manufacturer of two-wheelers

The two-wheeler market was opened to foreign companies in the mid

Key players in the Two-wheeler Industry :

Company : Bajaj Auto

Company : TVS Company : Yamaha

performance of crossing 6 million two wheelers with exact

Though the metal bodied geared scooters have fallen out of

2001- 2002- 200 200 2005-06

motorcycles as has been mentioned through out this website

Manufacturers of two wheelers india

Public company BSE:HEROHONDA

January 19, 1984 in Gurgaon,

Brijmohan Lal Munjal (chair and

Products Motorcycles, Scooters

Revenue U$ 2.8 billion

A Hero Honda "Splendor" bike

1 Mr. Brijmohan Lall Chairman &

2 Mr. Pawan Munjal Managing Director

3 Mr. Toshiaki Joint Managing

4 Mr. Sumihisa Technical Director

5 Mr. Om Prakash Non-executive

6 Mr. Sunil Kant Non-executive

7 Mr. Masahiro Non-executive

8 Mr. Satoshi Non-executive

9 Mr. Pradeep Non-executive &

1 Gen.(Retd.) Ved Non-executive &

1 Mr. Analjit Singh Non-executive &

1 Dr. Pritam Singh Non-executive &

1 Ms. Shobhana Non-executive &

1 Mr. Sunil Bharti Non-executive &

1 Mr. Meleveetil Non-executive &

1 Mr. Arun Nath Non-executive &

BRIEF PROFILE OF DIRECTORS

Mr. Brijmohan Lall Munjal is the founder

Mr. Brijmohan Lall Munjal is currently on

N Name of Company Nature of

1 Hero Honda Motors Chairman and