Preface

“Learning Categories you, and practicing on that learning specialize you”
The importance of any academic courses would gain advantage and the acceptance of the
true form, only through practical experiences. Hence it is quite necessary to put theories
as into task.
Someone has greatly said that practical knowledge is far better than classroom teaching.
During this proect ! fully reali"ed this and come to know about the present real world
.The present report entitled as “A Study on Brand Image of Two Wheeler Company in
India’’ a fruitful outcome of my research done during the course of my fourth semester
of MBA programmed. This research report forms an integral part of my #$% degree
course at Technical Education e!earch In!titute" P#$# College" $ha%ipur.
%utomobile is one of the largest industries in global market. $eing the leader in product
and process technologies in the manufacturing sector, it has been recogni"ed as one of the
drivers of economic growth. During the last decade, well directed efforts have been made
to provide a new look to the automobile policy for reali"ing the sector&s full potential for
the economy. %ggressive marketing by the auto finance companies have also played a
significant role in boosting automobile demand, especially from the population in the
middle income group. The %ims and 'bectives of this research are to have an in(depth
knowledge of the $rand !mage of Two )heeler *ompany in !ndia. ! have tried my level
best to make it simple and understandable. The findings were in favor of $rand !mage of
Two )heeler being vital for the !ndian organi"ation and they are not diminishing in
today+s world, but they are at the booming stage, and every organi"ation would want to
use $rand !mage of Two )heeler. The research deals with basics of Two )heeler and its
$rand !mage affect in organi"ation. The first chapter is dedicated to the introduction of
-
the $rand !mage, history of Two )heeler and its climate, companies of Two )heeler. !t
also deals the factors affecting $rand !mage of Two )heeler. This chapter gives detail
about the $rand !mage of Two )heeler with reference to !ndian industries. !t also deals
the challenges and problems come at the time of $rand !mage of Two )heeler. The
second chapter deals with the 'bective of the study and !mportance of the study. also
included the Scope of the study. The third chapter is a summary of the various research
methodologies used for the development of the proect. The methodology used for the
implementation of the assigned proect is based on secondary data. The whole study is
based on secondary data. The fourth chapter deals the data analysis and interpretation
*hapter five deals with the findings and recommendations related to the research report.
The conclusion. /imitation of the proect is provided in chapter six and this chapter also
deals with the $ibliography . 0eference of this proect.
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1
AC'()W*E+$EME(T
$efore ! thank anybody for the compilation of this work ! would like to thank %lmighty
for providing guidance and me all the necessary help. !t is grace only that ! have
completed this work.
%n understanding of the study like this is never the outcome of the efforts of an
individual, rather it bears the imprint of a number of individuals who directly helped me
in completing the present study.
2irst . foremost, ! would like to express my regard to Mr# ahul Anand Singh ,-#)#+#
of M#B#A#. and +r# (eetu Singh" the training / placement0in0charge and the
honorable 0eaders of #.$.%. Department for this constant encouragement and support. !
would also like to express immense gratitude towards supervisor +r# (eetu Singh, for
providing the knowledge, guidance and cooperation in research report.
! am also sincerely thankful to all my friends for giving me opportunity and resource to
work on the research report and giving me support whenever necessary.
&&&&&&&&&&&&&

3
I(T)+1CTI)( )2 BA(+ IMA$E
$rand attributes consist of 4bits+ of information that are linked to a brand name in
consumer memory and that, when combined with the brand name, make up a brand+s
image 56eller, -7738.The brand attributes themselves come from a variety of sources,
including consumer experiences, marketing communications, and9or word of mouth
56rishnan, -77:8. The linkages between the brand name, its attributes, and other brands in
the marketplace mean that associated attributes can be unique to the consumer, unique to
the brand, or shared with other brands 5#eyers(/evy, -7;78. Two(wheeler is an important
product item in modern society both urban and rural areas. *onsumers mainly purchase
the product for their convenience. <radually it is becoming more popular in the
consumers& world and its demand is world( wide 5=uru""aman, -77:8. *onsumers
purchase decisions for two wheelers are always influenced by a number of factors, which
lead them to select a particular brand in preference to others. !n this study ten attributes
are considered as important cues, which lead consumer to select a particular brand of two(
wheeler. This study examines products from a high involvement consumer product
category. 0esearchers include brand, which is highly similar on measurable attributes
such as cylinder capacity 5**8. The reasoning is that the nature of the competitive
marketplace offers many brands within distinct subcategories and this may provide
further understanding of brand choice relating to present market conditions.
>
Brand
The brand is conceptuali"ed as a node in memory, which allows other information about
the brand to be ?anchored@ to it 5%aker, -77-8. The conceptuali"ation of a network of
brand associations in memory with brand as a central core has been put forward by many
others 56iller, -773, Holden, -773, Holden . /ut", -7718. % brand that is not considered
cannot be chosen 5$aker et al., -7;:8. 2urther, the probability of the brand being chosen
is a condition of the number of other brands in the consideration set. *onsumers may
employ heuristics 5decision rule8 to buy only familiar, well(established brands 50oselius,
-7A-, Bacoby et al., -7AA, 6eller, -7738. 2or a consumer to buy a brand positive attitude
must first be made but brand attitude cannot be formed and intention to buy cannot occur
unless brand awareness occurs 50ossister . Cerey, -77-8.
Brand image
% brand image is the totality of consumer perceptions about the brand, or how they see it,
which may not coincide with the brand identity. $rand image is defined as the reasoned
or emotional perception consumers attach to specific brands 5Dobni . Dinkhan, -77E8. %
brand image consists of functional and symbolic brand beliefs. % measurement technique
using semantic differential items generated for the relevant product category has been
suggested for measuring brand image 5Dolich, -7:7, 2ry . *laxton, -7A-8. $rand image
associations are largely product category specific and measures should be customi"ed for
the unique characteristics of specific brand categories 5Cark . Srinivasan, -77>, $earden
. Ft"el, -7;18. $rand benefits are the foundation of brand image. *hiraneeb 5-77A8
claimed that a brand name itself is the foundation of brand image. !n a broad sense
purchase decisions are based almost solely upon the attitude existing at the time of
G
purchase. The factors which may prevent consumers from converting their attitudes into
intentions and buying behavior are very numerous and frequent 5)allendorf, -7A78.
$rand attitudeH %ttitudes are not overt behaviors but rather are covert or unobservable
internal reactions 56im, 1EE18. !t is one of the pervasive notions in all of the #arketing
5<illbert, -77G8. 2ormal attitudes are learned predispositions to respond to some obect in
a consistent way. The response may be favorable or unfavorable 5)allendorf, -7A78.
*onsumers learn these attitudes over time by being exposed to the obect directly or
through receiving information about the obect. 'ur learned attitudes serve as general
guides to our overt behavior with respect to the attitude obect, giving rise to a
consistently favorable or unfavorable pattern of response.
BA(+ PE2EE(CE3 0
$rand preference means liking at one brand rather than another. !n other words, $rand
preference is ?The prior right, favored position, better liking given to a particular brand of
product. This is where customers I given a choice between two brands I will choose
yours over someone else+s. !t often is the result of a sense of differentiation and that your
product or service uniquely serves their needs. %s well, you can be sure that any value(
added product
+efinition
#easure of brand loyalty in which a consumer will choose a particular brand in presence
of competing brands, but will accept substitutes if that brand is not available. Selective
demand for a company&s brand rather than a product, the degree to which consumers
prefer one brand over another. !n an attempt to build brand preference advertising, the
advertising must persuade a target audience to consider the advantages of a brand, often
by building its reputation as a long(established and trusted name in the industry. !f the
:
advertising is successful, the target customer will choose the brand over other brands in
any category.
Brand loyalty
This is where customers will choose your brand time and time again, even if they
experience the occasional poor service or if another product comes along that seems to be
better suited to their needs. To achieve brand loyalty, you need to provide a product that
is highly differentiated, with plenty of value added, but also you need to offer them
remarkable service at a level they will not get anywhere else. Croviding this level of
service will ensure that they will never switch. !t+s or services you include help them to
choose yours over your competitors.
Effect! of Brand Preference3 0
)e develop a demand model for technology products that captures the effect of changes
in the portfolio of models offered by a brand as well as the influence of the dynamics in
its intrinsic preference on that brand+s performance. !n order to account for the potential
correlation in the preferences of models offered by a particular brand, we use a nested
logic model with the brand 5e.g., Hero(Honda8 at the upper level and its various models
5e.g. Hero(Honda, TJS, $aa, etc.8 at the lower level of the nest. 0elative model
preferences are captured via their attributes and prices. )e allow for heterogeneity across
consumers in their preferences for these attributes and in their price sensitivities in
addition to heterogeneity in consumers+ intrinsic brand preferences. Together with the
nested logic assumption, this allows for a flexible substitution pattern across models at the
A
aggregate level. The attractiveness of a brand+s product line changeover time with entry
and exit of new models and with changes in attribute and price levels. To allow for time(
varying intrinsic brand preferences, we use a state(space model based on the 6alman
filter, which captures the influence of marketing actions such as brand(level advertising
on the dynamics of intrinsic brand preferences. Hence, the proposed model accounts for
the effects of brand preferences, model attributes and marketing mix variables on
consumer choice. 2irst, we carry out a simulation study to ensure that our estimation
procedure is able to recover the true parameters generating the data. Then, we estimate
our model parameters on data for the !ndian Two )heelers #arket. 'verall, we find that
the effect of dynamics in the intrinsic brand preference is greater than the corresponding
effect of the dynamics in the brand+s product line attractiveness. %ssuming plausible
profit margins, we evaluate the effect of increasing the advertising expenditures for the
largest and the smallest brands in this category and find that these brands can increase
their profitability by increasing their advertising expenditures. )e also analy"e the impact
of modifying a camera model+s attributes on its profits. Such an analysis could potentially
be used to evaluate if product development efforts would be profitable.

;
I(+IA( TW)0W-EE*E I(+1ST43 A PESPECTI5E
%utomobile is one of the largest industries in global market. $eing the leader in product
and process technologies in the manufacturing sector, it has been recogni"ed as one of the
drivers of economic growth. During the last decade, wellK(directed efforts have been
made to provide a new look to the automobile policy for reali"ing the sector&s full
potential for the economy. Steps like abolition of licensing, removal of quantitative
restrictions and initiatives to bring the policy framework in consonance with )T'
requirements have set the industry in a progressive track. 0emoval of the restrictive
environment has helped restructuring, and enabled industry to absorb new technologies,
aligning itself with the global development and also to reali"e its potential in the country.
The liberali"ation policies have led to continuous increase in competition, which has
ultimately resulted in moderni"ation in line with the global standards as well as in
substantial cut in prices. %ggressive marketing by the auto finance companies have also
played a significant role in boosting automobile demand, especially from the population
in the middle income group. $rand !mage of Two )heeler %s we know that
moderni"ation is going on and it is in very rapid way. So, all the youths wants to have a
modern life specially the collegians. The best way to show moderni"ation is that they
prefer to have stylish bike only. They prefer more towards it+s because of comfort and to
show modern life. So, the demand for bikes is increasing day by day specially because of
college boys. Farlier Two )heeler bikes were not popular because college student don+t
want bikes and all because on that period of time there was no moderni"ation. So, they
used to go with cycles and all. 'n that period of time the people who were financially
good only. They prefer to have scooters only. $ut, now a day+s demands are increasing
and people minds are developing to have a stylish life they prefer mostly stylish vehicles.
