2. 
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India is the 2nd largest manufacturer of 2-wheelers
in the world
Industry started up in early 50s and The Automobile
Products of India(API) started manufacturing in the
country
2-wheeler market was opened for foreign countries
in mid 1980s
Dominant product are 2-wheelers(75%).others are
passenger cars(16%)and commercial vehicles(9%)
Bikes are the major segment of India, others are
scooters and mopeds

3. 
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1983 – Joint Collaboration Agreement with Honda
Motor Co. Ltd. Japan and Hero was signed
1985 - First motorcycle "CD 100" rolled out.
1987 - 100,000th motorcycle produced.
1994 - New motorcycle model - "Splendor"
introduced. 1,000,000th motorcycle produced.
1999 - New motorcycle model 150 cc segment- "CBZ"
introduced.
2003 – Hero Honda becomes the first Indian
Company to cross the cumulative 7 million sales mark
2011 - New licensing arrangement signed between
Hero and Honda (Hero Honda is renamed as Hero)

4. 
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Hero MotoCorp Ltd-Hunk, Xtreme, Impulse,
Karizma R and KarizmaZMR
Bajaj Auto-Avenger 220;Pulsar200NS,220
F,180,150 and international collaboration
with KTM -200 DUKE
TVS Motor-Apache RTR 180 ABS,RTR180 and
RTR 160
Yamaha-R15 version 2.0,Fazer,FZ-S,SZ-S,SZ-RR
Honda-CBR 250R,CBR150R,CB Unicorn,CB
Trigger

5. Brand
Sales (150-250cc)
April 2012
Market share
Bajaj Auto
64505
46.8%
Hero MotoCorp
25294
18.3%
Yamaha
19110
13.9%
Honda
17068
12.4%
TVS
10981
8.0%
Others
880
0.6%

6. Rate of growth shown Inc. of 1% in
FY2013 with record sales of 10.7 million
bikes in 2012-13
 It is expected to reach a size of 21-22
million units(domestic and exports) by
2016-17
 By 2015-16 industry is expected to reach
maturity stage (ICRA)
 Motorcycle growth rates reduced and
were overtaken by scooters


8. 
Threats of substitutes
› In 150-250cc segment there is less risk of
substitutes.
› However in lower segment(90-150
cc)penetration could be seen towards non gear
scooter

Bargaining Power of suppliers
› Bargaining power of suppliers is less as quantity
supplied is huge and prices of raw materials has
come down. Basic raw material required are
steel and rubber

9. 
Bargaining power of buyers
› Customers get a healthy choice .
› Depends on taste and brand loyalty of the customer.
› Supply-demand mismatch in the industry(supply is
greater)
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Rivalry among existing firms
› Having 6 major companies in market ,competition is
high
› Compete each other in terms of better model,
specifications and technology
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Threat of new entrants
› Entry barriers are very high
› Well established players are already existing

10. 
Strength
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Easy availability of spare parts, cost of parts is low.
Has a high Brand loyalty amongst the customers
Innovation in fuel efficient bikes in 150cc segments
Mergers from international brands
Exports of bikes is increasing
Weakness
› Hero is not getting the technical expertise from
Honda after demerger
› Similar type of models with same specification
› Capacity utilization is low
› Skilled labor

11. 
Opportunity
› Increase in disposal income
› Credit financing by banks is increasing
› Increase in sale of sports bike segment
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Threats
› Increase in fuel prices
› Inflation
› Economic slowdown

12. The growth rate of entry price segment is
expected to be lower (below 40,000)
 Competition is likely to intensify in
executive segment (price 40,000-50,000)
 Premium class segment is expected to
grow at the fastest rate (above 60,000)
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13. Competition is high and increasing. Life
cycle stage is growth.
 Trade export in this sector is medium and
imports is low.
 Entry of international brands in the sector
eg KTM and Kawasaki tends to shift the
customer’s taste and preference.
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