The document provides an overview of the auto industry in India. It notes that the industry contributes approximately 8% to India's GDP and over 45% to manufacturing GDP. The two-wheeler segment is the largest sub-segment, though industry growth declined by 14% in 2018-19. Key drivers of two-wheeler demand include rising incomes, fuel efficiency, financing options, and government support for farmers. Leading companies in the industry such as Hero MotoCorp, TVS Motors, and Bajaj Auto are discussed along with auto component manufacturers like Rico Auto and Maharashtra Scooters. Financial ratios are also presented for several of the major companies.
Group 6 members visited the Maruti Suzuki plant in Gurgaon, Haryana. The key points are:
1) Maruti Suzuki is a joint venture between the Government of India and Suzuki Motor Corporation of Japan, and has over 50% market share in India.
2) The first Maruti factory was established in Gurgaon in 1982. During the tour, the group observed the manufacturing process and facilities.
3) Maruti Dzire is one of Maruti's most popular models. It has a 1.2 liter engine, good mileage of 21-28 kmpl and a low price of Rs. 5.83-9.53 lakhs making it affordable
This document summarizes trends in the two-wheeler industry in India. It discusses growth trends, with motorcycles dominating but scooters growing rapidly. Hero MotoCorp maintains the largest market share but is losing to Honda. Input costs are decreasing due to localization while scooter and premium motorcycle segments are growing. Executive and economy motorcycles remain the largest segments.
India premium motorcycles market forecast & opportunities, 2019TechSci Research
Growing demand from High Net Worth Individuals and setting up of new premium motorcycle assembling facilities is driving premium motorcycles market in India
Here are some of the key challenges that Hero and its rivals encountered due to their relationships with foreign partners:
- Dependency on foreign technology and know-how made them vulnerable. When relationships soured or partners wanted more control, it impacted operations.
- Foreign partners had different business priorities and strategies which didn't always align with the Indian partners over time. This led to conflicts and parting of ways.
- Inability to develop indigenous technology and R&D capabilities independently as long as foreign partner held majority stake and control over technical aspects.
- Restrictions on using partner's brand and technology beyond agreed terms of collaboration. This limited growth opportunities.
- Loss of ownership and control over strategic decisions as equity stake of
The automobile industry in India is one of the largest and fastest growing globally. It manufactures over 17.5 million vehicles annually and exports over 2.33 million vehicles per year, making it the fourth largest exporter of passenger cars in Asia. Major automobile manufacturers are located around Chennai, Maharashtra, Ahmedabad, and other cities. The industry has a turnover of over $35 billion and employs over 13 million people. Tata Motors and Maruti Suzuki are the leading manufacturers of commercial and passenger vehicles respectively. The industry contributes around 5% to India's GDP currently and is expected to contribute 10-11% by 2016.
Indian Two Wheeler Industry -MicroEconomic AnalysisSubhashis Biswas
The two-wheeler industry in India is dominated by a few major players, resulting in an oligopolistic market structure. The top three players - Hero Honda, Bajaj Auto and TVS Motors - account for over 80% of the market. While the overall two-wheeler market has grown significantly, the major segments - motorcycles, scooters, and mopeds - have seen shifts in market share among the leading companies. Factors like cost of raw materials, economic conditions, government policies, and annual income levels affect the supply and demand dynamics of the two-wheeler industry in India.
The document presents on the two-wheeler market in India. It provides an overview of the industry, noting that India has the second largest two-wheeler market in the world. It discusses the evolution of the industry since 1955 and some of the major players. The document also examines the demand structure and market share segmentation. It analyzes factors driving growth, such as excise duty cuts, lower interest rates, and increasing urbanization. The future of the industry is expected to be positive, with projections of a growing middle class and expansion of the rural market boosting two-wheeler sales.
Hero Honda was a successful joint venture between Hero Cycles of India and Honda of Japan from 1984 until 2010 when disagreements over sharing technology and merging spare parts business led Honda to terminate the partnership. As separate companies, Hero MotoCorp has expanded to three manufacturing facilities with an annual production capacity of 3 million motorcycles and 1 million per year, while maintaining its position as one of the largest two-wheeler manufacturers in India.
Group 6 members visited the Maruti Suzuki plant in Gurgaon, Haryana. The key points are:
1) Maruti Suzuki is a joint venture between the Government of India and Suzuki Motor Corporation of Japan, and has over 50% market share in India.
2) The first Maruti factory was established in Gurgaon in 1982. During the tour, the group observed the manufacturing process and facilities.
3) Maruti Dzire is one of Maruti's most popular models. It has a 1.2 liter engine, good mileage of 21-28 kmpl and a low price of Rs. 5.83-9.53 lakhs making it affordable
This document summarizes trends in the two-wheeler industry in India. It discusses growth trends, with motorcycles dominating but scooters growing rapidly. Hero MotoCorp maintains the largest market share but is losing to Honda. Input costs are decreasing due to localization while scooter and premium motorcycle segments are growing. Executive and economy motorcycles remain the largest segments.
India premium motorcycles market forecast & opportunities, 2019TechSci Research
Growing demand from High Net Worth Individuals and setting up of new premium motorcycle assembling facilities is driving premium motorcycles market in India
Here are some of the key challenges that Hero and its rivals encountered due to their relationships with foreign partners:
- Dependency on foreign technology and know-how made them vulnerable. When relationships soured or partners wanted more control, it impacted operations.
- Foreign partners had different business priorities and strategies which didn't always align with the Indian partners over time. This led to conflicts and parting of ways.
