Honda 2 Wheelers Launch in India

IIM Calcutta, PGPEX- III

Abhishek Kapoor (2/3)Anshuman Dikshit (6/3)

Ashish Sinha (8/3)Rajul Srivastava (31/3)

Suket Gandhi (46/3)

1.1.1

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Table of Contents1. 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

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1. Indian Market: A perspectiveAutomobile 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

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1.1 Share of different categories of two-wheelers

The two-wheeler industry is divided into the following categories:

1. Motorcycles

2. Scooters

3. Mopeds

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

YearCategory distribution in numbers (% of market share)

TotalScooter Motorcycle Moped1993 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

1993 1994 1995 1996 1997 1998 1999 20000

500000

1000000

1500000

2000000

2500000

Unit based Market Share of Categories (1993-2000)

ScooterMotorcycleMoped

Nu

mb

ers

of

2-w

he

ele

rs s

old

(Also refer to Exhibit 8)

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1.2 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 BALHS

L KHML LML MSL SIL TVS Total1993 483342 - 68384 126927 105167 676 - 7844961994 611520 - 84330 182135 105817 121 - 9839231995 686672 - 109133 236750 117516 156 19844 11700711996 762127 - 114288 262981 148536 181 54605 13427181997 620546 - 115826 313680 140859 - 67379 12582901998 636708 - 97914 325181 154525 - 94256 13085841999 580135 - 109031 294946 140182 - 123590 12478842000 439397 - 130642 199796 114675 - 150459 1034969

1993 1994 1995 1996 1997 1998 1999 20000

100000200000300000400000500000600000700000800000900000

Production of scooters by manu-facturers in India (1993-2000)

BALKHMLLMLMSLSILTVS

No.

of v

ehicl

es

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

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

2. 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.

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 HondaKinetic, 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.

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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 HondaThe 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

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.

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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.

• 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.

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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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3. 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.

3.1 Scooter Market Segmentation and Targeting

Target Needs Features Offerings

Family Comfort - Self Start

- Less Noise & Vibration

- Long Seat

- Large Storage

Activa

Low and Easy

Maintenance

- Metal panels instead of

plastic panels

- Convenient Lift up

Independent Cover

- Tyres with tuff-up technology

Better Mileage - 50 kms per litre

Easy to

Handle

- Light-weight gearless

- Centrally balanced engine

Youth Style - Futuristic design

- Vibrant body colours with

attractive graffiti art

Dio

Better Mileage - 50 kms per litre

Comfort - Self Start

- Less Noise & Vibration

- Long Seat

Low and Easy

Maintenance

- Convenient Lift up

Independent Cover

- Tyres with tuff-up technology

Easy to

Handle

- Light-weight gearless

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Target Needs Features Offerings

- Centrally balanced engine

Working

class

Elegance

Safety

Strength

- Revolutionary design

- Disc brake improves safety

- Contemporary telescopic

front suspension

- 12-inch alloy wheels

- Body is combination of

metal and high impact

resistant ABS parts

- Other standard features

Aviator

Full Size

scooters

Power

Mileage

efficiency

Rugged

Comfort

- 150cc

- 60 kms per litre

- Water-proof electrical

components and stainless

steel tuff-up cable

- One direction gear system

- Large storage

- Other standard features

Eterno

3.2 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

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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:

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.

4. 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).

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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.

4.3 Reasons for success

Main reasons for Honda’s success are :

o Ability to identify the right opportunities and shape the market

In a declining market, Honda was able to identify opportunities of growth.

o 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.

o 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.

o 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.

5. Challenges Ahead

4.4 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.

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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.

4.5 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.

4.6 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

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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

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

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like Hero Honda (Motors Ltd) or Bajaj (Auto Ltd),” which indicates recognition of

Hero-Honda as a competitor as well.

4.7 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.

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

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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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6. 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

1993 1994 1995 1996 1997 1998 1999 20000

200000

400000

600000

800000

1000000

1200000

Production of Motorcycles in India by man-ufacturers (1993-2000)

BALYMLHHMLIJPLREMLTVS

No.

of v

ehicl

es


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6.2 Exhibit 2

Production of Mopeds by Manufacturers in India(Calendar year 1993 to 2000)

Year BAL KEL MALRoyal

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

1993 1994 1995 1996 1997 1998 1999 20000

50000

100000

150000

200000

250000

300000

350000

400000

450000

Production of Mopeds in India by manu-facturers (1993-2000)

BALKEL MALRoyal EnfieldTVSYMIN

o. o

f veh

icles


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6.3 Exhibit 3

Women employees in organized sectorCalender 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%

