INTRODUCTION TO SECTOR/COMPANY

1|Page
 Introduction

The Indian auto industry became the 4th largest in the world with sales increasing 9.5
per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was
the 7th largest manufacturer of commercial vehicles in 2018.
The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for
the near future. Automobile exports grew 14.5 per cent during FY 2019. It is
expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several
initiatives by the Government of India and the major automobile players in the Indian
market are expected to make India a leader in the two-wheeler and four wheeler
market in the world by 2020.

Market Size

Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-
19 with 26.27 million vehicles getting sold in FY19 .Domestic automobile production
increased at 6.96 per cent CAGR between FY13-19 with 30.92 million vehicles
manufactured in the country in FY19
In FY19, year-on-year growth in domestic sales among all the categories is recorded
in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-year
growth in the sales of three-wheelers.
Premium motorbike sales in India crossed one million units in FY18. During January-
September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in
India at 7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury
vehicles segment according to J D Power 2018 India sales satisfaction index (luxury).
Sales of electric two-wheelers are crossed 55,000 vehicles in 2017-18.

2|Page
 Investments :
In order to keep up with the growing demand, several auto makers have started
investing heavily in various segments of the industry during the last few months. The
industry has attracted Foreign Direct Investment (FDI) worth US$ 21.38 billion
during the period April 2000 to March 2019, according to data released by
Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the recent/planned investments and developments in the automobile sector in
India are as follows: 2000 to March 2019, according to data released by Department
for Promotion of Industry and Internal Trade (DPIIT).
Some of the recent/planned investments and developments in the automobile sector in
India are as follows:
 Ashok Leyland has planned a capital expenditure of rs 1,000 crore (US$ 155.20
million) to launch 20-25 new models across various commercial vehicle categories in
2018-19.
 Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also
announced to invest US$ 310 million in India.
 Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to
20,000 units per year, highest for any luxury car manufacturing in India.
 As of October 2018, Honda Motors Company is planning to set up its third factory in
India for launching hybrid and electric vehicles with the cost of Rs 9,200 crore (US$
1.31 billion), its largest investment in India so far.
 In November 2018, Mahindra Electric Mobility opened its electric technology
manufacturing hub in Bangalore with an investment of rs 100 crore (US$ 14.25
million) which will increase its annual manufacturing capacity to 25,000 units.

3|Page
 Government Initiatives:
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -
 The government aims to develop India as a global manufacturing centre and an R&D
hub.
 Under NATRIP, the Government of India is planning to set up R&D centres at a total
cost of US$ 388.5 million to enable the industry to be on par with global standards.
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the
country for introduction of electric vehicles (EVs) in their public transport systems
under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric
Vehicles in India) scheme. The government will also set up incubation centre for
start-ups working in electric vehicles space.
 In February 2019, the Government of India approved the FAME-II scheme with a
fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

Achievements:
Following are the achievements of the government in the past four years:
 Number of vehicles supported under FAME scheme increased from 5,197 in June
2015 to 192,451 in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-
wheelers, 185 four-wheelers and 10 light commercial vehicles were supported under
FAME scheme.
 Under National Automotive Testing and R&D Infrastructure Project (NATRIP),
following testing and research centres have been established in the country since
2015.
 International Centre for Automotive Technology (ICAT), Manesar
 National Institute for Automotive Inspection, Maintenance & Training (NIAIMT),
Silchar
 National Automotive Testing Tracks (NATRAX), Indore
 Automotive Research Association of India (ARAI), Pune
 Global Automotive Research Centre (GARC), Chennai

4|Page
  SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being
set up in the country for promoting smart and advanced manufacturing helping SMEs
to implement Industry 4.0 (automation and data exchange in manufacturing
technology).

Road Ahead

The automobile industry is supported by various factors such as availability of skilled

labour at low cost, robust R&D centres and low cost steel production. The industry
also provides great opportunities for investment and direct and indirect employment
to skilled and unskilled labour.
Indian automotive industry (including component manufacturing) is expected to reach
Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026.

