A study on Bike brands in India

1. Bikes in India By:- HimanshuSaxena Chandan Kumar Singh Amritesh Singh Mahesh Dontul SashikanthYenika AnuragRana PiyushBhandari Yudhvir Singh NirvanRustagi GauravTripathi

2. Contents Introduction Hero Honda Bajaj Auto TVS Motors Honda Motors Yamaha Motors Royal Enfield 7/27/2011 2

3. Bikomania

4. Origin of Bikes Gottleib Daimler-First gas engine motorcycle-1885 7/27/2011 4

5. Origin of Bikes The first bike ever was inspired from a horse carriage and was called ‘Indian’ built by the Indian Motorcycle company in America. Birth of the motorcycle industry in India in 1955 for the Indian army. The first batch of 350cc Bullet - the super bike in India of all times, from the Royal Enfield Company of UK were received and assembled at Chennai. 7/27/2011 5

6. Bikes And Its Needs 7/27/2011 6

7. Bikes And Its Needs 7/27/2011 7

8. Bikes And Its Needs 7/27/2011 8

9. Bikes And Its Needs 7/27/2011 9

10. Motorcycle Distribution Across Globe 7/27/2011 10

11. Distribution Across Asia 7/27/2011 11

12. Production : Top 10 Countries 7/27/2011 12

13. Sales trends in India Second largest market in the world 5 times the size of Indian passenger car market 7/27/2011 13

14. Factor Influencing Indian Market Infrastructure development, especially in rural areas Increase in disposable income Innovation- development and introduction of new products, new technology, etc. Product characteristics like greater utility (in terms of road space, parking space, low cost of acquisition, etc.) Current low penetration rate (MC/1000 pop) 7/27/2011 14

15. Major Players 7/27/2011 15

16. Market share 7/27/2011 16

17. Contents Introduction Hero Honda Bajaj Auto TVS Honda Motors Yamaha Royal Enfield 7/27/2011 17

18. “Hero Honda – Deshkidhadkan” Hero Honda People BrijmohanMunjal – Chairman PawanMunjal – CEO @ MD Products Bikes 7/27/2011 18

19. Hero Honda first to introduce Bikes in India Huge Population( 1billion in 1980’s) 35% of the population were Improvised. Growth in per capita income in last decade. Growing infrastructure. “THE LISCENCE RAJ” customers in India for Bajaj Chetak were made to wait for 10 years Ideal environment for two wheeled scooters 7/27/2011 19

20. Hero Honda Basic Details Head quarters in Dharuhera,Haryana Revenue $ 2.8 bln Website: www.herohonda.com. M.D. and CEO – PawanMunjal Chairperson BrijmohanMunjal 7/27/2011 20

21. Milestone and Activities 1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed 1984 Hero Honda Motor Ltd. Incorporated 2000 Splendor declared 'World No. 1' - largest selling single two-wheeler model . HHML is known for its innovative & Aggressive Marketing. The advertising budget is of Rs.120 crores. All the mediums are used extensively, be it print or mass media like T.V & hoardings. HHML also promotes sports in the country. It is also the sponsor of the ICC world Cup 2003 and half of the Indian team represents Hero Honda. Also, advertising is done at a local level by dealers, in which HHML also contributes to help dealer promote the dealership in the local area. 7/27/2011 21

22. Products time lines. 1985 – CD 100 rolled out 1989 – Sleek introduced 1991 - CD 100SS introduced 1994 – Splendor introduced 1997 – street introduced 1999 – CBZ introduced 2001 – Passion and joy introduced 2002 – Dawn and Ambition introduced 2003 – CD Dawn, Splendor+, Passion plus, Karizma 2004 – Ambition 135 and CBZ* 2005 – Super Splendor, CD Deluxe, Glamour, Achiver. First scooter model Pleasure introduced. 2007 - Hunk, CD Deluxe, Passion Plus, Splendor NXG 2008 - Passion Pro, CBZ Xtreme, Glamour Fi , Glamour 2009 - Karizma – ZMR 2010 - splendor pro, Hunk. Fuel economic bikes CBZ(Power & Style) Wide mix of bikes 7/27/2011 22

23. Bikes of Hero Honda 7/27/2011 23

24. Splendor 7/27/2011 24

25. Splendor “Fill it shut it forget it” Go Launched in 1994 Variants:- Splendor Splendor+ ………………………”Generation nayibharosawahi” Super Splendor. Splendor NXG Splendor Pro Made to cater for the need of the customer for fuel efficiency. Target customers People who go for job and want fuel efficiency Comfortable driving experience People who want less maintenance Decent looks and styling during that Point of time 7/27/2011 25