- Inability to develop indigenous technology and R&D capabilities independently as long as foreign partner held majority stake and control over technical aspects.
- Restrictions on using partner's brand and technology beyond agreed terms of collaboration. This limited growth opportunities.
- Loss of ownership and control over strategic decisions as equity stake of
The automobile industry in India is one of the largest and fastest growing globally. It manufactures over 17.5 million vehicles annually and exports over 2.33 million vehicles per year, making it the fourth largest exporter of passenger cars in Asia. Major automobile manufacturers are located around Chennai, Maharashtra, Ahmedabad, and other cities. The industry has a turnover of over $35 billion and employs over 13 million people. Tata Motors and Maruti Suzuki are the leading manufacturers of commercial and passenger vehicles respectively. The industry contributes around 5% to India's GDP currently and is expected to contribute 10-11% by 2016.
Indian Two Wheeler Industry -MicroEconomic AnalysisSubhashis Biswas
The two-wheeler industry in India is dominated by a few major players, resulting in an oligopolistic market structure. The top three players - Hero Honda, Bajaj Auto and TVS Motors - account for over 80% of the market. While the overall two-wheeler market has grown significantly, the major segments - motorcycles, scooters, and mopeds - have seen shifts in market share among the leading companies. Factors like cost of raw materials, economic conditions, government policies, and annual income levels affect the supply and demand dynamics of the two-wheeler industry in India.
The document presents on the two-wheeler market in India. It provides an overview of the industry, noting that India has the second largest two-wheeler market in the world. It discusses the evolution of the industry since 1955 and some of the major players. The document also examines the demand structure and market share segmentation. It analyzes factors driving growth, such as excise duty cuts, lower interest rates, and increasing urbanization. The future of the industry is expected to be positive, with projections of a growing middle class and expansion of the rural market boosting two-wheeler sales.
Hero Honda was a successful joint venture between Hero Cycles of India and Honda of Japan from 1984 until 2010 when disagreements over sharing technology and merging spare parts business led Honda to terminate the partnership. As separate companies, Hero MotoCorp has expanded to three manufacturing facilities with an annual production capacity of 3 million motorcycles and 1 million per year, while maintaining its position as one of the largest two-wheeler manufacturers in India.
The Indus Motor Company (IMC) is a joint venture between Toyota Motor Corporation and others to assemble and market Toyota vehicles in Pakistan. IMC has the second largest market share in Pakistan's automobile sector. In FY15, IMC achieved its highest ever sales of 56,943 units, a 67% increase from the previous year. IMC's strengths include being a leader in car production and sales in Pakistan, ample availability of spare parts, and blending products according to Pakistan's infrastructure needs.
Transformation of indian two wheeler marketSanjit Sahoo
Bajaj Auto was once the dominant player in the Indian two-wheeler market but lost its #1 position when Hero Honda entered in 1985 with its fuel-efficient CD100 motorcycle. This kicked off increased competition that transformed the industry. Bajaj faced new challenges from other scooters emphasizing low maintenance costs and fuel efficiency. Younger consumers also preferred motorcycles due to infrastructure issues. To fight back, Bajaj repositioned itself and launched new promotions portraying scooters as family vehicles. This campaign helped make Bajaj appealing again. One lesson is that domestic firms must meet global standards to survive and expand internationally.
Founded in 1926, Bajaj Auto Ltd is India's second largest motorcycle manufacturer. It has 34 companies in its group and owns 51% of KTM. While its most famous tagline is "Hamara Bajaj", it aims to attain world class excellence through value-added products. Bajaj faces competition from Hero MotoCorp and Honda but differentiates itself through extensive R&D and a focus on performance motorcycles. Going forward, it aims to leverage its alliance with KTM and expand into new markets to potentially become the number one player in India.
This document analyzes trends in working capital ratios for Bajaj Auto from 2011-2016. It discusses several key liquidity and efficiency ratios, including:
- The current ratio, which measures a company's current assets against current liabilities, increased from 0.80 to 1.27 over the period.
- The inventory turnover ratio, which measures how many times average inventory is sold during a period, fluctuated between 27.66-33.35 times over the period.
- The debtor turnover ratio, which measures how quickly a company collects debts, ranged from 25.77 to 49.9 times over the period.
- The fixed asset turnover ratio, which measures revenues generated per unit of
Bajaj Auto is the 3rd largest motorcycle manufacturer globally and 2nd largest in India. It began in 1948 importing and selling Vespa scooters. Today it has 3 main plants and manufactures a range of two-wheelers and commercial vehicles. It has seen strong growth through expanding its product range and exports, with sales reaching over 20 million units annually in recent years. However, motorcycle growth has slowed in India, so Bajaj is focusing on new strategies like gearless scooters, expanding into four-wheelers, improving service and financing to continue its success.
Comparative analysis: Bajaj Auto v/s Hero MotoCorp.Jamshed Khan
The document provides a comparative analysis of Bajaj Auto and Hero MotoCorp, two major Indian motorcycle manufacturers. It discusses the history and operations of both companies. Bajaj Auto was founded in 1945 and is a global leader in motorcycles and three-wheelers. Hero MotoCorp was formed in 1984 as a joint venture between Hero Group and Honda that became the largest motorcycle manufacturer globally by 2001. The document also outlines research methodology used including primary and secondary data collection through surveys. Key findings indicate that Hero MotoCorp's Splendor and Passion models and Bajaj's Discover and Pulsar are most popular. Price, mileage, and quality are main factors influencing purchase decisions.