Automobile Industry in India :

5|Page
 `

6|Page
History
Bajaj Auto came into existence on 29 November 1944 as M/s Bachraj Trading
Corporation Private Limited. It started off by selling imported two- and three-wheelers in
India. In 1959, it obtained a license from the Government of India to manufacture two-
wheelers and three-wheelers and obtained Licence from Piaggio to manufacture Vespa Brand
Scooters in India and started making Vespa 150 scooters. It became a public limited company
in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it sold 100,000 vehicles in a
financial year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it sold
500,000 vehicles in a financial year. In 1995, it rolled out its ten millionth vehicle and
produced and sold one million vehicles in a year.

With the launch of motorcycles in 1986, the company has changed its image from a scooter
manufacturer to a two-wheeler manufacturer.
In 2017 it was announced that Bajaj Auto and Triumph Motorcycles Ltd would form an
alliance to build mid-capacity motorcycles
According to the authors of Globality: Competing with Everyone from Everywhere for
Everything, Bajaj has operations in 50 countries creating a line of bikes targeted to the
preferences of entry-level buyers.

7|Page
Growth of Bajaj Auto Ltd

FY2019 has not been a particularly brilliant year from an economic point of view. The
second advance estimate of the Central Statistical Organisation (CSO) has pegged real GDP
growth at 7.0%, and real growth of gross value added (GVA) at 6.8%. Both these estimates
are lower than what occurred a year earlier.

Moreover, growth has slowed down on a quarterly basis. After posting an impressive 7.8%
growth in April-June 2018, GVA growth reduced to 6.8% for July-September 2018, and then
even further

Despite such a milieu, your Company has performed admirably. Allow me to outline the key
results.

• Total turnover increased by 18.5% to Rs 31,899 crore. This is the company's highest ever
top-line.

• Total operating income (net sales plus other operating income) grew by 20.1% to Rs 30,540
crore also Bajaj Auto's highest.

• Operating EBITDA increased by 4.7% to Rs 5,387 crore.

• Profit before tax (PBT) after exceptional items grew by 15.9% to Rs 6,703 crore, which was
also the best for Bajaj Auto.

• Profit after tax (PAT) increased by 14.9% to Rs 4,675 crore — this, too, being the highest
ever.

• Surplus cash and cash equivalents as on 31 March 201 9 was up by 5.3% to Rs 16,368
crore.

8|Page
There are several positive aspects of your Company's performance. Let me share three.

First, and this pleases me no end, with a combination of well styled, appealing products and
astute pricing, Bajaj Auto has begun to grow its domestic market share in motorcycles. In the
course of a single year, FY201 9, your Company succeeded in increasing its domestic sale of
motorcycles by almost 29% — and, in the process, grew its market share by 3 percentage
points to 18.7%. In fact, for March 2019, the market share exceeded 20.0%. I hope that we
are seeing the beginning of a trend that will continue to increase your Company's share of
motorcycles in the domestic market and, in doing so, take Bajaj Auto to a place that behoves
its presence.

Second, I am delighted that in FY2019 your Company exported over 2 million motorcycles,
three-wheelers plus its new quadricycle, the QUTE, to no less than 79 countries. This is a
landmark achievement, and represents a growth of 25% over the previous year — one that
truly lends itself to the theme of this year's annual report, The World's Favourite Indian''.

Third, I continue to remain impressed with your Company's performance in the three-
wheelers space. In FY2019, Bajaj Auto's overall three-wheeler sales grew by more than 22%
to reach an all-time high. Much of this growth was driven by an impressive 43% growth in
exports. Your Company accounted for almost 57% of total three-wheeler sales in India, and
two-thirds of total sales to export markets.

9|Page
 Management

Name Designation

Abraham Joseph Chief Technology Officer

Anami Roy Director

D J Balaji Rao Director

Eric Vas President

Gita Piramal Director

J Sridhar Co. Secretary & Compl. Officer

J Sridhar Secretary

K S Grihapathy Senior Vice President

Lila Poonawalla Independent Director

Madhur Bajaj Vice Chairman

Nanoo Pamnani Director

Naushad Forbes Director

Niraj Bajaj Director

Omkar Goswami Director

Pradeep Shrivastava Executive Director

Pradip Shah Independent Director

R C Maheshwari President

Rahul Bajaj Chairman

10 | P a g e
 Rajiv Bajaj CEO

Rajiv Bajaj Managing Director

Rakesh Sharma Executive Director

Ravi Kyran Ramasamy President - HR

S Ravikumar President

Sanjiv Bajaj Director

Sarang Kanade President

Shekhar Bajaj Director

Soumen Ray Chief Financial Officer

Subash Rao President

Sumeet Narang Vice President

Finished Products

SALES
PRODUCT INSTALLED PRODUCTION SALES VALUE
NAME UNITS CAPACITY QUANTITY QUANTITY (Rs Cr.)

