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-à-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
MNC’s 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 two-

wheeler 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 1960’s 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.

Weakness:

• 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.

Opportunities:

• 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.

Threats:

• 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 Engine capacity Price in (Rs.)

Pleasure 102 cc, 7bhp@7000rpm 37990

CD-100 Deluxe 97cc, 7.5bhp@8000rpm 35642
Ambition 135cc, 11bhp 49000
CBZ Extreme 149.2cc, 14.2bhp@8500rpm 59213
Passion plus 97cc, 7.4bhp@8000rpm 44265
CD Dawn 97cc, 7.5bhp@8500rpm 33542
Karizma 223cc, 12.68KW@7000rpm 76393
Glamour 124.7cc, 9bhp@7000rpm 49777-56529
Achiever 149.1cc, 13.4bhp@8000rpm 51298-56022
Splendor NXG 124.7cc, 9bhp@7000rpm 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:

Strength:

• 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 the
automobile)
• High economies of scale.
• High economies of scope.
Weakness:

• 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).

Opportunities:

• 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.

Threats:

• 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 Engine capacity Price in (Rs.)

Wave 109.7cc, 8bhp 39000

Pulsor DTSi 150cc, 180cc, 200cc, 220cc, up to 58655- 83885
(150, 180, 200, 20bhp@8500rpm
220)
Discover DTSi 120cc, 135cc 47000-49200
Avenger DTSi 178.6cc, 16.5bhp@8000rpm 64534
Platina 100cc 38621
CT-100 100cc, 8.2bhp@7500rpm 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 Honda’s cash cows CD
100 and Splendor.

Kinetic Engineering launched the K4 100 to compete with Hero

Honda’s
street.
Yamaha launched the YBX in the performance segment.

Yet this entire first wave of four-stroke could not match up to hero
Honda’s prowess in the market. While Kawasaki 4S has been
withdrawn, the K4 100’s 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 Munjal’s have launched the 100cc Passion, the 157cc
CBZ and the 225cc Karizma to counter the predator, one gap in the
Hero Honda’s 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 didn’t 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 4-
stroke 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.