Project On Two Wheelor Industry

1.
1 Introduction of two wheeler automobile sector:
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.
1.2 Objective of Study:
The main objective is to find out the current trend going on in the industry i.e.
(about the product, piece, place and promotion). Other objectives are as follows:
 To know the image of product in the mind of consumer.

 To compare the level of satisfaction before purchasing and after purchasing the
bike.
 To find out where people want to see the promotion schemes
 To find out suitable location and preferred by consumer
 To know the most popular media for advertisement
 To check the loyalty of the consumer towards the Hero Honda brand
 To know the most motivating factor for purchasing the bike
 To know the preferable price from the customer
1.3 Null Hypothesis:
Not applicable.
1.4 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. The project is more
of a team effort and will incur team returns.
INSTITUTE OF MANAGEMENT AND DEVOLOPMENT

1.5.4 Method of data collection:
The whole secondary data were collected from industry profile, books, magazines
and internet. While primary data where collected though survey. The customer survey
was done though the questionnaire. Question consists of dichotomous multiple questions
and 5 point ranking scale. A copy of questionnaire has been attached with the report.
Most favorable price ranges selected by the customers.
1.6 Source of data
There two types of data, primary data and secondary data. Primary data are
collected with the help of questionnaire are secondary data was taken from industry
profile, books, magazines and internet.
1.7 Conclusion
The study which we conducted on the two wheeler automobile sector is a very
important topic of automobile sector.
Two wheeler automobile sector 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.
INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 2
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 has not
any presence in this segment. Now this gap is filling up by Hero Honda's new 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.
1.7.1 RECOMMENDATIONS
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.

1.8 LIMITATIONS
Despite all possible efforts in conducting the research there was some unavoidable
situation, which limited the scope of this dissertation. The limitations of the dissertation
fall under the following:-
1. This dissertation is confined on the basis of secondary data collected only hence it
reliable data for the study.
2. As the research is based on the data that already available and collected through
various means not includes the survey, hence it imposes limitations, as it is just
possible that the secondary data may be unsuitable or may be inadequate in the
context of the topic under study.
3. One of the major limitation of the study is that, as the data is collected though the
secondary means, hence it creates uncertainties regarding the methods of the data
collection, time of data collected, and any bias of the compiler during the pervious
research and at the time of data collection.
4. Limitation of time & resources were a major factor influencing the research study.
5. The research guide has helped us though at the project study, yet his busy time
schedule restricted as to cut short our discussions though detailed discussions were
required for the project.
2.1.1 Evolution of Two-wheeler Industry 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.

2.1.2 Basic Manufacturing Process
Raw Materials
The primary raw materials used in the manufacture of the body of motorcycle are
metal, plastic and rubber. The motorcycle frame is composed almost completely of metal,
as are the wheels. The frame may be overlaid with plastic. The tires are composed of
rubber. The seat is made from a synthetic substance, such as polyurethane. The power
system consists of a four-stroke engine, a carburetor to transform incoming fuel into
vapor, a choke to control the air-fuel ratio, transmission, and drum brakes. The
transmission system contains a clutch, consisting of steel ball flyweights and metal plates,
a crankshaft, gears, pulleys, rubber belts or metal chains, and a sprocket.
The electrical system contains a battery, ignition wires and coils, diodes, spark plugs,
head-lamps and taillights, turn signals and a horn.
A cylindrical piston, made of aluminum alloy (preferred because it is lightweight

and conducts heat well), is an essential component of the engine. It is fitted with piston
rings made of cast iron. The crankshaft and crankcase are made of aluminum. The engine
also contains a cylinder barrel, typically made of cast iron or light alloy.

The Manufacturing Process
1. Raw materials as well as parts and components arrive at the manufacturing plant
by truck or rail, typically on a daily basis. As part of the just-in-time delivery
system on which many plants are scheduled, the materials and parts are delivered
at the place where they are used or installed.
2. Manufacturing begins in the weld department with computer-controlled
fabrication of the frame from high strength frame materials. Components are
formed out of tubular metal and/or hollow metal shells fashioned from sheet
metal. The various sections are welded together. This process involves manual,
automatic, and robotic equipment.
3. In the plastics department, small plastic resin pellets are melted and injected into
molds under high pressure to form various plastic body trim parts. This process is
known as injection molding.
A motorcycle engine.
4. Plastic and metal parts and components are painted in booths in the paint
department using a process known as powder-coating (this is the same process by
which automobiles are painted). A powder-coating apparatus works like a large
spray-painter, dispersing paint through a pressurized system evenly across the
metal frame.

5. Painted parts are sent via overhead conveyors or tow motor (similar to a ski lift
tow rope) to the assembly department where they are installed on the frame of the
motorcycle
6. The engine is mounted in the painted frame, and various other components are
fitted as the motorcycle is sent down the assembly line
7. Wheels, brakes, wiring cables, foot pegs, exhaust pipes, seats, saddlebags, lights,
radios, and hundreds of other parts are installed on the motorcycle frame. A
Honda Gold Wing motorcycle, for example, needs almost as many parts to
complete it as a Honda Civic automobile.
The Future
Motorcycles remain popular and the collecting and riding of antique models is
just as popular as riding the new versions. While sleek, new versions will continue to be
produces,
A motorcycle transmission and disc brake system.

2.1.3 Accessories and Finished Products
 Side mirrors
 Lock box
 Tool box
 Seat cover
 Fog light
 Shocker lock
 Leg guard
 Helmet lock
 Stephaney for scooters
 Foot rest
2.1.4 Marketing Mechanism
Promotion
Promotion concerns the message the firm sends out to potential consumers. It
provides information and persuades people, it creates awareness, stimulates demand and
differentiates the product and influences public behavior. Promotion won’t make a bad
product that no one wants a success; although the absence of promotion might htat a good
product is not successful, promotion includes all the activities or tools a company uses to
communicate or promote its product in the market.
Promotional tools or promotion mix
1. PERSONAL SELLING: It involves personal confrontation either by phone or face, it

is an expensive and time-consuming tool of promoting the product.
2. ADVERTISING: It is defined as a paid non-personal communication with a target

(usually mass) market. It is cost effective and can reach a large number of people. It
can also be used for long term or short term objectives.

There are various forms or mediums through which can advertise.
A. Broadcast Media:
• Television
• Radio
• Cinema
B. Print media:
• Newspapers
• Magazines
• Leaflets
C. Outdoor media:
• Posters and billboards.
3. PUBLIC RELATIONS AN PUBLICITY:
Public relations are an umbrella term and refer to the totality of the organization’s
behavior with respect to the society in which it operates. The maybe regarded as good or
bad and is reflected in the company’s reputation and image.
4. SPONSORSHIP:
Sponsorship can be seen as a part of public relations and it is certainly the case that
some sponsorship goes on to generate positive publicity for the organization.
5. DIRECT MARKETING:
It is an interactive system of marketing which uses one or more advertising media to

affect a measurable response at any locations
6. DIRECT MARKETING INCLUDES:
• Direct mail.
• Telemarketing.
• Door to door selling.
• Direct response advertising: ‘phone now’ or ‘fill in the coupon ads’
• Home shopping of various types.

Factors that guide a marketer’s decision in selecting a promotion mix:
a) Nature of product
b) Overall marketing strategy
c) Buyer readiness stage
d) Product life cycle stage
7. SPONSORSHIPS:
The company has not left any stone untamed in sponsoring the major events both
globally and domestically. The biggest of all is the sponsorship of the “WORLD CUP”
for which Hero Honda has the credit of being the only two-wheeler company in the world
to do so. Besides this, the company has also sponsored events like “Master Golf”,
television academy awards, etc,
Thus the company has gained a lot of reputation by doing so.
8. DISCOUNTS/OFFERS:
The company has started giving discounts and other offers to the customers on the
purchase of a new bike, for instance, with the World Cup offer, in which the consumer
was to get a 1 gm gold coin with every purchase.
But after all these schemes and benefits may be because of cut-throat competition in
the segment with heavyweight competition such as Bajaj, kinetic, Yamaha, and TVS the
company (HERO HONDA) officially says:
“Our aim is to proactively and consistently deliver value to the customer. We are
giving back to the customer after becoming successful. Most companies give discounts
only when their products are not doing well in the market. There is lost of competition in
the segment, especially from Bajaj. But the reason for Hero Honda’s success it that we
are consumer-focused while other companies such as Bajaj tends to be more competitor-
focused.
BRAND AMBASSADORS OF HERO HONDA:
Hrithik, Saurav Ganguly, brand ambassadors of Hero-Honda
(Free press journal, Mumbai, 4th December 2000)
Hero Honda, a leading manufacturer of motorcycles, has roped in film actor

Hrithik Roshan and captain of Indian Cricket team Saurav Ganguly as its brand
ambassadors for three years till 2003.

They would endorse the company products, attend corporate and brand events and
help promote its “We care” campaign comprising safely riding, environment and
friendliness.
Hrihik and Gauguly said they were glad to be associated with Hero Honda. Honda
has embarked upon an ambitious project to achieve sale of one million bikes this year
with a market share of 47 per cent. The turnover would be in excess of Rs. 3000 crore.
In October alone, 11, 22,000 motorcycles have been sold. Compared to 66,063
units in the corresponding period. Last year, the increase in sales is a phenomenal 69 per
cent. Cumulative sales jumped up by 41.58 per cent to 5.72 lacks units during April-
October as against 4.04 lacks units in the same period last year.
PROMOTION POLICY:
 Company gives advertisement in different media vehicles time to tome. Like in

TV. Magazines, newspaper, etc.
 Hero Honda also organizes free service camps every year.
 Hero Honda also takes art in trade fair.
 Hero Honda with the help of ICICI Bank provides loan to the customers & also
provide easy monthly installment scheme to customers.
 Hero Honda gives huge commission to their dealers.
Basic Data of Sector
Broad product range
Over the last decade, the two wheeler automobile sector has successfully changed its
image. Its product range encompasses Scooterettes, Scooters and Motorcycles. The main
product ranges of two wheeler automobile sector are as follows:
 Scooters
 Motorcycles
 Scooterettes
No. of players in the two wheeler automobile sector (India):
 Hero Honda motors ltd.

 Bajaj auto ltd.
 TVS motors company ltd.
 Yamaha motors India
 Honda motorcycle and scooters India
 Royal Enfield
 Suzuki Motors
 LML

2.1.5 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. In 1987 the engine plant was started and in 1989 the
Company produced its 3,00,000th motorcycle. In 2001 Hero Honda manufactured its
50,00,000th motorbike. 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.
Corporate Profile:
The joint venture between India's Hero Group and Honda Motor Company, Japan
has not only created the world's single largest two wheeler company but also one of the
most successful joint ventures worldwide.
During the 80s, Hero Honda became the first company in India to prove that it
was possible to drive a vehicle without polluting the roads. The company introduced new
generation motorcycles that set industry benchmarks for fuel thrift and low emission. A
legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters
across India, and Hero Honda sold millions of bikes purely on the commitment of
increased mileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These are
almost as many as the number of people in Finland, Ireland and Sweden put together!
Hero Honda has consistently grown at double digits since inception; and today,
every second motorcycle sold in the country is a Hero Honda. Every 30 seconds,
someone in India buys Hero Honda's top -selling motorcycle – Splendor. This festive
season, the company sold half a million two wheelers in a single month—a feat
unparalleled in global automotive history.
Hero Honda bikes currently roll out from two globally benchmarked
manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants
together are capable of churning out 3.9 million bikes per year. A third state of the art
manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope with
sustained customer demand.
Hero Honda's extensive sales and service network now spans over 3000 customer
touch points. These comprise a mix of dealerships, service and spare points, spare parts
stockiest and authorized representatives of dealers located across different geographies.
Hero Honda values its relationship with customers. Its unique CRM initiative - Hero
Honda Passport Program, one of the largest programs of this kind in the world, has over 3
million members on its roster. The program has not only helped Hero Honda understand
its customers and deliver value at different price points, but has also created a loyal
community of brand ambassadors.
Having reached an unassailable pole position in the Indian two wheeler market,
Hero Honda is constantly working towards consolidating its position in the market place.
The company believes that changing demographic profile of India, increasing
urbanization and the empowerment of rural India will add millions of new families to the
economic mainstream. This would provide the growth ballast that would sustain Hero
Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda
Motors succinctly points out, "We pioneered India’s motorcycle industry, and it's our
responsibility now to take the industry to the next level. We'll do all it takes to reach
there.''
Mission statement:
Hero Honda’s mission is to strive for synergy between technology, systems and
human resources, to produce products and services that meet the quality, performance and
price aspirations of its customers. At the same time maintain the highest standards of
ethics and social responsibilities.
This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.