Automobile -
2 & 3
Wheelers N.A. 0.00 0.00 0.00 29567.2500

11 | P a g e
12 | P a g e
 CURRENT PRODUCTS OFFERED BY BAJAJ

13 | P a g e
 MODEL EX-SHOWROOM PRICE
Pulsar 150 Rs. 71,200 - 88,838
Pulsar NS200 Rs. 1.13 Lakh
Pulsar 220 F Rs. 1.07 Lakh
Pulsar RS200 Rs. 1.40 Lakh
Pulsar NS160 Rs. 93,094
P

Bajaj manufactures and sells motorcycles, scooters, auto-rickshaws and most recently,
cars. Bajaj Auto is India's largest exporter of motorcycles and three-wheelers. Bajaj
Auto's exports accounted for approx. 35% of its total sales. 47% of its exports are
made to Africa. Boxer motorcycle is the largest selling single brand in Africa.

Motorcycles by Bajaj Auto Company

Bajaj bike prices in India start at Rs 33,402 for Bajaj CT 100, which is the cheapest
model. The most expensive Bajaj bike is the Bajaj 2019 Dominar 400 priced at Rs
1.80 Lakh. The Bajaj Pulsar 150 (Rs 71,200), Bajaj Pulsar NS200 (Rs 1.13 Lakh),
Bajaj Pulsar 220 F (Rs 1.07 Lakh) are the most popular motorcycles from Bajaj.New
bikes from Bajaj in 2019 include Bajaj Pulsar 125 Neon and Bajaj CT110.New bikes
from Bajaj in 2019 include Bajaj Pulsar 125 Neon and Bajaj CT110. Upcoming Bajaj
bikes in India include Bajaj Pulsar 250, Bajaj 2020 Pulsar 150 and Bajaj Avenger
400,which are expected to launch in 2019.Select a Bajaj bike model to find out its
latest price, spec, offers, colours and more.

14 | P a g e
 Auto rickshaw (three wheeler)
Bajaj is the world's largest manufacturer of auto rickshaws and accounts for almost
84% of India's three-wheeler exports. During the FY 2012-13, it sold approx. 480,000
three-wheelers which was 57% of the total market share in India. Out of these
480,000 three-wheelers, 53% were exported and remaining 47% were sold in India.
In Indonesia, Bajaj three-wheelers are "iconic" and "ubiquitous" to the point that the
word bajaj (pronounced bajay) is used to refer to auto rickshaws of any kind.
Bajaj RE is the world’s most selling 3 wheeler is now available in cargo with a
Powerful Diesel Engine.
The Bajaj RE Maxima Cargo Three Wheeler is highly durable with long lasting dry
clutch, the uniaxial balancer for fewer vibrations and reinforced chassis for longer
vehicle life.
It is designed with this advanced features such as car type Clutch pedal to handle
heavy cargo better, 5-speed gearbox to handle tough roads better, wide seat for driver
comfort.
Bajaj RE Maxima cargo can carry a heavy load and yet is very low on maintenance.

Bajaj Three Wheeler for Passenger

Rs 1.35 Lakh/ PieceGet Latest Price

Maximum Speed: 80
Maximum Run: 70-80-KM
Clutch: yes
Engine Type: petrol/lpg/cng

15 | P a g e
 Power 6.19 Kw @ 3400 RPM

Torque 19.4 Nm @ 2600 rpm

Cubic Capacity 447.3 cc

TRANSMISSION

Transmission 5 forward + 1 reverse

Clutch Dry-single plate

WEIGHT

Kerb Weight 505 kg

DIMENSIONS

Wheel base 2025 mm

Overall width 1422 mm

Overall length 3063 mm

Overall Height 1849 mm

Grade ability 18%

FUEL

Fuel Type Diesel

16 | P a g e
 Bajaj Four Wheeler QUTE (RE60)

Rs.2.48 - 2.78 Lakh* Get On Road Price

Petrol 35.0 kmpl

CNG43.0 km/kg

TransmissionManual

 Offers seating for four, including the driver.

