Honda’s Entry into the

2009 Indian Institute of Management Calcutta

IIM Calcutta, PGPEX- III

Indian 2-wheeler
Market
Project Report
Group-8
Abhishek Kapoor (2/3)
Anshuman Dikshit (6/3)
Ashish Sinha (8/3)
Rajul Srivastava (31/3)
Suket Gandhi (46/3)

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1.1.1

Table of Contents
1. Indian Market: A perspective......................................................................................3
1.1 Share of different categories of two-wheelers......................................................4
1.2 Trends in the industry..........................................................................................5
2. Why Honda decided to enter on its own......................................................................6
2.1 Background of Honda...........................................................................................6
2.2 History of Honda in India......................................................................................6
2.2.1 Kinetic Honda................................................................................................6
2.2.2 Hero Honda...................................................................................................7
2.3 Government Policies............................................................................................7
2.4 What are Honda’s options....................................................................................8
2.5 Why did Honda enter the market.........................................................................8
3. Target Customers & Offerings...................................................................................10
3.1 Scooter Market Segmentation and Targeting.....................................................10
3.2 Product Positioning and Promotion.....................................................................11
4. Why and how Honda was successful in this segment................................................12
4.1 Define success – Criteria, Segment, Period........................................................12
4.2 Facts..................................................................................................................12
4.3 Reasons for success...........................................................................................13
5. Challenges Ahead.....................................................................................................13
5.1 HMSI Brings Life to Scooters...............................................................................13
5.2 HMSI targeting complete motorcycle market.....................................................14
5.3 Can HMSI differentiate itself from Hero-Honda in 100cc segment?....................14
5.4 HMSI’s Current Strategy.....................................................................................16
6. Appendix...................................................................................................................18
6.1 Exhibit 1.............................................................................................................18
6.2 Exhibit 2.............................................................................................................19
6.3 Exhibit 3.............................................................................................................20
6.4 Exhibit 4.............................................................................................................21
6.5 Exhibit 5.............................................................................................................22
6.6 Exhibit 6.............................................................................................................22
6.7 Exhibit 7.............................................................................................................23
6.8 Exhibit 8.............................................................................................................25
6.9 References.........................................................................................................26
References

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1. Indian Market: A perspective
Automobile industry, as has been the case in the global economy, has been one
of the largest industries in the Indian market too. It has been recognized as one
of the key economic drivers.

The industry has been in existence in India since 1955. According to the SIAM
figures for 2003-04 of all the automotive industry, the 2-wheelers account for
roughly 80% of the sales. In the initial years, entry of the firms, capacity,
expansion, choice of products & technology were all regulated by the government
policies.

Certain lacunae in the policies resulted in the introduction of fresh policy

regulations in the late sixties. Notable among those were the Monopolies and
Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act
(FERA). This resulted in the following implications for the industry:

• Operations at below minimum level of efficiency

• Operations at below production function
• Usage of outdated technology, minimal budget allocation for Research and
Development

The Indian economy faced a major crisis in 1991. This resulted in the industrial
policy shift from a regulatory regime to a more open and liberalized market.
Abolition of licences and liberalization in policies helped realize the sector’s full
potential. These policies had certain discernible influences on the industry,
namely:

• Increase in competition as foreign players started entering the market on

their own
• Exposure and absorption of new technologies, both in the products and
the processes
• Southward pressure on the costs
• Driving out of the weaker players from the arena

1 Share of different categories of two-wheelers

The two-wheeler industry is divided into the following categories:
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 1. Motorcycles
2. Scooters
3. Mopeds

The category shares of the three categories, from 1993 to 2000 are given below:

Category distribution in numbers (% of market share)