!n showrooms of the two wheelers are present like, Hero(Honda, TJS, $aa, etc. These
7
companies are modifying their product according to the changing environment. Bust take
on e.g. of organi"ation of Hero(Honda. ! am taking the e.g. of Hero(Honda 4Splendor+.
$ecause of changing environment 4Splendor+ is converted into 4SplendorL+ and 4Super
Splendor+. !t we will compare these three bikes we can see some change either change in
color or #odel. =ow, the companies are launching their stylish product lets, take on e.g.
( !n Hero(Honda *ompany <lamour, Hunk, etc. are launched. !n $aa *ompany Clatina,
Discover, Culsar, Ftc. is launched. !n TJS *ompany TJS Star city, TJS Jictor, etc. are
launched. %ll these models of bikes are launched only because of young.

-IST)4 )2 TW) W-EE*ES
Two(wheeler segment is one of the most important components of the automobile sector
that has undergone significant changes due to shift in policy environment. The two(
wheeler industry has been in existence in the country since -7GG. !t consists of three
segments vi". scooters, motorcycles and mopeds. %ccording to the figures published by
S!%#, the share of two(wheelers in automobile sector in terms of units sold was about ;E
per cent during 1EE3(E>. This high figure itself is suggestive of the importance of the
sector. !n the initial years, entry of firms, capacity expansion, choice of products
including capacity mix and technology, all critical areas of functioning of an industry,
were effectively controlled by the State machinery. The lapses in the system had invited
fresh policy options that came into being in late sixties. %mongst these policies,
#onopolies and 0estrictive Trade Cractices 5#0TC8 and 2oreign Fxchange 0egulation
%ct 52F0%8 were aimed at regulating monopoly and foreign investment respectively.
This controlling mechanism over the industry resulted inH
-E
,a. Several firms operating below minimum scale of efficiency,
,6. Mnder(utili"ation of capacity, and
,c. Msage of outdated technology.
0ecognition of the damaging effects of licensing and fettering policies led to initiation of
reforms, which ultimately took a more prominent shape with the introduction of the =ew
Fconomic Colicy 5=FC8 in -7;G. However, the maor set of reforms was launched in the
year -77- in response to the maor macroeconomic crisis faced by the economy. The
industrial policies shifted from a regime of regulation and tight control to a more
liberali"ed and competitive era. Two maor results of policy changes during these years in
two(wheeler industry were that the, weaker players died out giving way to the new
entrants and superior products and a si"eable increase in number of brands entered the
market that compelled the firms to compete on the basis of product attributes. 2inally, the
two(wheeler industry in the country has been able to witness a proliferation of brands
with introduction of new technology as well as increase in number of players. However,
with various policy measures undertaken in order to increase the competition, though the
degree of concentration has been lessened over time, deregulation of the industry has not
really resulted in higher level of competition. The history of the automobile industry in
!ndia actually began about >,EEE years ago when the first wheel was used for
transportation. !n the early -Gth century, the Cortuguese arrived in *hina and the
interaction of the two cultures led to a variety of new technologies, including the creation
of a wheel that turned under its own power. $y the -:EEs, small steam(powered engine
models were developed, the dream a carriage that moved on its own was reali"ed only in
the -;th century when the first car rolled on the streets. Steam, petroleum gas, electricity
and petrol started to bused in these cars. The automobile, as it progressed, was a product
--
of many hands, of revolutionary concepts, !ndia&s transport network is developing at a fast
pace and the automobile industry is growing too. The automobile industry also provides
employment to a large section of the population. Thus the role of automobile industry
cannot be overlooked in !ndian Fconomy. %ll kinds of vehicles are produced by the
automobile industry. !t includes the manufacture of trucks, buses, passenger cars, defense
vehicles, two(wheelers, etc. The industry can be broadly divided into the car
manufacturing, the two(wheeler manufacturing is dominated by companies like TJS,
Honda #otorcycle . Scooter !ndia 5Cvt.8 /td., Hero Honda, Namaha, $aa, etc. The
!ndian automobile industry is now striding inroads into the rural middle class after its
inroads into the urban markets and rural rich. !t is trying to bring in varying products to
suit requirements of different class segments of customers. !n this section we will provide
you with an in(depth reading and understanding of the various aspects of the automobile
industry ( the history of automobiles, information about various automobile companies in
!ndia. The feeling of freedom and being one with the =ature comes only from riding a
two wheeler. !ndians prefer the two wheelers because of their small manageable si"e, low
maintenance, and pricing and easy loan repayments. !ndian streets are full of people of all
age groups riding a two wheeler. #otori"ed two wheelers are seen as a symbol of status
by the populace.
-1
ecent Economic +e7elopment!
!ndia is the 1nd largest two(wheeler market in the world with a si"e of over 0s -EE,EEE
mn. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to
$ring the policy framework in consonance with )T' requirements have set the industry
in a progressive track. 0emoval of the restrictive environment has helped restructuring,
and enabled industry to absorb new technologies, aligning itself with the global
development and also to reali"e its potential in the country. The liberali"ation policies
have led to continuous increase in competition which has ultimately resulted in
moderni"ation in line with the global standards as well as in substantial cut in prices.
%ggressive marketing by the auto finance companies have also played a significant role
in boosting automobile demand, especially from the population in the middle income
group. The total sale of two wheelers in !ndia has touched a figure of OA.7 mn units by
#arch, 1EEA, up --.>P from the previous fiscal figure of OA.- mn units. Croduction
during the period reached -E.; mn units, entailing a demand ratio of OA1P. !n terms of
sales and market share the maor players of the industry are,
( -ero Moto corp# 0 -onda#
( Ba8a8 Auto# 0 T5S Motor!#
The composition of the industry consists of motorcycles, scooters and mopeds. 'ver the
past decade, there has been a consumer preferential shift from mopeds to scooters and
now motorcycles. 'n account of the shift, the motorcycle segment dominates the two(
wheeler industry with a market share of close to ;EP. The motorcycle segment is further
sub divided into 3 classes, starting from the entry9economy class 50s 3E,EEE I 0s >E,EEE8,
executive class 50s >E,EEE I 0s GE,EEE8 and the premium class 5Q0s GE,EEE8.The
-3
motorcycle segment is primarily led by Hero Honda with a market share of OG7P
followed by $aa %uto 5O-;P8, H#S! 5O7P8, TJS #otors 5OAP8 and Namaha 5OGP8.
'n the other hand the scooter segment is led by H#S! which has a dominant share of
O:3P followed by TJS #otors 5-:P8 and Hero Honda 5O->P8. )hen it comes to the
moped segment, it is primarily dominated by TJS #otors with a market share of O-EEP.
/ast year Banuary to #arch 1EEA the beginnings of slackening domestic demand for two(
wheelers ?because of the sharp tightening of non(food credit by the 0eserve $ank of
!ndia and all commercial banks and non(banking financing companies@. Throughout
1EEA(E;, the 0$! maintained a very tight monetary and credit policy which raised interest
rates on consumer loans to exceptionally high levels. The twin effects of higher interests
and lower credit availability hit the two(wheeler industry very badly. Thus, after a decade
of spectacular double(digit growth, two( wheelers suddenly faced a slump.
A $rowth Pro!pecti7e
The composition of the two(wheeler industry has witnessed sea changes in the post
perform period. !n -77-, the share of scooters was about GE per cent of the total 1(wheeler
demand in the !ndian market. #otorcycle and moped had been experiencing almost equal
level of shares in the total number of two(wheelers. !n 1EE3(E>, the share of motorcycles
increased to A; per cent of the total two(wheelers while the shares of scooters and mopeds
declined to the level of -: and : per cent respectively. % clear picture of the motorcycle
segment&s gaining importance during this period is exhibited by the 2igures -, 1 and 3
depicting total sales, share and annual growth during the period -773(7> through 1EE3(
1EE>.
->
In7e!tment in re!earch and de7elopment
'n the two(wheeler industry front, since most manufacturers have a technology tie(up
with a foreign maor, the incentive to do 0.D with the !ndian counterpart has increased.
2or adopting new technologies companies need to invest high.R )ith maor auto
companies spending si"eable amount on product development and in( house 0.D
expenditure in recent times, deduction of -GEP on excise duty exemption to the end
consumers allowed on the same will encourage further 0.D investments.
Barrier! to entry
$elow are the points which play 6ey roles for new entrantsH
R Fconomies of scale9capital investment
R *ost . resource disadvantage 5patents, locked(in partnerships with suppliers9customers8
R /earning . experience curves
R $rand preferences . loyalty
R %ccess to distribution channels
R 0egulatory prices
R Tariffs . international trade restrictions
R !ndustry attractiveness 5growth9profitability

-G
Two Wheeler Showroom!
The automobile companies carry out market research and surveys from time to time.
$ased on their findings, they come to know of the $rand preferences and likings and try
to develop their products on those lines. 'nce the products are ready, they indulge in
extensive media and advertisement campaigns and highlight their products and respective
features before the target audiences. However, in order to reach out to the customers, they
need to present their vehicles before the customers, closer to their footsteps and there lies
the importance of having showrooms.
E7olution of Two0wheeler Indu!try in India
Two(wheeler segment is one of the most important components of the automobile sector
that has undergone significant changes due to shift in policy environment. The two(
wheeler industry has been in existence in the country since -7GG. !t consists of three
segments vi". scooters, motorcycles and mopeds. !n !ndia there are some #=*+s and
!ndian company dealing in automobile sector. The main key players who are dealing in
this sector are Hero Honda, $aa, Namaha, Honda, and TJS. Hero Honda is the biggest
player in this sector in !ndia as well as in the world and playing a very important role in
two wheeler automobile sector. Hero Honda, $aa and TJS are the !ndian companies
and Namaha . Honda are international automobile brand.
-:
Ba8a8 30
$aa is the first !ndian two wheeler automobile company in the market since -7>G with
the name #9s $achar trading corporation private limited. !n -7G7 #9s $achar trading
corporation private limited change its name as $aa %uto /td. $aa %uto obtains license
from the <overnment of !ndia to manufacture two( and three(wheelers vehicles in -7G7.
-ero Motocorp *td#H(
Hero #otocorp /td., formerly Hero Honda, is an !ndian motorcycle and scooter
manufacturer based in =ew Delhi, !ndia. The company is the largest two wheeler
manufacturer in the world. !n !ndia, it has a market share of about >:P share in 1(wheeler
category. The 1EE: 2orbes 1EE #ost 0espected companies list has Hero Honda #otors
ranked at S-E;. 'n 3- #arch 1E-3, the market capitali"ation of the company was !=0
3E; billion 5MSD G.:: billion8. Hero Honda started in -7;> as a oint venture between
Hero *ycles of !ndia and Honda of Bapan. !n 1E-E, when Honda decided to move out of
the oint venture, Hero <roup bought the shares held by Honda. Subsequently, in %ugust
1E-- the company was renamed Hero #oto *orp with a new corporate identity
!n Bune 1E-1, Hero #oto corp. approved a proposal to merge the investment arm of its
parent Hero !nvestment Cvt. /td. into the automaker. The decision comes after -; months
of its split from Honda #otors.