The automobile industry in India is expected to become the third largest in the world by 2016. Two-wheeler production is projected to significantly increase between 2015 and 2020. Bajaj Auto Ltd is India's largest manufacturer of two- and three-wheelers and the fourth largest worldwide. It has a diverse product portfolio and generates revenue primarily from domestic motorcycle and commercial vehicle sales as well as exports. Bajaj Auto is forecasted to continue its strong financial performance in the next quarter with increased revenue, profit, and market share.
The document summarizes the evolution of motorbikes from their inception in the late 1800s to modern times. It discusses key developments such as the introduction of gasoline engines and mass production. The document also examines the motorbike industry in India, including major players, factors driving growth, and future prospects like untapped rural markets. Market share and sales data are presented for companies like Hero Honda and Yamaha. Research included interviews with dealers and studies of consumer behavior and government policies affecting the industry.
The document provides information about the automobile industry in India and Maruti Suzuki. It discusses that Maruti Suzuki was founded in 1981 as a joint venture between the Government of India and Suzuki. It has grown to become the largest car manufacturer in India, holding a 47.6% market share as of 2016. However, Maruti Suzuki is facing increased competition from other automakers. The Indian auto industry is also facing a slowdown and declining sales volumes in recent months, impacting Maruti Suzuki's sales as well. The document puts forth suggestions for Maruti Suzuki to transition to EVs and focus on new segments, and for the government to reduce road tax and bring financial reforms to help revive the industry
The document summarizes the history of Hero Honda Motors Ltd., a joint venture between Hero Group and Honda Motor Company. It discusses how the joint venture was formed in 1984 and became the largest motorcycle manufacturer globally by 2010. However, Honda later decided to exit the joint venture and formed its own subsidiary, Honda Motorcycle and Scooter India, in 2011. This led Hero Group to rebrand as Hero Motocorp and focus on developing its own products and distribution channels internationally on its own.
This document provides an overview of the automobile industry in Pakistan. It discusses that the industry started in 1950 and now contributes 4% to Pakistan's GDP. The production and sales of automobiles has grown significantly between 2014 and 2018, fueled by the Automotive Development Policy of 2016. It also outlines the major automobile companies operating in Pakistan, as well as recommendations to further develop the local industry through increasing technology, production volume, and localization.
India auto industry H1 performance FY 16-17Rahman A
This document contains sales statistics for the Indian two-wheeler and car industries for fiscal years 2015-16 and 2016-17 (first half). For two-wheelers, Hero MotoCorp maintained the top market share, followed by Honda and TVS. Bajaj saw a decrease in market share. In cars, Maruti Suzuki maintained the top share, followed by Hyundai and Mahindra. Renault saw a large increase in market share. The document also provides contact information for Satiate Consulting, an automotive industry consulting firm based in Bengaluru, India.
The two-wheeler industry in India is the largest in the world, second only to China. Motorcycles dominate the market with an 81.5% share. Major players like Hero Honda, Bajaj Auto, and TVS Motors utilize aggressive marketing strategies including celebrity endorsements to promote their brands. The future of the industry looks promising with opportunities for growth in rural areas, collaboration with global companies, and investment in research and development.
The document discusses the demerger of Hero and Honda in the Indian two-wheeler industry. It provides background on Hero Group and its history of bicycle and motorcycle manufacturing in India. It also outlines the key players in the Indian two-wheeler market and their market shares. Hero Honda was previously the dominant player with around 48% market share but has now demerged into independent companies Hero MotoCorp and Honda Motorcycle and Scooter India. The demerger is a major development in the competitive Indian two-wheeler industry.
PESTLE analysis................................Bajaj auto ltdNikita Bhatkar
PESTLE Analysis is one of the most comprehensive models to study the effect of various forces present in the environment and subsequently prepare oneself to exploit the opportunities and defend against the threats.The presentation has shown this methodology through an example been done for Bajaj Auto. Ltd
The document discusses the history and growth of the motorcycle market in India, which is now the second largest producer of two-wheelers globally. It outlines the major players in the Indian motorcycle market like Hero Motors, Bajaj Auto, and TVS Motors and their popular models. The future of the two-wheeler industry in India is seen as promising given the low market penetration and opportunities for growth in rural areas, though challenges around sustaining growth rates and global competition remain.
Bajaj Auto was founded in 1926 and initially manufactured sugar before diversifying into vehicle manufacturing in 1945. It is now India's largest two and three-wheeler manufacturer and the world's fourth largest. Bajaj Auto has experienced steady growth and released many new vehicle models over time. While its financial position is not as strong as competitor Hero Honda, with lower profit margins and negative working capital, Bajaj Auto remains an important player in India's large automobile industry and continues community service initiatives.
The document discusses the business strategies and success of the Hero Honda joint venture in India. It notes that prior to liberalization, India had a License Raj system with restricted foreign investment. Hero Cycles manufactured 16,000 bicycles per day before partnering with Honda. Honda chose Hero for a motorcycle manufacturing joint venture due to Hero's large dealer network and market penetration in India. The Hero Honda joint venture was highly successful, becoming the world's largest motorcycle manufacturer with over 2 million annual sales and 59% of the Indian motorcycle market share. Their success was attributed to Hero's established distribution network, lack of early competition, reliable products from Honda and Hero, growing motorcycle market demand, and lower prices compared to sco
Bajaj Auto Ltd is realigning its manufacturing strategy by closing its Akurdi plant and consolidating production at its Waluj and Pantnagar facilities. This will save Rs. 5000-6000 per bike produced and eliminate unnecessary costs. It will have positive effects like increased annual production capacity at Pantnagar of 1 million bikes and tax exemptions. However, it will also have negative effects like workers refusing voluntary retirement and suppliers in Chakan being shut down. The company aims to improve efficiency and competitiveness through this realignment.
