This document discusses the bike market in rural areas of India. It notes that India has a large two-wheeler industry, with 35% of bike sales occurring in rural markets. The largest player is Hero MotoCorp, which derives around 60% of its revenue from rural areas, higher than the industry average of 45%. The document outlines some of Hero's strategies for rural markets, and provides sales data for the top bike companies in India for 2009-2010 and 2010-2011, with Hero MotoCorp maintaining the top spot.

1. Bike Markets
in Rural areas
of India
Ajay Pillai – 20
Rajeshwari Gudikandla - 52

2. INTRODUCTION
India -biggest contributor to the automobile
industry.
Major growth in motorcycle segment.
Majority of Indians (especially the youngsters)
prefer bikes rather than cars.
Capturing a large share in the two-wheeler
industry
Competition is in the premium segment between
Hero Honda and Bajaj.

3. DEFINATION OF RURAL AREA
P. S. Sunder, who heads marketing at Hero
Honda defines:
— "Rural is defined by the character of the
territory. Loosely, we term 400 towns beyond
top 50 as rural."
Around 7.5 million two-wheelers were sold in
the country in 2005 and, according to Sunder, 35
per cent of these were sold in 'rural markets'

4. HERO MOTOCORP
No: 1- Superior technical skills
Started in 1984 with Joint venture with Hero Cycles in
India & Honda company in Japan
In 2010 Honda Moved out of Joint venture & Company
renamed Hero MotoCorp
Growth of 19.68% from 2010 to 2011
Commitment is to customer - Quality & Excellence
Sales exceeding 5lakhs in Jan 2011
Derives around 60% of its revenue from rural areas as
compared to approximately 45% for the industry as a whole.

5. WHAT IS HERO DOING FOR RURAL AREAS?

6. BAJAJ
Bajaj auto has posted growth of 18.00% in
the month of January 2011 (from 2.69 to
3.17units)
TVS Motors has reported growth of11.36%
Yamaha reported a growth of 55.04%
HMSI with a growth of 15.74%, growing
fast but sales are constraint by capacity.
HMSI setting a goal of 4million units by
mid2013

7. RANKINGOF THE COMPANIES ACCORDING
TO THEIR SALES
COMPANIES 2009-10 2010-11
HERO HONDA 389802 466524
BAJAJ 232939 276622
TVS 125578 161729
YAMAHA 22408 28597
SUZUKI 20448 28598
MAHINDRA 10008 15623