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20060

5000

10000

15000

20000

25000

30000

WomenTotal

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6.4 Exhibit 4

2003 2004 2005 2006 2007 2008

Scooter 907895 935722 887400 918938 1050811 1122575

Motorcycle 3981430 4754577 5580053 6492697 5949441 5894770

Moped 305160 317486 328218 345400 404294 395336

500000

1500000

2500000

3500000

4500000

5500000

6500000

Unit distrubution of 2-W Market 2003-08 (Including Mopeds Also)

No.

of v

ehicl

es

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Bajaj

135804

108614

114436

138810

131094

121196

114419

193910

163047

103661

82919 62043

HeroHonda

290005

255312

308052

282412

306809

287868

272664

306459

377133

345147

281659

209727

HMSI

74460 72922 77164 67616 82924 75528 81979 88601 90785 93546 94222 87164

TVS

78327 81109 101375

97393 96262 92634 101318

121171

117143

98584 75990 71152

25000

125000

225000

325000

Monthly 2Wheelers Unit Sales in 2008 - Top 4

Axis

Tit

le

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6.5 Exhibit 5

Bajaj HeroHonda HMSI Suzuki TVS Yamaha

Scooter - 75 to 125 cc 11202 128098 620993 73576 20889 0

Scooter - 125 to 250cc 0 0 43466 NaN NaN NaN

Motorcycle - 75 to 125 cc

571488 3189985 NaN NaN 342234 57375

Motorcycle - 125 to 250cc

887263 205164 322452 50281 145248 81385

250000750000

125000017500002250000275000032500003750000

Units Sold in 2008 by Top 6 players for selected products

Axis

Title

6.6 Exhibit 6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Bajaj

78665

66044

57947

69484

76280

78954

69335

97640

98283

79293

66971

48367

Hero Honda

21360

18336

18676

31473

14459

13329

14141

16903

14383

13176

17203

11725

HMSI

23024

20237

24188

20220

27066

22153

25395

31494

31925

33558

32214

30978

1000030000500007000090000

110000

Top 3 Players in 125-250 cc Motorcycle Segment at 2008 End

Axis Title

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6.7 Exhibit 7

Honda Activa

Features:

110cc smooth engine 18 litre storage capacity

Combi Brake for shorter

braking distance with stability

Puncture Resistant Tuff-up

tube in the rear tyre

Anti-theft Key shutter for safety

of vehicle

Under standard conditions,

mileage of 50 km per litre

Price : Rs. 35,628 - Rs. 39,052

Honda Dio

.

Features:

102 cc engine Light weight body

Sleek aerodynamic design Effective shock absorption

Low positioned seat with high

ground clearance

Stays balanced even during

emergency braking

Price : Rs. 40,000 – Rs. 42,000

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Honda Aviator

Features :

Front facade styling with large

clear lens multi-reflector lamps

Adequate 20 Litre of under

seat space

Lightweight 12 inches alloy

wheel

Telescopic front suspension

for better on road control

Puncture resistant tuff-up tube High impact resistant body

Price: Rs. 45,175 - 48,935

Eterno

Features :

Aerodynamic Body with masculine looking body style

Dual Spring Suspension

technology for better comfort

Ground Clearance of 161 mm Spacious Flat Board

Grab rails for convenience and

safety

CLIC - Lift Up Independent

Cover for easy maintenance

Price: Rs 36,000-38,000

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6.8 Exhibit 8

1993 1994 1995 1996 1997 1998 1999 20000%

10%

20%

30%

40%

50%

60%

Unit based Market Share of Categories 1993 - 2000 (in %)

ScooterMotorcycleMoped

% o

f mar

ket

YearY on Y growth in 2-wheeler categories

Scooter Motorcycle Moped Total1993 - - - -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%

1993 1994 1995 1996 1997 1998 1999 2000

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Y on Y growth rate of Indian 2-w industry

ScooterMotorcycleMopedTotal

Grow

th ra

te


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6.9 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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http://www.ibef.org/

http://findarticles.com/

http://www.business-standard.com/

http://www.mydigitalfc.com/

http://www.indiaprwire.com/

http://www.financialexpress.com/

http://www.team-bhp.com/

http://www.bikeindia.in/

http://ia.rediff.com/

http://www.thehindubusinessline.com/

http://auto.indiamart.com/

http://www.livemint.com/

http://indiastat.com/

http://indiaeconomicstat.com/

http://world.honda.com/

http://www.honda2wheelersindia.com/

Honda 2 Wheelers Launch in India

Documents

Transcript of Honda 2 Wheelers Launch in India