India is the world's largest manufacturer of two-wheelers, with production growing at 9% annually and projected sales rising from 15.9 million vehicles in 2013 to 29.1 million by 2020. Two-wheelers dominate the country's automotive production, accounting for 77% of total vehicles manufactured in 2013. Domestically, Hero Motorcorp has the largest market share at nearly 50%, followed by Honda and Bajaj. In scooters, Honda leads with a 49% share while Hero has 19% and TVS has 15%.
1. Honda entered India using a glocalization strategy, building local plants to meet local demand for scooters, motorcycles, and electric generators.
2. It formed a 50/50 joint venture called Kinetic Honda Motors Ltd with Kinetic Engineering Ltd to launch a line of scooters.
3. Honda's international strategy is based on founder Soichiro Honda's global vision of leading the world in technology and making a significant contribution to society through innovative products.
The Indus Motor Company (IMC) is a joint venture between Toyota Motor Corporation and others to assemble and market Toyota vehicles in Pakistan. IMC has the second largest market share in Pakistan's automobile sector. In FY15, IMC achieved its highest ever sales of 56,943 units, a 67% increase from the previous year. IMC's strengths include being a leader in car production and sales in Pakistan, ample availability of spare parts, and blending products according to Pakistan's infrastructure needs.
Transformation of indian two wheeler marketSanjit Sahoo
Bajaj Auto was once the dominant player in the Indian two-wheeler market but lost its #1 position when Hero Honda entered in 1985 with its fuel-efficient CD100 motorcycle. This kicked off increased competition that transformed the industry. Bajaj faced new challenges from other scooters emphasizing low maintenance costs and fuel efficiency. Younger consumers also preferred motorcycles due to infrastructure issues. To fight back, Bajaj repositioned itself and launched new promotions portraying scooters as family vehicles. This campaign helped make Bajaj appealing again. One lesson is that domestic firms must meet global standards to survive and expand internationally.
Founded in 1926, Bajaj Auto Ltd is India's second largest motorcycle manufacturer. It has 34 companies in its group and owns 51% of KTM. While its most famous tagline is "Hamara Bajaj", it aims to attain world class excellence through value-added products. Bajaj faces competition from Hero MotoCorp and Honda but differentiates itself through extensive R&D and a focus on performance motorcycles. Going forward, it aims to leverage its alliance with KTM and expand into new markets to potentially become the number one player in India.
This document analyzes trends in working capital ratios for Bajaj Auto from 2011-2016. It discusses several key liquidity and efficiency ratios, including:
- The current ratio, which measures a company's current assets against current liabilities, increased from 0.80 to 1.27 over the period.
- The inventory turnover ratio, which measures how many times average inventory is sold during a period, fluctuated between 27.66-33.35 times over the period.
- The debtor turnover ratio, which measures how quickly a company collects debts, ranged from 25.77 to 49.9 times over the period.
- The fixed asset turnover ratio, which measures revenues generated per unit of
Bajaj Auto is the 3rd largest motorcycle manufacturer globally and 2nd largest in India. It began in 1948 importing and selling Vespa scooters. Today it has 3 main plants and manufactures a range of two-wheelers and commercial vehicles. It has seen strong growth through expanding its product range and exports, with sales reaching over 20 million units annually in recent years. However, motorcycle growth has slowed in India, so Bajaj is focusing on new strategies like gearless scooters, expanding into four-wheelers, improving service and financing to continue its success.
Comparative analysis: Bajaj Auto v/s Hero MotoCorp.Jamshed Khan
The document provides a comparative analysis of Bajaj Auto and Hero MotoCorp, two major Indian motorcycle manufacturers. It discusses the history and operations of both companies. Bajaj Auto was founded in 1945 and is a global leader in motorcycles and three-wheelers. Hero MotoCorp was formed in 1984 as a joint venture between Hero Group and Honda that became the largest motorcycle manufacturer globally by 2001. The document also outlines research methodology used including primary and secondary data collection through surveys. Key findings indicate that Hero MotoCorp's Splendor and Passion models and Bajaj's Discover and Pulsar are most popular. Price, mileage, and quality are main factors influencing purchase decisions.
The automobile industry in India is expected to become the third largest in the world by 2016. Two-wheeler production is projected to significantly increase between 2015 and 2020. Bajaj Auto Ltd is India's largest manufacturer of two- and three-wheelers and the fourth largest worldwide. It has a diverse product portfolio and generates revenue primarily from domestic motorcycle and commercial vehicle sales as well as exports. Bajaj Auto is forecasted to continue its strong financial performance in the next quarter with increased revenue, profit, and market share.
The document summarizes the evolution of motorbikes from their inception in the late 1800s to modern times. It discusses key developments such as the introduction of gasoline engines and mass production. The document also examines the motorbike industry in India, including major players, factors driving growth, and future prospects like untapped rural markets. Market share and sales data are presented for companies like Hero Honda and Yamaha. Research included interviews with dealers and studies of consumer behavior and government policies affecting the industry.