 Provides better weather protection than an auto rickshaw.

 Powered by 216.6cc petrol engine mated to a 5-speed sequential gearbox.

 Available in CNG version as well.

 Claimed fuel economy of 35kmpl on petrol and 43km/kg with CNG.

 Top speed limited to 70kmph .

17 | P a g e
 Bajaj Auto Ltd.

Type Public

Traded as  BSE: 532977

 NSE: BAJAJ-AUTO
 BSE SENSEX Constituent
 CNX Nifty Constituent

Industry Automotive

Founded November 29, 1945; 73 years ago

Founder Jamnalal Bajaj

Headquarters Pune, Maharashtra, India

Key people  Rahul Bajaj (Chairman)

 Rajiv Bajaj (CEO)

Products Motorcycles, three-wheeler vehicles and cars

Production output 6,330,000 units (2019)

Revenue ₹31,804 crore (US$4.6 billion) (2019)

Operating income ₹6,613 crore (US$960 million) (2019)

Net income ₹4,927 crore (US$710 million) (2019)

Total assets ₹28,834 crore (US$4.2 billion) (2019)

Total equity ₹23,233 crore (US$3.4 billion) (2019)

Number of employees 10,258 (2019)

Parent Bajaj Group

18 | P a g e
 ORGANIZATIONAL STRUCTURE

19 | P a g e
 MARKET SHARE AND POSITION OF THE
COMPANY

MARKET ANALYSIS OF BAJAJ & OTHER

COMPANIES IN FY2018-19

3%
4%
4%

26%

12% Suzuki Motorcycle

Yamaha motor
Royal Enfield
Bajaj Auto
Hero Motocorp
Tvs Motor
HMSI
15%

36%

Bajaj Auto fatten its share in the pie size. Bajaj Auto’s market share expanded to 12 percent
in FY19 compared to 9.8 per cent in the previous years. Bajaj Auto, the maker of Pulsar was
the only manufacturer to enhance its market share to 12 per cent in last fiscal from 9.8 per
cent in FY18. The company also recorded a strong double digit growth of around 28.7 per
cent to 2,541,320 units sold last year. The year before it, domestic sales for Bajaj Auto was
recorded at 1,974,577 units
.

20 | P a g e
 Capital Structure - Bajaj Auto Ltd.

Authorized Issued
Period Instrument Capital Capital -PAIDUP-

Capital
Shares Face (Rs.
From To (Rs. cr) (Rs. cr) (nos) Value Cr)

Equity
2018 2019 Share 300.0 289.4 289367020 10.0 289.4

Equity
2017 2018 Share 300.0 289.4 289367020 10.0 289.4

Equity
2016 2017 Share 300.0 289.4 289367020 10.0 289.4

Equity
2015 2016 Share 300.0 289.4 289367020 10.0 289.4

Equity
2014 2015 Share 300.0 289.4 289367020 10.0 289.4

Equity
2013 2014 Share 300.0 289.4 289367020 10.0 289.4

Equity
2012 2013 Share 300.0 289.4 289367020 10.0 289.4

21 | P a g e
 COMPETITORS OR ALTERNATIVE

In 1955 Like Bajaj Auto, Yamaha Motor also operates in the Motorcycle
Manufacturers Yamaha Motor is the top competitor of Bajaj Auto. Yamaha Motor is a
Public company that was founded in Iwata-shi, Shizuoka Prefecture sector. Yamaha
Motor has 45,566 more employees vs. Bajaj Auto.

TVS is seen as one of Bajaj Auto's biggest rivals. TVS was founded in Chennai,
Tamil Nadu} in 1978. Like Bajaj Auto, TVS also competes in the Motorcycle
Manufacturers space. Compared to Bajaj Auto, TVS generates $1.8B less revenue.

