Two Wheeler Industry in India

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  • Topic: Hero Honda, Honda, Motorcycle
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Lal bahadur shastri institute of management|
A Study of Two Wheeler Market in India|
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Submitted to: Ms.Joyeeta ChatterjeeDate: 10.12.09|

By Group 4 Section A
Mohammad Arshad Islam 41
Saba Rais 59
Mitesh Parmar 75
Danish Haidar 95
Sakshi Khurana 145

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1. OVERVIEW OF TWO WHEELER INDUSTRY IN INDIA
* Introduction
* Evolution of the industry
* Market Characteristics
* Market Trends
2. HERO HONDA MOTORS LTD.

* Introduction
* Board Of Directors
* Company Profile
* Marketing Strategy
* Brand Positioning
* Brand Equity
* Communication Strategy
* CSR Initiatives
* Awards and Recognition

3. OBJECTIVES OF THE RESEARCH
4. RESEARCH METHODOLOGY

* Data Source
* Research Approach
* Sampling Unit
* Data Completion And Analysis
* Scope

5. LIMITATION OF RESEARCH STUDY

6. ANALYSIS AND INTERPRETATION

7. FINDINGS

8. CONCLUSION

9. RECOMMENDATION

10. BIBLIOGRAPHY

11. QUESTIONNAIRE

Industry Overview

The Indian automotive industry consists of five segments: commercial vehicles; multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822,963 units sold in the domestic market and 453,591 units exported during the first nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth of 17% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties. The two-wheeler industry in India has been in existence since 1955. It consists of three segments viz., scooters, motorcycles, and mopeds. The increase in sales volume of this industry is proof of its high growth. In 1971, sales were around 0.1 million units per annum. But by 1998, this figure had risen to 3 million units per annum. Similarly, capacities of production have also increased from about 0.2 million units of annual capacity in the seventies to more than 4 million units in the late nineties. India is seeing the penetration of two-wheelers increasing at a rapid pace driven by the rise in the household incomes, reducing trend in excise duties and hitherto easy availability of two-wheeler finance.

Evolution of Two-wheeler Industry in India

The two-wheeler industry in India began operations within the framework of the national industrial policy as espoused by the Industrial Policy Resolution of 1956. The industry has to a great extent been shaped by the evolution of the industrial policy of the country. Regulatory policies like FERA and MRTP caused the growth of some segments in the industry like motorcycles to stagnate. These were later able to grow (both in terms of overall sales volumes and number of players) once foreign investments were allowed in 1981. The reforms in the eighties like ‘broad banding’ caused the entry of several new firms and products which caused the existing technologically outdated products to lose sales volume and/or exit the market. Finally, with liberalization in the nineties, the industry witnessed a proliferation in brands.

Period of entry| Name of theIndian firm| Name of foreigncollaborator, if any| Segment| Brand name ofproduct| 1955 – 1969| Bajaj Auto Ltd.(BAL)| Piaggio Ltd., Italy| scooter| Vespa| | Escorts Ltd. (EL)*| CEKOP, Poland| Motorcycle | Rajdoot, 175cc| | Enfield India Ltd.(EIL)*| Enfield Ltd., U.K.| motorcycle| Royal Enfield 350cc| 1970 – 1980| Kinetic EngineeringLtd. (KEL)| | moped| Luna| | Majestic Auto Ltd.(MAL)| | moped| Hero Majestic|

| Sundaram ClaytonLtd. (SCL)| | moped| TVS 50 cc|
1981 – 1990| TVS| Suzuki, Japan| motorcycle| Ind-Suzuki100 cc| | Bajaj Auto Ltd| Kawasaki, Japan| motorcycle| Kawasaki Bajaj100 cc| | Escorts Ltd.| Yamaha, Japan| motorcycle| Yamaha RX 100 cc| | Hero Majestic Ltd.| Honda, Japan| motorcycle| Hero Honda 100 cc| | Kinetic...
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