2.1.6 HERO HONDA'S MANDATE:
Hero Honda is a world leader because of its excellent manpower, proven

management, extensive dealer network, efficient supply chain and world-class products
with cutting edge technology from Honda Motor Company, Japan. The teamwork and
commitment are manifested in the highest level of customer satisfaction, and this goes a
long way towards reinforcing its leadership status
2.1.7 S.W.O.T ANALAYSIS:
STRENGTHS:
 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.
 Debt equity ratio is only 0.1.
 The company has clarified about its intention of setting a third plant in addition to
its existing two plants. The company has embarked upon a green field expansion
plan and has earmarked Rs 2 bn for the same. It should be noted that the company
has a strong cash flow position; it generated Rs 9 bn from operation in FY04 and
is virtually a debt free company.
WEEKNESS:
 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.
OPPOURTUNITIES:
 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.
2.1.8 HERO HONDAS CORE VALUES
 Respect for Human Beings.

 Is a responsive organization?
 Is a boundary less organization?
 Is striving for excellence.
 Provide fearless, enjoyable working environment.
 Is self-reliant.
 Providing learning environment.
 Is a caring organization?
 Enables relationship buildings.
 Prompts transparency & trust.
 Is creativity promoting.
 Is performance oriented?

2.1.9 Product range
Scooters
Hero Honda Pleasure

o Hero Honda Pleasure:
Manufacturer Hero Honda motorcycle Ltd.
Production
Price Rs. 37990
Engine 102 cc, 7bhp@ 7000 rpm,

torque,0.78 kgm @5000 rpm

Motorcycles Hero Honda CD 100 Deluxe
o Hero Honda CD 100

Deluxe:
Manufacturer Hero Honda motorcycle Ltd
Production 2001-present
Price Rs. 35642
Engine 97.cc,7.5bhp@8000rpm,4stroke
engine, singal cylinder
Hero Honda Ambition 135cc

o Hero Honda
Ambition 135cc:
Price Rs, 49000
Engine 135 cc , four-stroke engin,

single piston, kick start
INSTITUTE OF MANAGEMENT AND DEVOLOPMENT
11 bhp
18
o Hero Honda CBZ Hero Honda CBZ Extreme
Extreme:
Price Rs. 59213
Engine 149.2 cc , four-stroke cycle, single

piston, kick start
Power: 14.2 bhp hp @ 8500 rpm
Torque: 1.26 kgm @ 6500rpm
o Hero Honda Passion Hero Honda Passion Plus

Plus:
Price Rs. 44265
Engine 97 CC, 4-stroke engine, singale

cylinder. 7.4 bhp @8000 rpm

o Hero Honda CD Hero Honda CD Dawn
Dawn:
Price Rs. 33542
Engine 97 CC,7.5 bhp @8500 rpm, 4 stroke

engine, torque of 8.05 Nm at 5,500
rpm
o Hero Honda Hero Honda Karizma 225

Karizma 225:
Manufacturer Hero Honda motorcycle Ltd.
Price Rs. 76393
Engine 4 – Stroke,12.68 KW (17

PS) @ 7000 rpm,223 cc

o Hero Honda Hero Honda Glamour
Glamour:
Price Rs 49777-56529
Engine 124.7 cc , four-stroke cycle,

single piston, kick start, 9 bhp
@7000 rpm
o Hero Honda Hero Honda Achiever

Achiever:
Price Rs. 51298-56022
Engine 149.1 CC, 4-stroke engine, single

cylinder.13.4 bhp @ 8000 rpm

Hero Honda Splendor NXG
o Hero Honda Splendor
NXG:
Price Rs. 46500
Engine 124.7 CC,9 bhp @ 7000 rpm, 4

stroke engine,, torque of 8.05 Nm
at 5,500 rpm
2.1.10 CORPORATE DETAILS OF HERO HONDA
REGISTERED & CORPORATE OFFICE
Registered & Corporate 34, Community Centre

Office Basant Lok, Vasant Vihar
New Delhi - 110057
Tel.: +(91)-(11)-26142451 - 59
Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 /
2132
Work Station 69 Km Stone
New Delhi-Jaipur Highway
Daruhera - 121106, Haryana
Website http://www.herohonda.com/
http://www.herogroup.com/

Hero Honda Motors

2.1.11 Balance sheet of Hero Honda Motors Ltd.
As on 31st march 2006
(Rs in crores)
Particulars Schedule 31st march2006 31st march2005
Shareholders funds:
Share capital 1 39.94 39.94
Reserve & surplus 2 1969.39 1453.44
Loan funds: 3
Unsecured 185.78 201.76
Deferred tax liabilities 8 120.10 101.53

Total 2315.21 1796.67
Application of funds:
Fixed assets 4
Gross block 1471.97 1104.19
Less: depreciation 522.6 429.71
949.37 674.48
Capital working process 44.19 40.85

Net block 993.56 715.33
Investment 5 2061.89 2026.65
Deferred tax assets 8 1.32 0.63
Current assets, loan & advances: 6

Inventories 226.55 204.26
Sundry debtors 158.66 89.55
Cash and bank balances 15872 17.6
Loans and advances 273.78 239.61
Other current assets 3.53 3.51

Less: current liabilities & provisions 7
Current liabilities 1072.88 1015.76
Provisions 489.92 484.71
1562.8 1500.47
Net current assets 741.56 945.94
2.1.12 PORFITS & LOSSES A/C OF HERO HONDA LTD.
Year(2005-06)
(Rs. In crores)
st
Particulars schedule 31 march 31st
2006 march2005
INCOME
Gross sales 10086.16 8596.81

Less: excise duty 1372.18 1175.16
Net sales 9 8713.98 7421.65
Other incomes 15628.00 136.9
TOTAL 8870.26 7558.55
EXPENDITURES
Manufacturing and 10 7349.53 6253.01

Other expenses
Depreciation 4 114.62 89.38
Net interests 11 6.13 1.09
TOTAL 7458 6341.30
Profit before tax 1412.24 1217.25
Profit for taxation
Current 415.85 395.22
Deferred 1788 11.56
Fringe benefits 7.17 0
Profit after tax 971.34 810.47
Balance of profit b/d 808.1 538.53
Balance available for appropriation 1779.44 1349
APPROPRIATION

Proposed dividend 399.38 399.38
Tax on dividend 56.01 56.52
Transferred to general reserve 100 85
Balance carried to balance sheet 1224.05 808.1
Basic and diluted earnings per share

face values rs. 2/each
2.1.13 Board of directors of Hero Honda Motorcycles Ltd.
“Mr. Brijmohan Lall Munjal”

Mr. Brijmohan Lall Munjal
(Chairman and Whole -Time Director)
Chairman and Whole Time
director
Mr. Brijmohan Lall Munjal is Hero Honda Motors
the founder Director and Chairman of Limited
the Company and the $ 2.8 billion
Hero Group. He is the Past President
of Confederation of Indian Industry
(CII), Society of Indian Automobile
Manufacturers (SIAM) and was a
Member of the Board of the Country's
Central Bank (Reserve Bank of India).
In recognition of his contribution to
industry, Mr Lall was conferred the
Padma Bhushan Award by the Union
Government.

“MR. PAWAN MUNJAL”
(Managing Director)
Mr. Pawan Munjal
Mr Pawan Munjal is the Chief Executive of the
Company. He is responsible for growth and strategic Managing Director
planning for the entire Group. A graduate in mechanical Hero Honda Motors
engineering, Mr. Munjal has been instrumental in Limited
bringing about technological and managerial excellence
in the Company's operations. He has been the Chairman
of several Committees of CII.
He is also on the board of Indian Institute of
Management, Lucknow. An avid golfer, Mr Munjal is
Past Chairman of the Asian PGA Tour Board of Directors
and the Past President of Professional Golfers
Association of India (PGAI). Under his guidance, Hero
Honda launched the Hero Indian Sports Academy
(HISA) in collaboration with Laureus Foundation to provide equal opportunities in sports
to various communities and to reward talent in the country.
“MR. TOSHIAKI NAKAGAWA”
(Jt. Managing Director)

MR. TOSHIAKI NAKAGAWA
Mr. Toshiaki Nakagawa joined the Company as Jt. Managing
Additional Director and Joint. Managing Director on
Director
February 1, 2006. He joined Honda UK Ltd., as staff
member & later on took various assignments at senior Hero Honda Motors
positions at various offices of Honda situated in Hong Limited
Kong, Prague, Czech Republic, France, and Beijing.
Currently, he also holds the position of Manager in the
Overseas Operations Office No. 1, Honda Headquarters.
His specializations include startup of new overseas
companies and human resource management.

“MR. TAKAO EGUCHI”
(Whole-Time Director)
Mr. Takao Eguchi was appointed as Additional MR. TAKAO EGUCHI

Director and Whole-time Director on the Board of the
Whole-Time Director
Company on June 1, 2005. Mr. Eguchi joined Honda
Motor Co., Limited, Japan as a Staff Member in Hero Honda Motors
Human Resource Department and later on took Limited
various assignments of higher responsibilities for
Honda, Japan. Before joining Hero Honda Motors
Limited as Technical Advisor in the year 2003, he was
Chief Engineer - Engine Division at Kumamoto
Factory of Honda Motor Co., Limited, Japan..
BOARD OF DIRECTORS
No. Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director
3 Mr. Toshiaki Nakagawa Jt. Managing Director
4 Mr. Takao Eguchi Whole-time Director
5 Mr. Sunil Kant Munjal Non-executive Director
6 Mr. Om Prakash Munjal Non-executive Director
7 Mr. Tatsuhiro Oyama Non-executive Director
8 Mr.Masahiro Takedagawa Non-executive Director
9 Mr. Narinder Nath Vohra Non-executive & Independent Director
10 Mr. Pradeep Dinodia Non-executive & Independent Director
11 Gen.(Retd.) Ved Prakash Non-executive & Independent Director
Malik
12 Mr. Analjit Singh Non-executive & Independent Director
13 Dr. Pritam Singh Non-executive & Independent Director
14 Ms. Shobhana Bhartia Non-executive & Independent Director
15 Dr. Vijay Laxman Kelkar Non-executive & Independent Director
16 Mr. Sunil Bharti Mittal Non-executive & Independent Director

2.1.14 Share Prices of Hero Honda Motors Ltd.
From 30-july-2007 to 03-aug-2007
720
700
680
660
640
3-Aug-07
620 2-Aug-07
600 1-Aug-07
580 31-Jul-07
Open High Low Close 30-Jul-07
3-Aug-07 660 666 645 655.45
2-Aug-07 660 675 624.8 652.25
1-Aug-07 670 675 655 668.25
31-Jul-07 685 704 670 674.05
30-Jul-07 673 691 662.05 685.05

2.1.15 Bajaj Auto Ltd.
Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy
Industries of Japan to manufacture state-of-art range of latest two-wheelers in India. The
JV has already given the Indian market the KB series, 4S and 4S Champion, Boxer, the
Caliber series, and Wind125
Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10

billion (Rs. 45,840 crore). It has crafted new technologies for more than hundred years.
The technologies of KHI have redefined space systems, aircrafts, jet engines, ships,
locomotive, energy plants, automation system, construction machinery, and of course
high reliability two-wheelers
KHI has given the world its legendary series of 600-1200cc Ninja and 1600
Vulcan bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first
real cruiser bike, redefines the pleasure of "biking" in looks as well as performance.
Corporate Profile
'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, 196,710 units in 2004-05, a great 26 per cent
jump over the previous year.
Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the year
2004-05, which exceeds Rs 65.4 billion, a record in the history of the company. The gross
operating profit stands at Rs. 9.3 billion, again a record. The profits after tax of the BAL
are close to Rs. 7.7 billion, and the pre-tax return on operating capital is at an impressive
80 per cent.
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 an
special eye upon quality, safety, productivity, cost and delivery.

