Indian Auto Industry
Content
Sobhasaria Engineering College Submitted To:Yogendra Singh Assignment on
Select an industry identify major player.collect data regarding parameters such as market share profitability. Perform comparatives analysis of such firms. Analysis the strategic advantages that each of these firms have.
Submitted By: Vikash Gaur
Indian Auto Industry – Two-wheeler Segment in India
Automobile Industry in India – Two-wheelers
Two wheelers have a special place on the Indian roads. They are extremely popular and versatile not only as passenger carriers but also as good carriers. Haven’t we come across a harried pillion rider carrying varying things from pipes to bedding to water cans? It comes as no surprise when India is ranked as the second largest two-wheeler market in the world.
The graphic above shows the breakup of production of automobile in India. In 20082009, more than 76 million two wheelers were manufactured in India. Domestic sales of two-wheelers form a major chunk at 76% of total sales. Hero Honda and Bajaj Auto are the leaders in the two wheeler market in India. In India, the two wheeler segment was the first to secure export orders.
India, the two wheeler segment was the first to secure export orders.
Types of two wheelers in India
Motorcycles segment dominates with an 80% market share. The demand is huge for new and powerful variants. The 125cc motorbikes are finding favor with majority of the motor cycle owners. Apart from the motorcycles that are traditionally used by men, the scooterettes (60cc upwards) have also contributed towards a spurt in two-wheeler sales. These allow the housewives, high-school and college going children, working women and the elderly to be mobile. Then there are mopeds that are nothing but a sophisticated motorized cycle. Your neighborhood green grocer or kirana store may use it for home deliveries these as they are highly affordable.
Why are Two Wheelers so popular in India
The growing middle class population, prosperous rural India and the paucity of reliable public transport system is leading to a large number of two wheelers added to the roads everyday. Indian roads in most cities, villages and towns are narrow. Two-wheelers allow people to navigate such roads easily. Fuel-efficiency is a huge advantage. With the cost of petrol increasing steadily, twowheeler makes the daily travel both affordable and convenient. Easy availability of auto finances at attractive schemes has made a two-wheeler a must in most urban and rural homes.
Major Players in the Automobile Sector
Bajaj Auto sold a total of 2.66 lakh vehicles in January 2010 versus 1.32 lakh in the corresponding period of 2009. Two-wheeler sales in January came in at 2.33 lakh units versus 1.09 lakh units. Commenting on the company’s sales figures, its Managing Director Rajiv Bajaj, said, the domestic bike sales came in at 1.8 lakh versus 67,000 units last year. “The market share too has grown from 21% to 32%.” Pulsar sales, he said were at an all-time high of 72,000 units.
Benefits of two wheelers
Two-wheelers are the most popular and highly sought out medium of transport in India. The trend of owning two-wheelers is due to its• • • •
Economical price Safety Fuel-efficient Comfort level
However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive.
Browse through the pages and catch all the details of high-performance two wheelers in India. Know more about latest launches and happenings in two wheelers industry
Bajaj auto
Established in 1945, Bajaj auto ltd. Was incorporated as a trading company. Till 1959, they imported scoters and three wheeler from Italy and sold them in India. The company got a production license in year and fastened technical collaboration with Italian PIAGIO 1960. Bajaj auto ltd. Is one among india top ten companies in terms of market capitalization and among the top five in terms of annual turnover. The company starting producing scooters in the year 1961 and followed three-wheeler production in 1962. Its collaboration with PIAGIO expired in 1971 and since them, there scoters and three -wheeler are being sold with the brand name ‘BAJAJ’ Maharashtra scooter ltd. Company with 24% equity participationby the company and 27% participation from Maharashtra state govt. Western Maharashtra development corp. was formed in the year 1975 under the “Horizontal transfer technology” policy. The first production unit is located at satara Maharashtra. The unit continues to collect scooters from CKDs supply by the company. These scooters are marketed through the company’s distribution network and under the company brand name. In 1984 , the second production plant was set up at Aurangabad, Maharashtra. This plant started scooter production in 1986, three –wheeler in 1987 and scooter and motorcycle facilities were commissioned in 1990 & 1991 respectively. Today, the company has become a market leader with annual production access of 1.35 million unit which was about 4000 unit in 1961. These, days Bajaj auto ltd. Has started offering product in all segment (mopeds & scooters, motorcycle, three-wheeler)
TWO WHEELERS >> MOTORCYCLE Bajaj Discover 150 DTSi Bajaj Avenger Bajaj CT 100 Bajaj Discover DTSi Bajaj Kawasaki Caliber Bajaj Kawasaki Boxer Bajaj KB 125 Bajaj 4S Champion Bajaj Platina Bajaj Pulsar 135 LS Bajaj Pulsar DTS-Fi 220 CC Bajaj Pulsar DTSi
• • • •
150 CC 180 CC 99.27 CC 135 CC 111.6 CC 111.6 CC 123 CC 99.35 CC 99.27 CC 135CC 220 CC 180 CC 150 CC 200 CC 220 CC
Pulsar 180 DTS-i UG Pulsar 150 DTS-i UG Pulsar 200 Cc Pulsar 220 DTS-Fi