26. Hero Honda Passion 7/27/2011 26

27. Hero Honda Passion “Born in a studio” Go Launched in 2001 Operates in:- 100 cc. Fuel economy( a bit more stylish than Splendor) It got introduced as a bridge model between CBZ and Splendor . Target customers Those who wanted a mix of Style and Fuel efficiency. 7/27/2011 27

28. Hero Honda CBZ 7/27/2011 28

29. CBZ “Fully loaded ” Go Launched in 1999 Operates in:- 160cc. CBZ Xtreme Made to cater for the need of the customer for Power & Style. An attempt to break Hero Honda’s image of only fuel economic bikes. Target customers Young guys who want to test the rush of their adrenaline. Liked by the segment who wanted to enjoy through Biking. 7/27/2011 29

30. Karizma “Jet set go” 7/27/2011 30

31. Karizma “Jet Set Go” Go Launched in 2003 Operates in:- 225cc. Design and Style Category Made to accelerate your heart beat, it is the racer its cool and it is always ahead. Target customers All those who want a stylish bike more of a status symbol rather than utility The bike is predominately associated with TV show Roadies and draws lots of its promotion from that. 7/27/2011 31

32. Hero Honda Hunk 7/27/2011 32

33. Hunk “Every body follows the Hunk” Go Launched in 2007 Operates in:- 150 cc Stylish category Made at par with CBZ but its features are loaded towards looks and style a. Target customers Young population All those who want a stylish bike. A bike that is different from others. 7/27/2011 33

34. Hero Honda in news 7/27/2011 34

35. Contents Introduction Hero Honda Bajaj Auto TVS Honda Motors Yamaha Royal Enfield 7/27/2011 35

36. “BulandbharatkibulandtasveerHumara.. Bajaj”Go Bajaj People Founder Jamnalal Bajaj (1884-1942). Rahul Bajaj grandson of Jamnalal Bajaj Chairperson of Bajaj Auto and MP of RajayaSabha. Companies Bajaj Group Bajaj Tempo. Bajaj Auto Products Auto rickshaw Bikes, scooters Midget(Mid sized trucks) 7/27/2011 36

37. Bajaj Auto Basic Details Head quarters in Pune Products Bikes, Auto rickshaw, scooter Revenue Rs 16,975 crs Net income Rs 3340 crs Employees 10,250 Parent Bajaj Group Website: www. bajajauto.com . Managing Director Rajeev Bajaj. Chairperson Rahul Bajaj. 7/27/2011 37

38. Products time lines. 1971 - three-wheeler goods carrier 1972 - Bajaj Chetak 1976 - Bajaj Super 1977 - Bajaj Priya 1977 - Rear engine Autorickshaw 1981 - Bajaj M-50 1991 - Kawasaki Bajaj 4S Champion 1993 - Bajaj Stride 1994 - Bajaj Classic 1995 - Bajaj Super Excel 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw 1998 - Kawasaki Bajaj Caliber; Bajaj Legend, India's first four-stroke scooter, Bajaj Spirit 2000 - Bajaj Saffire 2001 - Eliminator, Bajaj Pulsar 2003 - Caliber115, Bajaj Wind125, Bajaj Pulsar Bajaj Endura FX 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel Injection), XCD 125 DTS-Si 2008 - Bajaj Discover 135 DTS-i - sport (Upgrade of existing 135cc model) 2009 - Bajaj Pulsar 135(December 9) (January) Bajaj XCD 135 cc , Bajaj Pulsar 150 DTS-i UG IV, Bajaj Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220 DTS-I , Bajaj Discover 100 DTS-Si, Kawasaki Ninja 250R Advent of DTSI Scooter age Bike launched Bike age 7/27/2011 38

39. Bikes of Bajaj 7/27/2011 39

40. The DTSI technology Digital twin spark Ignition DTSI - digital twin spark ignition technology. We know that in petrol engine we require spark plugs to initiate ignition of A/F mixture. In DTSI instead of one sparkplug we have two plugs. More over when these sparkplugs should initiate the spark is determined by microcomputers. In India it was Bajaj who are having patents for their 150-220CC bikes. The major benefits of this technology were :- a) The fuel efficiency got drastically improved b) The power weight ratio improved 7/27/2011 40