Year Scooter Motorcycle Moped Total
1993 799094 48% 430973 26% 451348 27% 1681415
1994 984697 47% 606884 29% 502738 24% 2094319
1995 1177153 46% 776465 30% 603695 24% 2557313
1996 1301434 45% 933561 32% 684583 23% 2919578
1997 1276832 42% 1083919 36% 646983 22% 3007734
1998 1291356 40% 1302788 40% 668765 20% 3262909
1999 1281285 35% 1662692 46% 702258 19% 3646235
2000 1013737 26% 2122489 55% 731548 19% 3867774

(Also refer to Exhibit 8)

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1.1 Trends in the industry
The composition of the two wheeler industry had witnessed a great change since
1991. In 1991, the share of scooters was 48% of the total market. Whereas, in the
same year the share of motorcycle was 26% with the remaining share going to the
moped category. Since then, the motorcycle segment has been growing at a faster
pace than the whole segment. For the scooter and the moped categories the rate of
growth has always been less than that of the whole industry.

Moreover, since 1998 the moped category has shown signs of steadying but the
scooter category registered a negative growth rate in the years 1997, 1999 and
2000. In the year 1998 growth rate of scooter market was a dismal 1%.

It is against this backdrop that we shall analyse why Honda’s rational in entering the
Indian scooter market. The manufacturer and the category wise distribution during
the same period, 1993 to 2000 are represented in the following tables:

Production of Scooters by Manufacturers in India

(Calendar Year - 1993 to 2002)
Year BAL HSL KHML LML MSL SIL TVS Total
1993 483342 - 68384 126927 105167 676 - 784496
1994 611520 - 84330 182135 105817 121 - 983923
1995 686672 - 109133 236750 117516 156 19844 1170071
1996 762127 - 114288 262981 148536 181 54605 1342718
1997 620546 - 115826 313680 140859 - 67379 1258290
1998 636708 - 97914 325181 154525 - 94256 1308584
1999 580135 - 109031 294946 140182 - 123590 1247884
2000 439397 - 130642 199796 114675 - 150459 1034969

Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx

1. Why Honda decided to enter on its own

2.1 Background of Honda

The history of Honda Motorcycle Corporation Limited (HMCL) dates back to 1946,
when Soichiro Honda, a mechanical engineer, established the ‘Honda Technical
Research Institute’ in Hamamatsu, Japan. The idea was to develop and later
produce small two-cycle motorbike engines. Honda’s first product, an A-type 50cc
bicycle engine, was produced in 1947.

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In 1948, HMCL was incorporated with a capital of one million yen. Soon, the
company started to design and produce lightweight motorcycles. Honda’s first motor
cycle, D-type two stroke 98cc, was produced in 1949. In the early fifties, the
headquarters of the company was shifted from Hamamatsu to Tokyo and the
company got listed on the Tokyo Stock Exchange.

In 1959, the American Honda Motor Company Inc. was established in Los Angeles.
The American venture started modestly with a staff of six and sales figure barely
touching 200 motorcycles. In 1963, American Honda launched the “You meet the
nicest people on a Honda” advertising campaign, which revolutionized the US
motorcycle industry. A few years later, Honda established motorcycle assembly
plants in Germany and Belgium.

During the 1960s, HMCL expanded its product line by introducing light trucks,
compact cars, out board motors, power generators and several new models of
motorcycles and motor scooters. New production units were started in Thailand, UK,
Malaysia and cumulative motorcycle production reached 10 million units by 1968.
During the 1970s, HMCL entered the Philippines, Indonesia and Brazil.

In 1972, HMCL introduced the higher-priced and more powerful car – Honda Accord.
By the mid 1980s, Honda had emerged as the third largest Japanese automaker
behind Toyota and Nissan.

2.2 History of Honda in India

2.2.1 Kinetic Honda

Kinetic, founded by H.K. Firodia in 1972 was primarily in the Moped Market. Its Luna
became a huge success with the middle class sector in India.

In 1985 Honda and Kinetic tied up to form Kinetic Honda Motors Ltd. The company’s
primary business was to manufacture scooters. The “KH-100”, the first gearless, self
start and auto choke scooter in India was a huge success.

