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PART-I

INTRODUCTION
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1.1.OVERVIEW OF
AUTOMOBILE SECTOR IN
INDIA

The Automobile sector is one of the fastest growing


manufacturing sectors in India.

In the 90s the industry witnessed an average growth rate of


above 20 percent.

Indian Automobile Industry is characterized by a very high


percentage (75 per cent) of two wheeler production, ranking
second only to Taiwan.

The world leaders in the sector are evincing keen interest in


establishing manufacturing facilities for manufacturing and
assembling components.

A politically stable and vibrant State, Andhra Pradesh is


centrally located with the support of seaports, international
airports, assured and reliable power supply, abundant water,
broad base of auto

component manufacturers,

highly

trained, skilled and disciplined manpower and is therefore,


the preferred location for Automobile industries.

The interest of the state has been duly noted by Global Auto
Majors, who have indicated their interest to consider Andhra
Pradesh for establishing manufacturing facility.

The Government of Andhra Pradesh invites leaders in the


industry to set up manufacturing facilities to manufacture
vehicles or vehicle components in the State. The ideal places
to locate companies in the Auto Sector are the HyderabadZaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-TadaSathiveedu and Vijayawada-Guntur corridors.

The Government is also formulating an Auto Policy, which


would give a proper direction to the growth of the sector.

There are more than 20 auto component manufacturing


companies in the State, manufacturing components such as
grey-iron

castings,

precision

aluminium

castings,

leaf

springs,oils and lubricants, diesel fuel injection equipment,


electronics and auto electronics and auto electrical, front
axles, gears, forging, machined components, pressed metal
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components,

pistons,

cylinder

liners,

nozzles,

delivery

valves, starter motors, alternators, electronic regulators,


high pressure die castings, clutch covers, fuel filters ,etc.

Most of these components are presently being supplied to


Hero Honda, TVS Suzuki, Escorts Yamaha, Bajaj and others.
Amaron Batteries are manufactured in Chittoor district.
Around 119 components manufacturers have been certified
for ISO 9000 quality standards and seven companies
achieved the QS 9000 quality standard set by government
and motors association.

1.2 ABOUT THE COMPANY


Hero Honda has a reputation of being the most fuel-efficient and
the largest selling Indian motorcycle. Its commitment of providing
the customer with excellence is self-evident. A rich background of
producing high value products at a reasonable price led the
world's largest manufacturer of motorcycles to collaborate with
the

world's

largest

bicycle

manufacturer.

It was this affinity in working cultures of Honda Motor Company of


Japan and the Hero Group that resulted in the setting up of Hero
Honda Motors Ltd. A relationship so harmonious that Hero Honda

has managed to achieve indigenization of over 95 percent, a


Honda record worldwide.
Tactical promotions and excellent marketing helped Hero Honda
establish itself as an intelligent purchase. Its unique features like
fuel conservation, safety riding courses and mobile workshops
helped

the

group

reach

in

the

interiors

of

the

country.

Finance services helped facilitate purchase, as did an efficient


dealer network across the country.
Well-entrenched in the domestic market, Hero Honda Motors Ltd.
turned its attention overseas, and exports have been steadily on
the

rise.

Over the years, the Company has received its share of accolades,
including the National Productivity Council's Award (1990-91), and
the Economic Times - Harvard Business School association of
India Award, against 200 contenders.

Its main Models are


4

Hero Honda
o

cbz

CBZ Xtreme

splendor

Splendor plus

Super splendor

CD 100

CD 100ss

CD dawn

CD deluxe

Street smart

Passion

Passion plus

Karizma

Ambition 135

Hunk

1.5.STRUCTURE
Hero

Honda

Motors

Ltd

(HHML),

the

worlds

largest

two-wheeler

manufacturer for eight consecutive years, continues to drive industry


5

volumes with a robust 24 per cent growth in the month of February 2009
over the corresponding month in 2008. Hero Honda today reported sales of
329,055 units in the month of February 2009, as compared to 265,431 twowheelers in February 2008.
Despite an overall slowdown, Hero Honda continues with its accelerated
growth story. In the period April08-January09, while overall industry grew
by 1.7 per cent, Hero Honda has grown by 10.7 per cent. Now with its
robust performance in February, Hero Hondas YTD growth has further gone
up to more than 11 per cent.
Mr. Anil Dua, Sr. Vice-President (Marketing & Sales), Hero Honda Motors Ltd
said, Our new launches, including Passion Pro Power Start in particular,
have been driving strong volumes across geographies, further consolidating
our more than 56 per cent share in the domestic motorcycle market. We
have just introduced a Special Edition Hunk to commemorate our 25th Year,
which is also expected to catch the fancy of our customers.
The consistently-positive

performance

in

the midst of the current

challenging environment reflects the value of reaching out to customers


with

dependable products and compelling propositions. This has been

supported by a series of initiatives around the extensive product range,


focused communication, on-ground activation, network expansion, financial
discipline and operational excellence.
Hero Honda recently received four prestigious awards at the NDTV Profit Car
India Bike India Awards 2009 which include The Viewers Choice Award for
Passion Pro, Two Wheeler Manufacturer of the Year Award, Best Integrated
Campaign