Bajaj Wind 125 Bajaj XCD Bajaj Discover DTS-Si 100cc Bajaj Pulsar 220 S >> SCOOTERS Bajaj Bravo Bajaj Chetak Bajaj Classic SL Bajaj Legend >> SCOOTERETTES/MOPEDS Bajaj Blade DTSi Bajaj Cagiva CRX
124.6 CC 125 CC 100 CC 200CC 145 CC 145.45 CC 145.45 CC 150 CC 100 CC 145 CC
Bajaj Fusion Bajaj Kristal DTSi Bajaj M 80 Electronic Bajaj Rave Bajaj Saffire Bajaj Spirit Bajaj Sunny Bajaj Sunny Spice
145 CC 100 CC 74.08 CC 74.08 CC 74.4 CC 100 CC 59.86 CC
Market share and profibility of bajaj auto
Two-wheeler major Bajaj Auto Limited (BAL) is targeting 35% market share in Tamil Nadu as against 20% now through a slew of new launches and aggressive marketing. The company, which has announced the launch of XCD 135 DTS-Si, junior version of its premium bike Pulsar, will help increasing the company's market share in the middle (value) segment to 30% in the next 12 months as against 5% now, said S Manoj Kumar, regional head (Tamil Nadu & Puducherry), said. Addressing a press conference here on Saturday, he said the company is planning to launch two more vehicles in the value segment in the next two to three months in India. With the existing models of XCD 125 and 135 versions coupled with new models, the company hopes to increase its overall market share to 35% in the State as against 20% now, he added. Responding to queries, he said, the new vehicle is the junior version of Pulsar, which is affordable, sporty, less weight and family-friendly one. "We expect to sell 15,000 units XCD in the next two months (Feb, March) and are targeting to sell 4,500 units to 5,000 units a month in the State alone, he said. The product comes in three variants, priced between Rs 43,000 and Rs 47,000, he added. Bajaj is the leader at the entry and premium segments in the State with 35% and 56% market share, respectively. "With the new launches, we hope to gain substantial market share in the middle segment too," he said. The company is currently selling 8,500 units a month in the State which would be increased to 15,000 units from April onwards. The company hopes that aggressive market coupled with the finance from Bajaj Auto Finance Limtied
Market Competitor of Bajaj Auto in automobile industry
Hero Honda Motors
Hero Honda motors ltd. Is a result of joint venture between India’s hero group and Japanese Honda motors company in the year 1983. This joint venture has not only created the world’s largest single two wheeler company but also one of the most successful joint venture worldwide. Hero Honda is globally known of being the most fuel-efficient and largest CBZ selling Indian Motorcycle Company. This is relationship so harmonious that hero Honda has managed to achieve indignation of over 95 percent, a Honda record worldwide. The below charts shows the golden years in the history of hero honda 1985 1989 1991 1994 1997 1999 2001 2002 2003 2005 CD-100 SLEEK CD-100 SS Spelendor Street CBZ PASSION DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, KARIZMA SUPER-SPLENDOR, CD-DELUX, GLAMOUR, ACHIEVER
TWO WHEELERS >> MOTORCYCLES Hero Honda Achiever Hero Honda CD 100 Hero Honda Glamour
• •
Hero Honda CD Dawn Hero Honda CD 100 SS Hero Honda Splendor
• •
Hero Honda CD Deluxe Hero Honda Glamour Hero Honda Passion Plus
Glamour Glamour - FI
Splendor + Super Splendor
•
Splendor NXG Hero Honda Karizma
•
Hero Honda Sleek
Hero Honda CBZ X-TREME
Karizma ZMR FI
Hero Honda Hunk >> SCOOTERETTES/MOPEDS Hero Honda Pleasure Hero Panther Hero Stepmatic Hero Stepmatic Hero Winner Hero Ankur Hero Puch Automatic Hero Street Hero Puch Automatic Hero Gizmo Hero Sakhti 3G Hero Winner Hero Sakthi 3G
HERO HONDA CLOSES CALENDAR YEAR 2007 WITH SALES OF OVER 33 LAKH BIKES New Delhi, Tuesday, April 21, 2009: Recap of year 2007… • Multi-focal strategy leading to better-than-industry performance and gain in market share New Delhi, January 2, 2008: Hero Honda Motors Ltd (HHML), the world’s largest twowheeler manufacturer, today reported cumulative sales of 33, 09,051units of twowheelers for the period January–December 2007. The company’s cumulative sales for the calendar year 2006 was 32, 53,229. This achievement is significant in view of the. For the month of December 2007, HHML reported sales of 240,532 units of two-wheelers. The company’s sales for the corresponding period last year were 252,462 units. The better than industry performance of HHML through 2007 has been possible due to the company’s multi-focal strategy of bringing in new products across segments, supporting them with extensive 360 degrees communication, leveraging properties such as cricket and entertainment for brand building and augmenting its distribution network. As a result, Hero Honda’s share in the domestic motorcycle market has grown to upward nt.
Year 2007 saw Hero Honda launch new models across segments. The company more than doubled its volume and share in the premium segment this year, with the new allmuscle and macho Hunk, and the sporty and stylish CBZ X-treme both doing very well. New 100cc bike Splendor NXG, refreshed Pleasure, new Super Splendor, refreshed Passion Plus, were other additions to Hero Honda’s product portfolio in 2007. The company crossed the twenty million cumulative sales mark this year and launched the special edition Splendor Plus to mark the occasion. In the month of December, continuing with its engagement with youth, Hero Honda brought the legendary rock band Scorpions to India, for performances in Mumbai and Bangalore as part of the band’s “Humanity World Tour 2007-08”. This came close on the hills of the very popular ‘Hero Honda Campus Rock Idols’, a nationwide contest of amateur rock bands that culminated into a grand finale in Delhi in the first week of December.
HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH IMPRESSIVE GROWTH OF 15% IN MARCH’08 FOR FY 2007-08, HERO HONDA OVERTAKES PREVIOUS FISCAL’S SALES TALLY, EVEN AS DOMESTIC MOTORCYCLE INDUSTRY DECLINES BY MORE THAN 10 % New Delhi, Tuesday, April 21, 2009: Achievements and Highlights for FY 07-08 o Defying the industry trend, Hero Honda achieved sales of 33,37,142 units of twowheelers, thereby consolidating leadership in domestic motorcycles market with more than 52 per cent market share. o Hero Honda retained the coveted position of 'World's No 1 two-wheeler company' on unit sales by a single company during calendar year 2007 for the seventh year in a row. o Crossed half a million retail sales in the festive season in 2007, and achieved landmark cumulative sales of twenty million bikes in course of 2007. New Delhi, March 31, 2008: Hero Honda Motors Ltd (HHML), the world’s largest twowheeler manufacturer, further consolidated its undisputed market leadership, reporting impressive sales numbers for the month of March. Once again, defying the industry trend, the company sold 3,20,594 units of two-wheelers in the month, a growth of 15 per cent. Hero Honda had sold 277,915 units of two-wheelers in March 2007.
The company’s total sales for the financial year 2007-08 stand at 33,37,142 twowheelers, as compared to 33,36,756 units for the previous financial year (2006-07). This is significant in view of the severe slowdown that the domestic two-wheeler industry is Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd said, “The year 200708 has seen a leadership performance from us. Despite the industry slowdown, we have been able to manage positive growth thereby taking our share in the domestic motorcycle market upward of 52 per cent. At the end of the financial year, I would definitely like to thank our millions of customers across the country, who have made it possible. We will continue to focus on our customers and they can surely look forward to many more launches and various initiatives in the coming year.” HHML’s good run through the industry slump in 2007 has been possible due to the company’s multi-focal strategy of bringing in new models and variants across segments, supporting them with innovative communication across media, leveraging properties such as cricket and entertainment for brand building and augmenting its distribution network. Hero Honda also recently associated itself with the Indian Premier League (IPL) as a partner and is also the official sponsor of the Delhi Daredevils (Delhi’s IPL Team). Fiscal 2007-08 saw Hero Honda launch new models across segments. The company more than doubled its volume and share in the premium segment this year, with the new all-muscle and macho Hunk, and the sporty and stylish CBZ X-treme both doing very well. Other new launches such as Splendor NXG, and refreshes of successful models including Pleasure, Super Splendor, and Passion Plus, were added to Hero Honda’s product The company also crossed the landmark 20 million cumulative sales during the course of year. HERO HONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER CENT INCREASE IN MAY SALES NEW LAUNCHES SUCH AS THE REFRESHED SPLENDOR NXG & HUNK DRIVING VOLUMES IN RESPECTIVE SEGMENTS New Delhi, Tuesday, April 21, 2009: New Delhi, June 1, 2008: Carrying on its impressive growth momentum in the new financial year (2008-09), (HHML), the world’s largest twowheeler manufacturer for seven consecutive years, today reported a 9.5 per cent growth in its sales in May 2008. Hero Honda sold 3,12,317 units of two-wheelers in May 2008, as compared to2,85,109 units in the corresponding month last year. This comes close on the heels of a nine per cent growth the company had reported in the month of April with sales of 2,86,252 units of two-wheelers. Thus Hero Honda has already clocked a total sales
of 5,98,569 units of two-wheelers in this financial year. According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd., “Our recent launches such as the refreshed Splendor NXG and the 150cc Hunk have been driving volumes in their respective segments. While Hunk has contributed largely to doubling our volume and share in the premium segment, the refreshed Splendor NXG has been driving the volumes in the deluxe segment. Our new campaign for Splendor NXG is currently on air on all mainline TV channels. We continue our strategy of brand building, and we will continue to utilize our various properties in the field of cricket and youth entertainment towards this end. We have carried forward our commitment to the promotion of cricket by partnering the highly-successful Indian Premier League (IPL), as well as being the official team sponsor of the Delhi Daredevils.” Hero Honda was bestowed the “Enterprise Excellence Award 2007” by the Indian Institution of Industrial Engineering (IIIE) at an awards function held in Goa in the month of May. HERO HONDA CONTINUES TO CONSOLIDATE MARKET LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES New Delhi, Tuesday, April 21, 2009: Reports robust sales of 305,516 units during the month • Cumulative sales in April – August ’08 grows by 19 per cent New Delhi, September 1, 2008: Hero Honda Motors Limited (HHML), the world’s largest two-wheeler manufacturer, further consolidated its leadership in the domestic motorcycle market, with a robust 26.8 per cent growth in sales for the month of August 2008. The company sold 305,516 units of two-wheelers in August 2008, compared to 240,875 units in the corresponding month last year. With this, Hero Honda’s cumulative sales in this financial year so far (April-August 2008) stands at 14,81,077 units as against 12,44,919 units in the corresponding period last year – reflecting a 19 per cent growth in cumulative sales. This carries forward the company’s positive growth trajectory since the beginning of this financial year (2008-09), further augmenting its more than 55 per cent share in the domestic motorcycle market. According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd, “Our strategy is yielding results. The strategy hinges on creating winning brands across segments, investing in brand building, exploring untapped markets in rural and upcountry areas while consolidating urban presence and rapidly expanding our network.
However, the industry continues to face uncertainty on account of high interest rates and overall credit squeeze. The festival month of October is going to be crucial in determining the overall outlook of the industry for the year.” Key Hero Honda brands continue to drive strong volumes across segments - CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment. Hero Honda’s scooter Pleasure has also been growing strongly, with more than 12,000 units being sold in August this year. HERO HONDA NET PROFIT ZOOMS 31% TO Rs 275 CRORE IN Q3 (FY 2007-2008) REPORTS TURNOVER OF Rs. 2795 CRORE RECORDS EBIDTA OF 13.95% New Delhi, Tuesday, April 21, 2009: Q3 Highlights Corporate performance: • Consolidated over 50% share in the domestic motorcycle market • Reported highest ever sales in a month in October 2007 (365,022 units) • Crossed half a million retail sales in the festive season • Closed calendar year 2007 with sales of over 33 lakh two-wheelers Achievements: • Retained the coveted position of World No 1 two-wheeler company for the seventh consecutive year • Crossed landmark sales of Two Crore bikes; celebrated the achievement with “Hero Honda BIKE-A-THON”- a nationwide marathon of Hero Honda bikes under the “Hero Honda Country” campaign New Launches: • Launched two new models Hunk (150cc) & refreshed Splendor+ along with a Special Edition • Doubled volume and share in the premium segment - currently own almost 20% share New Delhi, January 31, 2008: Hero Honda Motors Ltd. (HHML), the world’s largest twowheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275 crore for the third quarter (October-December) of this financial year (2007-08). Hero Honda’s profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore. Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2795.17 crores, a growth of 3.54 per cent over Rs 2699.63 crores recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin in the previous quarter (July-September’07) was 12.39%.