BAJAJ AUTO’S MISSION:
We at Bajaj Auto continue to firmly believe in providing the customer Value for
money, for years through our products and services. This we shall maintain and improve,
In our decision making, quality, safety and service will be given as much
consideration as productivity, cost and delivery.
Quality shall be built into every aspect of our work life and business operations.
Quality improvements and customer satisfaction shall be the responsibility of every
employee.
Organizational Structure of Bajaj Auto Ltd.
LARGEST EXPORT
ML - Business Head (India)
CPM - Business Head (India)
Location Head - For the State
Biz. Development Account Managers Marketing Dept.
Customer Relations Account Executives Commercial Dept.
Sr. Ops. Executives
Ops. Executives
Bajaj Auto continued to be India’s largest exporter of two wheelers. During 2005-
06, it exported 75297 two which represented a growth of 33 per cent over 2004-05.

TOTAL EXPORT OF TWO WHEELERS
200000
174907
Numbers of
150000
wheelers
130945
100000 90210
50000 53366
0 14917 15602 29691
1999- 2000- 2001- 2002- 2003- 2004- 2005-
2000 2001 2002 2003 2004 2005 2006
Years
Two wheeler
SWOT Analysis
Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths,
weaknesses, threats and opportunities available.
Strengths
 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.
Weaknesses
 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)
The Inevitable Change
Bajaj on internal analysis found that it lacked –
1. The technical expertise to deliver competitive goods.
2. The design know-how.
3. And the immediate inability to support the onslaught of competitors.
All these forced Bajaj to look for an international partner who could bring in
technology and also offer some basic platforms to be manufactured and marketed in
India. Kawasaki of Japan is a world-renowned manufacturer of high performance bikes.
Bajaj entered into a strategic tie-up with Kawasaki in late 1990s to enhance its product
line and knowledge up-gradation to support long-term strategies.
This served the purpose of sustaining the market competition for a while. From
1996 to 2000, Bajaj invested hugely in infrastructure while simultaneously developing
product design and innovation capabilities, which is the prime reason behind the
energetic Bajaj of 21st century. Bajaj introduced a slew of products right from entry-level
motorcycle to the high premium segment right from 2001 onwards, and since then its
raining success all the way for Bajaj.

Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when
the largest manufacturer grew at just 6%. This stands a testimony to the various important
strategic decisions over the past decade.
2.1.16 Product Range
Scooters
Bajaj Wave
o Bajaj Wave::
Manufacturer Bajaj Auto
Price
Engine 109.7cc, 8 hp

Motorcycles:
Bajaj Pulsar DTS-i

o Bajaj Pulsar 150 DTSi
o Bajaj Pulsar 220 DTS-Fi
Price Rs. 58655-83885
Engine 150 cc/180 cc/200 cc/220 cc

Air-cooled, four-stroke cycle,
Upto 20 bhp (14.6 kW) @8500
rpm
o Bajaj Discover120cc Bajaj Discover DTS-i

o Bajaj Discover135cc:
Price Rs.47000-49200
Engine 120 cc and 135 cc Air-cooled,

four-stroke cycle, single piston.

o Bajaj Avenger: Bajaj Avenger DTS-i
Price Rs. 64524
Engine 178.6 cc Air-cooled, four-stroke

cycle, single piston,
Power: 16.5 hp @ 8000 rpm
o Bajaj Platina Bajaj Platina
Price Rs. 38621
Engine 100 CC, four stroke, single piston

o Bajaj CT 100 Bajaj CT 100
Price Rs. 35600
Engine 100 CC,8.2 bhp,7,500 rpm,torque

of 8.05 Nm at 5,500 rpm
REGISTERED OFFICE
ADDRESS: Akurdi, Pune – 411035, India
TELEPHONE: + (91)-(20)-27472851
FAX: + (91)-(20)-27473398
E-MAIL: rahulbajaj@bajajauto.co.in
WEDSITE: http://www.bajajauto.com\
PLANTS
 Akurdi, Pune 411035

 Bajaj Nagar, Waluj Aurangabad 431136
 Chakan, MIDC, Plot No A1, Mahalunge Village, Chakan 410 501 Dist. Pune
 Pantnagar, Uttarakhand

DOMINANT PRESENCE OUTSIDE INDIA
Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt
Overseas Businessman
Mrs. & Mr. Ramiro Villeda, Phd.

CPIM, President
Veloleda Consulting Group, Inc
World Class Value Chain Management
Suite 14F, Yan-Dang Plaza
107 Yan-Dang Roa
Shanghai 200020, P R China
Tel.: +86(0)21 63725393/63840513
Mobile : 1(915) 9206150
Fax : 86(0)21 6327617
E-mail: vcgi@ix.netcom.com/rvilledaconsulting.com
Website : www.villedaconsulting.com
Bajaj Auto

Balance Sheet of Bajaj Auto Ltd. 2005-06
Mar ' 06 Mar ' 05

Sources of funds
Owner’s funds
Equity share capital 101.18 101.18
Share application money - -
Preference share capital - -
Reserves & surplus 4,669.55 4,033.17
Loan’s funds
Secured loans 0.02 -
Unsecured loans 1,467.13 1,226.99
Total 6,237.88 5,361.34
Uses of funds
Fixed assets
Gross block 2,894.22 2,765.17
Less : revaluation reserve - -
Less : accumulated depreciation 1,761.22 1,628.64

Net block 1,133.00 1,136.53
Capital work-in-progress 24.18 8.36
Investments 5,753.45 4,560.58
Net current assets
Current assets, loans & advances 3,062.22 2,662.65
Less : current liabilities & provisions 3,734.97 3,006.77
Total net current assets -672.75 -344.12
Miscellaneous expenses not written - -
Total 6,237.88 5,361.34
Notes:
Book value of unquoted investments 247.22 253.59
Market value of quoted investments 7,303.41 5,033.64
Contingent liabilities 719.06 573.24
Number of equity sharesoutstanding (Lacs) 1011.84 1011.84
Profit & Loss Account of Bajaj Auto Ltd.
Particulars Mar ' 06 Mar ' 05

Incomes:
Operating income 7,572.62 5,852.36
Expenses:
Material consumed 5,397.61 4,151.31
Manufacturing expenses 138.59 132.38
Personnel expenses 282.45 250.59
Selling expenses 258.92 257.40
Administrative expenses 240.02 207.78
Expenses capitalized -24.81 -19.84
Cost of sales 6,292.78 4,979.63
Operating profit 1,279.84 872.73
Other recurring income 369.99 297.93
Adjusted PBDIT 1,649.83 1,170.66
Financial expenses 0.34 0.67
Depreciation 191.00 185.37
Other write offs 4.05 4.04
Adjusted PBT 1,454.44 980.59
Tax charges 479.11 319.63
Adjusted PAT 975.33 660.96
Non recurring items 88.91 87.11

Other non cash adjustments 59.03 -18.91
Reported net profit 1,123.27 729.16
Earnings before appropriation 1,123.27 729.16
Equity dividend 404.74 252.96
Preference dividend - -
Dividend tax 56.76 35.48
Retained earnings 661.77 440.72
BOARD OF DIRECTORS
 Kantikumar R. Podar(Director)
 Shekhar Bajaj (Director)
 D.J. Balaji Rao (Director)
 D.S. Mehta (Executive Director)
 Sanjiv Bajaj (Whole-Time Director)
BOARD OF DIRECTORS
Board of Directors
Rahul Bajaj Chairman
Madhur Bajaj Vice Chairman & Whole-Time Director
Rajiv Bajaj Managing Director
Sanjiv Bajaj Executive Director
D.S. Mehta Whole-Time Director
Kantikumar R. Podar Director
Shekhar Bajaj Director
D.J. Balaji Rao Director
J.N. Godrej Director
S.H. Khan Director
Mrs. Suman Kirloskar Director
Naresh Chandra Director
Nanoo Pamnani Director
Manish Kejriwal Director
P Murari Director
Niraj Bajaj Director

Registered under the Indian Companies Act, VII of 1913
REGISTERED OFFICE Akurdi, Pune 411 035
WORKS Akurdi, Pune 411 035

Bajaj Nagar, Waluj Aurangabad 431 136
Chakan Industrial Area, Chakan, Pune 411 501
Share prices of Bajaj auto ltd.
From 30-july-2007 to 03-aug-2007
2,400.00
2,350.00
2,300.00
2,250.00
2,200.00 3-Aug-07
2-Aug-07
2,150.00
1-Aug-07
2,100.00 31-Jul-07
30-Jul-07
2,050.00
Open High Low Close
3-Aug-07 2,295.00 2,340.00 2,295.00 2,327.80

2-Aug-07 2,339.90 2,339.90 2,265.60 2,291.45
1-Aug-07 2,350.00 2,350.00 2,271.40 2,286.50
31-Jul-07 2,275.00 2,369.90 2,177.90 2,354.80
30-Jul-07 2,314.70 2,345.00 2,250.00 2,294.15

2.1.17 TVS Motors Ltd.
Profile
TVS Motors Company, a leading two wheeler company began with the vision of
the founder of the Sundaram Clayton Group, the late T.S. Srinivasan - 'to design, develop
and produce an affordable moped for the Indian family.
This vision was realized in 1980 when TVS 50, India's first two-seater moped
rolled out of the factory at Hosur in Tamil Nadu, Southern India. A byword for
ruggedness and reliability, the TVS 50 proved to be a promising success and paved the
way for many successes for TVS Suzuki ever since.
TVS, the first in the country to introduce computerization, achieve high

productivity, low cost and consistent high quality, now included extensive programme to
install computers at all workstations.
Background
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.
However, disagreement on several aspects including development of TVS brand and
exports lead to severance of ties with the joint venture partner in 2002. This forced the
company to develop its own R&D expertise and commit itself to sizeable investment. It
has presence in all the segments viz. motorcycle, scooterettee and moped. TVS Scooty
(scooterettee) and TVS Victor (Executive segment - motorcycle) are its key brands. The
company has also launched 2 new fuel-efficient bikes - `Centra' and `Star'.
Vision
Our vision is the creation of an India which is a global destination for innovative
product development and thought leaders in integrated product and process development

with a focus on improving the quality of life, including that of the poorest of the market
segments at the bottom of the pyramid.
Mission
Our mission is to improve the capabilities of people engaged in the design and
development of new products and services, to encourage innovation in product
development and effective management of the product development processes.
Organizational structure of tvs motors company ltd.

SWOT Analysis
Strengths
 Ability to understand customer’s needs and wants

 Recognized and established brand name
 Effective advertising capability
Weaknesses
 They have big gap between cubic capacities of its products.