2.2.2 Hero Honda

The other joint venture agreement between HMCL and the Hero Group resulted in
formation of Hero Honda Motors Limited (HHML) in 1984. HMCL held a 23 per cent
equity stake in the joint venture. The Indian motorcycle market was very sluggish at
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that time. Many Indian consumers were of the opinion that scooters were much safer
than motorcycles.

In 1985, HHML launched the Hero Honda CD-100 motorcycles, the first four-stroke
bike in India. Its unique features such as a four-stroke engine, fuel efficiency
(approximately 80 km/l) and low emission made the model a runaway success with
Indian customers.

2.3 Government Policies

Under the regulated regime (1940-1990), foreign companies were not allowed to
operate in India and imports were strictly controlled. It was a sellers market with the
waiting period for getting a Bajaj scooter being as long as 12 years. The motorcycle
segment was no different, with only three manufacturers – Enfield, Ideal Jawa and
Escorts. The motorcycle segment was initially dominated by the Enfield 350cc
motorcycle and Escorts 175cc motorcycle.

The scenario began to change in the mid-1980s when the Indian Government
started permitting foreign companies to enter the market through minority joint
ventures. The then market leaders – Escorts and Enfield – were caught unawares by
the onslaught of 100cc bikes from four Indo-Japanese joint ventures – Hero Honda,
TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. With the availability of fuel efficient
low power bikes, demand swelled, resulting in Hero Honda – then the only producer
of four stroke bikes (100cc category) – gaining the top slot.

2.4 What are Honda’s options

In 1991, after the economic liberalization Honda did not have any obligation to
operate in India through partners. Honda was the proven leader in two wheeler
industry. Through joint ventures Honda’s brand name was firmly established in India.
It did not needed much brand building in India. Besides it had gained sufficient
experience and understanding of the Indian market by now.

At this point, Honda had three options:

• Continue with the existing partners – This no longer being a regulatory

requirement was not the best option at this point. Honda had enough expertise,
experience and brand image to go independently in India.

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• Buy Stakes of the Partner – One option was for Honda to buy the stakes in
their partner. Honda did this with their partner Sriram. Honda tried to buy stakes in
Kinetic Honda but it did not work out.

• Sell Stakes and Start on its own – Honda could sell its stakes in the existing
JVs and enter the market on its own.

2.5 Why did Honda enter the market

In the above scenario, Honda sold its stakes in Kinetic-Honda JV and decided to
enter the market on its own as Honda Motorcycles and Scooters India (HMSI) Pvt
Ltd.

India is the largest 2-wheelers market - at 38.67 lakh units in 2000, and growing
rapidly, it was too lucrative a market to share with anybody. Contractual obligations
in Hero-Honda JV prevented Honda to launch motor-cycles until 2004. However,
Honda was free to enter the scooter market subsequent to termination of Kinetic-
Honda JV.

Scooter demand was sluggish in late 90’s and had dropped to 10 lakh units in 2000.
Entering the 2-wheeler market with scooters, Honda ran the risk of entering a dying
market. However, Honda saw an opportunity to grow the scooter segment.

Firstly, India’s GDP was rising and so was the per capita income. Along with young
male working professionals, number of working women was increasing steadily
(Exhibit 3). Honda saw a huge potential market for its scooters.

Declining as it may be, scooter demand still stood at 10 lakh units in 2000. Market
environment was changing rapidly and so were the pollution norms. Scooters until
2000 predominantly had a 2-stroke engine and geared transmission. 2-stroke engine
was unable to meet the increasingly stringent pollution norms. Geared transmission
was falling out of favour with the customers. In the declining scooter market, two
companies with rising sales were TVS and Kinetic Honda, both riding on the success
of their gearless scooters. Honda had a globally established product line of gearless
4-stroke scooters, which were high on style, comfort, ease of use /maintenance, and
mileage. Honda was thus well poised to enter the scooter market in India.