This strong financial performance comes close on the heels of the company’s good overall sales even in the face of the prevailing slowdown in the two-wheeler industry. Hero Honda’s cumulative total turnover for the first three quarters (April–December 2007) of this financial year stood at Rs. 7673.43 crores. Hero Honda's strategy for aggressive top line growth through new product launches, brand building initiatives backed by innovative communication has resulted in market share gain across every segment. Indeed, Hero Honda’s share in domestic motorcycles market has been growing upward of 50 per cent, despite the slowdown in the two-wheeler industry. According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd.,“Our performance during the third quarter of this fiscal has been very encouraging considering the current slowdown in the two-wheeler industry. We have been consistently reporting better-thanindustry sales numbers, and it has also been reflected in our bottom line. We wish to thank all our customers and stakeholders for reposing their faith in our company and our products.” Mr. Pawan Munjal, Managing Director & CEO, Hero Honda Motors Ltd.said, “Given the industry slowdown scenario, we are very enthused by our robust financial numbers for the third quarter. However, this was not unexpected. We had undertaken some strategic initiatives since the beginning of this fiscal, including a conscious effort to rationalize costs across the board, and its results are now visible. Our bottom line has seen a consistent improvement, and we have been able to demonstrate that it is possible to keep gaining market share while maintaining a robust bottom line. “With input costs softening and our sharp focus on cost efficiencies, we should be able to further improve upon our financial results,” he added.
HERO HONDA PASSES ON EXCISE DUTY CUT BENEFIT TO CUSTOMERS New Delhi, Tuesday, April 21, 2009: REDUCES PRICES ON ALL MODELS, RANGING FROM RS 1000/- TO RS 2400/SALES 265,431 UNITS OF TWO-WHEELERS IN FEBRUARY New Delhi, March 1, 2008: Passing on the excise duty cut benefit in Budget 2008 to customers, Hero Honda Motors Ltd (HHML), the world’s largest manufacturer of motorcycles, today reduced prices on all its models, ranging from Rs1000/- to Rs 2400/-. The company, which sold 265,431 units of two-wheelers in the month of February, reduced the price of Splendor+ by about Rs 1300/- (ex-showroom Delhi) and on Karizma by about Rs 2400/- (ex-showroom Delhi). Similarly, the price of its best-selling 150cc bike
Hunk has been reduced by about Rs 1800/- (ex-showroom Delhi). Mr. Pawan Munjal, MD & CEO, HHML, said “Hero Honda has taken the voice of the customer to the government, and consequently the excise duty on two-wheelers has been reduced to 12 per cent from 16 per cent. This is a welcome move, and we are happy to pass on the entire benefit to customers. The reduction in excise duty cut will enable us to draw more customers to our fold, but the basic factors causing the industry slowdown still remain unattended. Credit financing has been withdrawn in some key markets, while interest rates on consumer loans also remain very high. This credit squeeze continues to be the most critical factor adversely impacting industry growth, and we still don’t see any indication from the banks and the government to address this concern. For the industry to make a turnaround and get back on the path of growth, the government has to address these key issues.” HERO HONDA POSTS RECORD 6 LAKH-PLUS UNITS IN RETAIL SALES IN OCTOBER 2008
New Delhi, Tuesday, April 21, 2009: New Delhi, November 1, 2008: Close on the heels of an outstanding performance in the second quarter (July – September 2008) with 50 per cent growth in net profit, Hero Honda Motors Ltd (HHML), the world's largest two-wheeler manufacturer, today reported its highest-ever retail sales in a month, with more than six lakhs units of two-wheelers being sold in the festive month of October. This highest-ever retail sales in a month represents more than 12 per cent growth over its previous highest – 5.31 lakh units sold in October 2006. The dispatch numbers for the month of October stood at 352,449 units, as compared to 365,022 two-wheelers sold in October 2007. According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd, "We are delighted with our retail performance in October. We have always maintained that we were expecting robust retail sales in the festive month of October, and the number of more than six lakh units in retail sales is a vindication of that. With the festive season being over now, we do expect to see a slowdown in the industry with the prevailing credit squeeze and interest rates taking their toll on consumer sentiments. Keeping this in mind, we have consciously restricted our dispatch sales in October. "However, we will stay true to our winning strategy, and keep refreshing our product portfolio and continue to invest in brand building. We introduced four new models in
the month of October, and going forward, we will be launching a few more in November as well." Hero Honda launched four new models in the festive month – the all-new "Passion Pro Power Start", one variant – the Splendor NXG Power Start, and two refreshes new CBZ X-treme and the Pleasure. During the coming months, the company will further augment its product portfolio with new launches across segments. Despite all odds, Hero Honda - the world's largest two-wheeler manufacturer for seven consecutive years - has been consistently strengthening its share in the domestic motorcycle market and it has been steadily moving upwards of 55 per cent. During the month of October, Hero Honda was honoured with the "NDTV Profit Business Leadership Award" in the two-wheeler category. The NDTV Profit Business Leadership Awards acknowledge "the best, the brightest and the most dynamic of Indian organisations that have emergence.