The document provides information about the automobile industry in India and Maruti Suzuki. It discusses that Maruti Suzuki was founded in 1981 as a joint venture between the Government of India and Suzuki. It has grown to become the largest car manufacturer in India, holding a 47.6% market share as of 2016. However, Maruti Suzuki is facing increased competition from other automakers. The Indian auto industry is also facing a slowdown and declining sales volumes in recent months, impacting Maruti Suzuki's sales as well. The document puts forth suggestions for Maruti Suzuki to transition to EVs and focus on new segments, and for the government to reduce road tax and bring financial reforms to help revive the industry
The document summarizes the history of Hero Honda Motors Ltd., a joint venture between Hero Group and Honda Motor Company. It discusses how the joint venture was formed in 1984 and became the largest motorcycle manufacturer globally by 2010. However, Honda later decided to exit the joint venture and formed its own subsidiary, Honda Motorcycle and Scooter India, in 2011. This led Hero Group to rebrand as Hero Motocorp and focus on developing its own products and distribution channels internationally on its own.
This document provides an overview of the automobile industry in Pakistan. It discusses that the industry started in 1950 and now contributes 4% to Pakistan's GDP. The production and sales of automobiles has grown significantly between 2014 and 2018, fueled by the Automotive Development Policy of 2016. It also outlines the major automobile companies operating in Pakistan, as well as recommendations to further develop the local industry through increasing technology, production volume, and localization.
India auto industry H1 performance FY 16-17Rahman A
This document contains sales statistics for the Indian two-wheeler and car industries for fiscal years 2015-16 and 2016-17 (first half). For two-wheelers, Hero MotoCorp maintained the top market share, followed by Honda and TVS. Bajaj saw a decrease in market share. In cars, Maruti Suzuki maintained the top share, followed by Hyundai and Mahindra. Renault saw a large increase in market share. The document also provides contact information for Satiate Consulting, an automotive industry consulting firm based in Bengaluru, India.
The two-wheeler industry in India is the largest in the world, second only to China. Motorcycles dominate the market with an 81.5% share. Major players like Hero Honda, Bajaj Auto, and TVS Motors utilize aggressive marketing strategies including celebrity endorsements to promote their brands. The future of the industry looks promising with opportunities for growth in rural areas, collaboration with global companies, and investment in research and development.
The document discusses the demerger of Hero and Honda in the Indian two-wheeler industry. It provides background on Hero Group and its history of bicycle and motorcycle manufacturing in India. It also outlines the key players in the Indian two-wheeler market and their market shares. Hero Honda was previously the dominant player with around 48% market share but has now demerged into independent companies Hero MotoCorp and Honda Motorcycle and Scooter India. The demerger is a major development in the competitive Indian two-wheeler industry.
PESTLE analysis................................Bajaj auto ltdNikita Bhatkar
PESTLE Analysis is one of the most comprehensive models to study the effect of various forces present in the environment and subsequently prepare oneself to exploit the opportunities and defend against the threats.The presentation has shown this methodology through an example been done for Bajaj Auto. Ltd
The document discusses the history and growth of the motorcycle market in India, which is now the second largest producer of two-wheelers globally. It outlines the major players in the Indian motorcycle market like Hero Motors, Bajaj Auto, and TVS Motors and their popular models. The future of the two-wheeler industry in India is seen as promising given the low market penetration and opportunities for growth in rural areas, though challenges around sustaining growth rates and global competition remain.
Bajaj Auto was founded in 1926 and initially manufactured sugar before diversifying into vehicle manufacturing in 1945. It is now India's largest two and three-wheeler manufacturer and the world's fourth largest. Bajaj Auto has experienced steady growth and released many new vehicle models over time. While its financial position is not as strong as competitor Hero Honda, with lower profit margins and negative working capital, Bajaj Auto remains an important player in India's large automobile industry and continues community service initiatives.
The document discusses the business strategies and success of the Hero Honda joint venture in India. It notes that prior to liberalization, India had a License Raj system with restricted foreign investment. Hero Cycles manufactured 16,000 bicycles per day before partnering with Honda. Honda chose Hero for a motorcycle manufacturing joint venture due to Hero's large dealer network and market penetration in India. The Hero Honda joint venture was highly successful, becoming the world's largest motorcycle manufacturer with over 2 million annual sales and 59% of the Indian motorcycle market share. Their success was attributed to Hero's established distribution network, lack of early competition, reliable products from Honda and Hero, growing motorcycle market demand, and lower prices compared to sco
Bajaj Auto Ltd is realigning its manufacturing strategy by closing its Akurdi plant and consolidating production at its Waluj and Pantnagar facilities. This will save Rs. 5000-6000 per bike produced and eliminate unnecessary costs. It will have positive effects like increased annual production capacity at Pantnagar of 1 million bikes and tax exemptions. However, it will also have negative effects like workers refusing voluntary retirement and suppliers in Chakan being shut down. The company aims to improve efficiency and competitiveness through this realignment.
India is the world's largest manufacturer of two-wheelers, with production growing at 9% annually and projected sales rising from 15.9 million vehicles in 2013 to 29.1 million by 2020. Two-wheelers dominate the country's automotive production, accounting for 77% of total vehicles manufactured in 2013. Domestically, Hero Motorcorp has the largest market share at nearly 50%, followed by Honda and Bajaj. In scooters, Honda leads with a 49% share while Hero has 19% and TVS has 15%.
1. Honda entered India using a glocalization strategy, building local plants to meet local demand for scooters, motorcycles, and electric generators.
