2-Wh Business (Domestic)

S. Sridhar
CEO – 2Wh

1st August 2009

 Agenda

• Industry Trend

• Industry Insights

• Segment Trends

• BAL Performance

August 3, 2009 BAJAJ AUTO - 2 Wh 2

Industry Trend
 Industry Trend
Category Trends - Volumes - Domestic
7,000,000
6586443 6640000

6,000,000 5826793 6224000

5826678
5749867

5,000,000
4725996

4,000,000
3898751

3396409

3,000,000

2537061

2,000,000
1733147
1161356
1396895 1032809
1,000,000 747,523 791676 878829
659,266
409,193 412,728 530,009
378,690

0
99-00 00-01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10

Mopeds Scooters (G) Scooters(UG) Motorcycles Step Thrus Series6

August 3, 2009 BAJAJ AUTO - 2 Wh 4

 Motorcycle Industry – Month wise Forecast
Domestic Motorcycle Industry - Monthwise
750000

600000

450000

300000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2006-07 Dom 2008-09 Dom Estimated 2010

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Industry Insights
 Industry Insights

• Vehicle Penetration

• Population Strata

• Age

• Occupation

• Household Income

• Repeat Vs First Time

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 All India Penetration
Overall Penetration

13
Motorcycle
16.1

23.7
2-Wh
26.5

0 5 10 15 20 25 30

2008 2006

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 Penetration – Motorcycles – (Population Strata)

Motorcycle - Penetration

8.2
Rural areas
10.1

22.0
Towns
28.4

27.7
1-10 lakh cities 33.3

30.9
Other 1 million+ cities
36.8

18.8
Top 7 metro cities
22.9

13.0
All India
16.1

0.0 10.0 20.0 30.0 40.0

2008 2006

August 3, 2009 BAJAJ AUTO - 2 Wh 9

 % Contribution By Population Strata
40

1 million+
cities Rural areas
35

30

25
1-10 lakh
cities

20

Towns
15

10

5
1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
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 BAL: Metro Vs. Rural M/C

Metro Vs. Rural MS% 2008 MS%

Metro Cities 31%

Rural 22%

Difference 9%

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Discussion Rural Vs. Urban :
BAL Strategy
 Penetration by Age
Penetration - By Age - M/C
15.6
50+ years 17.9
15.6
46 - 50 years 20.5
14.8
41 - 45 years 18.5
12.6
36 - 40 years 15.8
12.0
31 - 35 years 13.7
9.2
26 - 30 years 11.6
5.9
Upto 25 years 7.5

13.0
All India 16.1

0.0 10.0 20.0 30.0

2008 2006

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 Contribution By age

45
Over 20 up to 30 years

35

Over 30 up to 40 years

25

Over 40 years

15

Up to 20 years

5
1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
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 BAL: Below 20 Vs. Above 40 – M/C

2008 MS%

Below 20 35%

Above 40 24%

Difference 11%

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 Penetration by Occupation
Penetration - By Occupation - M/C

1.9
Others 3.0
4.5
Not Mentioned 4.0
24.3
Retired 28.7
10.5
Farmer 13.9
6.9
Skilled Worker 9.2
28.4
Employed Govt/Company/Firm 36.2
29.8
Self Employed/ Business/Trade 36.0

13.0
All India 16.1

0.0 10.0 20.0 30.0 40.0

2008 2006

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 Contribution by Occupation
55

50
Govt./public/private
company
employees
45
Self employed

40

35

30

25

20

15 Students

10
Farmers

5
1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
August 3, 2009 BAJAJ AUTO - 2 Wh 17
 Penetration By Income
Penetration - By Household Income - M/C

Over Rs.50000 60.0

Rs.25001 to Rs.50000 59.8

Rs.16001 to Rs.25000 53.4

Rs.8001 to Rs.16000 42.9

Rs.5001 to Rs.8000 21.1

Upto Rs.5000 2.3

All India 16.1

0 10 20 30 40 50 60 70

2008

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 Repeat Vs. New Buyer
90

80

70

First Time buyers

60

50

40 Replacement
Buyers

30

20

10

0
1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008
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Segment Analysis
 Motorcycle Segments – Major Brands

• Entry (Commuter Standard)

• Mid
– Commuter Deluxe
– Light Sports

• Premium (Sports)

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 Segment Volumes
Segment Volumes
400000

373933

300000 305284
286517
271616

234721

207173 206817
200000 200005

172275
148655

118743
100000 98030
84702

58148 62800 60710

46041
35166

0
04-05 05-06 06-07 07-08 08-09 09-10

Entry MID Premium

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 Segment Share
Segment Share
80%

70%
67%
63%
60%
56%
52%
50% 49% 48%

42% 42%
40%
38%

30% 31%

24%
20%
18%
15%
13% 13%
10% 9% 11%
9%

0%
04-05 05-06 06-07 07-08 08-09 09-10

Entry MID Premium

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 Entry Segment
CD Deluxe
Platina

TVS Star

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 Entry Volume and MS%

BAL Entry
90000 50%
81245
78135
75000 74693
44%

60000 57065

45000 39% 38% 45169

38%
40%
38%

30000

15000

0 30%
04-05 05-06 06-07 07-08 08-09

Volume BAL MS

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 MID Segment
XCD Passion
135

Discover
DTS-Si Splendor

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 Discover DTS-Si

• Long distance Bike (100

Km/day)
– Durability
– Comfort
– Mileage
• Discover, The Brand
• Rs. 40000 Ex-showroom

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 MID Volume and MS%

BAL Mid MS%

75000 30%

60000
56131

48148 20%
45000 15% 20%
18%
35969
32375
30000
10%
6% 11%
15000 12868

0 0%
04-05 05-06 06-07 07-08 08-09

Volume BAL MS

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 Premium Segment
Pulsar FZ - S

Apache
Hunk

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 Premium Volume and MS%

BAL Premium MS%

90000 72%
80%
71%

75000 65%
54% 60%
60000 47%

45000 40%
35865
31465 32373
30000 28825
23181 20%
15000

0 0%
04-05 05-06 06-07 07-08 08-09
Volume BAL MS

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 Pulsar Performance Analysis

BRAND FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09

PULSAR 150 20736 28634 30528 21965 19602

PULSAR 180 745 1324 4064 6557 6049

PULSAR 220 0 0 5 791 499

PULSAR 200 0 0 225 2700 1912

TOTAL PULSARS 21480 29958 34822 32014 28061

Share of 180 and above

Volume of 180 cc + 745 1324 4294 10049 8459

Share 3.47% 4.42% 12.33% 31.39% 30.15%

Premium Industry 35166 43663 55568 59500 61541

Pulsar MS% 61% 69% 63% 54% 46%

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 Overall MS% Performance

BAL MS%
40%

30% 30% 32% 29%

30%
25%
22%

20%

10%

0%
04-05 05-06 06-07 07-08 08-09 09-10

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 Performance Summary

Scenario - 1 08-09 09-10 Growth

BAL Volume 106369 140633 32.2%

Industry 485568 556665 14.6%

MS% 21.9% 25.3%

Scenario - 2 08-09 09-10 Growth

BAL Volume 106369 130000 22.2%

Industry 485568 519558 7.0%

MS% 21.9% 25.0%

August 3, 2009 BAJAJ AUTO - 2 Wh 33

Thank You