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Introduction 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 recognized 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 realizing the sector's full potential for the economy. 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.
The Indian automobile industry is a stark contrast to the global industry due to many of the characteristics, which are peculiar to India. The Indian automobile industry is very small in comparison to the global industry. Except for two wheelers and tractors segments, the Indian industry cannot boast of big volumes vis--vis global numbers

Scope of study Project aims to understand and enunciate the working process of different automobile and evaluating its outcome in the two wheeler automobile sector. Over the past few years, there has been tremendous progress made around the world in opening up travel and tourism markets to the benefits of increased competition. One of the main aspects of the project is to analyze the different products and services offered and initiatives adapted for two wheeler automobile sector their product. Selling intangible assets is one of the toughest jobs in the world.

Evolution of two wheeler industries 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. In India there are some MNCs and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand.

Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959. Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And created the world's single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today.

TVS Motors is the third largest company in the twowheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards

extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry.

Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latest technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan.

Honda motors of Japan is not a new name in the two wheeler scenario in the country, they were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world. Though Honda has come on its own on the Indian market yet it will be providing technological support to Hero Honda for the next ten years. Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered the Indian market with Honda Unicorn in 2004.

Number of players in the two wheeler auto mobile sector: Hero Honda motors ltd. Bajaj auto ltd. TVS motors company ltd. Yamaha motors India Honda motorcycle and scooters India Royal Enfield Suzuki Motors LML

Hero Honda motors limited:Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. In 1985 production began with the launch of its first motorcycle, the CD100, which gave 80 km to the liter. Hero Honda has a reputation of being the most fuel-efficient and the world's single largest two wheeler Company. Shri Brijmohan Lall Munjal is the chairman and managing director of this Company. As early as in 1960s very few Indian bicycle manufacturers were interested in exports. However, the hero groups foray into the

overseas markets in 1963 pioneered Indian exports in the bicycle segment. It was more prompted essentially by the need to remain attuned to the global marketplace. While initial exports were restricted to Africa and the middle east, today more than 50% of the exports from Hero Cycles Ltd. Meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that hero offers. Hero Honda has grown like no other company in the auto business. Several times in the path, savvy observers have insisted that it has grown just too big and that no company its size can continue to show growth rates. But Hero Honda has ignored that opinion and continued growing at the place it has set many years ago. Hero Honda today faces more competitor than it has ever in the history. Now that is the undisputed two wheeler Numero Uno in the country. Every single two wheeler manufacturer in India if looking market share away from it. More over for the first time there are so many four- stroke challengers in the market. And Hero Hondas best selling products are ageing.

S.W.O.T Analysis:Strength:

Hero Honda introduced First stroke bike in the Indian market. Hero Honda gives 80 Km/Liter Avg. Huge sale network (3500 Dealers). Better sale service. It has the highest share in automobile sector. It has a good brand image. It gives better service for customers.

Best customer preference.


Suppose to be very sophisticated. Not fit for ruler India. They have big gap between cubic capacities of its products. Its market share is reducing from last few years. Spare parts are too costly.

Hero Hondas the first manufacture to launch eco friendly bikes with 4-stroke engines. They have attained a stronger good will and popularity in the industry and the consumers. They should go in new segments of bikes. There is large no. of young consumers in the market. Company has to focus on them. They have big opportunities in heavy bike segments. As government polices are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufacture have great opportunities to explore its new innovations and technologies.

Main threats to Hero Honda are their competitors like:o Bajaj Auto Ltd. o TVS motors Ltd. o Yamaha Motors India. o Honda motorcycle and scooter India.

The cost of the product is very high in comparison to other companies. Decreasing market share.

Product range of Hero Honda:Hero Honda has a wide range of product in its class. Some of them are as following:Model Pleasure CD-100 Deluxe Ambition CBZ Extreme Passion plus CD Dawn Karizma Glamour Achiever Splendor NXG Engine capacity 102 cc, 7bhp@7000rpm 97cc, 7.5bhp@8000rpm 135cc, 11bhp 149.2cc, 14.2bhp@8500rpm 97cc, 7.4bhp@8000rpm 97cc, 7.5bhp@8500rpm 223cc, 12.68KW@7000rpm 124.7cc, 9bhp@7000rpm 149.1cc, 13.4bhp@8000rpm 124.7cc, 9bhp@7000rpm Price in (Rs.) 37990 35642 49000 59213 44265 33542 76393 49777-56529 51298-56022 46500

Bajaj auto limited:'Inspiring Confidence,' the tagline, has build up confidence, through excitement engineering, not only to domestic consumers but also internationally. Established just eight decades back in

1926 by Jamnalal Bajaj, the company has been vested with India's largest exporter of two and three wheelers. The strength of the company is its quality products, excellence in engineering and design, and its ability to delight the customers. The Pulsar, introduced in November 2004, is continually dominating the premium segment of the motorcycle market, helping to maintain the market superiority. Discover DTSi, one more successful bike on Indian roads, is in the 'value' segment of the motorcycle market. It incorporates a high degree of power with fuel efficiency of a 100 cc motorcycle. BAL is committed to prevention of pollution, continual improvement of environment performance and compliance with all environmental legislation and regulations. They always believe in providing the customer 'value for money' and keep a special eye upon quality, safety, productivity, cost and delivery. SWOT Analysis:

Highly experienced management. Product design and development capabilities. Extensive R & D focus. Widespread distribution network. High performance products across all categories. High export to domestic sales ratio. Great financial support network (For financing automobile) High economies of scale. High economies of scope.


Hasn't employed the excess cash for long. Still has no established brand to match Hero Honda's Splendor in commuter segment. Not a global player in spite of huge volumes. Not a globally recognizable brand (unlike the JV partner Kawasaki).