2. It formed a 50/50 joint venture called Kinetic Honda Motors Ltd with Kinetic Engineering Ltd to launch a line of scooters.
3. Honda's international strategy is based on founder Soichiro Honda's global vision of leading the world in technology and making a significant contribution to society through innovative products.
A Microeconomics focused presentation of Tata Motors - 2 Wheeler Era. Discussed in detail on how TATA can introduce a new 2 wheeler in an already existing competitive market and try to gain a market share. All strategies including Finance, Marketing and Sales have been briefly discussed with a 5-year growth plan.
The document provides an overview of the two-wheeler automobile industry in India. It discusses the history and evolution of the industry from the 1950s onwards. The two-wheeler segment grew significantly in the 1990s and is now dominated by motorcycles, which account for around 78% of two-wheeler sales. The document also profiles TVS Motor Company, a major Indian manufacturer of two-wheelers, and summarizes its vision, mission, products, and areas of operation.
The automobile industry in India has grown significantly over the past few decades. It started with only two major players and was highly regulated, with import restrictions and high duties. Liberalization in the 1990s led to more players entering the market, both domestic and foreign, and greater competition. Key segments now include two-wheelers, passenger vehicles, commercial vehicles, and three-wheelers. The industry is largely domestically focused but exports have also increased substantially in recent years, with passenger vehicles becoming a leading export category. Overall production and sales have grown at a compound annual rate of over 15% with two-wheelers maintaining the largest market share.
Hero Motorcorp is the largest two-wheeler manufacturer in the world, with four manufacturing facilities in India. It held a 36% share of the Indian motorcycle market in 2017. The company saw significant growth in rural sales between fiscal years 2018 and 2019, with rural areas representing over 70% of its total sales. To target rural customers effectively, Hero utilizes various conventional and non-conventional communication strategies, and distributes its vehicles through a hub-and-spoke system of dealerships organized by district. While rural marketing poses challenges like seasonal incomes and community influences, opportunities exist to expand dealerships and focus on popular models like the Splendor to increase rural coverage.
The document discusses the automobile industry in India. It notes that India is the largest two-wheeler manufacturer, second largest tractor manufacturer, and fifth largest commercial vehicle manufacturer in the world. It outlines the key players in the passenger car, commercial vehicle, and two-wheeler segments. It provides an overview of the current state of the industry, outlook, positive and negative factors, and historical sales trends. It also discusses the upcoming launches of low-cost cars from Tata and Bajaj that could significantly increase car ownership levels in India.
The document discusses recent trends and strategies in India's auto components industry. Key points include:
1) India is emerging as a global sourcing hub for major auto companies and their suppliers.
2) Companies are improving R&D capabilities in India through new technology centers and labs.
3) Major investments are being made through production-linked incentive schemes and expansion plans by companies like Tata Motors, ZF, and MG Motor.
4) New strategies include targeting untapped markets, exploring exports, and partnerships to boost electric vehicle infrastructure. Capacity expansions are also underway across companies.
The two-wheeler industry in India is the second largest producer globally. It has experienced significant growth due to factors like increasing middle class incomes, access to financing, and preference for two-wheelers due to their affordability and suitability for Indian roads and use cases. Major players like Hero Honda, Bajaj, and TVS dominate the market, with motorcycles comprising over 80% of sales. The industry faces opportunities in innovation, exports, and partnerships to sustain growth.
The document provides an analysis of the automobile industry in India. It discusses the history and evolution of the industry from its early days of importing vehicles to now being one of the largest automobile producers in the world. Key points covered include:
- India now has the 10th largest automobile industry globally with an annual production of 2 million units.
- The industry encompasses various vehicle types including 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles, and tractors.
- The industry has faced challenges like licensing restrictions but has achieved growth. It is expected to become a major global player in coming years.
A project report on orgnoziation study of tata motorsBabasab Patil
The automobile industry in India has grown significantly over the past few decades. It is now the 11th largest in the world, with annual production of around 2 million vehicles. India has a large market potential given its population of over 1.1 billion and low vehicle ownership rate. The industry employs over 13 million people and contributes around 3% to India's GDP. Motorcycles dominate the two-wheeler segment, while cars make up 79% of passenger vehicle sales. Tata Motors has over 60% market share in commercial vehicles. The industry has attracted many global automakers and is an important part of the Indian economy.
This document provides an overview of an management thesis on the automobile industry in India, with a focus on Bajaj Auto Ltd and their Pulsar bikes. It discusses the growth of the two-wheeler industry in India and key factors driving demand. It then provides a detailed profile of Bajaj Auto, including their history, brands, models, market share, financial performance, awards, and outlook. Bajaj Auto is one of the largest manufacturers of two- and three-wheelers in India and globally. Their Pulsar brand has been very successful in the premium motorcycle segment of the Indian market.
The document provides an overview of the Indian tyre industry. Some key points:
- The Indian tyre industry had a turnover of Rs. 25,000 crores in 2009-2010, producing 13.5 lakh metric tons of tyres. The top 10 companies account for over 95% of production.
- Raw materials like natural rubber, butyl rubber, and nylon account for 63% of industry costs. India imports some raw materials due to insufficient domestic production.
- Growth in the automobile industry, driven by rising incomes, GDP growth, and infrastructure spending, is driving demand for tyres. Major automobile companies are expanding production.