T5S Motor!30
TJS #otors is the third largest company in the two(wheeler industry with a market share
of -:P. !nfect, it is the only !ndian company without a foreign collaboration in the two(
wheeler industry. )hen the company opted out of the collaboration with Su"uki in 1EE1,
-A
many believed that TJS was headed towards extinction. $ut the company proved the
doomsayers wrong and came out with a very successful TTJS Jictor&. TJS #otors /td.
originally incorporated in -7;1 to manufacture two(wheelers in collaboration with Su"uki
#otors of Bapan, TJS was one of the leaders in two(wheeler industry.
4amaha Motor Corporation30
Namaha #otor *orporation is the auto mobile company of Bapan 5-7G38 which works in
!ndia since -7GG and providing latest technology in !ndia from last two decades. Namaha
#otor !ndia was incorporated in august 1EE- as a -EEP subsidiary of Namaha motor
corporation, Bapan.
-onda motor!30
Honda motors of Bapan is not a new name in the two wheeler scenario in the country, they
were in a tie up with the 2ibroids owned 6inetic group. However in the late 7Es they
parted ways after problems arose over issues like introduction of new models, advertising
expenditure, marketing strategies and other related issues. !n the mid ;E Honda motors of
Bapan oined hands with the largest bicycle maker of !ndia the Hero cycles to create Hero
Honda which in a couple of decades or so have gone on to become the single largest
motorcycle company in the world. Though Honda has come on its own on the !ndian
market yet it will be providing technological support to Hero Honda for the next ten
years. Thus presenting a unique situation in which the company will be in direct
competition with the company which it has been associated for nearly two decades.
Honda #otorcycles and Scooters !ndia limited, a -EEP subsidiary of Honda motor
company Bapan eventually entered the !ndian market with Honda Mnicorn in 1EE>.
-;

Two wheeler companie! in India
The two wheeler companies in !ndia such as the Ba8a8 Auto" -ero -onda" T5S Motor,
have a good number of showrooms spanning the length and breadth of the country.
%lmost all the leading towns and cities in !ndia, not to talk of the bigger cities only, have
motorbike showrooms of these companies that present a range of two wheelers,
motorcycles, scooters and mopeds of various ranges, colors and design. %n important
obective served by the showrooms is the availability of all vehicles of the automobile
companies before the customers close to their place. %s such, the customer gets a chance
to see the vehicle on his9her own, test ride and feel it and then make a decision if that two
wheeler is the best one for him. Nou can find exclusive scooter showrooms too which
caters to the scooter needs of the consumers. %nother purpose that the auto showrooms
serve is that they bridge the gap between the company and the customer. The customer
leaves his opinion about the vehicle after seeing the features and in certain cases, even
test riding it. This consumer feedback is important in the sense that it enables the
manufacturing company to understand the customer&s mind and make the changes in its
two wheeler, if and when necessary. The motorbike showrooms are nowadays are
attractive and provide a pleasant and comfortable ambiance for the customers. They are
provided with a good bit of hospitality and every effort is made to ensure that the
customer gets a positive impression about the company&s product and of the company
itself. That will help the company to enhance its image among the consumers and
gradually enlarge the market share. The two(wheeler 51)8 industry has shown a healthy
volume- growth of 1-.7P 5y(o(y8 during the period %pril(Banuary 1E-E contributed by a
mix of favorable demand and supply drivers. )hile on one hand, a steady revival in
economic activity, low excise duties, low interest rates and relatively higher disposable
-7
incomes enabled the demand pull, on the other hand, launch of new products9 variants by
manufacturers, targeted marketing spends and expansion of customer touch points
5notwithstanding sharp decline in organi"ed financing8 provided the complementary
supply push. The above growth is significant in the backdrop of a negative volume
growth of G.EP witnessed in 1EEA(E; and the rather subdued volume growth of >.:P
seen in 1EE;(E7. )hile the current growth rate may moderate in the near term, the
industry is expected to be on track for a healthy 7(--P annual growth over the medium
term, supported by a combination of favorable demand drivers in the domestic market and
strong exports growth. The 1) industry had reported double(digit growth rates for six
consecutive years till 1EE:(EA on the back of rising disposable incomes in Tier 1 and 3
cities and in rural areas, and the easy availability of consumer finance. However, 1EEA(E;
saw a volume decline following an increase in interest rates and a sudden reduction in the
availability of finance. )ithin the 1) industry, the entry(segment of motorcycles was hit
the hardest as financial institutions tightened their credit norms due to relatively weaker
credit profiles and the higher proportion of financed purchases in this segment. %lthough
the insufficiency of two )heelers finance remains a concern, the impact of the same has
been mitigated by the availability of finance from the unorgani"ed sector and the growing
share of rural sales, which happen largely on cash basis.
1E
I(T)+1CTI)( )2 T-E -E) M)T)C)P
Hero #oto corp. /td., formerly Hero Honda, is an !ndian motorcycle and scooter
manufacturer based in =ew Delhi, !ndia. The company is the largest two wheeler
manufacturer in the world. !n !ndia, it has a market share of about >:P share in 1(wheeler
category. The 1EE: 2orbes 1EE #ost 0espected companies list has Hero Honda #otors
ranked at S-E;. 'n 3- #arch 1E-3, the market capitali"ation of the company was !=0
3E; billion 5MSD G.:: billion8. Hero Honda started in -7;> as a oint venture between
Hero *ycles of !ndia and Honda of Bapan. !n 1E-E, when Honda decided to move out of
the oint venture, Hero <roup bought the shares held by Honda. Subsequently, in %ugust
1E-- the company was renamed Hero #oto *orp with a new corporate identity
!n Bune 1E-1, Hero #oto corp. approved a proposal to merge the investment arm of its
parent Hero !nvestment Cvt. /td. into the automaker. The decision comes after -; months
of its split from Honda #otors.
-i!tory
?Hero@ is the brand name used by the #unal brothers for their flagship company, Hero
*ycles /td. % oint venture between the Hero <roup and Honda #otor *ompany was
established in -7;> as the Hero Honda #otors /imited at Dharuhera, !ndia. #unal
family and Honda group both owned 1:P stake in the *ompany. During the -7;Es, the
company introduced motorcycles that were popular in !ndia for their fuel economy and
low cost. % popular advertising campaign based on the slogan &2ill it I Shut it I 2orget it&
1-
that emphasi"ed the motorcycle&s fuel efficiency helped the company grow at a double(
digit pace since inception. !n 1EE-, the company became the largest two(wheeler
manufacturing company in !ndia and globally. !t maintains global industry leadership till
date. The technology in the bikes of Hero #oto corp. 5earlier Hero Honda8 for almost 1:
years 5-7;>I1E-E8 has come from the Bapanese counterpart Honda.

• -7;>UHero Honda #otors /td. incorporated
• -7;GUHero Honda motorcycle *D -EE launched.
• -7;7UHero Honda motorcycle Sleek launched.
• -77-UHero Honda motorcycle *D -EE SS launched.
• -77> I Hero Honda motorcycle Splendor launched.
11
• -77AUHero Honda motorcycle Street launched.
• -777 I Hero Honda motorcycle *$D launched.
• 1EE- I Hero Honda motorcycle Cassion and Hero Honda Boy launched.
• 1EE1UHero Honda motorcycle Dawn and Hero Honda motorcycle %mbition
launched.
• 1EE3UHero Honda motorcycle *D Dawn, Hero Honda motorcycle Splendor
plus, Hero Honda motorcycle Cassion Clus and Hero Honda motorcycle 6ari"ma
launched.
• 1EE>UHero Honda motorcycle %mbition -3G and Hero Honda motorcycle *$DV
launched.
• 1EEGUHero #oto corp. Super Splendor, Hero Honda motorcycle *D Deluxe,
Hero Honda motorcycle <lamour, Hero Honda motorcycle %chiever and Hero
Honda Scooter Cleasure.
13
• 1EEAU=ew #odels of Hero Honda motorcycle Splendor =W<, =ew #odels of
Hero Honda motorcycle *D Deluxe, =ew #odels of Hero Honda motorcycle
Cassion Clus and Hero Honda motorcycle Hunk launched.
• 1EE;U=ew #odels of Hero Honda motorcycles Cleasure, *$D Wtreme,
<lamour, <lamour 2i and Hero Honda motorcycle Cassion Cro launched.
• 1EE7U=ew #odels of Hero Honda motorcycle 6ari"maH6ari"ma I D#0 and
limited edition of Hero Honda motorcycle Hunk launched
• 1E-EU new #odels of Hero Honda motorcycle Splendor Cro and New Hero
Honda motorcycle Hunk and New Hero Honda #otorcycle Super Splendor
launched.
• 1E--U=ew #odels of Hero Honda motorcycles <lamour, <lamour 2!, *$D
Wtreme, 6ari"ma launched. =ew licensing arrangement signed between Hero and
Honda. !n %ugust Hero and Honda parted company, thus forming Hero #oto*orp
and Honda moving out of the Hero Honda oint venture. !n =ovember, Hero
launched its first ever 'ff 0oad $ike =amed Hero X!mpulseX.
• 1E-1(=ew #odels of Hero #otocorp #aestro the #usculine scooter and !gnitor
the young generation bike are launched.
• 1E-3(Hero #oto*orp unveiled line(up of -G updated products including 6ari"ma
0, D#0, Wtreme, Cleasure, Splendor Cro, Splendor iSmart, H2 Deluxe F*',
Hero #otocorp Super Splendor, Cassion Cro and Wpro, <lamour and <lamour 2!
etc. !t also introduced three new technologies( Fngine !mmobili"er in new
Wtreme, !ntegrated $raking System 5!$S8 in new Cleasure and i3S 5!dle Stop and
Start System8 in new Splendor iSmart.
1>
Termination of -onda 8oint 7enture30
!n December 1E-E, the board of directors of the Hero Honda <roup had decided to
terminate the oint venture between Hero <roup of !ndia and Honda of Bapan in a phased
manner. The Hero <roup would buy out the 1:P stake of the Honda in BJ Hero Honda
Mnder the oint venture Hero <roup could not export to international markets 5except Sri
/anka and =epal8 and the termination would mean that Hero <roup can now export.
Since the beginning, the Hero <roup relied on their Bapanese partner Honda for the
technology in their bikes. So there are concerns that the Hero <roup might not be able to
sustain the performance of the oint venture alone The Bapanese auto maor will exit the
oint venture through a series of off market transactions by giving the #unal family that
held a 1:P stake in the companyUan additional 1:P. Honda, which also has an
independent fully owned two wheeler subsidiaryUHonda #otorcycle and Scooter !ndia
5H#S!8Uwill exit Hero Honda at a discount and get over Y- billion for its stake. The
discount will be between 3EP and GEP to the current value of Honda&s stake as per the
price of the stock after the market closed on )ednesday The rising differences between
the two partners gradually emerged as an irritant. Differences had been brewing for a few
1G
years before the split over a variety of issues, ranging from Honda&s reluctance to fully
and freely share technology with Hero 5despite a -E(year technology tie(up that expires in
1E->8 as well as !ndian partner&s uneasiness over high royalty payouts to the Bapanese
company. %nother maor irritant for Honda was the refusal of Hero Honda 5mainly
managed by the #unal family8 to merge the company&s spare parts business with Honda&s
new fully owned subsidiary Honda #otorcycle and Scooter !ndia 5H#S!8 %s per the
arrangement, it will be a two(leg deal. !n the first part, the #unal family, led by
$rimohan /al #unal group, will form an overseas(incorporated special purpose vehicle
5SCJ8 to buy out Honda&s entire stake, which will be backed by bridge loans. This SCJ
would eventually be thrown open for private equity participation and those in the fray
include )arburg Cincus, 6ohlberg 6ravis 0oberts 56608, TC<, $ain *apital, and
*arlyle <roup. Honda will continue to provide technology to Hero Honda motorbikes
until 1E-> for existing as well as future models.