Select an industry identify major player.collect data regarding parameters such as market share profitability. Perform comparatives analysis of such firms. Analysis the strategic advantages that each of these firms have.
Submitted By: Vikash Gaur
Indian Auto Industry – Two-wheeler Segment in India
Automobile Industry in India – Two-wheelers
Two wheelers have a special place on the Indian roads. They are extremely popular and versatile not only as passenger carriers but also as good carriers. Haven’t we come across a harried pillion rider carrying varying things from pipes to bedding to water cans? It comes as no surprise when India is ranked as the second largest two-wheeler market in the world.
The graphic above shows the breakup of production of automobile in India. In 20082009, more than 76 million two wheelers were manufactured in India. Domestic sales of two-wheelers form a major chunk at 76% of total sales. Hero Honda and Bajaj Auto are the leaders in the two wheeler market in India. In India, the two wheeler segment was the first to secure export orders.
India, the two wheeler segment was the first to secure export orders.
Types of two wheelers in India
Motorcycles segment dominates with an 80% market share. The demand is huge for new and powerful variants. The 125cc motorbikes are finding favor with majority of the motor cycle owners. Apart from the motorcycles that are traditionally used by men, the scooterettes (60cc upwards) have also contributed towards a spurt in two-wheeler sales. These allow the housewives, high-school and college going children, working women and the elderly to be mobile. Then there are mopeds that are nothing but a sophisticated motorized cycle. Your neighborhood green grocer or kirana store may use it for home deliveries these as they are highly affordable.
Why are Two Wheelers so popular in India
The growing middle class population, prosperous rural India and the paucity of reliable public transport system is leading to a large number of two wheelers added to the roads everyday. Indian roads in most cities, villages and towns are narrow. Two-wheelers allow people to navigate such roads easily. Fuel-efficiency is a huge advantage. With the cost of petrol increasing steadily, twowheeler makes the daily travel both affordable and convenient. Easy availability of auto finances at attractive schemes has made a two-wheeler a must in most urban and rural homes.
Major Players in the Automobile Sector
Bajaj Auto sold a total of 2.66 lakh vehicles in January 2010 versus 1.32 lakh in the corresponding period of 2009. Two-wheeler sales in January came in at 2.33 lakh units versus 1.09 lakh units. Commenting on the company’s sales figures, its Managing Director Rajiv Bajaj, said, the domestic bike sales came in at 1.8 lakh versus 67,000 units last year. “The market share too has grown from 21% to 32%.” Pulsar sales, he said were at an all-time high of 72,000 units.
Benefits of two wheelers
Two-wheelers are the most popular and highly sought out medium of transport in India. The trend of owning two-wheelers is due to its• • • •
Economical price Safety Fuel-efficient Comfort level
However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high-speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive.
Browse through the pages and catch all the details of high-performance two wheelers in India. Know more about latest launches and happenings in two wheelers industry
Bajaj auto
Established in 1945, Bajaj auto ltd. Was incorporated as a trading company. Till 1959, they imported scoters and three wheeler from Italy and sold them in India. The company got a production license in year and fastened technical collaboration with Italian PIAGIO 1960. Bajaj auto ltd. Is one among india top ten companies in terms of market capitalization and among the top five in terms of annual turnover. The company starting producing scooters in the year 1961 and followed three-wheeler production in 1962. Its collaboration with PIAGIO expired in 1971 and since them, there scoters and three -wheeler are being sold with the brand name ‘BAJAJ’ Maharashtra scooter ltd. Company with 24% equity participationby the company and 27% participation from Maharashtra state govt. Western Maharashtra development corp. was formed in the year 1975 under the “Horizontal transfer technology” policy. The first production unit is located at satara Maharashtra. The unit continues to collect scooters from CKDs supply by the company. These scooters are marketed through the company’s distribution network and under the company brand name. In 1984 , the second production plant was set up at Aurangabad, Maharashtra. This plant started scooter production in 1986, three –wheeler in 1987 and scooter and motorcycle facilities were commissioned in 1990 & 1991 respectively. Today, the company has become a market leader with annual production access of 1.35 million unit which was about 4000 unit in 1961. These, days Bajaj auto ltd. Has started offering product in all segment (mopeds & scooters, motorcycle, three-wheeler)
TWO WHEELERS >> MOTORCYCLE Bajaj Discover 150 DTSi Bajaj Avenger Bajaj CT 100 Bajaj Discover DTSi Bajaj Kawasaki Caliber Bajaj Kawasaki Boxer Bajaj KB 125 Bajaj 4S Champion Bajaj Platina Bajaj Pulsar 135 LS Bajaj Pulsar DTS-Fi 220 CC Bajaj Pulsar DTSi
• • • •
150 CC 180 CC 99.27 CC 135 CC 111.6 CC 111.6 CC 123 CC 99.35 CC 99.27 CC 135CC 220 CC 180 CC 150 CC 200 CC 220 CC
Pulsar 180 DTS-i UG Pulsar 150 DTS-i UG Pulsar 200 Cc Pulsar 220 DTS-Fi
Bajaj Wind 125 Bajaj XCD Bajaj Discover DTS-Si 100cc Bajaj Pulsar 220 S >> SCOOTERS Bajaj Bravo Bajaj Chetak Bajaj Classic SL Bajaj Legend >> SCOOTERETTES/MOPEDS Bajaj Blade DTSi Bajaj Cagiva CRX
124.6 CC 125 CC 100 CC 200CC 145 CC 145.45 CC 145.45 CC 150 CC 100 CC 145 CC
Bajaj Fusion Bajaj Kristal DTSi Bajaj M 80 Electronic Bajaj Rave Bajaj Saffire Bajaj Spirit Bajaj Sunny Bajaj Sunny Spice
145 CC 100 CC 74.08 CC 74.08 CC 74.4 CC 100 CC 59.86 CC
Market share and profibility of bajaj auto