Honda is perceived as one of Bajaj Auto's biggest rivals. Honda was founded in 1947,
and is headquartered in Minato-ku, Tōkyō Prefecture. Like Bajaj Auto, Honda also
operates in the Motorcycle Manufacturers space. Honda generates $139B more
revenue vs. Bajaj Auto.

22 | P a g e
 PESTLE ANALYSIS
PESTLE ANALYSIS OF THE COMPANY

23 | P a g e
24 | P a g e
25 | P a g e
26 | P a g e
SWOT Analysis :
SWOT analysis of Bajaj Auto Limited analyses the brand/company with its strengths,
weaknesses, opportunities & threats. Bajaj Auto Limited is one of the leading brands in the
automobiles sector. Below are the Bajaj Auto Limited’s SWOT Analysis

Strengths

1. Excellent brand presence and marketing in India make Bajaj Auto a popular company

2. Extensive research and development focus and highly experienced player in the
motorcycle segment

3. Widespread distribution network of Bajaj Auto across India

4. Bajaj Auto has a wide product range in terms of price, quality and categories

5. Featured in the Forbes Global brands list

6. It has more than 9000 people employed in the organization

Weaknesses
1.Bajaj Auto is still not a global brand despite high volume production
2.Lack of performance bikes like major international brands and sports bikes & cruisers

27 | P a g e
Opportunities
1. Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor, will
aim at a fuel-efficiency of 30 km per litre
2. Cheaper variants for tapping more in the rural segment
3. Premium sports bikes for urban areas
4. Constant growth in the two-wheeler segment

Threats
1. Cheaper imports from countries like China can affect business for Bajaj
2. Entry of international brands
3.Other motorcycle players have a strong brand presence

28 | P a g e
 Findings
 This minor project highlights the strengths, weakness, opportunities & threats of bajaj
auto ltd. and also the various factors which affect the Bajaj Auto Ltd. Such as
political, economic, social, technological, legal & environmental. Major competitors
of Bajaj auto ltd. are TVS , Hero , Yamaha etc. and automobile industry in India is
growing at a very fast pace and Bajaj capture large market shares and try to get more
benefit from it .

 Bajaj capture 12% of market shares out of 100% in india in financial year 2019 so
according to this data bajaj will try to attract more customer so that their market share
will increases.

 In FY2019 the bajaj company is exported over 2 million motorcycles to no less than
79 countries and represent a growth of 25% over the previous year .It also shows the
globally presence of bajaj motorcycle in all over the world .

 Bajaj offers premium sports bikes for urban areas and cheeper variants for tapping
more rural areas with continuous growth in two wheeler segments.

 Cheeper imports from other countries like china will affect the bajaj business.

 Best performance of bajaj was in the month of april –june (2018) with the growth of
7.8%

29 | P a g e
 Recommendations
 Bajaj auto need to increase their varieties in three wheelers and also in four wheelers
like Mahindra.

 Bajaj auto can increase their varieties in two wheeler sports bikes and can also try to
launch products in luxury car segment.

 Focus on easy credit lending so that there will be increase in sales and the people who
belong from less income sector are able to purchase it.

 Focus on gearless scooter this will help in increasing market share by targeting
women, college students as well as old age group people.

 Make more investment in research and development so that they can introduce more
varieties of product.

30 | P a g e
 References

https://www.ibef.org/industry/india-automobiles.aspx
https://www.ibef.org/industry/india-automobiles.aspx
https://en.wikipedia.org/wiki/Bajaj_Auto
https://www.bikedekho.com/bajaj-bikes
https://dir.indiamart.com/impcat/bajaj-auto-rickshaw.html
https://economictimes.indiatimes.com/bajaj-auto-ltd/yearly/companyid-21430.cms
https://en.wikipedia.org/wiki/Bajaj_Auto
https://www.mbaskool.com/brandguide/automobiles/1131-bajaj-auto-limited.html
//economictimes.indiatimes.com/articleshow/70846076.cms?utm_source=contentofint
erest&utm_medium=text&utm_campaign=cppst
Media Reports, Press Releases, Department of Industrial Policy and Promotion
(DIPP), Automotive Component Manufacturers Association of India (ACMA),
Society of Indian Automobile Manufacturers (SIAM), Union Budget 2015-16, Union
Budget 2017-18

31 | P a g e