Situation Analysis as Honda prepared to enter the Indian 2 wheeler on its own is
outlined below.
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Page 9 of 25
1. Target Customers & Offerings
This section analyses needs of different target customers vis-à-vis features
offered by various Honda products. Subsequently, details and positioning of each
product is explained.

1.1 Scooter Market Segmentation and Targeting

Target Needs Features Offerings
Family Comfort – Self Start
– Less Noise & Vibration Activa
– Long Seat
– Large Storage
Low and Easy – Metal panels instead of
Maintenance plastic panels
– Convenient Lift up
Independent Cover
– Tyres with tuff-up technology
Better Mileage – 50 kms per litre
Easy to – Light-weight gearless
Handle – Centrally balanced engine
Youth Style – Futuristic design Dio
– Vibrant body colours with
attractive graffiti art
Better Mileage – 50 kms per litre
Comfort – Self Start
– Less Noise & Vibration
– Long Seat
Low and Easy – Convenient Lift up
Maintenance Independent Cover
– Tyres with tuff-up technology
Easy to – Light-weight gearless
Handle – Centrally balanced engine
Working Elegance – Revolutionary design Aviator
class Safety – Disc brake improves safety

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 Target Needs Features Offerings
Strength – Contemporary telescopic
front suspension
– 12-inch alloy wheels
– Body is combination of
metal and high impact
resistant ABS parts
– Other standard features
Full Size Power – 150cc Eterno
scooters Mileage – 60 kms per litre
efficiency – Water-proof electrical
Rugged components and stainless
steel tuff-up cable
– One direction gear system
– Large storage
Comfort – Other standard features

1.1 Product Positioning and Promotion

Activa

Activa was the first scooter launched by Honda in 2001. It revitalised the scooter
market since its launch in 2001. Activa was designed keeping in view the
preferences of Indian consumers who felt that the conventional Indian scooter was
too big and difficult to handle.

Promotion: The print (Exhibit 7) and TV advertisements reinforced the message that
Activa is the ideal mode of communication for the family. The advertisements also
emphasized the ‘easy to handle’ features, ‘speed and pick up’ and low maintenance
of Activa.

Dio

Dio is India’s first motoscooter. DIO was meant to add passion and excitement with
its stunning looks and performance, by incorporating the latest world trends that
made it a scooter that is much ahead of its time.

Promotion:
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 • A print promotion (Exhibit 7) showed the scooter and a fashionably dressed
young man carrying expensive glasses. The promo had the caption - ‘you and
Dio complete the design’
• Other advertisements emphasized style & comfort
Aviator

Honda Aviator scooter presented an amalgam of new styling, comfort and

performance. The international design and styling of Aviator made it look
sophisticated & luxurious. Its lightweight 12-inch-alloy wheels are a first for the
scooter industry in India.

Eterno

Honda entered the geared scooter segment of India with this 4-stroke 150cc scooter
called Eterno. This model derives its name from the word eternal that represents the
reliable technology prowess of Honda brand. Honda Eterno is a power packed
machine with robust design and trendy looks.

1. Why and how Honda was successful in this segment

4.1 Define success – Criteria, Segment, Period

HMSIL being a private limited company is not mandated to make public its
financial statements. Hence, success of the company is measured in terms of
its annual production, exports and market share.

4.2 Facts
Total scooter production fell from 10,13,737 units in 2001 to 9,07,895 units in
2003. However by 2008, production was back to 11,22,575 units. Scooter
sales are rising steadily since 2006 while motorcycle sales are declining in the
same period (Exhibit 7).

In 2008, HMSI has 59% market share of total domestic scooter market with
6,64,459 units sold. It exported 10,543 units to account for 40% of scooter
exports. In the same period, HMSI sold 3,22,452 motorcycle units to account
for 5% of the domestic market. It exported 36,269 units to account for 10% of
B3 segment (Motorcycles with engine capacity ranging from 125cc to 250 cc)
and 4% of total motorcycle exports.