- Leading tyre manufacturers include MRF,
TWO Wheeler industry in india based on market analysispptsubin sabu
The two-wheeler industry in India is the largest in the world. Hero MotoCorp is the market leader with a 29% domestic market share, followed by Honda, Bajaj Auto, and TVS Motors. Motorcycles make up 78.7% of the market, with scooters and mopeds accounting for 15.5% and 2.4%, respectively. Key players like Hero and Bajaj are focusing on R&D to develop new technologies and models. Overall industry growth is expected to continue, but raw material price fluctuations and intensifying competition could impact margins. Companies are expanding production capacity to meet the rising demand in the growing Indian market.
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2. NAME ROLL NO
MONIK DAMANIA 64
AMIT GULVE 76
HIMANI KESWANI 80
ANJALI NANDA 92
SHWETA THAKKER 117
AYUSHI VYAS 120
3. Introduction
• It contributes approx. 8% of India’s GDP and more than 45 % of
manufacturing GDP
• India is the largest producer of two wheeler
• Industry Registered 14% Degrowth in 2018-19
• Expected to reach Rs 16-18 trillion by 2026
• Increase in per capita income levels, high fuel efficiency,
easy financing options, government policy for farmers &
preference of two-wheeler in eMobility will further boost sales
In India
GDP
AUTO
SECTOR
5. Two Wheelers: Demand Drivers
Bussiness need
• General commute to fulfil business requirement
• Necessity for entry level jobs
• Last mile connectivity for delivery requirements of E-Commerce and
Food delivery companies
• Commitment towards electric fleet
• Rural demand for multiple use cases
6. Consumption need
• Higher disposable income
• Demand during festive season in October and November
• Good monsoon helps with rural demand
• Urban demand from youth and women
• High end bike as status symbol
13. Negative impact on Two wheeler
• BS VI Emission Requirement
• 5-year TP insurance
• ABS and CBS requirement
• Driving License requirement in West Bengal
• Bike pooling
• NBFC Crises
14. Atul Auto ltd.
● First vehicle rolled in 1970.
● More than 1 million vehicles on global roads.
● Fastest growing 3 wheeler vehicle.
● 3 Wheeler products across the fuel range- Diesel, Petrol, CNG, LPG
and Electric.
● Among top 5 three wheeler companies in India.
● Market Cap (Rs Cr.) 310.61
● C.E.O - Jayantibhai J Chandra
15. Hero Motocorp Ltd.
• Hero Motocorp Ltd. Formerly Hero Honda, is an Indian motorcycle
and scooter manufacturer
• Founded in 1984
• Largest two-wheeler manufacturer in the world and also in India.
• It has a market share of 36%
• In 2019, Hero Splendor came out as the best selling two-wheeler in
India
• Market Cap (Rs Cr.) 35,553.61
• C.E.O - Pawan Munjal
16. TVS Motors
• Indian multinational motorcycle company
• Founded in 1978
• Manufactures motorcycles, mopeds and scooters
• Third largest 2-wheeler company in India
• 2nd largest exporter in India
• Market share - 18.83%
• Market Cap (Rs Cr.) 15,288.30
• C.E.O - K. N. Radhakrishnan
17. Bajaj Auto
• Founded by Jamnalal Bajaj in Rajasthan in the
1940s
• Bajaj Auto is a part of the Bajaj Group
• Manufactures motorcycles, scooters and auto
rickshaws
• It is the world's largest three-wheeler
manufacturer
• Market Share of 30.6 per cent
• Market Cap (Rs Cr.) 60,188.34
• C.E.O – Rajiv Bajaj
18. Contribution
to GDP 2.3
%
Share in
export 4 %
Employment
50 Lakh
Approx
Domestic
After market
$ 10.6 Billion
Export $
15.6 Billion
Turnover
$ 57 Billion
Auto Ancillary
NO UNITS % INCREASES
IN 2019
Supply to
OEM
3460052
(66.67 %)
15.2
After market 67491
(12.98 %)
10.1
Export 106048
(20.4 %)
19.8
19. Rico Auto Industries
• Rico is a world-class engineering company supplying a wide range of high
precision fully machined aluminum and ferrous components and assemblies to
automotive OEMs across the globe
• Rico Auto Incorporated (1984-85) and Commercial Production Started (1986)
• Rico’s integrated services include design, development, tooling, casting,
machining and assembly across ferrous and aluminum products
• Customers : GKN, Toyota, Allison Transmissions, Volkswagen India, Musashi,
Kohler, Avtec, Bentley
• Rico has in house dies and pattern design and manufacturing. Rico manufacture
over 200 dies and patterns and 600 die inserts annually
• Rico’s consolidated group total turnover is over US$ 245 Million
• Market Cap (Rs Cr.) 263.13
• C.E.O - Arvind Kapur
20. Maharashtra Scooters
• Its an Auto Ancillary company supplies parts to various OEM
• Incorporated on 11thJun 1975
• Company started manufacturing of Bajaj Super & Bajaj Chetak
models of scooters
• Discontinued production of geared scooters from 1st Apr 2006
• Company is currently manufactures casting dies, jigs & fixtures
• Market Cap (Rs Cr.) 2,423.26
• Shriniwas Pathak – C.E.O
21.