 Its market share is reducing from last few years.
 Bikes are not attractive as compare to there competitors.
Opportunities
 Global expansion
 Expansion of target market (include women)
 Become India’s leader in the scooter market
Threats
 Suzuki Motorcycles can take away market share and cause joint venture to go
sour
 Bajaj Motors and Hero Honda is a strong competitor.

o Apache Self Start Apache Self Start
Manufacturer TVS Motors Ltd.
Price Rs. 57129
Engine 147 CC,13.5 bhp@8,500

rpm,torque of 8.05 Nm at
6000 rpm
o Scooty Pep Plus Scooty Pep Plus
Price Rs.35253
Engine 4 stroke,3.68kw (5 bhp) @

6500rpm87.8 cc

o Star City
Star City
Price Rs. 42856
Engine 4 – Stroke,7.5 bhp / 5.50 kW @

7500 rpm,99.7 CC
Victor GLX
o Victor GLX
Price Rs. 46570-48986
Engine 4 – Stroke,10 bhp / 6.77 kW @ 7500

rpm,124.8 CC

o Centra Centra
Price Rs. 40500
Engine 4 Stroke,7.5 bhp / 5.59 kW @

7500 rpm,99.8 cc
TVS Motor Company

Board of director of TVS Motors company:
No. Name of the Directors Designation
1 Mr. Venu Srinivasan Chairman & Managing Director
2 Mr. Gopal Srinivasan Director
3 Mr. T.K.Balaji Director
4 Mr. T. Kannan Director
5 Mr. N. Ganga Ram Director
6 Mr. C.R.Dua Director
7 Mr. H. Lakshmanan Director
8 Mr. T. R. Prasad Director
9 Mr. K.S.Bajpai Director
10 Mr. K.N. Radhakrishnan President
11 Mr. S. G. Murali Sr.Vice President – Finance
12 Mr. T.S.Rajagopalan Secretary

Sensex Price of TVS Motors Company
60
59
58
57
56 3-Aug-07
2-Aug-07
55
1-Aug-07
54 31-Jul-07
30-Jul-07
53
Open High Low Close
3-Aug-07 57 58 56.75 57.1
2-Aug-07 57.2 58 55.6 56.85
1-Aug-07 58 58.95 56.5 57.1
31-Jul-07 59.3 59.3 58 58.25
30-Jul-07 59 59.1 55.55 58.2

2.1.19 HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.
Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings,
represents the company's unwavering dedication in achieving goals that are unique and
above all, conforming to international norms. These wings are now in India as Honda
Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda
Motor Company Ltd., Japan. These wings are here to initiate a change and make a
difference in the Indian 2-wheeler industry. Honda's dream for India is to not only
manufacture 2-wheelers of global quality, but also meet and exceed the expectations of
Indian customers with outstanding after sales support.
About Honda Motorcycle & Scooter India Pvt. Ltd.
Official Name Honda Motorcycle & Scooter India Pvt. Ltd.

Established 20th Aug, 1999
Place Manesar, District Gurgaon, Haryana, India
Investment Rs. 300 Crore
Representative Mr. Shinji Aoyama, President & CEO
Factory Location Manesar, District Gurgaon, Haryana, India
Production Capacity 10,000,00 Units per Year
Honda's dream for India is to not only manufacture 2-wheelers of global quality;
but also meet and exceed the expectations of Indian customers with outstanding after
sales support. They aim to produce technologically superior, efficient and reasonably
priced 2-wheelers, with Honda tested technology, backed up with after sales service of
Honda's global standard.
CORPORATE PROFILE
Honda Motor Co., Ltd., operates under the basic principles of "Respect for the
Individual" and "The Three Joys"-commonly expressed as The Joy of Buying, The Joy of
Selling and The Joy of Creating. Respect for the Individual" reflects our desire to respect
the unique character and ability of each individual person, trusting each other as equal
partners in order to do our best in every situation. Based on this foundation of Respect for
the Individual, "The Three Joys" expresses our belief and desire that each person working
in, or coming into contact with our company, directly or through our products, should
share a sense of joy through that experience.
In line with these basic principles, since its establishment in 1948, Honda Motor
Co., Ltd., has remained on the leading edge by creating new value by providing products
of the highest quality at a reasonable price, for worldwide customer satisfaction. In
addition, the Company has conducted its activities with a commitment to protecting the
environment and enhancing safety in a mobile society.

The Company has grown to become the world's largest motorcycle manufacturer
and one of the leading automakers. With a global network of 454* subsidiaries and
affiliates accounted for under the equity method, Honda develops, manufactures and
markets a wide variety of products ranging from small general-purpose engines and
scooters to specialty sports cars, to earn the Company an outstanding reputation from
customers worldwide.
Mission Statement
Maintaining a global viewpoint, we are dedicated to supplying products of the

highest quality at a reasonable price for worldwide customer satisfaction
Organization Structure

SWOT Analysis
Strength
 Reliable brand name

 Affordable price
 Honda have a big share of market in scootreats segment
 Honda is the first company who introduced the technology of central shock
absorption in India
 Honda having high tech engines
 HMSI is the subsidiary company of Honda Motors Ltd. Which is the largest
company in the proposed sector
Weakness
 Less number of service center

 Market share very less as compare to there competitor
 Spares parts are not easily available
 Low product range
 Maintenance cost is very high
Opportunity
 Increase in product range

 Untapped market above 180 cc in motorcycles.
 More maturity and movement towards higher-end motorcycles
 Honda can be use brand image of Hero Honda
Threats
 There is high competition in the market

 Threat of cheap imported motorcycles and components from China

Honda Motor Cycle and Scooter

Global Expansion
Corporate Details
HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.

Plot No. - 1, Sector - 3 IMT Manesar,
Distt. Gurgaon
Haryana - 122 050
Phone: + 91 - 124 -6290911, 6290919, and 6290926-28
Fax: +91 - 124 - 6290891, 6290890
HONDA MOTORCYCLE & SCOOTER INDIA (Pvt.) Ltd.

406, Level Four, Prestige Centre Point
Edward Road
Bangalore 560 046
Phone : +91 - 80 - 2282419, 2384090, 2384091
Fax : +91 - 80 - 2282409
Head Office:
2-1-1 Minami Aoyama, Minato-ku Tokyo 107-8556, Japan

Tel: +81-(0)3-3423-1111

2.1.20 Product Range:
o Activa
Activa
Manufacturer Honda Motors Ltd.
Price Rs. 40661
Engine 4-stroke, air cooled,7 bhp @

7000 rpm,102 cc
Eterno
o Eterno
Price Rs.36526
Engine 4-stroke,6.0 KW (8.2 bhp)

@ 6000 rpm,147.7 cc

Shine Disk
o Shine Disc
Price Rs 47983
Engine 4-Stroke,10.3 bhp @ 7500

rpm,124.6 cc
o Unicorn Electric Start Unicorn Electric Start
Price Rs. 50000-53000
Engine 4 Stroke,13.3 bhp / 9.9

kW @ 8000 rpm,149.1 cc

o Dio Dio
Price Rs. 40136
Engine 4–
Stroke,7bhp@7000rpm,102cc

2.1.21 Yamaha Motor India (YMI)
Holding the true spirit of commitment to customer satisfaction - Yamaha Motor

India is enriching lives of people with the same ingenuity and enthusiasm as its parent
company - Yamaha Motor Corporation, Japan. Having operated in India as technology
provider for almost two decades, YMI was incorporated in August 2001 as a 100'%
subsidiary of YMC, Japan. Since then we have been in the process of redefining our
business processes and extending the awe and power associated with the legacy of the
Yamaha Group.
Adhering to our Corporate Mission - "Creating Kando - Touching Your Heart" we

are striving to touch every Heart across the length and breadth of India
We firmly believe in “Surpassing Customer Expectations”
We are aware of our customers' evolving needs and provide them with quality products
and services of exceptional value that surpass their expectations.
Establishing a Corporate environment that fosters self-esteem
We believe in nurturing and empowering our employees to the fullest. Whilst

cultivating our employees’ creativity and all round abilities, we have also established an
equitable system of evaluation and rewards to encourage our people to strive towards
newer benchmarks.
Fulfilling social responsibilities
As a good corporate citizen, we continually strive towards creating a better social as well
as natural environment.
Vision and Mission:
We conduct our corporate activities with customer satisfaction as our top priority.
Our clients in the Yamaha Motor group and many companies outside the group are
mostly manufacturers that are involved in programs to improve the full range of their
business activities, from product manufacturing, distribution and sales to financing,
administration, and corporate governance. We are striving to help these clients achieve a
higher level of satisfaction for people using their products. Toward this end we are
actively expanding our business in Japan and worldwide.
At Yamaha Motor Solutions we are working to become a world-class leader in our

field by bringing together the accumulated abilities and skills our individual employee's
into dynamic teams capable of creating value that surpasses the expectations of our
clients.

Organization chart

SWOT Analysis
Strengths
 Yamaha motors India is the subsidiary company of Yamaha motors ltd, which is
the MNC company having a good brand name.
 Good share in Indian two wheeler automobiles sector
 It is the one of the oldest company in the Indian market.
 Bikes are available at very cheap price.
 Popular in rural area.
Weakness
 Bikes are not attractive.

 No presences in scooter segment.
 No presences in above 150cc bike segment.
 Decreasing market share

 Limited network.
Opportunities
 Above 150cc bike segment having full of opportunities.

 Set targets on scooters segment.
 Target youth.
 Large market is available for consumption.
Threats
 Large no, of competitors present in the market.

 New companies are watching Indian market.
 People are going for good average and stylish bikes.
 E-bikes are also in the market.
o Alba Alba
Manufacturer Yamaha Motors India Ltd.
Price
Engine 4 – Stroke, 7.6 PS @ 7500 rpm,

106 cc
G5
o G5
Price Rs. 42700
Engine 4 – Stroke, 7.6 PS / 5.59 kW @

7500 rpm, 106 cc
Gladiator DX
 Gladiator DX
Price Rs. 48300
Engine 4 – Stroke, 8.0 kW @ 7500 rpm,

123.7 cc

o Crux S Crux S
Price Rs.33000-35000
Engine 4 – Stroke, 7.3 PS / 5.59 kW @

7500 rpm, 106 cc
Corporate Profile
Name: Yamaha motors ltd.
Location: 2000-1 Iwai, Iwata City, Shizuoka Pref.
Post Code: 438-0016
Telephone: 0538-39-2213 Facsimile: 0538-
39-2219
Board of director: President and Representative
Director@Yasuharu Terai
Director: Takuya Watanabe
Tetsuro Nabata
Mitsuyoshi Suzuki
Takeya Harada
Employees: 245 (As of January, 2006)
Sales: 4.5 billion yen (As of FY ended December,
2005)
6 billion yen (Projected FY ending
December, 2006)

Offices: Head office (Iwata City, Shizuoka Pref.)
Iwata Office (Iwata City, Shizuoka Pref.)
Overseas subsidiary Yamaha Motor Solutions Co., Ltd. Xiamen
(Location: Amoy City, Fujian Prov.)
Yamaha Motor Solutions India Pvt. Ltd.
(Location: Surajpur (UP state), India )
Exports
YMI is an active player in the exports market. Currently, we export motorcycles

to 50 countries including Argentina, Mexico, Philippines, Bangladesh, Sri Lanka,
Columbia, Dominican Republic, Nigeria and lvory Coast. The export Product line boasts
of RX 100, Crux, YD 125, Enticer and Libero.
To consolidate our position in the exports arena, we are rapidly expanding our
presence in Asia, Africa, Central and South America.
Strengthening our reputation as an export base for YMC global operations, we are
bright and optimistic about our emergence as a top-notch bike exporter of India.
Yamaha Motors India

