HERO HONDA & 2 WHEELER

INDUSTRY

PRESENTED BY :

JASPREET DUGGAL (PG-10-70)

KEVAL KOTHARI (PG-10-85)
 1 
VIHANG SALUNKE (PG-10-104)
SUMIT VIRA (PG-10-119)
 2 WHEELER INDUSTRY IN INDIA

 Two wheeler sector is the most important segment of the

Indian auto sector accounting for 75% of the total sales
volume in the auto industry.
 The two wheeler industry is dominated by the motorcycle
segment which contributed 80% to the sales volume in
FY2009.
 Scooters increased their share in the two-wheeler pie from
14% to 16% in FY2009.
 2 wheeler industry , which contributes 6.5% to the GDP.

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 CORPORATE PROFILE OF
HERO HONDA
 Hero Honda Motors Ltd. is the world's largest manufacturer of
two – wheelers, based in India. 
 The company is a joint venture between India's Hero Group
and Honda Motor Company, Japan that began in 1984.
 Today, every second motorcycle sold in the country is a Hero
Honda bike.
 Two manufacturing facilities at Gurgaon and Dharuhera
(Haryana), and a new plant at Haridwar (Uttaranchal)

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 Product line
 India’s two wheeler sector can be divided into three main
categories:
 A) Motor cycle segment
 Splendor, Passion, CBZ, Karizma, etc.

 B) Scooter segment

 C) Mopeds
 Pleasure

 Hero Honda is a leader in domestic motorcycle segment with

77.0% market share in the executive segment.
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 FINANCIALS OF THE COMPANY

 2009-10 Performance
 Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per
cent
 Total net operating income of Rs. 15860.51 Crores, growth of 
28.1 per cent
 Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per
cent
 Final dividend of 1500% or Rs. 30 per share on face value of
each share of Rs. 2
 EBIDTA margin for the year 17.4  per cent
 EPS of Rs. 111.77, growth of 74.1  per cent

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 ANALYSIS OF HERO-HONDA
 Karizma- Concentration only in urban area, is competing with
Bajaj Pulsar that has 60% Market Share in this segment.
 CBZ – Taps  more in urban as compared to rural, also is
competing with Bajaj Pulsar that has 60% Market Share in this
segment.
 High Market growth in the premium segment due to many
new entrants entering.
 Splendor- Both urban and rural, one of the highest selling bike
in both the markets, HH are leaders in the Market share in the
mid segment.
 CD- Dawn- high concentration in rural, max selling bike in
Rural market, sells – avg in Urban area
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THANK YOU…