Award

for

Hero

Honda

Pleasure,

and

The

Best

Brand

Ambassador of the Year Award which went to Priyanka Chopra for Pleasure.
[Source: Hero Honda Motors Ltd]
Similar Posts:

Hero Honda Sales Up By 30 Percent In April 2009

Hero Honda Sales Increased Up By 10 Percent In March 2009

Hero Honda June 2009 Sales Figures

Hero Hondas Two Wheeler Sales Up By 5.84 percent In India


6

Hyunda Motors India Sales Up By 45 Percent In February

Hero Honda A Proof Of Recession?

TVS Motors Sales Increase Up By 4 Percent In March 2009

Bikes Sales Up In March

Hero Honda September 2009 Sales Figure

Honda & Hero Honda Motors To Continue Further Their 25 Year Old
Partnership

INDUSTRY SCENARIO
In the present scenario of automobile industry the major companies are: Manufacturers

Products

% of market share

HERO HONDA
BAJAJ AUTO
LML
TVS
YAMAHA
ENFIELD

Motorbikes
Scooter+Motorbikes+ Scooterate
Scooter+Motorbike+Scootrate
Motorbikes+Scootrate
Motorbikes
Motorbikes

75% market share


25% market share
30% market share
15% market share
15% market share
10% market share

According to the recent results company (Hero Honda) registered a sales increased
by 24.5% over the past years. Same month TVS also registered increase of 45%
while the other companies are not enjoying quiet good increase in sales. While the
whole industry registered an increase of about 17% only. So in present scenario the
Hero Honda comes as the leader of whole automobile segment while there is
immense competition in industry to get the highest market share.

VISION
8

&
MISSION
1.3 VISION & MISSION THE
COMPANY
MISSION STATEMENT
IN PURSUIT OF EXCELLENCE
We, at Hero Honda, are continuously striving for synergy between technology,
systems, and human resources to provide products and services that meet the
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quality, performance, and price aspirations of our customers. While doing so, we
maintain the highest standards of ethics and societal responsibilities, constantly
innovate products and process, and develop teams that keep the momentum going
to take the company to excellence in the new millennium.

1.4.Performance of Hero
Honda
What started out as a Joint Venture between Hero Group, the worlds largest
bicycle manufacturers and the Honda Motor Company of Japan, has today become
the Worlds single largest two wheeler Company. Coming into existence on
January 19, 1984, Hero Motors Limited gave India nothing less than a revolution
on two-wheels, made even more famous by the Fill it Shut it Forget it
campaign. Driven by the trust of over 5 million customers, the Hero Honda product
range today commands a market share of 48% making it a veritable giant in the
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industry. Add to that technological excellence, an expensive dealer network, and


reliable after sales service, and you have one of the most customer-friendly
companies.
This is proved by the companys sales over the years:
1985.86

43,000 units

1989.90

96,200 units

1998.99

5,30,600 units

1999-00

7,61,210 units

2000-01

10,29,555 units

2001.2

14,25,195 units

2002.3

17,78.392 units

2004-05

18.95 132 units

2005-06

21,75735 units

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Customer satisfaction, a high quality product, the strength of


Honda

technology

and

the

Hero

groups

dynamism

have

developed HTML scale new frontiers and exceed limits.


In the words of Mr. Brij Mohan Lal Munjal, the Chairman and
Managing Director, We will continue to make every effort
required for the development of the motorcycle industry, through
new product development, technological innovation, investment
in equipment and facilities and through efficient management.

PERFORMANC WITH HISTORY


The following are the historical facts of the company :
1984

Company incorporated.

Technical collaboration signed.

Foundation stone lay.


12

1983 - Shareholders agreements signed.

1985

First motorcycle (Model CD 100) produced.

1987

Engine plant started.

1,00,000th Motorcycle produced.

1989

Sleek model introduced.

1991

5,00,000th motorcycle produced.

CD-SS model introduced.

Economic times Hayward business school award for excellent Governance


to Hero Honda Motors Ltd.

1993

Hero

group

sponsors

Hero

cup

five

nations

cricket

tournament
1994

Splendor model introduced.

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1995

National

Award

for

outstanding

contribution

to

the

development of Indian small scale industry (NSIC Award


presented by President of India)

The analyst award 1995 presented to Hero Honda Motors


Ltd. on being ranked 9th amongst the most investor
rewarding companies in India.

1996

1000 motorcycle per day production started.

1997

15,00,000th motorcycle produced.