Double-digit growth in two-wheeler market. Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles. The growing gearless trendy scooters and scooterette market. Growing world demand for entry-level motorcycles especially in emerging markets.

The competition catches-up any new innovation in no time. Threat of cheap imported motorcycles from China. Margins getting squeezed from both the directions (Price as well as Cost) Product range of Bajaj motors:Like Hero Honda Bajaj Motors limited also has a wild range of products in its class. Some of them are a following:-

Model Wave Pulsor DTSi (150, 180, 200, 220) Discover DTSi Avenger DTSi Platina CT-100

Engine capacity

Price in (Rs.)

109.7cc, 8bhp 39000 150cc, 180cc, 200cc, 220cc, up to 58655- 83885 20bhp@8500rpm 120cc, 135cc 178.6cc, 16.5bhp@8000rpm 100cc 100cc, 8.2bhp@7500rpm 47000-49200 64534 38621 35600

The competition:Gone are those days when we could only see a Yamaha or Bullet on the road. There is no shortage of competition in the motorcycle market now. Infect it is intensifying and greatest threat is to the leader Hero Honda. Ever since Hero Honda's first model CD 100 rolled out on April 1985. It has ruled, barring of course, the four stroke motorcycle from Enfield that catered exclusively to the 350cc plus niche. But, given the phenomenal 25% annual growth rate of motorcycle demand over the last seven years, Nemours competitor have cropped up with their own four-stroke offering. In the 1998, Bajaj launched the 100cc Kawasaki Bajaj 4S and the Kawasaki caliber to compete with Hero Hondas cash cows CD 100 and Splendor. Kinetic Engineering launched the K4 100 to compete with Hero Hondas street.

Yamaha launched the YBX in the performance segment. Yet this entire first wave of four-stroke could not match up to hero Hondas prowess in the market. While Kawasaki 4S has been withdrawn, the K4 100s volumes are negligible. The Bajaj caliber, through, still account for 3% of the market today. Since then there has been a virtual flood of four-stroke motorcycle with in 13 new models. Take average of two variants per model, and the customer has been offered almost 26 more choices by the competition in the last 30-36 months. This includes the entry level Bajaj Boxer, Pulsar 150cc, 112cc Aspire and at the premium end of the market the 174cc Eliminator. TVS, besides splitting with partner Suzuki, has also launched 150cc Fiero and 110cc Victor. LML launched the 110cc Adreno and the Energy and then upgraded them into 110cc bikes renaming them Adreno FX and Energy FX. Kinetic introduced the 100cc Challenger and the 125cc GF 125cc in the technical tie up with Hyosung of Taiwan.

The 180CC Gap:While the Munjals have launched the 100cc Passion, the 157cc CBZ and the 225cc Karizma to counter the predator, one gap in the Hero Hondas portfolio is the absence of a 180cc motorcycle that act as a balance between the 150cc and the 225cc categories. While Bajaj recently launched Pulsar 180-DTS-I as its trump card in two wheeler auto mobile sector and the have got favorable response form customers generally the youth. IT is most preferred over all other high speed bikes.

Conclusion:The study which we conducted on the two wheeler automobile sector is a very important topic of automobile sector. Two wheeler automobile sectors is the backbone of the automobile sector in India. After deep research, analysis and getting information about companies as formulated that the two wheeler automobile companies achieved success in the market. Through out the study we found the two wheeler manufacturer having very new and modern technology in their bikes, they have a good market share in India, many of MNC's like Honda, Yamaha, Suzuki are also giving large competition. Concluding the performance of the company related to two wheeler sector in India, getting their market share and growth and what are services they are providing after sales. Hero Honda has managed to put in spectacular performance going from strength despite increase in competition; the company's sales have witnessed an up trend, registering an average growth of 42% in the three years under review. Hero Honda has managed to achieve this because its strong brand image and proven product quality underpinned the performance growth in recent years. Apart from the strong brand "splendor" the company's performance across the spectrum of the motorcycle market helped it exploit the growing demand for 4-stroke motorcycle.

At the lower end the company has CD 100 SS at middle level splendor, passion and Dawn the CBZ Extreme/ Karizma range is targeted at premium segment. Some years back Hero Honda are getting stiff competition because of Bajaj, TVS and Yamaha have a presence in 125cc bikes segments where Hero Honda didnt have any presence in this segment. But few years back this gap has filled up by Hero Honda's Splendor NXG, Glamour. But still there is a gap between 150cc to 225cc segment which is most preferable segment by youth today. With newer and better models are coming up customer has better and bigger choices to choose from. It is the competition on various aspects such as price, design technology, after sales services and even purchases offers, which provides to both buyer and seller. Even many dealers are in view that today Hero Honda and Bajaj, thrives on competition. Right now it seems that the real war is between Hero Honda and Bajaj auto. But one cannot discount the fact that there are other players, who are gaining strength day by day.

RECOMMENDATION:No matter how much on organization progresses it always lack something. These are shortcoming of every company. After completing my report on new Hero Honda motors Ltd. I have some suggestions to offer. The suggestions can be proved useful for the company as they have feasibility and viability. The recommendations are:-

Hero Honda Motors only manufacture a wide rand of 4stroke bike. But in my opinion 2-stroke bikes have a better pick up. So in order to letter to the need of a large segment of customers, who want a better pick up bike, Hero Honda go into the manufacture of 2-stroke bikes. The Company has always targeted urban sector of Indian population. But in the rural sector escorts; Rajdoot enjoys a great market share. So, therefore Hero Honda should target this upcoming market. Hero Honda should keep a strict watch on to competitions. For instance Yamaha has introduced a 4-stroke bike YBK whose features are almost same as Splendors. The Company should work more on public relation.