41. 135cc 180cc Pulsar 220 cc 150cc 7/27/2011 41

42. Pulsar “Definitely Male” Go Launched in 2001 Operates in:- 135 cc,150 cc,180 cc,220 cc. Pulsar is leader in 150 cc category with 43% market share. Made to cater for the need of the customer for power. It’s a boy Digital biking Inspiring confidence Distinctly ahead Fastest Indian Pulsar stunt mania promotion Target customers Youth who want to show stunts The campaigns discussed above are trying to create a want among youth to flaunt. 7/27/2011 42

43. Discover 150cc 125cc 100cc 7/27/2011 43

44. Discover “100 km/litres bike ” Go Launched in 2004 Operates in:- 125cc,150 cc. Claims to give a mileage of 101 km/hour. Made to cater for the need of the customer for mileage. Bajaj Discover par 1 litre -100 km. Target customers People who go for job and want fuel efficiency People who want to travel and explore 7/27/2011 44

45. Platina 7/27/2011 45

46. Platina “JhalakDikhlaja ” Go Launched in 2006 Operates in:- 100 cc,125 cc. Made to cater to the masses who were using bi-cycles to switch over to Bikes. JhalakDikhlaja campaign to influence the masses. Lower prices below 32000. Target customers Lower middle class preferring mileage. Was hit in Villages and rural regions 7/27/2011 46

47. Avenger 7/27/2011 47

48. Avenger “Feels Like God ” Go Launched in 2007 Operates in:- 220 cc. Cruiser bikes category (priced 30,000 less than Kawasaki-Bajaj eliminator. Made to cater for the need of the customer for long distance driving & looking grand. I forgive them all …….it feels like God. Target customers Bike lovers ,long distance users. People with nicely built personality. 7/27/2011 48

49. Bajaj in news The 'bigger and sportier' brands, Discover and Pulsar now account for ~66% of Bajaj Auto's two-wheeler volumes, with Pulsar recording average volumes of 75,000 per month and Discover averaging 135,000 units per month. The company plans to launch Boxer 150cc in the domestic market in August 2011, targeting the rural market. The product is likely to be priced at ~INR40,000. The success of Boxer 150cc would be critical for Bajaj Auto to penetrate rural markets and could be a key growth driver. Bajaj Auto is reportedly working on a plan to launch a new 250cc variant of their Pulsar brand later this year. 7/27/2011 49

50. Bajaj in news 7/27/2011 50

51. Contents Introduction Hero Honda Bajaj Auto TVS Honda Motors Yamaha Royal Enfield 7/27/2011 51

52. 7/27/2011 52

54. The largest and the most visible company is TVS Motors, one of the top 3 two-wheeler manufacturers in India.

55. TV SundaramIyengar and Sons is the holding company of the group; the founder was T. V. SundaramIyengar.

56. Management of almost all the companies is by family members. Most of the group companies maintain a low profile and follow a conservative management styleNotable companies in the group are :- TVS Motors ZF Electronics TVS (India) Sundram Fasteners TVS Infotech (TVSi). SundaramFinance Wheels India Axles India Brake India 7/27/2011 53

58. It employ over 40,000 people with an estimated 15 million customers.

59. Its revenue is Rs. 1392.96 crore.

60. It manufactures motorcycles, scooters, mopeds and auto rickshaws.

61. It was started by in 1978 by as a JV between Sundaram Clayton, a group company, and Suzuki Motors, Japan.

62. Launch of 7 products on the same day seen as a first in automotive history.

64. K N Radhakrishnan, President & CEO7/27/2011 54

65. Products TVS 7/27/2011 55

66. 7/27/2011 56

67. TVS APACHE “Its now or never” 7/27/2011 57

68. Launched in 2006 Variants Apache 150,Apache RTR 160&180 cc Design and styling. Bike is primarily designed with a racing approach , muscular design theme, Due to the elongated tank design and the lower height, the centre of gravity is closer to the ground. The target customers are again the young people Bike of the year award 2007 APACHE(Racing DNA unleashed)Go 7/27/2011 58

69. RTR Technology Racing Throttle Response : When the accelerator pedal pressed suddenly, how fast power output of engine increases implies the throttle response of that vehicle Overtaking After following a vehicle or going side by side, there is a need for sudden increase in power to execute a successful overtaking. This is why throttle response plays a crucial role in racing. Coming out of a corner While entering a corner, brake is applied or at least power is reduced. As soon as the corner is passed, the car should be accelerated quickly. Better throttle response gives a sudden surge in power. Driving pleasure Throttle response plays a major role in driving pleasure, as this gives the driver more control over the vehicle's acceleration. 7/27/2011 59

70. TVS Star City DumdarShandar Superstar 7/27/2011 60

72. Variants: New 110cc Variant replaces old 100cc variant.

73. Brand Elements

74. Feather-like weight , power economy indicator ,Intelligent speedometer ,Electric start , CVTI , technology engine , Average of about 80 Kmpl.