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4.3 Reasons for success
Main reasons for Honda’s success are :

○ Ability to identify the right opportunities and shape the market

In a declining market, Honda was able to identify opportunities of growth.
○ By providing products that satisfied customer needs
It had a repertoire of products that fit the customer needs. It spotted the
trend, and provided a gearless scooter across various segments.
○ Through leadership in design and technology,
Honda has core strength in 4-stroke small engine technology. Besides it
had superior products with contemporary styling, high comfort, ease of
use, and fuel efficiency. Honda introduced new features like puncture
resistant tyres, and mono-shock in its products.
○ Backed by a globally trusted corporate identity.
Honda is known for its product reliability and innovation. It is market leader
in 2-wheelers in the Americas, and globally. Honda is a respected name in
passenger cars, known for its reliability and value for money.

1. Challenges Ahead
4

4.1 HMSI Brings Life to Scooters

The waiting list in scooter market has made a comeback. Scooters, which almost
disappeared, are making a comeback. The waiting period for new Activa 100cc is
one month which used to be just 10 days 6 months back. During 2006, only 12% of
the 2 wheelers sold in India used to be scooters. The percentage is expected to be
20% this year. Additionally, the scooter market grew in double digits last fiscal,
outperforming the two-wheeler market, which grew 2.6 per cent in the same period.

Naresh Rattan, HMSI’s divisional head (sales and marketing), said many urban
markets in India were seeing a transition from motorcycles to scooters. “An
increasing number of people are opting for scooters over bikes because they are
hassle-free and very convenient, with mileage almost on a par with motorcycles. We
do not think that a growth of 15 per cent year-on-year is difficult to achieve,” he said.

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4.2 HMSI targeting complete motorcycle market
As the non-compete agreement between Hero Honda and HMSI had ended, HMSI is
ready to take on its own long-time partner in India, Hero Honda (in which Honda has
a 26 per cent stake), and in the latter’s key area of dominance, the 100cc motorcycle
market. Hero Honda commands 80 per cent market share in the 100cc segment (60
per cent of its sales), far ahead of its nearest competitor, Bajaj Auto. HMSI is working
on entering the same segment, with a sporty bike, in 2010. It hopes to sell a few lakh
of these a year, to begin with. “The 100cc motorcycle that we plan to launch in India
will be a totally new offering. It’ll not be a basic version and will be the sporty type,”
says Shinji Aoyoma, president & CEO of HMSI. (Exhibits 4,5 and 6)

Aoyoma is also planning to ensure that in the next few years, motorcycles make up
for half of total sales. This would be a big change from its current mix, where
scooters comprise 65 per cent of all sales. And he is clear that he hopes to do so by
entering the 100cc bike segment, which is two-thirds of the 5.7 million per year
motorcycles market. The 100cc motorcycle market is currently divided into two basic
segments, entry and deluxe. The sales, too, are equally divided. The entry-level
motorcycle segment is pegged between Rs.30,000–35,000, while deluxe models are
priced at Rs.37,000–45,000. Industry experts say it is in the upper end of this price
band that Honda is planning to position its 100cc bike.

4.3 Can HMSI differentiate itself from Hero-Honda in

100cc segment?
To highlight the product differentiating features, Anil Dua, senior vice-president,
sales & marketing, Hero Honda says, “When a customer buys a motorcycle from the
Hero Honda stable, he buys a package, which includes the brand, design, the value-
for-money promise, and the largest servicing network in the country. We field six
brands in the 100cc segment, where each brand is uniquely positioned without
cannibalising the other. The same will happen when Honda enters the segment”.

Dua says there is a large untapped market in the 100cc segment as 70 per cent of
the urban population and 90 per cent of the rural one have not bought their first
motorcycle. “There’s room for everyone,” says Dua.