22. RATIOS
Hero Motocorp TVS Baja Auto Atul Auto Rico Auto Maharashtra Scooters
Liquidity
Current Ratio 1.96 0.78 1.45 2.11 0.96 0.07
Quick Ratio 1.71 0.49 1.25 1.47 0.73 0.07
Solvency or Leverage
Debt/Equity Ratio -- 0.41 -- -- 0.5 --
Management Efficiency
Inventory Turnover Ratio 31.38 15.49 31.46 11.61 12.25 9.6
Profitability
Return On Equity (%) 26.32 20.02 21.46 31.37 8.4 0.64
Net Profit Margin (%) 10.05 3.68 15.45 11.27 4.07 502.06
Valuation
Yield 0.07 0.03 0.06 0.07 0.06 0.02
EPS 169.48 14.11 161.6 27.53 3.6 63.7
P / E 8.68 24.72 11 4.68 8.25 29.87
Dividend Payout Ratio (%) 56.05 24.81 37.13 21.68 22.19 51.8
Post coming off growing economy and favourable financing environment till FY 12, the two wheeler domestic sales continued muted growth for the years FY 13- FY 16 on account of weak consumer sentiment, unfavourable monsoons and lower GDP growth
Post FY 16, on account of near normal monsoons and revival in rural consumer demand, two wheeler sales have shown a steady growth which has continued till FY 19 (Dec). The growth rate was slightly muted in FY 17 on account of demonetization which impacted the liquidity for buyers for a brief period
Two wheeler sales have witnessed contraction in Q1 FY 20 across all segments on account of multiple factors like muted rural
demand owing to low crop realization and delayed monsoon, liquidity squeeze, increased on-road price to insurance premium hikes over the last year
Motorcycles have been steadily losing market shares to scooters since FY 12 and the share has shrunk from 75.12% in FY 12 to 62.46% in FY 18
However FY19 & Q1 FY 20data suggests motorcycle regaining the market share on account of new model launches, strong rural demand
despite subdued festive seasons and increase in on-road prices on account of increase in insurance premiums.
Scooters, post their continuous years of growth showed some signs of stagnation on account of demand shifting towards entry level motor cycles and key changes in regulation in West Bengal (major scooter market) on account of buyers requiring driving license to purchase two wheelers.
Two wheeler segment displayed healthy growth from FY 18 on account of above average marriage season; healthy rural demand and aggressive pricing at entry level segment by motorcycle OEMs
However the segment witnessed degrowth in Q1 FY 20 on account of muted demand and one –off factors combining
Motorcycles with sub-segment (75-110 cc) continues to dominate the market share largely driven by upbeat rural demand on
account of factors like MSP hikes on crops, near normal monsoon for past 3 years and loan waivers in select states.
Significant degrowth has been observed in 110-125 cc segment on account of lack of new model launches and demand shifting to
125-150 cc segment
However impact on uneven monsoon in FY 2019 and muted crop realization for kharif crop seasons could play dampeners in the
growth pattern of the overall industry
All segments showed degrowth in Q1 FY 2020 on account of multiple factors- liquidity squeeze, flattish demand, lower crop realization
On account of flattish festival demand, there was growth revival witnessed in all segments especially 125-150cc subsegment which had
earlier seen degrowth . The growth was on account of new model launches and aggressive pricing strategies from OEMs
Two segments saw degrowth in current FY 2019 : 110-125 cc (due to lack of new models) and 250 cc (due to plant issues at Eicher Motors
which is dominant player in this segment)
Hero Motors continues to dominate the market share of overall motorcycle sales over the years and has continued with nearly 50% market
share as oFY2019 supported by renewed rural demand and marriage season
Bajaj has shown considerable growth in sales and has grown by approximately 200 bps in FY 2019 on account of aggressive pricing and new model launches especially due to launch of stripped down version of Pulsar 150 in 125-150 cc subsegment.
Honda Motors retains the third position in market share primarily on account of dominance of its models in 110-125 cc subsegment while TVS retains fourth spot in market share
Scooter segment displayed consistent double digit growth from FY 12 till FY 18 on account of sales post BS III, good monsoon and festive demand
This segment witnessed degrowth in FY 2019 despite new model launches on account of Kerala floods (key market for scooters), tight liquidity conditions for financiers, increase in on road prices due to insurances and muted demand in urban areas
The Government of India has decided to leapfrog from the exiting BS – IV emission norms to the BS- VI,
thereby skipping the BS - V norms.
BS - VI norms will come to effect from 1st April 2020. The cost of better engines conforming to BS VI
emission norms is expected to increase the costs by 10-15%. Although some estimates are lower.
While first half of FY19 will see flat growth, there could be some recovery in the second half due to pent-up demand on festivals and pre-buying of BS IV vehicles (Similar spike was seen before transition to BS IV norms in April 2017. That period saw a deep discounting on older models just before April 2017 for inventory clearance. Better preparation expected from OEMs and dealers this time.)
Hero may consider exporting more of its BS IV inventory, especially to countries such as Nepal,
Bangladesh and Sri Lanka
The Supreme Court mandated 5-year third-party (TP) insurance post Sep-18, shooting up the premiums.
Honda estimated an impact of 6% on the price of its products due to insurance ruling
Insurance premium for 100-125 cc bikes have increased from ~ Rs 1800 to ~ Rs 5,000
2Ws having an engine capacity higher than 125cc are mandatory to have anti-lock braking system (ABS)
and for two-wheelers below that capacity are mandatory to have combined braking system (CBS) from April 1, 2019. So cheaper models will not be available in FY20, impacting demand.
The WB government introduced stringent rules from Jun-18 barring sale and registration of two-
wheelers in the name of people without driving licences.
This saw a decline of ~60% in 2W sales in WB which earlier had a demand of ~ 1 lac units a month
There have since been relaxations to the rules like payment of fee for learning license while buying 2W,
but purchases have been delayed for more clarifications