Million yen
Mar. 2003 Mar. 2004 Dec. 2004 Dec. 2005 Dec. 2006

ASSETS
Current Assets
Cash and deposits in bank 25,475 37,318 37,194 38,809 79,299
Trade notes and accounts receivable 135,012 137,027 145,582 206,213 223,082
Inventories 160,232 159,235 204,232 251,227 297,853
Other 43,724 41,085 43,414 58,673 70,785
Total current assets 364,444 374,666 430,424 554,924 671,021
Fixed assets
Tangible fixed assets 280,950 274,863 283,411 323,846 361,837
Intangible fixed assets 4,303 2,957 3,273 3,075 4,281
Total investments and other assets 49,388 49,436 50,618 76,630 91,548
Total fixed assets 334,642 327,256 337,303 403,552 457,667
Total assets 699,087 701,923 767,727 958,476 1,128,688
LIABILITIES
Current liabilities
Notes and accounts payable 112,934 132,291 143,531 176,000 187,419
Short-term loans 48,073 49,639 71,390 100,097 127,341
Current portion of long-term debt 20,823 12,690 8,190 20,885 8,568
Current portion of convertible bonds 24,326 - 10,000 5,000 -
Commercial Paper 21,376 8,500 7,000 6,991 15,000
Other 126,248 131,030 132,971 164,246 180,195
Total current 353,784 334,151 373,083 473,221 518,525

liabilities
Long-term liabilities
Bonds 44,893 23,712 8,001 295 63
Long-term debt 39,935 23,994 16,064 20,747 44,235
Other 68,120 56,493 57,064 55,587 64,809
Total long-term 152,951 104,200 81,129 76,629 109,108

liabilities
Total liabilities 506,735 438,351 454,213 549,850 627,633
Minority Interest Note 12,199 14,165 19,752 24,730 -
NET ASSETS (SHAREHOLDER'S EQUITY)

Owners' equity
Common Stock , with no par
23,251 43,439 46,362 47,879 48,168
value
Capital surplus 34,419 54,618 57,543 60,361 60,651
Other 122,481 151,348 189,855 275,655 343,371
Total owners' - - - - 452,190

equity
Valuation and translation

- - - - 18,442
adjustment 2)
Minority Interest Note 1) - - - - 30,421
Total
shareholder's 180,151 249,406 293,761 383,895 501,054
equity

ANNUAL REPORT ON HERO HONDA 2005-06

CORPORATE PROFILE:

HIGHLIGHTS:

DIRECTOR & CHAIRMAN OF HERO HONDA GROUP
Mr. BRIJMOHAN LALL MUNJAL

Managing Director & Chief executive officer.
Mr. PAWAN MUNJAL
Joint Managing Director:

Toshiaki Nagakawa

s
Committee of Directors:

Management discussion & analysis:

FINANCIAL HIGHLIGHTS & RATIO ANALYSIS

DIRECTOR’S REPORT

REMUNARATION OF EXECUTIVE DIRECTORS
SHARE PRICES MOVEMENT

FINANCIAL STATEMENTS
BALANCE SHEET OF HERO HONDA LTD.

As on 31st march 2007

PROFIT & LOSS A/C OF HERO HONDA LTD.
As per 31st 2007

CASH FLOW STATEMENT
For the year ended 31st march 2007

AUTO POLICY
VISION
TO ESTABLISH A GLOBALLY COMPETITIVE

AUTOMOTIVE INDUSTRY IN INDIA
AND
TO DOUBLE ITS CONTRIBUTION
TO THE ECONOMY BY 2010
1. POLICY OBJECTIVES:
This policy aims to promote integrated, phased, enduring and self-sustained growth of the
Indian automotive industry. The objectives are to:-
(i) Exalt the sector as a lever of industrial growth and employment and to achieve a high
degree of value addition in the country;
(ii) Promote a globally competitive automotive industry and emerge as a global source for
auto components;
(iii) Establish an international hub for manufacturing small, affordable passenger cars and
a key center for manufacturing Tractors and Two-wheelers in the world;
(iv) Ensure a balanced transition to open trade at a minimal risk to the Indian economy
and local industry;

(v) Conduce incessant modernization of the industry and facilitate indigenous design,
research and development;
(vi) Steer India's software industry into automotive technology;
(vii) Assist development of vehicles propelled by alternate energy sources;
(viii) Development of domestic safety and environmental standards at par with
international standards.
3.
2. CURRENT STATUS OF INDIAN AUTOMOTIVE INDUSTRY:
2.1 The industry encompasses commercial vehicles, multi-utility vehicles, passenger cars,
two wheelers, three wheelers, tractors and auto components. There are in place 15
manufacturers of cars and multi utility vehicles, 9 of commercial vehicles, 14 of
Two/Three Wheelers and 10 of Tractors besides 5 of engines. With an investment of
Rs.50, 000 crores, the turnover was Rs. 59,500 crores in Automotive Sector during 1999-
2000. It employs 4, 50,000 people directly and 100, 00,000 people indirectly and is now
inhabited by global majors in keen contention.
2.2 India manufactures about 38,00,000 2-wheelers, 5,70,000 passenger cars, 1,25,000
Multi Utility Vehicles, 1,70,000 Commercial Vehicles and 2,60,000 tractors annually.
India ranks second in the production of two wheelers and fifth in commercial vehicles.
2.3 India’s automotive component industry manufactures the entire range of parts
required by the domestic automobile industry and currently employs about 250,000
persons. Auto component manufacturers supply to two kinds of buyers – original
equipment manufacturers (OEM) and the replacement market. The replacement market is
characterized by the presence of several small-scale suppliers who score over the
organized players in terms of excise duty exemptions and lower overheads. The demand
from the OEM market, on the other hand, is dependent on the demand for new vehicles.
2.4 The auto sector (excluding Tractors) attained a steep cumulative annual growth of
22% between 1992 and 1997. The Tractors achieved a cumulative annual growth of 16%.
Component production grew by 28%. There has been a slowdown in the automobile
sector in the past two years. However, the component industry maintained a low but
positive growth rate mainly due to its export performance. Over the years, the component
industry has maintained a 10% - 12% share of exports in the total production.
2.5 Roads occupy an eminent position in transportation as they, as per the present
estimate, carry nearly 65% of freight and 87% of passenger traffic. Although, India has
3.3 million kilometers of road network, which is the second largest in the world, the
Indian highways are getting overpopulated. Traffic management and road sense also need
attention.

3. NEED FOR A COMPREHENSIVE AUTOMOTIVE POLICY
3.1 The extant policy has drawn many overseas companies into India but needs to be
more investor friendly, address emerging problems and be WTO compatible. The Indian
car market is full of possibilities; but present demand profile inhibits volume production,
save by a few, and conduces contention rather than competition. World over, the majors
have consolidated to elevate technology, enlarge product range, access new markets, cut
costs and in graft versatility. They have resorted to common platforms, modular
assemblies and systems integration by component suppliers and E-Commerce.
3.2 The automotive industry is in the midst of a major structural transformation in todays
globalize scenario. "System Supply" of integrated components and sub-systems is
becoming the order of the day, with individual small components being supplied to the
system integrators instead of the vehicle manufacturers. In this process, most of the SSI
units manufacturing smaller individual components are on their way to become tier 2 and
tier 3 suppliers, while the larger companies including most MNCs are being transformed
into tier 1 companies, which purchase from tier 2 & 3, and sell to the auto manufacturers.
3.3 Indian auto sector needs to grow collaterally and in harmony with world industry.
India has the potential to be a global automotive power. However, concerted efforts will
be required to take auto manufacturing to a self-sustaining level where they shall have
volumes, generate requisite technology and meet evolving emission requirements.
3.4 Volume is important for any manufacturing enterprise. However, it is more important
for automobile sector, both for the manufacture of vehicles as well as auto components.
Lack of volume will not only inhibit efficient manufacture but also R&D and
introduction of new models. The investment and fiscal policies should create an
environment for volume production and indigenous capability for innovation for small
cars and auto components.
3.5 Auto components manufacturers have been slowly gaining global recognition and
maintaining a certain level of exports despite the recent downturn. It should be possible
to achieve an export target of US $ 1 billion by 2005 and US $ 2.7 billion by 2010. This
would require three pronged marketing strategy: exports through OEMs for their global
sourcing requirements, export to tier I manufacturers as a part of their international
supply chain and direct exports to aftermarket. The main challenges are lower volume –
low scale, fragmentation, inadequate R&D/technology support, lower productivity levels,
limited resources for international marketing and establishment of an efficient supply
chain.

4. MEASURES TO REALIZE THE POLICY OBJECTIVES
4.1 Initiatives relating to investment, tariffs, duties and imposts will be the instruments to
achieve the Policy objectives. These path government’s economic reform and are in
harmony with the commitments made to WTO.
4.2 Increased resource allocation to the highways sector to ensure collateral upgradation
and development of road infrastructure in step with the increase in the population of
vehicles.
4.3 An appropriate regulatory framework for smooth movement of traffic, safety and
environmental aspects.
5. FOREIGN DIRECT INVESTMENT

5.1 Automatic approval for foreign equity investment upto 100% of manufacture of
automobiles and component is permitted.
6. IMPORT TARIFF
6.1 The incidence of import tariff will be fixed in a manner so as to facilitate

development of manufacturing capabilities as opposed to mere assembly without giving
undue protection; ensure balanced transition to open trade; promote increased
competition in the market and enlarge purchase options to the Indian customer.
6.2 The Government will review the automotive tariff structure periodically to encourage
demand, promote the growth of the industry and prevent India from becoming a dumping
ground for international rejects.
6.3 In respect of items with bound rates viz. Buses, Trucks, Tractors, CBUs and Auto
components, Government will give adequate accommodation to indigenous industry to
attain global standards.
6.4 In consonance with Auto Policy objectives, in respect of unbound items i.e., Motor
Cars, MUVs, Motorcycles, Mopeds, Scooters and Auto Rickshaws, the import tariff shall
be so designed as to give maximum fillip to manufacturing in the country without
extending undue protection to domestic industry.
6.5 The conditions for import of new Completely Built Units (CBUs), will be as per
Public Notice issued by the Director General Foreign Trade (DGFT) having regard to
environment and safety regulations.
6.6 Used vehicles imported into the country would have to meet CMVR, environmental
requirements as per Public Notice issued by DGFT laying down specific standards and
other criteria for such imports.

7. IMPROVING ROAD INFRASTRUCTURE
7.1 Traffic on roads is growing at a rate of 7 to 10% per annum while the vehicle
population growth for the past few years is of the order of 12% per annum. Poor road
infrastructure and traffic congestion can be a bottleneck in the growth of vehicle industry.
A balanced and coordinated approach will be undertaken for proper maintenance, up
gradation and development of roads by encouraging private sector participation besides
public investment and incorporating latest technologies and management practices to take
care of increase in vehicular traffic.
7.2 For the convenience of traveling public the Government shall also promote multi-
modal transportation and the implementation of mass rapid transport systems.
8. INCENTIVE FOR RESEARCH AND DEVELOPMENT
8.1 The Government shall promote Research & Development in automotive industry by
strengthening the efforts of industry in this direction by providing suitable fiscal and
financial incentives.
8.2 The current policy allows Weighted Tax Deduction under I.T. Act, 1961 for sponsored
research and in-house R&D expenditure. This will be improved further for research and
development activities of vehicle and component manufacturers from the current level of
125%.
8.3 In addition, Vehicle manufacturers will also be considered for a rebate on the
applicable excise duty for every 1% of the gross turnover of the company expended
during the year on Research and Development carried either in-house under a distinct
dedicated entity, faculty or division within the company assessed as competent and
qualified for the purpose or in any other R&D institution in the country. This would
include R & D leading to adoption of low emission technologies and energy saving
devices.
8.4 Government will encourage setting up of independent auto design firms by providing
them tax breaks, confessional duty on plant/equipment imports and granting automatic
approval.
8.5 Allocations to automotive cess fund created for R&D of automotive industry shall be
increased and the scope of activities covered under it enlarged.
9. BUILDING BYE LAWS FOR RESIDENTIAL, COMMERCIAL AND OTHER