2ormation of -ero MotoCorp
The name of the company was changed from Hero Honda #otors /imited to Hero
#oto*orp /imited on Buly 17, 1E--. The new brand identity and logo of Hero #oto*orp
were developed by the $ritish firm )olff 'lins. The logo was revealed on 7 %ugust 1E--
in /ondon, to coincide with the third test match between Fngland and !ndia. Hero
#oto*orp can now export to /atin %merica, %frica and )est %sia. Hero is free to use
any vendor for its components instead of ust Honda(approved vendors. 'n 1- %pril
1E->, Hero #oto*orp announced their plan on a Y >E #n oint venture with =otiol =iloy
<roup in the next five years.
)peration!
1:
Hero #oto*orp has three manufacturing facilities based at Dharuhera and <urgaon in
Haryana and at Haridwar in Mttarakhand. These plants together have a production
capacity of :.7 million 1(wheelers per year. Hero #oto*orp has a sales and service
network with over 3,EEE dealerships and service points across !ndia. !t has a customer
loyalty program since 1EEE, called the Hero Honda Cassport Crogram. !t is reported that
Hero #oto*orp has five oint ventures or associate companies, #unal Showa, %<
!ndustries, Sunbeam %uto, 0ockman !ndustries and Satyam %uto *omponents, that
supply a maority of its components. The company has a stated aim of achieving revenues
of Y-E billion and volumes of -E million two(wheelers by 1E-:I-A. This is conunction
with new countries where they can now market their two(wheelers following the
disengagement from Honda. Hero #oto*orp hopes to achieve -E per cent of their
revenues from international markets, and they expected to launch sales in =igeria by end(
1E-- or early(1E-1. !n addition, to cope with the new demand over the coming half
decade, the company is coming up with their fourth factory in =eemrana in 0aasthan
while their fifth factory is planned to be set up at Halol in <uarat.
Product! and !er7ice!
Motorcycle!
!t has -A models of motorcycles across the -EE cc, -1G cc, -GE cc, 11G cc categories.
• Sleek
• Street
• %chiever
• %mbition -33, %mbition -3G
• *$D, *$D Star, *$D Wtreme, Hero Wtreme
1A
• *D -EE, *D -EE SS, Hero Honda Boy, *D Dawn, *D Deluxe, *D Deluxe 5Self
Start8
• H2 Dawn, H2 Deluxe
• <lamour, <lamour 2.!.
• Hunk
• 6ari"ma, 6ari"ma 0, 6ari"ma D#0 2!
• Cassion, Cassion Clus, Cassion Cro, Cassion WCro
• Splendor, SplendorL, SplendorL 5/imited Fdition8, Hero #otocorp
SuperSplendor, Splendor =W<, Splendor C0', Splendor iSmart
• Hero !mpulse launched in 1E-- after the separation of Hero and Honda. !ts !ndia&s
first off(road and on road $ike.
• Hero !gnitor launched in 1E-1
Scooter!
!t has 1 models in scootersH
• Cleasure
• #aestro
1;
Award! and recognition
• The $rand Trust 0eport published by Trust 0esearch %dvisory has ranked Hero
Honda in the -3th position among the brands in !ndia.
• !t received the &$est value for #oney $ike #aker& and &$est %dvertising& in Two
)heelers *ategory at the %uto !ndia $est $rand %wards 1E-1
I(T)+1CTI)( )2 T-E BA9A9 A1T) *IMITE+
Company Per!pecti7e!3
'ur ChilosophyH )e approach our responsibilities with ambition and resourcefulness. )e
organi"e ourselves for a transparent and harmonious flow of work. )e respect sound
theory and encourage creative experimentation. %nd we make our workplace a source of
pride. )e believe inH Transparency((a commitment that the business is managed along
transparent lines. 2airness all stakeholders in the *ompany, but especially to minority
shareholders.
17
'ey +ate!3
:;<=3 $aa %uto is founded.
:;>?3 0ahul $aa becomes the !ndian licensee for Jespa scooters.
:;@@3 Technical collaboration with Ciaggio ends.
:;A<3 )ork begins on a second plant.
:;;A3 $aa plans to build its third plant to meet demand.
B???3 Thousands of workers are laid off to cut costs.
Company -i!tory3
$aa %uto /imited is !ndia&s largest manufacturer of scooters and motorcycles. The
company generally has lagged behind its Bapanese rivals in technology, but has invested
heavily to catch up. !ts strong suit is high(volume production, it is the lowest(cost scooter
maker in the world. %lthough publicly owned, the company has been controlled by the
$aa family since its founding.
)rigin!
The $aa <roup was formed in the first days of !ndia&s independence from $ritain. !ts
founder, Bamnalal $aa, had been a follower of #ahatma <andhi, who reportedly
referred to him as a fifth son. &)henever ! spoke of wealthy men becoming the trustees of
their wealth for the common good ! always had this merchant prince principally in mind,&
said the #ahatma after Bamnalal&s death. Bamnalal $aa was succeeded by his eldest son,
1A(year(old 6amalnayan, in -7>1. 6amalnayan, however, was preoccupied with !ndia&s
3E
struggle for independence. %fter this was achieved, in -7>A, 6amalnayan consolidated
and diversified the group, branching into cement, ayurvedic medicines, electrical
equipment, and appliances, as well as scooters. The precursor to $aa %uto had been
formed on =ovember 17, -7>G as #9s $achra Trading /td. !t began selling imported
two( and three(wheeled vehicles in -7>; and obtained a manufacturing license from the
government -- years later. The next year, -7:E, $aa %uto became a public limited
company. 0ahul $aa reportedly adored the famous Jespa scooters made by Ciaggio of
!taly. !n -7:E, at the age of 11, he became the !ndian licensee for the make, $aa %uto
began producing its first two(wheelers the next year. 0ahul $aa became the group&s
chief executive officer in -7:; after first picking up an #$% at Harvard. He lived next to
the factory in Cune, an industrial city three hours& drive from $ombay. The company had
an annual turnover of 0s A1 million at the time. $y -7AE, the company had produced
-EE,EEE vehicles. The oil crisis soon drove cars off the roads in favor of two(wheelers,
much cheaper to buy and many times more fuel(efficient.% number of new models were
introduced in the -7AEs, including the three(wheeler goods carrier and $aa *hetak early
in the decade and the $aa Super and three(wheeled, rear engine %utorickshaw in -7A:
and -7AA. $aa %uto produced -EE,EEE vehicles in the -7A:(AA fiscal year alone. The
technical collaboration agreement with Ciaggio of !taly expired in -7AA. %fterward,
Ciaggio, maker of the Jespa brand of scooters, filed patent infringement suits to block
$aa scooter sales in the Mnited States, Mnited 6ingdom, )est <ermany, and Hong
6ong. $aa&s scooter exports plummeted from 0s -33.1 million in -7;E(;- to 0s G1
million 5YG.> million8 in -7;-(;1, although total revenues rose five percent to 0s -.-:
billion. Cretax profits were cut in half, to 0s :3 million.
3-
(ew Competition in the :;A?!
Bapanese and !talian scooter companies began entering the !ndian market in the early
-7;Es. %lthough some boasted superior technology and flashier brands, $aa %uto had
built up several advantages in the previous decades. !ts customers liked the durability of
the product and the ready availability of maintenance, the company&s distributors
permeated the country. The $aa #(GE debuted in -7;-. The new fuel(efficient, GEcc
motorcycle was immediately successful, and the company aimed to be able to make
:E,EEE of them a year by -7;G. *apacity was the most important constraint for the !ndian
motorcycle industry. %lthough the country&s total production rose from 1:1,EEE vehicles
in -7A: to :EE,EEE in -7;1, companies like rival /ohia #achines had difficulty meeting
demand. $aa %uto&s advance orders for one of its new mini(motorcycles amounted to
YGA million. )ork on a new plant at )alu, %urangabad commenced in Banuary -7;>.
The -7;:(;A fiscal year saw the introduction of the $aa #(;E and the 6awasaki $aa
6$-EE motorcycles. The company was making GEE,EEE vehicles a year at this point.
%lthough 0ahul $aa credited much of his company&s success with its focus on one type
of product, he did attempt to diversify into tractor(trailers. !n -7;A his attempt to buy
31
control of %hsok /eyland failed.The $aa Sunny was launched in -77E, the 6awasaki
$aa >S *hampion followed a year later. %bout this time, the !ndian government was
initiating a program of market liberali"ation, doing away with the old &license ra& system,
which limited the amount of investment any one company could make in a particular
industry. % possible oint venture with Ciaggio was discussed in -773 but aborted. 0ahul
$aa told the Financial Times that his company was too large to be considered a potential
collaborator by Bapanese firms. !t was hoping to increase its exports, which then
amounted to ust five percent of sales. The company began by shipping a few thousand
vehicles a year to neighboring Sri /anka and $angladesh, but soon was reaching markets
in Furope, /atin %merica, %frica, and )est %sia. !ts domestic market share, barely less
than GE percent, was slowly slipping. $y -77>, $aa also was contemplating high(
volume, low(cost car manufacture. Several of $aa&s rivals were looking at this market as
well, which was being rapidly liberali"ed by the !ndian government. $aa %uto produced
one million vehicles in the -77>(7G fiscal year. The company was the world&s fourth
largest manufacturer of two(wheelers, behind Bapan&s Honda, Su"uki, and 6awasaki. =ew
models included the $aa *lassic and the $aa Super Fxcel. $aa also signed
development agreements with two Bapanese engineering firms, 6ubota and Tokyo 0 . D.
$aa&s most popular models cost about 0s 1E,EEE. &Nou ust can&t beat a $aa,& stated the
company&s marketing slogan. The 6awasaki $aa $oxer and the 0F diesel %utorickshaw
were introduced in -77A. The next year saw the debut of the 6awasaki $aa *aliber, the
Spirit, and the /egend, !ndia&s first four(stroke scooter. The *aliber sold -EE,EEE units in
its first -1 months. $aa was planning to build its third plant at a cost of 0s > billion
5Y---.: million8 to produce two new models, one to be developed in collaboration with
*agiva of !taly.
33
(ew Tool! in the :;;?!