75. Facts :

76. First motorcycle in the country to come up with a five year warranty . Has crossed the 3 million mark in cumulative sales. One of the most selling bikes of India.

77. Promotion:

78. Economy Class bike ,It embodies the ease and style of an executive segment motorbike and targets young working professionals.

79. Tagline: DumdarShandar Superstar.

80. Brand Ambassador :

81. MS Dhoni, image of being strong, reliable and a symbol of achievementTVS Star city(DumdarShandar Super star)Go 7/27/2011 61

82. TVS VICTOR More smiles per hour 7/27/2011 62

84. Variants

85. Victor GX, Victor GLX , Victor Edge.

86. USP :

87. CVTI Engine , mileage of 85 km/hr, 125cc, blessed with temperature sensors in engine , mix of power and style.

88. colours :

89. Blue , Red , Black , Silver

90. Competitors :

91. Splendor , Passion , Discover

92. Price : Rs.48,600

93. Target Audience:

94. Middle-class people who want a bike that is stylish and gives a good mileage, young working professionals.

95. Tagline: More smiles per hour

96. Brand Ambassador : Was endorsed by SachinTendulkar.7/27/2011 63

97. Contents Introduction Hero Honda Bajaj Auto TVS Honda Motors Yamaha Royal Enfield 7/27/2011 64

98. Honda Motorcycles and Scooters India Ltd.

99. Honda Founder - Soichiro Honda Headquarter – Tokyo, Japan In 1928, Honda opened his own repair shop. He started the Honda Motor Company at the age of 41 years in 1948. Principal - dedication to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction. 7/27/2011 66

100. HMSI Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) is a fully owned subsidiary of Honda Motor Company Limited, Japan. Set up in 1999, it was the fourth Honda automotive venture in India, after Hero Honda, Kinetic Honda Motor Ltd and Honda Siel Cars India Limited. Headquarters of the company are located in Gurgaon in Haryana. 7/27/2011 67

101. Product Line 7/27/2011 68

103. Great Styling

104. Good Mileage

105. India’s first monoshock absorbers bike7/27/2011 69

107. Price: Rs. 48,863

108. Excellent Mileage

109. Stylish

110. Affordable7/27/2011 70

112. Price: 59,214

113. Excellent graphics

114. Sporty Looks

115. Wider Tubeless tyres

116. Powerful yet economical engine7/27/2011 71

118. Price: Rs. 57,143

119. Balance of pickup and mileage

120. Optimax engine

121. Lightweight advanced diamond frame for excellent ride comfort & stability

122. Puncture resistant tuff up tubes7/27/2011 72

123. HMSI in News HMSI has a market share of about 13-14 per cent in the country’s two-wheeler market. HMSI is set to cross two million two-wheeler sales this year, up from 1.6 million it logged last year in India. HMSI is in the process of increasing its manufacturing capacity to 4 million two-wheelers a year with a new plant in Karnataka, up from 2.8 million production capacity across two manufacturing bases in the country. 7/27/2011 73

124. Contents Introduction Hero Honda Bajaj Auto TVS Honda Motors Yamaha Royal Enfield 7/27/2011 74

125. Firstly established in the world in 1960 Entered India in 1982 First model was (RD 350) Launched another spectacular model RX 100 in 1985 Was the first company to promote maximum segment bike (RD-350),(DOUBLE ENGINE) in India. Firstly manufactured 2-stroke motorcycles. Vision Statement We will establish YAMAHA as the "exclusive & trusted brand" of customers by "creating Kando" (touching their hearts) - the first time and every time with world class products & services delivered by people having "passion for customers". YAMAHA “Yes Yamaha” 7/27/2011 75

127. Entered into a 50:50 joint-venture with the Escorts Group in 1996.

128. In August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC).

129. In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)".

130. With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers.7/27/2011 76

131. PRODUCT LINEUP 7/27/2011 77

132. YAMAHA RX100 7/27/2011 78

133. 7/27/2011 79

134. Launched in 1985 Was bread and butter model for M/s Escorts Ltd for 12 years 1985 to 1996. The RX100 was everything for every one A racy, noisy smelly 2-stroke for the power hungry. A reliable ride for the family man. A style statement (back then) for the youth. “A peppy little machine with great handling makes this bike an ideal commuter. The gear ratios and torque curve are so good that a well tuned bike can do as low as 10 km/h in 4th gear without engine knocking WITH a pillion rider.” Attracted young people because of its unique features. Its production was stopped in the year 1996 due to RX 100 7/27/2011 80