HMSI further reinforces the same argument and notes that the 100cc market has
many segments and it will operate in areas where its partners do not. “If you divide
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the 100cc motorcycle segment into 10, starting from the entry to the deluxe level,
there’s potential in every segment. So, our entry into the top end of the motorcycle
segment does not mean we are taking on our partner, Hero Honda. We don’t sell our
brands based on engine cc classification or pricing. We cater to a particular segment
of customers who value the brand Honda,” says NK Rattan, divisional head, sales &
marketing, HMSI.

“The overall direction at HMSI is to focus more on fun biking and move away from
basic commuting. This is what will make us unique while ensuring that there is no
cannibalisation with Hero Honda’s motorcycles in the process,” said Mr Shinji
Aoyama, President and CEO of HMSI.

The recent launch of the 125cc Stunner is a move in this direction and this is what
the 100cc bike, due to debut this fiscal, is intended to do too. “Its price could be a bit
higher but the styling and performance will be unique to HMSI and customers will
know the difference,” he added.

However, conflicting views emerge from both, Honda companies as well as the
industrial sector. Recently, Pawan Munjal, managing director and CEO, HHML, said
since both operated in the 100-150cc segment, there had been some cannibalisation
of products. Hero Honda sells as many as 14 products in the local market and HMSI
sells six.

In Bangalore, while launching a new version of the CBF Stunner, a 125cc

motorcycle, Honda Motorcycle president and CEO Shinji Aoyama said that HMSI
has turned profitable and aims to maintain 17% sales growth in 2009-10. Further, he
added, “Business is getting better, but our profits are not as big as our competitors
like Hero Honda (Motors Ltd) or Bajaj (Auto Ltd),” which indicates recognition of
Hero-Honda as a competitor as well.

4.4 HMSI’s Current Strategy

HMSI has set a sales growth target of 18 per cent for the financial year 2009-10.
HMSI aims to continue being the leader in the market and looks forward to continue
meeting the customers' requirement with the changing times.

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HMSI also states that volumes and market share are not priority areas. “I do not care
about market share because this does not make customers happy. The focus for us
is on quality products and services,” says Mr. Aoyama. Rising price of raw material
has hit HMSI recently but global slowdown has kept the price in check for some time.

From Honda’s point of view, India remains an attractive market for two-wheelers.
“There are a huge number of youngsters in India with disposable incomes getting
higher. I expect demand to grow consistently, though it could be in single digit
figures, in the coming years,” he said.

“Indian 2wheeler market is progressing from mass market to a diversified market

due to changes in lifestyle of consumers. HMSI is committed to provide unique
experience to Indian customers through its innovative products and quality in every
aspect of business. To maintain this quality and advanced value creation, HMSI is
mainly focusing on- Fun, Safety & Environment. Honda will spread Fun Biking in a
responsible manner with emphasis on safe riding and good customer services. In the
Environment, many significant efforts have been made like eliminating use of
asbestos, lead free paint & hazardous material from our manufacturing to protect the
environment. In India we will continue to bring exciting products and be a full line
company to serve every kind of customer” adds Mr. Shinji Aoyama.
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1. Appendix

6.1 Exhibit 1

Production of Motorcycles by Manufacturers in India

(Calendar Year - 1993 to 2002)
Year BAL YML HHML KEL LML IJPL REML TVS Total
1993 128305 97382 139869 - - 1563 13201 44394 424714
1994 175380 151852 174242 - - 4673 14629 79315 600091
1995 241725 173865 218422 - - 6932 21490 114564 776998
1996 287441 228271 247971 - - 2133 22707 157388 945911
1997 306889 174662 375720 - - - 23718 201322 1082311
1998 349578 177340 498374 - - - 17700 252308 1295300
1999 408489 228527 682353 - - - 23289 314494 1657152
2000 567832 213290 985043 - - - 22733 360814 2164950

Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx

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 6.2 Exhibit 2

Production of Mopeds by Manufacturers in India

(Calendar year 1993 to 2000)
Royal
Year BAL KEL MAL Enfield TVS YMI Total
1993 72842 127145 104561 4091 149157 0 457796
1994 71683 121865 119505 0 202334 1549 516936
1995 71075 158432 118091 0 257487 19035 624120
1996 70206 156944 137240 0 294919 18765 678074
1997 58724 163191 138381 0 294589 12357 667242
1998 38211 160903 128195 0 334540 9850 671699
1999 69475 162615 111119 0 381301 0 724510
2000 58381 159424 107524 0 369645 0 694974

Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx

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6.3 Exhibit 3

Women employees in organized sector

Calender Year 1992 - 2006
Year Women (’000) Total (’000) % Women
1992 3889.8 27055.7 14.4%
1993 4026.3 27176.6 14.8%
1994 4153.9 27374.8 15.2%
1995 4227.9 27524.7 15.4%
1996 4426.4 27940.9 15.8%
1997 4637 28244.5 16.4%
1998 4773.6 28165.8 16.9%
1999 4829.2 28113.1 17.2%
2000 4922.8 27959.7 17.6%
2001 4949.3 27789.2 17.8%
2002 4935.4 27205.5 18.1%
2003 4969 27000 18.4%
2004 4934 26443 18.7%
2005 5016 26458 19.0%
2006 5121 26993 19.0%

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6.4 Exhibit 4

6.5 Exhibit 5

6.6 Exhibit 6

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 6.7 Exhibit 7
Honda Activa

Features:
• 110cc smooth engine
• Combi Brake for shorter
braking distance with stability
• Anti-theft Key shutter for safety
of vehicle
Price : Rs. 35,628 - Rs. 39,052
• 18 litre storage capacity
• Puncture Resistant Tuff-up
tube in the rear tyre
• Under standard conditions,
mileage of 50 km per litre

Honda Dio

Features:
• 102 cc engine • Light weight body
• Sleek aerodynamic design • Effective shock absorption

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 • Low positioned seat with high • Stays balanced even during
ground clearance emergency braking
Price : Rs. 40,000 – Rs. 42,000

Honda Aviator

Features :

• Front facade styling with large • Adequate 20 Litre of under

clear lens multi-reflector lamps
• Lightweight 12 inches alloy
wheel
• Puncture resistant tuff-up tube
Price: Rs. 45,175 - 48,935
seat space
• Telescopic front suspension
for better on road control
• High impact resistant body

Eterno

Features :

• Aerodynamic Body with • Dual Spring Suspension

masculine looking body style technology for better comfort
• Ground Clearance of 161 mm • Spacious Flat Board

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 • Grab rails for convenience and • CLIC - Lift Up Independent
safety Cover for easy maintenance
Price: Rs 36,000-38,000

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 6.1 Exhibit 8

Y on Y growth in 2-wheeler categories

Year Scooter Motorcycle Moped Total
1993 - - - -
1994 23% 41% 11% 25%
1995 20% 28% 20% 22%
1996 11% 20% 13% 14%
1997 -2% 16% -5% 3%
1998 1% 20% 3% 8%
1999 -1% 28% 5% 12%
2000 -21% 28% 4% 6%

Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx

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 6.2 References
1. http://www.honda2wheelersindia.com
2. http://world.honda.com
3. http://indiaeconomicstat.com
4. http://indiastat.com
5. http://www.livemint.com
6. http://auto.indiamart.com
7. http://www.thehindubusinessline.com
8. http://ia.rediff.com
9. http://www.bikeindia.in
10.http://www.team-bhp.com
11.http://www.financialexpress.com
12.http://www.indiaprwire.com
13.http://www.mydigitalfc.com
14.http://www.business-standard.com
15.http://findarticles.com
16.http://www.ibef.org

And

17.Dealer in Kolkata – TodiHonda – Discussion and visit

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