Still, intense competition was beginning to hurt sales at home and abroad during the
calendar year -77A. $aa&s low(tech, low(cost cycles were not faring as well as its rivals&
higher(end offerings, particularly in high(powered motorcycles, since poorer consumers
were withstanding the worst of the recession. The company invested in its new Cune plant
in order to introduce new models more quickly. The company spent 0s A.G billion5Y-;G
million8 on advanced, computer(controlled machine tools. !t would need new models to
comply with the more stringent emissions standards slated for 1EEE. $aa began
installing 0s. ;EE catalytic converters to its two(stroke scooter models beginning in
-777.%lthough its domestic market share continued to slip, falling to >E.G percent, $aa
%uto&s profits increased slightly at the end of the -77A(7; fiscal year. !n fact, 0ahul $aa
was able to boast, &#y competitors are doing well, but my net profit is still more than the
next four biggest companies combined.& Hero Honda was perhaps $aa&s most serious
local threat, in fact, in the fall of -77;, Honda #otor of Bapan announced that it was
withdrawing from this oint venture. $aa %uto had quadrupled its product design staff to
GEE. !t also acquired technology from its foreign partners, such as 6awasaki
5motorcycles8, 6ubota 5diesel engines8, and *agiva 5scooters8. &Honda&s annual spend on
0 . D is more than my turnover,& noted 0uhal $aa. His son, Sangiv $aa, was working
to improve the company&s supply chain management. % marketing executive was lured
from TJS Su"uki to help push the new cycles. Several new designs and a do"en upgrades
of existing scooters came out in -77; and -777. These, and a surge in consumer
confidence, propelled $aa to sales records, and it began to regain market share in the
fast(growing motorcycle segment. Sales of three(wheelers fell as some states, citing
traffic and pollution concerns, limited the number of permits issued for them. !n late
-777, 0ahul $aa made a bid to acquire ten percent of Ciaggio for Y:G million.
3>
The !talian firm had exited a relationship with entrepreneur Deepak Singhania and was
looking to reenter the !ndian market, possibly through acquisition. Ciaggio itself had been
mostly bought out by a <erman investment bank, Deutsche #organ <renfell 5D#<8,
which was looking to sell some shares after turning the company around. $aa attached
everal conditions to his purchase of a minority share, including a seat on the board and an
exclusive Ciaggio distributorship in !ndia. !n late 1EEE, #aruti Mdyog emerged as another
possible acquisition target. The !ndian government was planning to sell its GE percent
stake in the automaker, a oint venture with Su"uki of Bapan. $aa had been approached
by several foreign car manufacturers in the past, including *hrysler 5subsequently
Daimler*hrysler8 in the mid(-77Es. Fmployment fell from about 13,EEE in -77G(7: 5the
year $aa suffered a two(month strike at its )alu factory8 to -A,EEE in -777(1EEE. The
company planned to lay off another 1,EEE workers in the short term and another 3,EEE in
the following three to four years.
Principal Su6!idiarie!3 $aa %uto 2inance /td., $aa %uto Holdings /td., $aa
Flectricals /td., $aa Hindustan /td., #aharashtra Scooters /td., #ukand /td.
Principal Competitor!3 Honda #otor *o., /td., Su"uki #otor *orporation, Ciaggio
Spa.
3G
I(T)+1CTI)( T) T5S M)T)S
Company -i!tory 0 T5S Motor Company
The company was incorporated as !ndian #otorcycle Cvt. /td. 'n -G
th
Buly. !ts name
was changed to !ndo Su"uki #otorcycles Cvt. /td. %nd it was converted into a public
3:
limited company on -1th Banuary,-7;>. !t was promoted by #r. =. 6rishnan in
collaboration with Su"uki #otor *o. /td. Bapan, Sundaram(*layton, /td., a member of
the *ompany to the extent of 0s AE lakhs. The company entered into a technical know(
how and assistance agreement with Su"uki #otor *o. /td., of Bapan on 11nd September.
%s per the terms of the *ollaboration, Su"uki agreed to furnish complete technical
information and know(how, trade secrets and other data. %ll shares taken up by promoters
etc.
:;A<0 The company received a letter of intent for the manufacture of 1E,EEE spark
ignition operated out board motors and 3E,EEE internal combustion spark ignition engines
up to GEEcc per annum. G7, >E,EEE shares issued at par in -7;>. A,EE,EEE shares allotted
to Sundaram *layton, /td. *hennai, AE,EEE shares allotted to %nusha !nvestments 5C8
/td. *hennai, 1E,EE,EEE shares allotted to Su"uki #otor *o., /td., Bapan, 1,1E,EEE shares
allotted to employees and business associates and 17,AE,EEE shares offered to the public.
:;A=0 % new company /akshmi %uto *omponents Cvt /td. was incorporated for the
manufacture of critical engines and transmission parts.
:;A>0The company acquired the assets of the moped division from Sundaram *layton
/td. The cost of acquisition was met partly by rights issue of equity shares. The company
subscribed to 37, 1E,EEE equity shares of 0s.-E each of /akshmi %uto *omponents Cvt
/td, whereupon it became a subsidiary of the company. The name of the company was
changed from !ndo Su"uki #otorcycles /td. to TJS Su"uki /td with effect from -;th
%ugust.-G>, EE,EEE 0ights Fquity shares issued at par in prop. 1H-.
:;AA0The company obtained a letter of intent for expanding the capacity to >, EE,EEE
=os. two wheelers.
:;A;0The working was adversely affected due to labor unrest which resulted in a lock(
out from 1;th 2ebruary -77E. The lock out was lifted in the second week of Bune -77E.
3A
:;;?0The company launched a 3>cc miniped to take advantage of the #otor Jehicle %ct
that exempts such vehicles from the payment of road tax. The *ompany worked for only
-E months due to lock(out.
:;;:0The technical aid agreement entered into with Su"uki #otor *o. ,Bapan which
expired in %ugust -77- was extended for three more years with the approval of the
<overnment of !ndia.
:;;B0The *ompany launched two new models of motor cycles vi".TSamurai&and
TShogun&.
:;;C0The *ompany launched a new model of moped vi". TTJS Scooty&.

:;;=0 The *ompany was studying the feasibility of opening a second plant at a different
/ocation to meet the growth in demand for two wheelers in the near future. !t also
proposed to introduce upgraded version of mopeds. !n addition, during the year, the
*ompany undertook to develop new models of motorcycles.
:;;>0The company is taking steps to meet the increase in demand for its products and
improve the market share. % statement relating to the subsidiary, #9s /akshmi %uto
*omponents /imited, *hennai, and a copy of its annual accounts for the year ended 3-st
#arch, -77: is attached to the $alance Sheet pursuant to section 1-1 of the *ompanies
%ct, -7G:. %s per the requirements of section 1-A5-85e8 of the *ompanies %ct, -7G: read
with the *ompanies 5Disclosure of Carticulars in the 0eport of $oard of Directors8 0ules,
-7;;, the information regarding conservation of energy, technology absorption and
foreign exchange earnings and outgo are given in annexure ! to this report.
:;;@0TJS(Su"uki plans to set up an auto ancillary estate through oint venture with
some of its existing components suppliers. The proposed proect is to come up at a new
GA ( acre site near TJS(Su"uki&s existing plant at Horus.
3;
/eading two(wheeler manufacturer in the country, TJS Su"uki, will soon set up a new
1.G lakh capacity scooter plant in #ysore. TJS(Su"uki 5TS/8 ( a oint venture between
the TJS group and Su"uki #otor *orporation, Bapan ( was the first company to launch a
-EE(cc motorcycle in the !ndian market. *redit %nalysis . 0esearch /td 5*are8 has
assigned the credit 0ating of *%0F %%L 5double % plus8 to the proposed non(
convertible debenture issue of 0s.-EE crore. TJS #otor *ompany has its origin in
SMndaram */ayton /imited, #oped Division, started in -7;E. The factory was started in
Horus, Tamil =adu in southern !ndia. The first product launched was a GE cc moped,
which appealed to the masses because of its capability to carry two people. !n the same
location, the same promoters started another company in -7;>, in collaboration with
Su"uki #otor *orporation of Bapan, for the manufacture of -EE cc motorcycles under the
brand name of !ndia(Su"uki #otorcycles. Subsequently in the moped division was bought
by !ndia Su"uki #otorcycles in -7;A and the company changed its name to TJS Su"uki
/td. Fven though the company started producing all kinds of two wheelers like mopeds,
scooters and motorcycles, the collaboration with Su"uki continued for the motorcycles
only. The collaboration with Su"uki #otor *orporation ended in 1EE- and since then the
name of the company changed to TJS #otor *ompany. The company now develops all
37
types of two(wheelers through its own in house 0.D facility and manufactures in three
locations in !ndia, Horus in Tamil =adu, #ysore in 6arnataka and $addi in Himachal
Cradesh. !t has recently started a new manufacturing plant in !ndonesia to cater to the
South Fast %sian market. The *hairman and #anaging Director of the *ompany is #r.
Jenu who is the grandson of TJ Sundaram !yengar.
The ma8or product!
Motorcycle!
• TJS #%W -EE
• TJS 2iero
• TJS Samurai
• TJS Shaolin
• TJS Shogun
• TJS %pache 5-GE cc,-3.A Cs Z;GEErpm8
• TJS %pache 0T0 -:E
• TJS %pache 0T0 -:E F2! 5Flectronic 2uel !nection8
• TJS %pache 0T0 -;E 5-A.3ps8
• TJS *entra
>E
• TJS 2iero
• TJS 2iero 21
• TJS 2iero 2W
• TJS 2lame
• TJS 2lame 5-1G cc,ccvti technology8
• TJS Bive
• TJS #%W -EE
• TJS #%W 0 -EE
• TJS Star
• TJS Star *ity
• TJS Star Sport
• TJS Supra
• TJS Jictor 5--E cc8
• TJS Jictor FD<F 5-1G cc8
• TJS Jictor </W 5-1G cc8
T5S0Su%uDi *td ,TS*.#
TJS Su"uki is a oint venture between Saundaram *layton /td. of the TJS group and
Su"uki #otor *orporation, Bapan. TJS Su"uki /td 5TS/8, the second largest two(wheeler
manufacturer in the country, will be restructuring its entire vendor(base in the next five
years with the obective of creating robust vendors to meet its future expansion plans.
TJS Su"uki /imited is officially launching its new moped model, the W/ Super. The 0s.
-EE crores non(convertible debentures of TJS(Su"uki /imited rating of %% L 5high
safety with higher standing8 has been retained by *%0F.
>-
:;;A0TJS Su"uki /td, one of the leading two(wheeler manufacturers in the country, has
crossed the 0s.-, EEE(crore turnover mark in -77A(7;. TJS will be the first company in
the country to introduce the > stroke scooter in the !ndian market.TJS& new(generation
state(of(the(art four(stroke scooter Spectra, of which we gave Nou an exclusive preview
last month, was launched in spectacular fashion at the TJS #illennium Show on 'ctober
- in =ew Delhi. TJS Su"uki /td on 'ctober - launched its new generation >(stroke
scooter TTJS Spectra& in Delhi.
:;;;0TJS Su"uki is all set to launch a scaled(down version of Spectra the recently
launched four(stroke scooter. The company is set to launch Spectra on a nation(wide basis
in %pril. Su"uki has indicated to the TJS group that if it did not agree to the Bapanese
company&s acquiring a maority stake, it should allow Su"uki to set up a -EE per cent
subsidiary.
B???(The *ompany, pioneers of !ndo(Bapanese motorcycles in the country, has launched
its latest offering, Su"uki 2iero, in the 6erala market. Two()heeler maor, TJS(Su"uki
/imited is set to create a special cell to tap the institutional segment. The *ompany
proposes to re(launch its four(stroke scooter, Spectra, in Buly. Two(wheeler maor TJS
Su"uki is all set to cross the magic one million mark during the current fiscal with -1 new
models lined up over the next -; months. #otorcycle giant, TJS Su"uki, has forged an
alliance with $rand Dotcom to leverage the latter&s online expertise brand building on the
=et. TJS(Su"uki /td on %ugust 3Eth, formally launched its indigenously developed >
stroke motorcycle, TJS Jictor, here. The price has been fixed at 0s >-,-;A, 5ex(
showroom, *hennai8.The TJS group and Su"uki #otor *orporation September 1A parted
ways from their -G(year(old oint venture with the former buying out the 1G.7A per cent
stake of the Bapanese company for 0s 7 crore.