USES
9.1 With the growth of vehicles, smooth traffic movement has come under severe strain.
The problem has been aggravated because of inadequate provision of parking facilities
generally. Starting with metropolitan and important towns, the Government will pursue
with State Governments and Local bodies amendments to bye laws for upward revision

of the parking norms for new residential buildings, construction of common parking for
existing residential areas besides parking up gradation in all commercial areas. Multi-
storied parking shall also be encouraged.
10. ENVIRONMENTAL ASPECTS
10.1 The automotive and oil industry have to heave together to constantly fulfill
environment imperatives. The Government will continue to promote the use of low
emission fuel auto technology.
10.2 The Government after considering the recommendations of the Expert Committee
on Auto Fuel Policy headed by Dr. R.A. Mashelkar, have approved a road map for
implementation for the auto fuel quality consistent with the required levels of vehicular
emissions norms and environmental quality. The Government will formulate a
comprehensive auto fuel policy covering the other related aspects and ensure availability
of appropriate auto fuel/fuel mixes at minimum social costs across the country. Suitable
institutional mechanism will be put in place for certification, monitoring and enforcement
of different technologies/fuel mixes. Appropriate fiscal measures will be devised to
achieve milestones in the roadmap for implementation of auto fuel policy.
10.3 In the short run, the Government will encourage the use of short chain hydrocarbons
along with other auto fuels of the quality necessary to meet the vehicular emissions
norms.
10.4 There is prime need to support the development and introduction of vehicles
propelled by energy sources other than hydrocarbons by promoting appropriate
automotive technology. Hybrid vehicles and vehicles operating with batteries and fuel
cells are alternatives to the conventional automobile, which in their early beginnings, lie
entreasured. As an impetus for the development of such vehicles, an appropriate long-
term fiscal structure shall be put in place to facilitate their acceptance vis-à-vis vehicles
based on conventional fuels.
10.5 Internationally, the practice is to levy higher road tax on older vehicles in order to
discourage their use. In India, the road tax on vehicles varies in nature and quantum
among the states. Lifetime road tax is also in vogue. The Endeavour will be to move to
the international model.
10.6 In order to facilitate faster up gradation of environmental quality, the Govt. will
consider having a terminal life policy for commercial vehicles along with incentives for
replacement for such vehicles.

11. SAFETY
11.1 Government will duly amend the Central Motor Vehicles Rules, Bureau of Indian
Standards (BIS) and other relevant provisions and introduce safety regulations that
conform to global standards.
11.2 Testing and certification facilities need to be revised and strengthened in accordance
with safety standards of global order. Government, in partnership with industry, will tend
to this requirement.
Indian scenario:
Automobile India
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected
that Indian automobile industry will achieve mass motorization status by 2014
Current Scenario
India is the second largest tractor manufacturer in the world.

India is the fifth lagest commercial vehicle manufacturer in the world.
The number one global motorcycle manufacturer is in India.
India is the fourth largest car market in Asia - recently crossed the 1 million mark.
Overview
The first automobile in India rolled in 1897 in Bombay.
Within two-wheelers, motorcycles contribute 80% of the segment size.
India is the largest three-wheeler market in the world.
Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
Tata Motors dominates over 60% of the Indian commercial vehicle market.
Facts & Figures
Automobile put the horses on rest and changed the way of living for mankind, is a
wheeled passenger vehicle that carries its own motor. The term 'automobile' is derived
from Greek and Latin words. 'Auto' in Greek means 'self' and 'mobiles' in Latin means
'movable.' The phrase refers the fact that it 'moves by itself.' Automobile used to be also
addressed as 'motorwagen' or 'horseless carriage'.
The first automobile rolled in India in 1897 in Bombay (now Mumbai). Soon number of
cars increased on the roads and it became the status symbol until Maruti entered
The first automobile in India rolled in 1897 in Bombay.
Within two-wheelers, motorcycles contribute 80% of the segment size.

Ratio analysis Hero Bajaj TVS Honda Yamaha
Honda motors Motors motors motors
motors ltd. compan India
ltd. y
Per share ratios
Earning per share 48.64 96.39
Dividend per share 20 40
Profitability ratios
OPBIT/Net sales 15.70 16.90
Return on capital 20.44
employed
Gross profit/net sales 14.37
Net profit/ net sales 13.86
Leverage ratios
Long term debt / Equity Nil 0.30
Total debt/equity Nil 0.30
Fixed assets turnover ratio 2.62
Liquidity ratios
Current ratio 0.81
Quick ratio 0.71
Inventory turnover ratio 34.14
Payout ratios
Dividend payout ratio 46.90 41.89

The Market Environment
Pest analysis:
Political/ legal Factors:
The excise duty on two wheeler, which previously ranged between 10% to 30%
according to the engine capacity was rationalized in 1991-92 budgets to only two-
categories viz. 15% up to 75cc and 25% above 75cc. this mainly affected manufacturers
of 100cc category in the early nineties. Since then the excise duty structure for two-
wheelers has been left unchanged till 1999-2000 budgets, due to rationalization of duty
structure the excuse duty up to 72cc vehicles was increased to 16% while for those above
75cc decreased to 24%. As a result, scooter prices were reduced by Rs. 200-400 per
vehicle. The components used for manufacturing two-wheelers are charged an excise
duty of 15% the industry has been asking GOI to reduce this excise duty to 10%.
The price of the two-wheelers varies across the country due to variation in
registration charges, state taxes and octopi levied by the states.
The Government of India (GOI) wants the automobile industry to achieve a major
improvement in emission levels in two steps. The first milestone was achieved by
applying stringent norms applicable from April 1, 1996. this confirms to Euro I standards.
The second hurdle has been set with a dead line of April 1, 2000, which confirm to Euro
II norms.
Reduction in customer tariffs on imported components as well as excise

concessions to fuels-efficient vehicles up to 100cc.
Economic Factors:
The improvement in Asian market is expected to improve the two-wheeler exports

in the year 2000 and grow by 8% till 2001. this will lead to exports of 0.1 million two-
wheelers in 1999 to 0.11 million in 2001.
Improvement in disposable income:
With the increase in salary levels, due to entry of multinationals following

liberalization process and fifth pay commission, the disposable income has improved
exponentially over the years. This will have a multiplier effect on demand for consume-
durables including two-wheelers. This is already witnessed in improved demand for 2-
wheelers in 1999 compared to a meager growth in 1998.

Changes in prices of second hand cars
The second had car prices small cars have come down sharply in the recent past. This
well shift the demand from higher end two-wheelers to cars and affect the demand for
two-wheelers negatively. A further drop in second hand car prices will lead to pressure on
the two-wheeler majors who plan to release higher end scooters and motorcycles.
Availability of credit for vehicle purchase
The availability and cost of finance affect the demand for two and three-wheelers
as the trend for increased credit purchases for consumer durable has increased over the
years. Therefore any change with respect to any of these has to be closely watched to
assess the demand for two and three wheelers.
Socio-cultural factors
A deteriorating public transport system.
A growing middle class and increasing demands for two wheelers in small towns
and rural areas.
Teenagers and women prefer easy maneuverability ease.
Urbanites are lured by fuel efficiency and low maintenance.
The lower end of the market looks for durability, value for money and higher
resale value.
The demand for scooters is price sensitive compared to motorcycles
Customer preference towards fuel-efficient and aesthetics has increased, leading

to higher growth in sales of premium end scooters. This has induced the companies to
bring in new models in this segment, to beneficiary from this trend had been in the
industry, which has a dominant position in premium scooters segment.
Technological Factors
For the two-wheelers new emission norm for year 2000 will be an acid test as
none of the present models except four stroke vehicles confirm to the norms. To full-fill
emission norms the manufacturers have three options, to switch to four-stroke engines, to
fit catalytic converts for the existing models, to improve upon the existing two-stroke
engine. The temporary option for overcoming emission norms is to fit the catalytic
converters; this will increase the cost of vehicles. But as long-run solution scooter
manufacturers have to opt for four-stroke engines or improvement in two stroke engines.
The indo-Japanese motorcycle segment will be able to overcome emission norms with the

technology help of respective Japanese collaborator. The Indian motorcycles have to
either shift to four- stroke technology or make use of catalytic converter. But this will
reduce the price difference between Indian and indo-Japanese motorcycles, reducing the
price advantage of Indian motorcycles.
The mopeds segment will be badly affected due to Y2K emission norms as none
of the existing moped models confirm to the specifications. With the deadline nearing,
the moped manufacturers have to tighten the belt to meet the norms.
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.
The bar diagram given below compares the figures between

1998-99 and 2004-05 (Apr-Dec).

Segment Know How:
Among the two-wheeler segment, motorcycles has the major share in the market.
Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in
scooter and TVS makes 82% of the mopeds in the country.

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.

Market share of two wheeler automobile
sector
Hero Honda
35.60% 27.50% Bajaj Motors
TVS Motors
Yamaha
Motors
Honda Motors
Others
9.50% 16%
4% 7%

which company's two wheeler are you
using?
50
40
respondent
30
% of
20
10
0
hero bajaj tvs honda yahaha
series 45 30 14 5 6
bike
series
Inference:
Out of 100%:
45% customers are using Hero Honda two wheeler
30% customers are using Bajaj two wheeler
14% customers are using TVS two wheeler
5% customers are using Honda two wheeler
6% customers are using Yamaha two wheeler

Model people want to purchase
80
% of Respondent
60
40
20 series
0
puls App CBZ unic Glad
series 65 15 13 5 2
Bikes
Inference:-
Out of 100%:
65% respondents want to purchase pulsar
15% respondents want to purchase apache
13% respondents want to purchase CBZ
5% respondents want to purchase unicorn
2% respondents want to purchase gladitor

On the scale of 1 to 4
1=very good, 2=good, 3=neither good nor bad, 4=bad

Qualities Pulsar Appache CBZ Unicorn Gladiator
extreme GX
Engine efficiency 1 2 2 2 3
Average per liter 2 1 2 3 2
Weight 3 3 3 2 3
Size 3 2 3 3 3
Price 2 2 2 2 2
Tank capacity 2 2 2 2 2
After sale service 2 1 1 2 2
Warranties 3 3 3 2 3
Resale value 2 3 2 4 4
Colour 2 2 2 3 3
combination
Financial support 2 2 2 2 2
in term credit

most favourable price ranges selected by
the cutomers
40
Respondent
%. of
20
series
0
30- 40- 50- 60- 70-
series 32 35 20 9 4
Price range
Inference:-
Out of 100%:
32% customers have tick on 30-40

Motivating factor to Purchase two wheeler
35
30
%. of Respondent
25
20
15
10
5
0
Discount Paym ent Resale Allow anc Friends Others
series 25 35 20 10 7 3
Motivating factor
series
Inference:
Out of 100%
25% customers motivated by discount
35% customers motivated by payment
20% customers motivated by resale
10% customers motivated by allowance
7% customers motivated by friends
3% customers motivated by others

Response given by the customer on the
different media.
70
60
%. of Respondent
50
40
30
20
10
0
TV Radia Magazine New spap Internet Others
series 65 10 7.5 20 3.5 4
Media
series
Inference:-
Out of 100%:
65% customers want to see promotion scheme on TV
10% customers want to see promotion scheme on radio
7.5% customers want to see promotion scheme on magazine
20% customers want to see promotion scheme on newspaper
3.5% customers want to see promotion scheme on internet
4% customers want to see promotion scheme on others

Conclusion
The study which we conducted on the two wheeler automobile sector is a very
important topic of automobile sector.
Two wheeler automobile sector 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 has not
any presence in this segment. Now this gap is filling up by Hero Honda's new 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.
RECOMMENDATIONS
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.