Two-wheeler major Bajaj Auto Limited (BAL) is targeting 35% market share in Tamil Nadu as against 20% now through a slew of new launches and aggressive marketing. The company, which has announced the launch of XCD 135 DTS-Si, junior version of its premium bike Pulsar, will help increasing the company's market share in the middle (value) segment to 30% in the next 12 months as against 5% now, said S Manoj Kumar, regional head (Tamil Nadu & Puducherry), said. Addressing a press conference here on Saturday, he said the company is planning to launch two more vehicles in the value segment in the next two to three months in India. With the existing models of XCD 125 and 135 versions coupled with new models, the company hopes to increase its overall market share to 35% in the State as against 20% now, he added. Responding to queries, he said, the new vehicle is the junior version of Pulsar, which is affordable, sporty, less weight and family-friendly one. "We expect to sell 15,000 units XCD in the next two months (Feb, March) and are targeting to sell 4,500 units to 5,000 units a month in the State alone, he said. The product comes in three variants, priced between Rs 43,000 and Rs 47,000, he added. Bajaj is the leader at the entry and premium segments in the State with 35% and 56% market share, respectively. "With the new launches, we hope to gain substantial market share in the middle segment too," he said. The company is currently selling 8,500 units a month in the State which would be increased to 15,000 units from April onwards. The company hopes that aggressive market coupled with the finance from Bajaj Auto Finance Limtied
Market Competitor of Bajaj Auto in automobile industry
Hero Honda Motors
Hero Honda motors ltd. Is a result of joint venture between India’s hero group and Japanese Honda motors company in the year 1983. This joint venture has not only created the world’s largest single two wheeler company but also one of the most successful joint venture worldwide. Hero Honda is globally known of being the most fuel-efficient and largest CBZ selling Indian Motorcycle Company. This is relationship so harmonious that hero Honda has managed to achieve indignation of over 95 percent, a Honda record worldwide. The below charts shows the golden years in the history of hero honda 1985 1989 1991 1994 1997 1999 2001 2002 2003 2005 CD-100 SLEEK CD-100 SS Spelendor Street CBZ PASSION DAWN, AMBITION CD-DAWN, SPLENDOR +, PASSION +, KARIZMA SUPER-SPLENDOR, CD-DELUX, GLAMOUR, ACHIEVER
TWO WHEELERS >> MOTORCYCLES Hero Honda Achiever Hero Honda CD 100 Hero Honda Glamour
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Hero Honda CD Dawn Hero Honda CD 100 SS Hero Honda Splendor
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Hero Honda CD Deluxe Hero Honda Glamour Hero Honda Passion Plus
Glamour Glamour - FI
Splendor + Super Splendor
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Splendor NXG Hero Honda Karizma
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Hero Honda Sleek
Hero Honda CBZ X-TREME
Karizma ZMR FI
Hero Honda Hunk >> SCOOTERETTES/MOPEDS Hero Honda Pleasure Hero Panther Hero Stepmatic Hero Stepmatic Hero Winner Hero Ankur Hero Puch Automatic Hero Street Hero Puch Automatic Hero Gizmo Hero Sakhti 3G Hero Winner Hero Sakthi 3G
HERO HONDA CLOSES CALENDAR YEAR 2007 WITH SALES OF OVER 33 LAKH BIKES New Delhi, Tuesday, April 21, 2009: Recap of year 2007… • Multi-focal strategy leading to better-than-industry performance and gain in market share New Delhi, January 2, 2008: Hero Honda Motors Ltd (HHML), the world’s largest twowheeler manufacturer, today reported cumulative sales of 33, 09,051units of twowheelers for the period January–December 2007. The company’s cumulative sales for the calendar year 2006 was 32, 53,229. This achievement is significant in view of the. For the month of December 2007, HHML reported sales of 240,532 units of two-wheelers. The company’s sales for the corresponding period last year were 252,462 units. The better than industry performance of HHML through 2007 has been possible due to the company’s multi-focal strategy of bringing in new products across segments, supporting them with extensive 360 degrees communication, leveraging properties such as cricket and entertainment for brand building and augmenting its distribution network. As a result, Hero Honda’s share in the domestic motorcycle market has grown to upward nt.
Year 2007 saw Hero Honda launch new models across segments. The company more than doubled its volume and share in the premium segment this year, with the new allmuscle and macho Hunk, and the sporty and stylish CBZ X-treme both doing very well. New 100cc bike Splendor NXG, refreshed Pleasure, new Super Splendor, refreshed Passion Plus, were other additions to Hero Honda’s product portfolio in 2007. The company crossed the twenty million cumulative sales mark this year and launched the special edition Splendor Plus to mark the occasion. In the month of December, continuing with its engagement with youth, Hero Honda brought the legendary rock band Scorpions to India, for performances in Mumbai and Bangalore as part of the band’s “Humanity World Tour 2007-08”. This came close on the hills of the very popular ‘Hero Honda Campus Rock Idols’, a nationwide contest of amateur rock bands that culminated into a grand finale in Delhi in the first week of December.
HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH IMPRESSIVE GROWTH OF 15% IN MARCH’08 FOR FY 2007-08, HERO HONDA OVERTAKES PREVIOUS FISCAL’S SALES TALLY, EVEN AS DOMESTIC MOTORCYCLE INDUSTRY DECLINES BY MORE THAN 10 % New Delhi, Tuesday, April 21, 2009: Achievements and Highlights for FY 07-08 o Defying the industry trend, Hero Honda achieved sales of 33,37,142 units of twowheelers, thereby consolidating leadership in domestic motorcycles market with more than 52 per cent market share. o Hero Honda retained the coveted position of 'World's No 1 two-wheeler company' on unit sales by a single company during calendar year 2007 for the seventh year in a row. o Crossed half a million retail sales in the festive season in 2007, and achieved landmark cumulative sales of twenty million bikes in course of 2007. New Delhi, March 31, 2008: Hero Honda Motors Ltd (HHML), the world’s largest twowheeler manufacturer, further consolidated its undisputed market leadership, reporting impressive sales numbers for the month of March. Once again, defying the industry trend, the company sold 3,20,594 units of two-wheelers in the month, a growth of 15 per cent. Hero Honda had sold 277,915 units of two-wheelers in March 2007.