>1
B??B(TJS #otor *ompany /td has informed that the $oard declared an interim
dividend of 0s 7.EE per share on 1, 3-, EE,EAE equity shares of 0s -E9( each fully paid up,
aggregating to 0s 13-.EE million.
B??C(TJS #otor *ompany has recorded a market share of 3GP from motor cycle+s
division 6.S.$apai has been appointed as an %dditional Director on the $oard.TJS,
$aa %uto and Namaha have grabbed the market share from the country&s largest motor
cycle maker Hero Honda. The TJS victor sales has crossed > lakh unit mark in less than
-; months of its launch.TJS #otor has recorded a 3-P growth in its sales.* J 0 Canikar
has been appointed as %dditional Director on the $oard of TJS #otor *ompany
/td.TJS #otor *ompany has reintroduced 2iero, in order to compete with $aa Culsar.
TJS #otor *ompany /td has introduced its own racing bikes which Team TJS will test
on the tracks in %sian *ircuit.TJS #otor launched > new mobikes including a new brand
-EE(cc mobike called the *entra. TJS #otor *hairman and #D Jenu Srinivasan has
been selected in $usiness )eek&s Stars of %sia which covers the top 1G achievers in the
continent.TJS #otor *ompany adds two new models in two(wheeler segment. TJS
#otor ties up with State $ank of !ndia for scooter and #otorcycle financing. /aunches
2iero 21 and Scooty Cep models. $oard of approves the merger of engine components
division of its subsidiary, /akshmi %uto *omponents 5/%*8 with TJS #otors effective
from %pril 1, 1EE3
B??<0TJS #otor, on Ban G launched *entra, a -EE cc four(stroke motor cycle, with
variable timing intelligent 5JT!8 engines, claiming to give more mileage to consumers.
The *entra has bundled price, style, power along with fuel efficiency making it a fill(
once(a(month bike, and it&s priced at 0s.3:, 77E. nearly 0s -EE crore investment had gone
into the launch of &*entra&, including 0.D, plant and machinery.TJS #otor *ompany
Mnveil TJS *entra )ith & JT(i Fngines&,, a -EE ** > stroke #otorcycle. TJS #otor
>3
*ompany launched its new bike ( TJS *entra ( here on 2ebruary 7, 1EE>, for the first
time in the State. !t is a -EE(cc four(stroke motorcycle targeted at the popular segment
and a 2ill(it(once(a(month bike, competitively priced at 0s. 3:,77E. The vehicle has been
launched in Banuary in the metros and other cities and so far ;,EEE vehicles had been sold
in the country.TJS #otor *ompany and Mnion $ank of !ndia 5M$!8 have announced the
launch of Mnion #iles Scheme,& an exclusive two(wheeler finance scheme TJS #otor
*ompany 5TJS8 launches new -1Gcc, >(stroke Jictor </W motorcycle in *hennai on
#ay E1, 1EE>
B??=0TJS #otor *ompany introduced its entry(level >(stroke motorcycle ( TJS Star (
in the 6erala market
B??>0TJS #otor appoints new Cresident TJS launches %pache in Ji"ag TJS #otor
*ompany launched a new version of -1G cc Jictor </W with an electric start option
B??@0 TJS #otor *o, has rolled out seven new vehicles, including its first three(wheeler
and a new -1G cc bike, aimed at gaining lost share in a highly competitive market.
Management 0 T5S Motor
(ame +e!ignation
Jenu Srinivasan *hairman and #anaging director
T 6annan Director
6 S $apai Director
Crince %sirvatham
Director
(ame +e!ignation
H /akshmanan Director
* 0 Dua Director
0 0amakrishnan =on Fxecutive Director
Mi!!ion
we are committed to being a highly profitable, socially responsible, and leading
>>
manufacturer of high value for money, environmentally friendly, lifetime personal
transportation products under the TJS brand, for customers predominantly in %sian
markets and to provide fulfillment and prosperity for employees, dealers and suppliers.
5i!ion
T5S Motor 0 +ri7en 6y the cu!tomer
TJS #otor will be responsive to customer requirements consonant with its core
competence and profitability. TJS #otor will provide total customer satisfaction by
giving the customer the right product, at the right price, at the right time.
T5S Motor E Committed to Total Fuality
TJS #otor is committed to achieving a self(reviewing organi"ation in perpetuity by
adopting T[# as a way of life. TJS #otor believes in the importance of the process.
Ceople and proects will be evaluated both by their end results and the process adopted.
TJS #otor believes that people make an organi"ation and that its well(being is
dependent on the commitment and growth of its people. There will be a sustained effort
through systematic training and planning career growth to develop employee+s talents and
enhance ob satisfaction. TJS #otor will create an enabling ambience where the
maximum self(actuali"ation of every employee is achieved. TJS #otor will support and
encourage the process of self(renewal in all its employees and nurture their sense of self
worth.TJS #otor firmly believes in the integration of Safety, Health and Fnvironmental
aspects with all business activities and ensure protection of employees and environment
including development of surrounding communities. TJS #otor strives for long(term
relationships of mutual trust and interdependence with its customers, employees, dealers
and suppliers.
>G
MA'ETI($ STATE$IES
2or Two wheelers company, it is not about merely adding numbers any more, as they will
come by any way in an extremely under(penetrated market, but time reassure customers
of enhanced user experience. XThey now have a near pan(!ndia presence barring <ha"ipur
and =orth Fast and have created an bike. So we thought we will take the message of
enhanced user experience for the existing customers. The theme campaign too is built on
this line,X he said. X%s a part of this initiative, we have created what we describe as a 3:E
degree touch point experience, through 1E,EEE experienced professionals, 3,1EE value
stores across cities and towns and backed by digital and viral marketing. This is aimed at
creating a stronger bond between the company and the customers and is based on
customer feedback,X she explained. The campaign would include ad blit" with actor
Hrithik 0oshan and would be backed by other brand ambassadors with the underlining
message Texperience the difference.&
Enriching E&perience
X%s the world moves to next generation insurance offering new plans, she explained.
!nitially, there was the issue of lack of price. $ut the market is now flooded with
%ttractive price from 0s -E,EEE and users have the choice to bike of their *hoice from
wherever they like.
>:
4amaha Motor Company
>A
4amaha Motor Company *imited 5ヤマハ発動機株式会社 Namaha Hatsud\ki 668,
is a Bapanese manufacturer of motorcycles, marine products such as boats and outboard
motors, and other motori"ed products. The company was established in -7GG upon
separation from Namaha *orporation, and is headquartered in !wata, Shi"uoka, Bapan.
Namaha #otor conducts global development, production and marketing operations
through -E7 consolidated subsidiaries as of 1E-1./ed by <enichi 6awakami, the
company+s first president, Namaha #otor began production of its first product, the N%(-,
in -7GG. The -1Gcc motorcycle won the 3rd #ount 2ui %scent 0ace in its class, and
launched a legacy by which the company continues to pursue motorsports as a means to
accelerate development. Namaha #otor+s current lineup of products includes
motorcycles, scooters, electrically power assisted bicycles, boats, sail boats, personal
watercrafts, pools, utility boats, fishing boats, outboard motors, >(wheel %TJs,
recreational off(highway vehicles, racing kart engines, golf cars, multi(purpose engines,
generators, water pumps, snowmobiles, small(si"ed snow throwers, automobile engines,
surface monsters, intelligent machinery, industrial(use unmanned helicopters, electrical
power units for wheelchairs and helmets. The company is also involved in the import and
sales of various types of products, development of tourist businesses and management of
leisure, recreational facilities and related services.
India 4amaha Motor P7t# *td#
Namaha made its initial foray into !ndia in -7;G. !n %ugust 1EE-, Namaha !ndia became
a -EEP subsidiary of Namaha #otor *o., /td, Bapan 5N#*8. !n 1EE;, #itsui . *o., /td.
entered into an agreement with N#* to become a oint(investor in the motorcycle
manufacturing company X!ndia Namaha #otor Crivate /imited 5!N#8X.!N#&s
>;
manufacturing facilities comprise of 1 State(of(the(art Clants at 2aridabad 5Haryana8 and
Surapur 5Mttar Cradesh8. The infrastructure at both the plants supports production of
motorcycles and parts for the domestic as well as overseas markets. The Surapur plant
was established in -7;>. The stateIof(the(art %ssembly plant at Surapur was inaugurated
on :th Buly+E7 and is spread over an area of 3:,EEE sq. mts. !t has the capacity to produce
- million motorcycles and scooters annually. This fully integrated assembly plant is built
on the lines of Namaha+s globally tried, tested and successfully implemented standards
and meets the global quality benchmarks. The plant has 3 vehicle assembly lines and >
engine assembly lines. The 2aridabad Clant was established in -7:G and was upgraded in
1EE; for manufacturing of machined parts like <ears . shafts, *rank, *lutch %ssembly,
*rank *ase, $ody *ylinder, Head *ylinder.!n %pril 1E-3, !N# established 1 functionally
independent entities namely Namaha #otor !ndia Sales Cvt. /td. 5N#!S8 that will cater
to the sales and marketing needs of the company and Namaha #otor 0esearch and
Development !ndia Cvt. /td. 5N#0!8 that is intended to increase Namaha+s
manufacturing competitiveness through the establishment of an 0.D headquarters in
!ndia.)ith a strong workforce of more than 1,EEE employees, !N# is highly customer(
driven and has a countrywide network of over >EE dealers. Cresently, its product portfolio
includes ND2(0-G Jersion 1.E 5-GEcc8, 2a"er 5-G3cc8, 2D(S 5-G3cc8, 2D 5-G3cc8, SD(W,
SD(0 . SD(00 5-G3cc8, SS-1G 5-13cc8, N$0 -1G 5-13cc8, N$0 --E 5-E:cc8, *rux
5-E:cc8 and scooter 0ay 5--3cc8 and 0ay D 5--3cc8. !ts import portfolio includes J#%W
5-,:A7cc8, ND2(0- 577;cc8 and 2D- 577;cc8.
A6out 4amaha Motor India Sale! P7t# *td#30
!n %pril 1E-3, !ndia Namaha #otor established a functionally independent sales and
marketing entity i.e. Namaha #otor !ndia Sales Cvt. /td 5N#!S8.The newly
formed Namaha #otor !ndia Sales Cvt. /td. 5N#!S8 is intended to further strengthen the
>7
Sales . #arketing unit which is responsible for sales . promotion, after sales service
and provision of spare parts. !t has been Namaha+s constant endeavor to fortify its brand
image and supersede customer expectation. N#!S will continue to reinforce its
relationship with the customers with its 4NFS] N%#%H%] *ampaign which emphasi"es
on providing the $est 3S Fxperience I Sales, Service and Spare Carts so that the customer
always appreciates Namaha and accepts the brand like the word ?NFS@.Namaha #otor
!ndia Sales Cvt. /td. 5N#!S8 is currently responsible for the Sales and promotion of ND2(
0-G Jersion 1.E 5-GEcc8, 2a"er 5-G3cc8, 2D(S 5-G3cc8, 2D 5-G3cc8, SD(W, SD(0 . SD(
00 5-G3cc8, SS-1G 5-13cc8, N$0 -1G 5-13cc8, N$0 --E 5-E:cc8, *rux 5-E:cc8, 0ay
5--3cc8, 0ay D 5--3cc8 and %lpha 5--3 cc8 Scooter. The import portfolio includes
J#%W 5-,:A7cc8, ND2(0- 577;cc8 and 2D- 577;cc8.The head office for N#!S is located
in *hennai.