135. YAMAHA RD350 7/27/2011 81

136. First indian bike with twin exhaust The RD 350 was the very first super performance offering to the Indian Consumers and in competition with the Bullet 350, the Jawa (Yezdi) 250 2 stroke. Big bike for Bike lovers like the Bullet. Did not make a great impact because of high price and low mileage.-lethal bike-RD- “Rapid Death”. Indian market was considered underdeveloped to accept the technology (32 BHP). Still available in the second hand market with prices going up to Rs. 70,000. Yamaha RD350For the few who dared to Dream and be different 7/27/2011 82

137. YAMAHA R15 7/27/2011 83

138. Launched in 2008 Sports bike Striking features Delta Box Frame. Linked Mono cross Suspension. Liquid cool engine Very powerful for 150 cc engine. Target customers Again the young people is being targeted. But since cost is on higher side high end customer segment is being targeted. YAMAHA YZF R15(RACING INSTINCT Go) 7/27/2011 84

139. YAMAHA FZ (Lord Of the Streets) 7/27/2011 85

140. Launched in 2008 Variants FZ 16 FZ-S Stylish sports bike with eye catching features. Trendy aerodynamic windshield for a smoother ride. Mono cross suspension adopted. Stunning ,new meter control with carbon patterns. Launched in competition against Hero Honda CBZ and Bajaj Pulsar 150. YAMAHA FZ (Lord of the streets) Go 7/27/2011 86

141. YAMAHA FAZER 150 cc 7/27/2011 87

142. Launched in 2009 It came from the global Fazer series known for its sports touring and looks. New Features Coordinated aerodynamic cowling. India’s first 140/60-17 ‘’ radial tyre. Has triple macho design concept. A stylish touring bike YAMAHA FAZER(TOURING SPIRIT)Go 7/27/2011 88

143. Sports Bikes Yamaha 7/27/2011 89

144. What’s new 7/27/2011 90

145. Contents Introduction Hero Honda Bajaj Auto TVS Honda Motors Yamaha Royal Enfield 7/27/2011 91

146. Royal EnfieldBuilt like a gun goes like a bullet Royal Enfield motorcycles were made in England and sold in India from 1949. A suitable motorcycle for Army and Police for patrolling country’s border. In 1955, the Redditch company partnered with Madras Motors in India to form 'Enfield India' to assemble. In 1994, Eicher Group bought into Enfield India. In late 1995, the Enfield India firm acquired the rights to the name Royal Enfield. 7/27/2011 92

148. Tractors

149. Commercial Vehicles

150. Automotive Gears

151. Exports,

152. Garments

153. Management Consultancy

154. MotorcyclesEicher Motors Ltd. Eicher motors-Commercial vehicles Royal Enfeild –Motor cycles Eicher Engineering- Gears Its headquarters is Pithampur, Madhya Pradesh, India. 7/27/2011 93

155. Royal Enfield bikes 7/27/2011 94

156. Royal Enfield BikesGo 7/27/2011 95 Bullet Electra Classic Chrome Thunder Bird Bullet 350

157. Salient features of Royal Enfield Bikes are promoted as lifestyle bikes not for ordinary. Connects to “Pleasure of biking” philosophy. Do not concentrate on volume game. The equation 7/27/2011 96

158. Customer of Royal Enfield Bike lovers. Muscle men. Those who want to be different from others. The company organizes annual events and rides such as the Himalayan Odyssey, The tour of the Rann of Kutch, The tour of NH 17 (Mumbai to Goa), the Tour of Rajasthan, the tour of the North East and the Southern Odyssey. 7/27/2011 97

159. LML Lohia Machinery Ltd Incepted in 1978 Majorly played in scooter sector after collabrating with Piaggio of Italy. Vespa,Freedom. LML freedom launched in 2002 First bike to demonstrate that bikes can be with colors other than black & red. 7/27/2011 98

160. LML 7/27/2011 99

161. Conclusion Bike market in India is still concentrated on the smaller fuel efficient bikes. Quite recently with the increase in purchasing power the demand for powerful bikes among youth is increasing. Demand for bikes for enjoyment purpose is increasing (promotions like adventure sports and reality shows are working). Still rural market needs to be immersed and activated. 7/27/2011 100

162. Customer Segmentation 7/27/2011 101

163. Thanks for your time and Consideration 7/27/2011 102