The company’s total sales for the financial year 2007-08 stand at 33,37,142 twowheelers, as compared to 33,36,756 units for the previous financial year (2006-07). This is significant in view of the severe slowdown that the domestic two-wheeler industry is Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd said, “The year 200708 has seen a leadership performance from us. Despite the industry slowdown, we have been able to manage positive growth thereby taking our share in the domestic motorcycle market upward of 52 per cent. At the end of the financial year, I would definitely like to thank our millions of customers across the country, who have made it possible. We will continue to focus on our customers and they can surely look forward to many more launches and various initiatives in the coming year.” HHML’s good run through the industry slump in 2007 has been possible due to the company’s multi-focal strategy of bringing in new models and variants across segments, supporting them with innovative communication across media, leveraging properties such as cricket and entertainment for brand building and augmenting its distribution network. Hero Honda also recently associated itself with the Indian Premier League (IPL) as a partner and is also the official sponsor of the Delhi Daredevils (Delhi’s IPL Team). Fiscal 2007-08 saw Hero Honda launch new models across segments. The company more than doubled its volume and share in the premium segment this year, with the new all-muscle and macho Hunk, and the sporty and stylish CBZ X-treme both doing very well. Other new launches such as Splendor NXG, and refreshes of successful models including Pleasure, Super Splendor, and Passion Plus, were added to Hero Honda’s product The company also crossed the landmark 20 million cumulative sales during the course of year. HERO HONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER CENT INCREASE IN MAY SALES NEW LAUNCHES SUCH AS THE REFRESHED SPLENDOR NXG & HUNK DRIVING VOLUMES IN RESPECTIVE SEGMENTS New Delhi, Tuesday, April 21, 2009: New Delhi, June 1, 2008: Carrying on its impressive growth momentum in the new financial year (2008-09), (HHML), the world’s largest twowheeler manufacturer for seven consecutive years, today reported a 9.5 per cent growth in its sales in May 2008. Hero Honda sold 3,12,317 units of two-wheelers in May 2008, as compared to2,85,109 units in the corresponding month last year. This comes close on the heels of a nine per cent growth the company had reported in the month of April with sales of 2,86,252 units of two-wheelers. Thus Hero Honda has already clocked a total sales
of 5,98,569 units of two-wheelers in this financial year. According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd., “Our recent launches such as the refreshed Splendor NXG and the 150cc Hunk have been driving volumes in their respective segments. While Hunk has contributed largely to doubling our volume and share in the premium segment, the refreshed Splendor NXG has been driving the volumes in the deluxe segment. Our new campaign for Splendor NXG is currently on air on all mainline TV channels. We continue our strategy of brand building, and we will continue to utilize our various properties in the field of cricket and youth entertainment towards this end. We have carried forward our commitment to the promotion of cricket by partnering the highly-successful Indian Premier League (IPL), as well as being the official team sponsor of the Delhi Daredevils.” Hero Honda was bestowed the “Enterprise Excellence Award 2007” by the Indian Institution of Industrial Engineering (IIIE) at an awards function held in Goa in the month of May. HERO HONDA CONTINUES TO CONSOLIDATE MARKET LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES New Delhi, Tuesday, April 21, 2009: Reports robust sales of 305,516 units during the month • Cumulative sales in April – August ’08 grows by 19 per cent New Delhi, September 1, 2008: Hero Honda Motors Limited (HHML), the world’s largest two-wheeler manufacturer, further consolidated its leadership in the domestic motorcycle market, with a robust 26.8 per cent growth in sales for the month of August 2008. The company sold 305,516 units of two-wheelers in August 2008, compared to 240,875 units in the corresponding month last year. With this, Hero Honda’s cumulative sales in this financial year so far (April-August 2008) stands at 14,81,077 units as against 12,44,919 units in the corresponding period last year – reflecting a 19 per cent growth in cumulative sales. This carries forward the company’s positive growth trajectory since the beginning of this financial year (2008-09), further augmenting its more than 55 per cent share in the domestic motorcycle market. According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd, “Our strategy is yielding results. The strategy hinges on creating winning brands across segments, investing in brand building, exploring untapped markets in rural and upcountry areas while consolidating urban presence and rapidly expanding our network.
However, the industry continues to face uncertainty on account of high interest rates and overall credit squeeze. The festival month of October is going to be crucial in determining the overall outlook of the industry for the year.” Key Hero Honda brands continue to drive strong volumes across segments - CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment. Hero Honda’s scooter Pleasure has also been growing strongly, with more than 12,000 units being sold in August this year. HERO HONDA NET PROFIT ZOOMS 31% TO Rs 275 CRORE IN Q3 (FY 2007-2008) REPORTS TURNOVER OF Rs. 2795 CRORE RECORDS EBIDTA OF 13.95% New Delhi, Tuesday, April 21, 2009: Q3 Highlights Corporate performance: • Consolidated over 50% share in the domestic motorcycle market • Reported highest ever sales in a month in October 2007 (365,022 units) • Crossed half a million retail sales in the festive season • Closed calendar year 2007 with sales of over 33 lakh two-wheelers Achievements: • Retained the coveted position of World No 1 two-wheeler company for the seventh consecutive year • Crossed landmark sales of Two Crore bikes; celebrated the achievement with “Hero Honda BIKE-A-THON”- a nationwide marathon of Hero Honda bikes under the “Hero Honda Country” campaign New Launches: • Launched two new models Hunk (150cc) & refreshed Splendor+ along with a Special Edition • Doubled volume and share in the premium segment - currently own almost 20% share New Delhi, January 31, 2008: Hero Honda Motors Ltd. (HHML), the world’s largest twowheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275 crore for the third quarter (October-December) of this financial year (2007-08). Hero Honda’s profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore. Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2795.17 crores, a growth of 3.54 per cent over Rs 2699.63 crores recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin in the previous quarter (July-September’07) was 12.39%.