A6out 4amaha Motor e!earch and +e7elopment India P7t# *td
Namaha #otor 0esearch and Development !ndia Cvt. /td. 5N#0!8 has been established
to function as the motorcycle 0.D headquarters for Namaha #otor *o., Bapan. This
initiative is intended to reinforce the global competitiveness of Namaha+s engineering,
manufacturing and marketing functions in !ndia. !t was formally established on -;th
2ebruary 1E-3 and has been functional since -st %pr 1E-3. !t is currently operating from
the headquarters of !ndia Namaha #otor Cvt. /td., Surapur. .N#0! is the fifth overseas
0.D headquarters for Namaha #otor <roup following !taly, Taiwan, *hina, and
Thailand. Namaha #otor 0esearch and Development !ndia Cvt. /td. 5N#0!8 functions as
GE
the core of the !ntegrated Development *enter 5!D*8 concept. !n addition to 0.D
activities, global part sourcing activities have been included into the !D*. The -st such
center was established as %SF%= !ntegrated Development *enter in Thailand in 1E-1.
N#0! will contribute to Namaha global operations by focusing on optimum utili"ation of
!ndian resources and developing new models best suited to !ndian customer requirements.
5i!ion
)e will establish N%#%H% as the Xexclusive . trusted brandX of customers by
Xcreating 6andoX 5touching their hearts8 ( the first time and every time with world class
products . services delivered by people having Xpassion for customersX.
Mi!!ion
We are committed to3
$e the Fxclusive . Trusted $rand renowned for marketing and manufacturing of
N%#%H% products, focusing on serving our customer where we can build long term
relationships by raising their lifestyle through performance excellence, proactive design
. innovative technology. 'ur innovative solutions will always exceed the changing needs
of our customers and provide value added vehicles.$uild the )inning Team with
capabilities for success, thriving in a climate for action and delivering results. 'ur
employees are the most valuable assets and we intend to develop them to achieve
international level of professionalism with progressive career development. %s a good
corporate citi"en, we will conduct our business ethically and socially in a responsible
manner with concerns for the environment.<row through continuously innovating our
business processes for creating value and knowledge across our customers thereby
earning the loyalty of our partners . increasing our stakeholder value.
G-
Core competencie!
Cu!tomer G:
)e put customers first in everything we do. )e take decisions keeping the customer in
mind.
Challenging Spirit
)e strive for excellence in everything we do and in the quality of goods . services we
provide. )e work hard to achieve what we commit . achieve results faster than our
competitors and we never give up.
Team0worD
)e work cohesively with our colleagues as a multi(cultural team built on trust, respect,
understanding . mutual co(operation. Fveryone&s contribution is equally important for
our success.
G1
2ranD / 2air )rgani%ation
)e are honest, sincere, open minded, fair . transparent in our dealings. )e actively
listen to others and participate in healthy . frank discussions to achieve the organi"ation&s
goals.
India 4amaha Motor inaugurated (ew Plant at Sura8pur ,$reater (oida.

The new Surapur plant has been inaugurated by #r. T.6a"ikawa *.F.' . #D Namaha
<lobal on :th Buly 1EE7, which have capacity to produce : lakh motorcycles annually
including 2a"er followed by 2D(-:, 2D(S, ND2(0-G and other models. The plant capacity
can be augmented up to - million units. This fully integrated assembly plant is built on
the lines of Namaha+s globally tried, tested and successfully implemented standards and
meets the global quality benchmarks. %t the core are the G(S and TC# activities that fuel
its #anufacturing Crocesses. The plant has 3 vehicle assembly lines and > engine
assembly lines including one dedicated for export engines. The engine and vehicle
assembly lines are synchroni"ed and incorporate concepts of Mnit %ssurance i.e.
*omplete Croduct %ssurance, Carts %ssurance through -EEP kit supply on lines and
synchroni"ation of parts storage, supply and production. The innovative production
processes along with high tech final assurance processes are aimed to achieve Dero
*laims at our dealers and thus, a highly satisfied customer base.
4amaha Motor di7i!ion!
• #otorcycles U Sport bikes, Star *ruiser bikes, trail bikes, road racers and
motocross racers
• *ommuter vehicles, including scooters
G3
• 0ecreational vehicles U %ll(terrain vehicles and snowmobiles
• $oats U Cowerboats, sailboats, utility boats and custom boats
• #arine engines U 'utboard motors, electric marine motors, marine diesel
engines and stern drives
• Cersonal watercraft
• Flectric bicycles
• %utomobile engines
• !ndustrial(use unmanned helicopters
• <olf cars
• Cower products U generators, multipurpose engines, water pumps and snow
throwers
• Swimming pools, waterslides and pool(related equipment
• !ntelligent machinery, including compact industrial robots
• Flectric wheelchairs and wheelchair electric drive units
• Namaha parts and accessories, apparel, cycle helmets and motor oil
• !ndustrial robots and surface maunders
'ey product!
G>
Motorcycle!
Namaha&s first motorcycle was the - N%(-, which was a copy of the <erman D6)
0T-1G, and had a -1G cc, single(cylinder two(stroke engine. !t was launched in 2ebruary
-7GG and the bike won its first race, the #ount 2ui %scent 0ace, in Buly -7GG. Namaha
continued producing two(stroke engines until it launched the WS(- in -7:7, with a :GE cc
two(cylinder four(stroke engine, using expertise that it gained doing engine development
work for Toyota. !n -77; Namaha marketed a revolutionary -EEEcc four cylinder road
bike called the ND2 &0-&, this model introduced a new style of gearbox design which
shortened the overall length of the motor9gearbox case, thereby allowing a more compact
unit. This, in turn allowed the motor to be placed in the frame far enough forward to
compliment good handling in a short wheel(based frame, a revolutionary step forward in
motorcycle design
^>_
!n -7A7, the WTGEE won the first Caris(Dakar 0ally. !n -77G,
Namaha announced the creation of Star #otorcycles, a new brand name for its cruiser
series of motorcycles in the %merican market. !n other markets, Star motorcycles are sold
under the Namaha brand. !n 1EEA, Namaha officially established the Chilippine
operations and distributes Namaha motorcycles under the corporate name of Namaha
#otor Chilippines, !nc# Today, Namaha produces scooters from GE to GEE cc, and a range
GG
of motorcycles from GE to -,7EE cc, including cruiser, sport touring, sport, dual(sport, and
off(road.
BiDe! model! of 4amaha in India
• Namaha crux
• Namaha 2a"er
• 2 D -:
• 2 D s
• 2 D -
• Namaha gladiator
• Namaha ND2
acing
!n motorcycle racing Namaha has won 3: world championships, including 3 in #oto <C
and 7 in the preceding GEE cc two(stroke class, and - in )orld Superbike. Namaha riders
include <iacomo %gostini, $ob Hannah, Heikki #ikkola, 6enny 0oberts, Fddie /awson,
)ayne 0ainey, Beremy #c<rath, Stefan #erriman, Chil 0ead, *had 0eed, $en Spies,
Bames Stewart and currently Borge /oren"o and Jalentino 0ossi.The Namaha ND>GE2
won the %#% Super cross *hampionship two years in a row, in 1EE; with *had 0eed,
and 1EE7 Bames Stewart. Namaha was the first to build a production mono shock
motocross bike 5-7AG for 1GE and >EE, -7A: for -1G8 and one of the first to have a water(
cooled motocross production bike 5-7AA in works bikes, -7;- in off(the(shelf
bikes8.Since -7:1, Namaha made production road racing <rand Crix motorcycles that any
licensed road racer could purchase. !n -7AE, non(factory privateer teams dominated the
G:
1GE cc )orld *hampionship with <reat $ritain&s 0odney <ould winning the title on a
Namaha TD1.Namaha also sponsors several professional %TJ riders in several areas of
racing, such as cross country racing and motocross. Namaha has had success in cross
country with their N2D>GE, ridden by $ill $allance, winning 7 straight titles since 1EEE.
Namaha&s other maor rider, Traci *ecco, has ridden the N2D>GE to A titles, with the first
in 1EEE. !n %TJ motocross, Namaha has had success with Dustin =elson and Cat $rown,
both who race the N2D>GE. Cat $rown&s best season was a 3rd place title in 1EEA, while
=elson has had two -st place titles in the Namaha9!TC [uad cross, one in 1EE: and the
other in 1EE;.Namaha produced 2ormula 'ne engines from -7;7 to -77A, initially for the
Dakspeed team, in -77- for the $rabham $T:EN, in -771 for the Bordan -71, from -773
to -77: for Tyrrell, and in -77A for the %rrows %-;. These never won a race, but drivers
including Damon Hill, Mkyo 6atayama, #ark $lundell and %ndrea de *esaris scored
some acceptable results with them.
)68ecti7e! of the !tudy
GA
 To find out the consumer preference of Fveready
 To find out the satisfaction levels towards service provide by Fveready#
 To find out the maor competitor of Fveready.
 To study the market analysis of Fveready
 To study the distribution channel of Fveready
Importance of the !tudy
G;
The importance of a proect report is following.
 The study will help to know that what additional features . what facilities should
be increase.
 The importance of proect study is that it is helpful to make future policy of the
company.

G7
Scope of the !tudy
Croect aims to understand and enunciate the working process of different automobile and
evaluating its outcome in the two wheeler automobile sector. 'ver the past few years,
there has been tremendous progress made around the world in opening up travel and
tourism markets to the benefits of increased competition. 'ne of the main aspects of the
proect is to analy"e the different products and services offered and initiatives adapted for
two wheeler automobile sector their product. Selling ?intangible assets@ is one of the
toughest obs in the world. The proect is more of a team effort and will incur team
returns

:E
e!earch Methodology
0esearch is a common language refers to a search of knowledge. 0esearch is scientific .
systematic search for pertinent information on a specific topic, infect research is an art of
scientific investigation. 0esearch #ethodology is a scientific way to solve research
problem. !t may be understood as a science of studying how research is don+t
scientifically. !n it we study various steps that are generally adopted by researchers in
studying their research problem. !t is necessary for researchers to know not only know
research method techniques but also technology. The scope of 0esearch #ethodology is
wider than that of research methods.
The research problem consists of series of closely related activities. %t times, the first step
determines the native of the last step to be undertaken. )hy a research has been defined,
what data has been collected and what a particular methods have been adopted and a host
of similar other questions are usually answered when we talk of research methodology
concerning a research problem or study. The proect is a study where focus is on the
following pointsH
e!earch +e!ign30
% research design is defined, as the specification of methods and procedures for acquiring
the !nformation needed. !t is a plant or organi"ing framework for doing the study and
collecting the data. Designing a research plan requires decisions all the data sources,
research approaches, 0esearch instruments, sampling plan and contact methods. The
!tudy wa! de!cripti7e Dind of re!earch#
:-
0esearch design is mainly of following typesH
-. Fxploratory research.
1. Descriptive studies
3. *ausal studies9Fxperimental studies
:# E&ploratory re!earch30
The maor purposes of exploratory studies are the identification of problems, the more
precise 2ormulation of problems and the formulations of new alternative courses of
action. The design of exploratory studies is characteri"ed by a great amount of flexibility
and ad(hoc veracity.