2.1.23 History of E-Bikes
The concept of E-bike is not new. A workable prototype was first produced in
America as barley as 1834 till the late 1890’s; E-bikes were considered to be the future.
EV in India launch by EKO vehicles private limited in 1983 by the name of product
VIDUT 24. it was a technical success but it was failed because of manufacturing system
was not perfected and since the sales volumes were low, retail prices could not be brought
down.
E-bikes Market
In 2005-06 more then 7 millions two wheelers were sold in country. Of these,
5.81 millions were motorcycles or step-thoughts, 9.08 lakh were largely scooterettes and
another 3.32 lakh were mopeds. A bare 50,000 were electric two wheelers. By the end of
this financial year in March, two wheeler sales will surge past the 8 million mark, and EV
sales should be 2 lakh vehicles in India the years.
THE EV BANDWAGON
(An assortment of small and big companies)
Electrotherm India:
(MD: Mukesh bhandari)
(Opration director: Avinash bhandari.)
Plans:
Move up from low power scooterettes to higher-power vehicles in the next few
months, backed by 250 exculsive YoWorld and YoPoint retail outlets by the end of March
2007.
Standard combines:
(Deputy director: V.K Choubey)
Plans:
This combine harvester manufacturer moved into cranes and then into two-
wheeler EV’s two years ago; plans to have 400 dealers nationwide for its EVs.
Hero Cycles/Ultra Motors:

(Chief executive :( Hero cycles) Naveen Munjal)
(Marketing director :( ultra Motors Company) Deba Ghoshal)

Plans:
Two-wheeler giant Hero Group moves into the market and ties up with a UK-
based to try and translate the latter’s success in the Indian market. This UK based
company ultra motors is the technology provider to hero Honda Company.
Avon cycles:
(MD: Onkar Singh Pahwa)
Plans:
Punjab (Ludhiana) based cycle manufacturer moving up the chain to tap the
booming EV market and plans to target production at 10,000 units a month eventually.
Eko Vehicles:
(Chairman & CEO: Anil Ananthakrishna)
Plans:
Second attempt at two-wheeler EV’s this time backed by tax exemptions from state
governments.
Kaiser Auto Moto:

(MD: Wasi-Ur-Rahman)
Plans:
After establishing a strong presence in the Chinese market, the company plans to
do the same in India as well. The company wants to sell at least 1,000 bikes in the first
year.
SWOT Analysis:
Strengths:
 Light weight.
 Good average(40-80km in single recharge)
 Low cost per k/m
 Good alternative of petrol.
 Low maintenance.
 Eco friendly.
Weakness:
 Not well for long run.

 Expensive.

 Very much time consuming in a single time battery recharge(approx. 6 hours)
 Spare parts are too expensive.
 Above 250watts E-bike not allowed.
 Life of the battery is not more then 2-3 years.
 Parts are not easily available.
Opportunities:
 EV’s demand increasing every year. Last year EV’s sale is 50,000 and EV’s sales
should be 2 lakh in this year.
 Rising affulance of india’s middle class consumers.
 Soaring cost of fossil fuel.
 Market research says potential demand for 7.7 millions EV’s over the next
decade.
Threats:
 Market share of EVs is less then scooters, mopeds and bikes.

 Large market competition by the other two wheelers companies.
 China sold 7.5 million E-bikes in 2004 and 10 million in 2005. So, Chinese bikes
is the biggest threats for Indian E-bikes.
THE EV PROS AND CONS:

(Currently, disadvantages outweigh the benefits of electric two-wheelers)
Pros Cons
1) Lower cost per kilometer (Rs 0.40/ 1) Mileage per charge is as little as 50-
km vs petrol-driven vehicles(Rs. 80 km and overnight recharge is
2/km) mandatory
2) Lower cost of maintenance since 2) The electric motors and batteries
there are fewer moving parts need to go through costly overhauls
regularly
3) Is environment-friendly since EVs 3) Availability, since EV makers are
have zero harmful emissions unknown and retail spread limited
4) Some bikes don’t require a licence 4) Limited speed and pick up;
to operate and others are auto- therefore, limited to personal
geared commuting
5) Lighter and more efficient lithium 5) No pubic charging points(paid or
lon batteries are being developed unpaid) in India for now
6) Growing acceptance as a second 6) More expensive than equivalent
two-wheeler for short trips petrol vehicles due to tax structure
7) Load carrying capacity is getting 7) Yet, current electric two-wheelers
better with new models can carry only 100-120 kg of

weight
8) Entry of players like Hero Group 8) Most players import Chinese
lends credibility to the sectors CKD’s and assemble. After sales
service is poor.
Electric vehicles in India:
Overview:
Electric vehicles are virtually maintenance free. It has no gears, no engine, no belt or
chain drive, zero emission, no pollution, electronic start and accelerator, besides it is
exempted from the Central Vehicles registration act by the Automotive Research
Association of India (ARAI) and does not require any registration or license. These bikes
are usually chargeable at 220V which your refrigerator requires. For charging bikes
require special adapter. Batteries, Motors and other electrical kits are imported from china
and other countries whereas mechanical design and assembly of these bikes are done
here. Electric bikes target School students, women and who are under 18 years of age.
Following is the review on some of the manufacturers and their products in India.
Yo Bykes:
Indus - division of Electrotherm a gujrat based company is the recent player in

electric vehicle market. It offers two scooterette and four bikes models with the motor
power range 200-250W. YO-smart scooter model from Indus come with a very compact
dimension. The vehicle weighs less and has a payload of 75kg. YO-smart vehicle clocks a
top speed of 25km/hr and the vehicle offers a range/charge mileage of 75km. Charge
duration required is 6 – 8hours. Electrotherm’s YOBikes are ranged between Rs 13,999
and Rs 23,249.
EKO vehicle:
EKO vehicle a Bangalore based company offers EKO cosmic –I scooter and EGO
bike. This company has been in this business for a long time and has dealers in various
locations in India than its counterparts. Battery weighs at 28kgs and has a life of 12000 –
15000kms. The company offers a rapid charger which will charge the bike at 10 – 15
minutes (good for intuitional consumers). Cosmic offers a variable mileage depends on
your payload. The maximum speed is 40 km/hr and Cosmic noise is less than 60decibel.
Cosmic is offered in five colours and is exported many countries.
Hero/ultra motors:
Hero cycles (Hero Honda group) - UK Ultra Motor Group will launch electric
three wheeler by the end of fiscal 2007. Hero - Ultra also has plans to tap the nascent

electric vehicle market in a big way. Hero - Ultra plans to sell 1lakh electric vehicles by
2008. They have launched India’s first exclusive electric vehicle showroom in New
Delhi. By April 2007 they also plan to establish 15 more dealership in North India.
Investment for a dealership requires 15-20 lakhs. Currently Hero - Ultra offers E-Bikes in
the range of 14500 - 19000 and E-Scooters in the range of 22500 - 28000.
China’s Shenzhen Zhongmo Technology Co Ltd:
In West Bengal Battery-operated bikes to flood soon, It will get from kolkata,
Burdwan, Durgapur & etc. Bengal Enamel Works Ltd. with a venture in the automobile
sector with China’s Shenzhen Zhongmo Technology Co Ltd to launch light battery-
operated two-wheelers developed by Benlin Electric Cycles Company of Japan.
This e-bikes has all total 43 models now starts with 8 Models. These new gearless bikes
should be able to travel 45 km to 100 km on a single charge. Being below 250 watt, it
will have a top speed of 25 km/h. it requires no registration, driving neither license nor
payment of road taxes. BENLIN E-bikes starts with 8 Models priced at Rs. 18600/- to Rs.
45200/-(it has with disk break)
ACE motors:
Pune based Ace motors manufacturers e-bike (electric bike) and the majority of
the components of this bike are imported from China based company Changtong E Bike
Company Ltd. The e-bikes from Ace Motors weigh almost 60kg. The bike offers a load-
carrying capacity of 100-140 kg. To cover a distance of 220 km, you need to charge the
bike for 6 - 8 hours at 220 volts. The maximum speed of the bike is 25 km/hr and is
priced at Rs 26,500.
Verdict:
“It is estimated that India’s fossil fuel dependency on other countries currently
from 70% to 82% in 2012. If we can have three lakh Electric Vehicles on the roads by
2020, including three-wheelers, cars, and scooters, this could result in a reduction of over
16 lakh metric tons of CO, NOx and HC by 2020, savings of over Rs 3,700 crore in
foreign exchange and significant health costs savings”—- automonitor
Government has reduced the custom duty on three of the imported components in
battery operated vehicles (BOV) to 10%.Excise duty reduced on electric vehicles from
16% to 8% in 2004 budget. But the industry feels that the efforts are not sufficient.
Toyota Prius the model which accounts for nearly 80 per cent of the hybrid vehicle sold
globally is about Rs 10 lakh in the US. In India at current levels of duty, it could cost
anywhere between Rs 20-25 lakh because of the high import duty. At present total import
duty is 111% (60% on CBU imports plus countervailing duties and other levies).
According to A Toyoshima, managing director, Toyota Kirloskar, the Indian

government should relax the duty structure for such hybrid vehicles to promote eco-

friendly technology in the country. Honda said that the new small car it plans to offer in
2009 would be a hybrid if the government makes required tax sops. If government wishes
a greener future it has to take necessary actions to encourage the industry, if you want to
save the earth buy an e-vehicle.
About Indus: Indus Elec-trans, a division of Electrotherm (ET), is formed to

manufacture electric vehicles and hybrid electric vehicles. Its vision is to offer an
efficient, economical and eco friendly future to the Indian transportation. This new Auto
division will cater to the common man's need for both individual and mass transportation.
Fuelled by Innovation, INDUS will strive to provide the futuristic driving solutions
through unconventional, environment friendly, innovative yet reliable technology and
enduring products.
Based upon innovative, novel ideas and best quality practices, INDUS will bring a
revolutionary change in Indian Automobile Market. The expertise in power electronics
and electrical technology has lead ET into this motoring venture. ET’s excellent practices
for customer care will continue to be the backbone. However, the biggest strength lies in
the visionary people who have given ET the international repute for the futuristic
products.
Currently INDUS has commenced manufacture of hi-tech electric two wheelers,

YObykes at the state-of-the-art plant at Kutch in Gujarat. Development of Electric three
wheelers, four wheelers and hybrid electric low floor buses are on anvil for future.
INTRODUCTION:
Electrotherm India Ltd., the promoter of the YO bykes in India, is the leader in
metallurgical equipment field. Established in 1982, Electrotherm has built a wide range
of Electric Furnaces and revolutionized Steel Making, Melting and Refining in India. A
‘Solution Driven Company’, it has successfully installed over 1300 furnaces around the
world and is known for its product quality and excellent customer service.
Backed by outstanding innovators and technocrats, the company maintains excellence

and proficiency in the fields of Electrical Technology and Electronics. This expertise of
Hi-Tech Electronics forms the basis of YO bykes.

BASIC WORKING:
The rear wheel of the vehicle is driven either by an electric brush motor or a
brushless hub motor. The drive is usually direct.
The variation in speed - acceleration or deceleration, is done through electronic

accelerator which sends electronic signals through motor controller to the hub motor. This
enables the rider to precisely and smoothly control speed.
The motor controller acts as the “brain” of EV and incorporates sophisticated

electronic technology.
The accelerator is located on the right hand side grip of the handle bar, similar to
petrol vehicles.
Brake levers are provided on both sides of the handle-bars as in non-geared petrol
vehicles. An additional safety feature is that on applying brake, the power supply to
motor is cut off.
Battery supplies the energy and therefore can be termed as ‘fuel tank’. The battery
is suitably located on the vehicle, keeping in mind weight distribution, balance, etc. One
full charge provides a ride of about 50 kms depending on riding conditions, weight
carried and slope climbing, etc.
YO bykes operate with 36/48 volts system.

Conversion of electrical energy into mechanical energy with high efficiency, precise
control of speed and smooth drive, without energy loss is achieved by hi-tech application
of electrical and electronic engineering.

MAJOR COMPONENTS:
ELECTRIC HUB MOTOR

Electric hub motor drives the rear wheel directly. Motors are rated in terms of
voltage and output power, Watts. There are two types of motors.
a) BRUSH MOTOR: DC Brush Motor has two basic parts viz.