This strong financial performance comes close on the heels of the company’s good overall sales even in the face of the prevailing slowdown in the two-wheeler industry. Hero Honda’s cumulative total turnover for the first three quarters (April–December 2007) of this financial year stood at Rs. 7673.43 crores. Hero Honda's strategy for aggressive top line growth through new product launches, brand building initiatives backed by innovative communication has resulted in market share gain across every segment. Indeed, Hero Honda’s share in domestic motorcycles market has been growing upward of 50 per cent, despite the slowdown in the two-wheeler industry. According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd.,“Our performance during the third quarter of this fiscal has been very encouraging considering the current slowdown in the two-wheeler industry. We have been consistently reporting better-thanindustry sales numbers, and it has also been reflected in our bottom line. We wish to thank all our customers and stakeholders for reposing their faith in our company and our products.” Mr. Pawan Munjal, Managing Director & CEO, Hero Honda Motors Ltd.said, “Given the industry slowdown scenario, we are very enthused by our robust financial numbers for the third quarter. However, this was not unexpected. We had undertaken some strategic initiatives since the beginning of this fiscal, including a conscious effort to rationalize costs across the board, and its results are now visible. Our bottom line has seen a consistent improvement, and we have been able to demonstrate that it is possible to keep gaining market share while maintaining a robust bottom line. “With input costs softening and our sharp focus on cost efficiencies, we should be able to further improve upon our financial results,” he added.
HERO HONDA PASSES ON EXCISE DUTY CUT BENEFIT TO CUSTOMERS New Delhi, Tuesday, April 21, 2009: REDUCES PRICES ON ALL MODELS, RANGING FROM RS 1000/- TO RS 2400/SALES 265,431 UNITS OF TWO-WHEELERS IN FEBRUARY New Delhi, March 1, 2008: Passing on the excise duty cut benefit in Budget 2008 to customers, Hero Honda Motors Ltd (HHML), the world’s largest manufacturer of motorcycles, today reduced prices on all its models, ranging from Rs1000/- to Rs 2400/-. The company, which sold 265,431 units of two-wheelers in the month of February, reduced the price of Splendor+ by about Rs 1300/- (ex-showroom Delhi) and on Karizma by about Rs 2400/- (ex-showroom Delhi). Similarly, the price of its best-selling 150cc bike
Hunk has been reduced by about Rs 1800/- (ex-showroom Delhi). Mr. Pawan Munjal, MD & CEO, HHML, said “Hero Honda has taken the voice of the customer to the government, and consequently the excise duty on two-wheelers has been reduced to 12 per cent from 16 per cent. This is a welcome move, and we are happy to pass on the entire benefit to customers. The reduction in excise duty cut will enable us to draw more customers to our fold, but the basic factors causing the industry slowdown still remain unattended. Credit financing has been withdrawn in some key markets, while interest rates on consumer loans also remain very high. This credit squeeze continues to be the most critical factor adversely impacting industry growth, and we still don’t see any indication from the banks and the government to address this concern. For the industry to make a turnaround and get back on the path of growth, the government has to address these key issues.” HERO HONDA POSTS RECORD 6 LAKH-PLUS UNITS IN RETAIL SALES IN OCTOBER 2008
New Delhi, Tuesday, April 21, 2009: New Delhi, November 1, 2008: Close on the heels of an outstanding performance in the second quarter (July – September 2008) with 50 per cent growth in net profit, Hero Honda Motors Ltd (HHML), the world's largest two-wheeler manufacturer, today reported its highest-ever retail sales in a month, with more than six lakhs units of two-wheelers being sold in the festive month of October. This highest-ever retail sales in a month represents more than 12 per cent growth over its previous highest – 5.31 lakh units sold in October 2006. The dispatch numbers for the month of October stood at 352,449 units, as compared to 365,022 two-wheelers sold in October 2007. According to Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd, "We are delighted with our retail performance in October. We have always maintained that we were expecting robust retail sales in the festive month of October, and the number of more than six lakh units in retail sales is a vindication of that. With the festive season being over now, we do expect to see a slowdown in the industry with the prevailing credit squeeze and interest rates taking their toll on consumer sentiments. Keeping this in mind, we have consciously restricted our dispatch sales in October. "However, we will stay true to our winning strategy, and keep refreshing our product portfolio and continue to invest in brand building. We introduced four new models in
the month of October, and going forward, we will be launching a few more in November as well." Hero Honda launched four new models in the festive month – the all-new "Passion Pro Power Start", one variant – the Splendor NXG Power Start, and two refreshes new CBZ X-treme and the Pleasure. During the coming months, the company will further augment its product portfolio with new launches across segments. Despite all odds, Hero Honda - the world's largest two-wheeler manufacturer for seven consecutive years - has been consistently strengthening its share in the domestic motorcycle market and it has been steadily moving upwards of 55 per cent. During the month of October, Hero Honda was honoured with the "NDTV Profit Business Leadership Award" in the two-wheeler category. The NDTV Profit Business Leadership Awards acknowledge "the best, the brightest and the most dynamic of Indian organisations that have emergence.