B# +e!cripti7e re!earch30
Descriptive research in contrast to exploratory research is marked by the prior
formulation of specific research [uestions. The investigator already knows a substantial
amount about the research problem. Cerhaps as a 0esult of an exploratory study, before
the proect is initiated. Descriptive research is also characteri"ed by a Creplanned and
structured design.
C# Cau!al !tudie!HE&perimental !tudie!
% casual design investigates the cause and effect relationships between two or more
variables. The hypothesis is tested and the experiment is done. There are following types
of casual designs
a. %fter only with control design
b. $efore after with control design
c. $efore after without control design
d. *onsumer panel design
e. Fx(post facto design
:1
0esearch Design has been classified into four subsections they areH
-. Sample selection and si"e,
1. Sampling procedure,
3. Data collection, and
>. %nalytical tools
Sample Selection and !i%e
The first step of research is sample selection, for which the respondents were consumers
in Jaranasi city. The total consumers covered were -1E. The same questionnaires were
distributed, but only -EE fully(completed questionnaires were received. 0esults are based
on the response of these -EE respondents, and in this ;E respondent chosen Fveready
batteries.
Sampling Procedure
There are basically two methods of samplingH(
Pro6a6ility !ampling
!t is also known as random sampling. Mnder this sampling design every item of the
universe has an equal chance of inclusion in the sample. !t is, so to say, a lottery method
in which individual units are picked from the whole group not deliberately but by some
mechanical process. Here it blind chance alone that determines whether one item or the
other is selected. The results obtained from probability sampling can be assured in terms
of probability.
:3
(on Pro6a6ility !ampling
=on Crobability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has been included in the
sample. !n this type of sampling, items for the sample selected deliberately by the
researcher, his choice concerning the items remains supreme.
2or the !tudy the con!umer! are !elected 6y the con7enience !ampling
method# The selection of units from the population based on their easy availability and
accessibility to the researcher is known as convenience sampling
+ata Collection method
+ata Collection Method
Primary Secondary
Direct personal !nterview
!ndirect personal !nterview <ovt. publication
!nformation from correspondents 0eport *ommittees
#ailed questionnaire . *ommissions Crivate Cublication
[uestion filled by enumerators 0esearch !nstitute
The task data collection begins after research problem has been defined. There are two
methods for data collection.
Primary data
:>
Cublished Sources Mnpublished Sources
Crimary data may be described as those data that have been observed and recorded by the
researcher for the first time to their knowledge.
Secondary data
Secondary data are those data which have been already collected and analy"ed by some
earlier agency for its own use, and later the same data are used by a different agency.
2or the present study, the survey method was used for collecting primary data. %
structured questionnaire was used for the purpose. The questionnaire included multiple
choice questions. The main source of secondary data has been the leafy ournal of
*onsumer $ehavior, and !ndian ournal of #arketing. The study employs primary data
collected by communicating with the respondents with the help of structured
questionnaire. The study mainly deals with the behavior of individual towards *onsumer
Creference for Fveready $atteries in /ucknow.
Analytical +ata
The data thus collected, was tabulated, interpreted and analy"ed with a view to make the
study meaningful. !n the present study, hypothesis testing, percentage, frequency and
cross tabulation methods have been used for analysis.
Percentage of Share in Indian Market
:G
Ta6le0 :
*ompany Share
Namaha >P
Honda -AP
TJS -1P
$aa %uto 13P
Hero#oto*orp >-P
Chart0 :
Analy!i!
::
!t is found that 41 % shares are Hero Moto Corp hae in the Indian !arket"
Interpretation
2rom the above analysis the researcher came to know that !ale of -ero 6iDe! i! 7ery
much in the marDet and it’! ha7e the good 6rand image#
:A
Two Wheeler !ale! in B?:B0B?:C / $rowth
Ta6le0 B
*ompany 1E-1 1E-3 <rowth
Namaha >>:;; GA-:E 1;P
Honda 113->G 3-7E;E 37P
TJS -::A73 -GG:E> (AP
#ahindra -E:A: 1>1>G -1AP
Hero#oto*orp GE13EG G3EG3E :P
Chart0 B
:;
Analy!i!
!t is found that Mahindra #$o %heeler co!pany gro$th in the Indian !arket is ery
tre!endous $ith 1&'% in &(1&to &(1) and #*S is the get least sales in this year"
Interpretation
2rom the above analysis the researcher came to know that growth o+ Mahindra #$o
%heeler co!pany is ery !uch in the !arket and it,s hae the good -rand i!age, and
#*S loss its -rand i!age"
:7
anDing a! )ff May’:C
Ta6le0 C
0ank Company #ay+-3 PShare
- Hero GGA;7E >-.>7P
1 $aa 3E>A;E 11.:AP
3 Honda 117EE: -A.E3P
> TJS -G73>: --.;GP
G Namaha >7>:E 3.:;P
: Su"uki 3;EEE 1.;3P
A #ahindra :EEE E.>G
AE
Chart0 C
Analy!i!
!t is found that Hero Moto Corp is the +irst rank $ith 41"4.% shares" /nd other is least
shares in this year"
Interpretation
A-
2rom the above analysis the researcher came to know that growth of -ero Moto Corp
company i! 7ery much in the marDet and it’! ha7e the good 6rand image" and other
i! lo!! in thi! year"-rand i!age"
2inding!
 Hero Honda has managed to put in spectacular performance going from strength
despite increase in competition, the company&s sales have witnessed an uptrend,
registering an average growth of >1P in the three years under review.
 Hero #oto *orp is the first rank with >-.>7P shares. %nd other is least shares in
this year.
 #ahindra Two )heeler company growth in the !ndian market is very tremendous
with -1AP in 1E-1to 1E-3 and TJS is the get least sales in this year.
 >- P shares are Hero #oto *orp have in the !ndian market.
 Two wheeler automobile sectors is the backbone of the automobile sector in !ndia.
%fter deep research, analysis and getting information about companies as
formulated that the two wheeler automobile companies achieved success in the
market.
 Throughout the study we found the Two wheeler manufacturer having very new
and modern technology in their bikes, they have a good market share in !ndia,
many of #=*&s like Honda, Namaha ,Su"uki are also giving large competition.
A1
 *oncluding the performance of the company related to two wheeler sector in
!ndia, getting their market share and growth and what are services they are
providing after sales.
 The real war is between Hero Honda and $aa auto. $ut one cannot discount the
fact that there are other players, who are gaining strength day by day.
ecommendation!
%fter completion of the research work the researcher came to some conclusions which
could help the company in development . improvement of service process. This is
helpful in future development of the company. The following points come in the
suggestion parts which came after the analysis and conclusion of the researchH(
 The company should improve the quality of the product.
 The company should improve its promotional activities through advertisement,
free gifts coupons etc. Since the price of the product is also an important factor
which influence the purchasing decision so the company should design the
products price according to the customer affordance level.
 *ompany should instruct the sales representatives not to make extra ordinary
commitments on behalf of the company for sale.
A3
 The distribution channel should be arranged according to the convenient of the
customer.
 =o matter how much on organi"ation progresses it always lack something. These
are shortcoming of every company. %fter completing my report on new Hero
Honda motors /td. ! have some suggestions to offer. The suggestions can be
proved useful for the company as they have feasibility and viability.
 Hero Honda #otors only manufacture a wide rand of >(stroke bike. $ut in my
opinion 1(stroke bikes have a better pick up. So in order to letter to the need of a
large segment of customers, who want a better pick up bike, Hero Honda go into
the manufacture of 1(stroke bikes.
 The company has always targeted urban sector of !ndian population. $ut in the
rural sector escorts, 0adoot enoys a great market share. So, therefore Hero
Honda should target this upcoming market.
 Hero Honda should keep a strict watch on to competitions. 2or instance Namaha
has introduced a >(stroke bike ?N$6@ whose features are almost same as
Splendors.
 The company should work more on public relation.
A>
Conclu!ion!
 The study which we conducted on the two wheeler automobile sector is a very
important topic of automobile sector.
 Two wheeler automobile sectors is the backbone of the automobile sector in !ndia.
%fter deep research, analysis and getting information about companies as
formulated that the two wheeler automobile companies achieved success in the
market.
 Throughout the study we found the Two wheeler manufacturer having very new
and modern technology in their bikes, they have a good market share in !ndia,
many of #=*&s like Honda, Namaha ,Su"uki are also giving large competition.
 *oncluding the performance of the company related to two wheeler sector in
!ndia, getting their market share and growth and what are services they are
providing after sales.
AG
 Hero Honda has managed to put in spectacular performance going from strength
despite increase in competition, the company&s sales have witnessed an uptrend,
registering an average growth of >1P in the three years under review.
 Hero Honda has managed to achieve this because its strong brand image and
proven product quality underpinned the performance growth in recent years. %part
from the strong brand XsplendorX the company&s performance across the spectrum
of the motorcycle market helped it exploit the growing demand for >(stroke
motorcycle.
 %t the lower end the company has *D -EE SS at middle level splendor, passion
and Dawn the *$D Fxtreme9 6ari"ma range is targeted at premium segment.
Some years back Hero Honda are getting stiff competition because of $aa, TJS and
Namaha have a presence in -1Gcc bikes segments where Hero Honda has not any
presence in this segment. =ow this gap is filling up by Hero Honda&s new Splendor =W<,
<lamour. $ut still there is a gap between -GEcc to 11Gcc segment which is most
preferable segment by youth today.
 )ith newer and better models are coming up customer has better and bigger
choices to choose from.
 !t is the competition on various aspects such as price, design technology, after
sales services and even purchases offers, which provides to both buyer and seller.
 Fven many dealers are in view that today Hero Honda and $aa, thrives on
competition.
 0ight now it seems that the real war is between Hero Honda and $aa auto. $ut
one cannot discount the fact that there are other players, who are gaining strength
day by day.
A:
*imitation! of the e!earch
Despite all possible efforts in conducting the research there was some unavoidable
situation, which limited the scope of this dissertation. The limitations of the dissertation
fall under the followingH(
:. This dissertation is confined on the basis of secondary data collected only hence it
reliable data for the study.
B# %s the research is based on the data that already available and collected through
various means not includes the survey, hence it imposes limitations, as it is ust possible
that the secondary data may be unsuitable or may be inadequate in the context of the topic
under study.
C# 'ne of the maor limitations of the study is that, as the data is collected though the
secondary means, hence it creates uncertainties regarding the methods of the data
AA
collection, time of data collected, and any bias of the compiler during the previous
research and at the time of data collection.
<. /imitation of time . resources were a maor factor influencing the research study.
=# The research guide has helped us though at the proect study, yet his busy time
schedule restricted as to cut short our discussions though detailed discussions were
required for the proect.
Bi6liography
BooD!HMaga%ine! eferred30
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Cearson Fducation, =ew Delhi 1EEA. Cublisher( Dorling
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Fdition#
 E7eready In0hou!e (ew!letter!#
B1SI(ESS MA$AJI(E / (EWS PAPE3
 The Times of !ndia
 The Fconomic Ti mes
 >Cs, Citch, $usiness . Fconomy
 $usiness )ord. $usiness Standard
 $usiness Today
 $usiness
Internet3
A7
 www.google.com
 www.eveready.com
 www. Fvereadybatteries.com
;E