Permanent Magnet Stator and Wound Rotor
b) BRUSHLESS MOTOR: DC Brushless Motor also has two basic parts

viz. Permanent Magnet Rotor and Wound Stator
ELECTRONIC MOTOR CONTROLLER:
The Electronic Motor Controller, the “brains” of YObykes, provides electric

power to the motor based on inputs from the accelerator. Controllers are rated in voltage
(for e.g. 36 volts or 48 volts) and maximum current (amps). A controller with a higher
amp rating can deliver more power to the motor. A high quality controller will allow for
smooth and precise control over acceleration and avoid overloading of motor.
ELECTRONIC ACCELERATOR:
The accelerator of YO byke sends an electronic signal to the electronic controller

allowing the rider to precisely and smoothly change and control the speed.
BATTERIES:
Battery pack is the ‘fuel tank’ of a YObyke. There are various types of batteries that are
used for supplying energy. There are Lead Acid batteries, Nickel Metal Hydrate (Ni-MH)
batteries, Lithium batteries, etc. Although Lead Acid batteries are heavier than Ni-MH
batteries, they are commonly used for electric vehicles as they are quite economical with
good performance. YObykes are provided with maintenance-free Lead Acid batteries.

Topping up of distilled water is NOT required. These batteries have special Deep
Discharge characteristics to attain optimum performance. Battery packs are rated in volts
(V) (typically multiples of 12V; i.e. 36V or 48V) and amp-hours (AH) of energy. An
ampere-hour rating of battery determines the storage capacity of charge.
BATTERY CHARGER:
The charger replaces the charge in the batteries after the use. Some are built-in,
while others are separate and must be carried along if you want to charge away from
home. Similar to Laptop chargers. Chargers are rated in terms of current carrying
capacity (amps). The charger converts an AC supply to DC to store power in the battery.
This charger can be used with any normal domestic AC plug point (5A or 15A). This
makes charging of battery pack easy and convenient. Moreover, the charger provided
along with the YObykes is designed to avoid overcharging.
The life of all the parts including battery, motor, controller, etc., depends on the
care in handling and usage. The user is advised to follow the instructions and develop
right usage practices in order to get optimum performance of YObykes.
SAFETY FEATURES
We have taken utmost care to incorporate all the necessary safety features in the
YObykes to ensure safe and comfortable ride. We are sure that following safety features
would further build your confidence in YObykes.
No fire hazards. A YObyke is safer than petrol vehicle due to the absence of any
inflammable material.
It’s safe in all weathers, including rainy season as the electrical parts are well-
shielded and protected.
Balance and stability of the vehicle is important in turning, speeding, braking,

road bumps, etc. This is achieved by adequate wheel size and appropriate tyre width,
ensuring sufficient road clearance.
Even distribution of weight, including the rider’s weight, is attained for proper
balance.
Bright head lights and side indicator lights have been provided for better visibility
and safety, respectively.

Ergonomically designed controls for acceleration and braking, on the handle bar
allows one-hand control.
Making heads turn is an art only a handful know. We’ve just discovered a
secret to that art – get on YOSpin. If looks could kill, than YO Spin is surely a
serial killer.It is smooth and silent and runs on electricity. Now turn the
heads the way you want.
YO Spin – manufactured with state-of-the-art technology by
Special Features
• Intelligent Braking System (With electronic sensors)
• Electronic Accelerator
• Pollution Free
• Aerodynamic Shape
• Large Under seat Space
• Alloy Wheels
• Electronic Controller
• Electronic Start

Elegant instrument Panel for Speed indicator and Battery Level Indicator.
Bright Headlights for better visibility during night riding.
Easily Detachable Battery for hassle-free recharging.
Enough of following the trend, it’s time to set one. Lead with difference, lead with
YOTrend. Whether it’s the technology it moves on or the out-of-this-world look,
everything about YO Trend is anything but ordinary.
YO Trend – manufactured with state-of-the-art technology by Indus.

• Pollution Free
• Alloy Wheel Rims (non-rusty)
• Cruise Control / Power Assist
• Rear Hub Motor
• Sturdy Durable Frame
• Electric Start

Easily Detachable Battery for hassle-free recharging
Elegant Instrument Panel for Speed Indicator and Battery Level Indicator.
Specifications
Overall Dimension 1750 x 638 x 1140 mm
Wheel Size 22''
Weight Carrying
75 Kg
Capacity
Motor Power < 200 W
Motor Permanent Magnet Brushless DC Motor
Battery Type Maintenance-free VRLA Deep Discharge, 12Ah
Lamp Voltage 36 V
Speed < 25 Km/hr
Charging Duration 6 - 8 hours
Range / Charge
50 Km
Mileage
Colors Available Purple Grey, Rose Red Pink, Holland Orange

When going places, you need a reliable companion. And what fits the bill better
than YO Trust – a companion in every sense. YOTrust assures you a hitch-free
ride. Slice through a traffic Jam or go for a long-ride, now have a
companion by your side.
YO Trust – manufactured with state-of-the-art technology by Indus.
Special Features
• Elegant Instrument Panel

• Easy Charging
• Pollution Free
• Rear Hub Motor
• Electric start
Tail Lamp for better safety while riding.
Detachable Rechargeable Dual Batteries for longer rides.

Specifications#

Wheel Size 24''
Weight Carrying Capacity 75 Kg
Motor Power < 200 W
Motor Permanent Magnet Brushless DC Motor
Battery Type Maintenance-free VRLA Deep Discharge, 12Ah
Lamp Voltage 36 V
Speed < 25 Km/hr
Range / Charge Mileage 75 Km
Colors Available Car Blue, Silver, Grey Blue
With YO Tuff on your side, the world is your terrain. Specially designed bigger wheels
make it easy to slice through the challenges of the road with flair of a professional rider.
Now pull up your socks and mount on your YOTuff. The road is waiting.
YO Tuff – manufactured with state-of-the-art technology by Indus

• Pollution Free
• Rear Hub Motor
• Sturdy Durable Frame
• Electric Start
• Battery Level Indicator

Riding Mode indicator for showing the current mode of riding.
Ergonomically designed Foot-Rest for kids.
Easily Detachable Battery for hassle-free recharging.
Specifications

Wheel Size 26''
Weight Carrying
75 Kg
Capacity
Motor Power < 200 W
Motor Permanent Magnet DC Motor
Maintenance-free VRLA Deep Discharge,
Battery Type
12Ah
Lamp Voltage 36 V
Speed < 25 Km/hr
Range / Charge Mileage 50 Km
Colors Available Turkey Blue, Benz Grey, Car Blue
Contact:
INDUS ELEC-TRANS
A division of Electrotherm (India) Ltd.
HEAD OFFICE & WORKS

72, Palodia (Via Thaltej, Ahmedabad)

Gujarat – 382115 India
Phone
+91- 2717- 234553 – 7, 234613-5
Fax
+91- 2717- 237870, 234616
E-mail
info@induselectrans.com
hr@induselectrans.com
QUESTIONNAIRE
1. Which company’s two wheeler you are using?

o Hero Honda
o Bajaj
o TVS
o Honda

o Yamaha
o Others
2. Which model of two wheeler do u want to purchase?

o Pulsar 150 DTS-i
o Apache
o CBZ-extreme
o Unicorn
o Gladiator
3. Rate the two wheeler on the scale of 1 to 4 on various qualities where:
1=very good, 2=good, 3=neither good nor bad, 4=bad
Qualities Pulsa Apache CBZ Unicorn Gladiator

r extreme GX
Engine efficiency
Average per liter
Weight
Size
Price
Tank capacity
After sale service
Warranties
Resale value
Colour
combination
Financial support
in term credit
4. Which price range you prefer most?

o 30-40
o 40-50
o 50-60
o 60-70
o 70-80
5. What are the factors which motive you most while purchasing a two wheeler?
o Discount
o Payment period
o Resale value
o Allowance
o Friends

o others
6. Which media attract you while purchasing two wheeler?

o TV
o Radio
o Magazines
o Newspapers
o Internet
o Others

BIBLIOGRAPHY
1. “ELECTRIC DREAMS” Business world, 11 aug 2007 PP 102-104

2. We have visited in various showrooms.
3. Personal visit to Hero Honda Plant(Dharuhera)
4. Internet Sites:
www.bajajmotors.com
www.herohondamotors.com
www.indiabike.net.com
www.google.com
www.yahoofinance.com
www.indiaserf.com
www.honda2wheeler.com
www.yamahamotorsindia.com
www.tvsmotorsltd.com

Table of Content
Acknowledgement
1. Abstract
1.1 Introduction 1
1.2 Objective 1
1.3 Null Hypothesis 1
1.4 Scope of Study 1
1.5 Method of Collecting Data 2
1.6 Sources of Data 2
1.7 Method of Calculation and Analytical Processing 2
1.8 Conclusions and Recommendations 3
1.9 Limitation of Study 4
2. Report Form (REP) 5 - 154

2.1 Basic Information
2.2 Calculations
2.3 Analysis
2.4 Conclusions and Recommendations
2.5 Additional Data
3. Appendices 154 - 185

3.1 Questioners
3.2 Bibliography
Organizational Structure

Power Product Material
Department Department
Business
Support
department
Purchase
Department President
and CEO
Automobile
Department
Product
Department
Business Management Customer

Department Service
Department

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1.

1 Introduction of two wheeler automobile sector:

1.2 Objective of Study:

 To know the image of product in the mind of consumer.

1.3 Null Hypothesis:

1.4 Scope of Study

Project aims to understand and enunciate the working process of different

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT

Most favorable price ranges selected by the customers.

1.6 Source of data

Concluding the performance of the company related to two wheeler sector in

It is the competition on various aspects such as price, design technology, after

No matter how much on organization progresses it always lack something. These

The recommendations are:-

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 3

2.1.1 Evolution of Two-wheeler Industry in India:

Two-wheeler segment is one of the most important components of the automobile

Hero Honda Motors Limited was established in 1984, as a joint venture

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 4

Yamaha Motor Corporation is the auto mobile company of Japan

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 5

A cylindrical piston, made of aluminum alloy (preferred because it is lightweight

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 6

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 7

A motorcycle transmission and disc brake system.

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 8

2.1.4 Marketing Mechanism

Promotional tools or promotion mix

1. PERSONAL SELLING: It involves personal confrontation either by phone or face, it

2. ADVERTISING: It is defined as a paid non-personal communication with a target

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 9

• Posters and billboards.

3. PUBLIC RELATIONS AN PUBLICITY:

It is an interactive system of marketing which uses one or more advertising media to

6. DIRECT MARKETING INCLUDES:

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 10

BRAND AMBASSADORS OF HERO HONDA:

Hrithik, Saurav Ganguly, brand ambassadors of Hero-Honda

(Free press journal, Mumbai, 4th December 2000)

Hero Honda, a leading manufacturer of motorcycles, has roped in film actor

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 11

 Company gives advertisement in different media vehicles time to tome. Like in

Basic Data of Sector

Broad product range

No. of players in the two wheeler automobile sector (India):

 Hero Honda motors ltd.

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 12

As early as in 1960’s very few Indian bicycle manufacturers were interested in

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 13

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 14

Hero Honda is a world leader because of its excellent manpower, proven

2.1.7 S.W.O.T ANALAYSIS:

 Hero Honda introduced First stroke bike in the Indian market.

 Suppose to be very sophisticated.

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 15

 Main threats to Hero Honda are their competitors like:-

2.1.8 HERO HONDAS CORE VALUES

 Respect for Human Beings.

INSTITUTE OF MANAGEMENT AND DEVOLOPMENT 16

Hero Honda Pleasure

Manufacturer Hero Honda motorcycle Ltd.

Price Rs. 37990

Engine 102 cc, 7bhp@ 7000 rpm,