Street model introduced.

Hero sponsored 6th women world cup cricket tournament.

1998

20,00,000th motorcycle produced.

1st Hero Honda Master golf championship held at Delhi.

1999

30,00,000th motorcycle produced.

CBZ model introduced.

7th World Cup Cricket tournament sponsored at England.


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Most admired business Baron CEO award conferred upon the Chairman
Brij Mohan Lal Munjal.

2001

Passion and Joy motorcycle launched.

One million motorcycles produced in one single year.

50,00,000th bike produced.

Winner of the review-2000-Asias leading companies


award 2000.

National productivity award for the best performance in automobile and


tractors.

Sir Jahangir Ghandy medal for industrial peace awarded


to Brij Mohal Lal by XLRI Jamshedpur.

2002

Declared company of the year by economic times


business award.

Chairman Brij Mohan Lal awarded the entrepreneur of


the year award by Business standard.

Ambition launched.

2003
15

Declared company of the year by economic times


business award for the second time.

Karizma the sports segment bike launched.

This all says about the golden past of the company and the company is going on to
the path of success.
2005
Supersplender & CD Deluxe introduce
2007
Hunk are introduced

Highlights of Q2, FY'08-09


Total turnover(Net sales & Other Operating income)Rs 3202 crores, growth of
35.6 per cent
Net profit after tax at Rs 306.30 crores, growth of 50 per cent
EBIDTA margin for the quarter 13.58 per cent
Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent
Total sales for H1 stands at 18,66,349, growth of 19.7 per cent
Over 55 per cent share in domestic motorcycle market
Launches first-of-its kind music video to celebrate 25 years of Hero Honda

New Delhi, October 21, 2008:


Hero Honda Motors Ltd (HHML),
the world's largest two-wheeler company for seven consecutive years, today
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firmly reiterated its undisputed leadership in the domestic two-wheeler market


with impressive bottom line growth for the second quarter (Q2) July to
September - of this financial year (FY) 2008-09.
Even as the industry continued to face tough market conditions on account of
uncertainty over interest rates and overall credit squeeze, the company reported
50 per cent growth in profit after tax (PAT) at Rs 306.30 crore for the second
quarter. Hero Honda's profit after tax in the corresponding period last fiscal (July
- Sept, 2007-08) stood at Rs 204.33 crore.
Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a
growth of 35.6 per cent over Rs 2361 crore recorded in the corresponding period
last fiscal. The company has recorded an EBIDTA margin of 13.58 per cent in the
quarter. The EBIDTA margin in the previous quarter (April - June '08) was 12.20
per cent.
The strong financial performance is in line with the company's better-thanindustry top line growth. After posting a growth 11.38 per cent in the first
quarter, the company kicked off the second quarter with a 39.8 per cent growth
in sales in the month of July, and followed up with 26.8 per cent growth in August
and 22.4 per cent in September. Hero Honda consistently keeps growing its
share in the domestic motorcycle market, and currently enjoys over 55 per cent
share.
Hero Honda's cumulative sales for the second quarter (Q2) this FY stands at
9,72,095 units - a growth of 28.5 per cent over Q2 last FY (2007-08). The
cumulative sales for the first six months (H1) stands at 18, 66,339 units of twowheelers compared to 15, 59,486 units sold in H1 in the last FY reflecting a
consistent 19.7 per cent growth in cumulative sales.
Dr. Brij Mohan Lall, Chairman, Hero Honda Motors Ltd, said "We are happy
17

with our financial performance. It gives immense joy to see this kind of results in
the 25th year of our company. I wish to thank all our stakeholders customers,
associates, dealer friends, ancillaries and also our joint venture partners Honda
Motors Co for their continuous support."
Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said "Our numbers
speak for themselves. Even in this volatile and competitive environment, our top
line continues to outpace the industry growth, our market share is at an all time
high, and the financial balance sheet is a delight all the factors which form the
hallmark of a resilient company with cutting-edge management. We will continue
to keep innovating in bringing in technologically-superior products, in our
network expansion, in brand building, in our financial management, and in our
communication."
"Going forward, we will have to keep a close watch on the commodity prices
movement, and other factors such as inflation, interest rate scenario and
availability of retail finance. These factors will play a crucial role in the industry
growth in the subsequent quarters," he added.
Hero Honda has already rolled out its festive season initiatives, with the launch
of four new models the all-new "Passion Pro" and three refreshes of its
existing models - new CBZ X-treme, a selfstart version of Splendor NXG
and the refreshed Pleasure. During the coming months, the company will
further augment its product portfolio with new launches across segments.
Key Hero Honda brands continue to drive strong volumes across segments - CD
Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and
Passion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the
premium segment.
Celebrating its 25th year, Hero Honda released an innovative music video in the
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month of September. Titled "Hero Honda Dhak Dhak Go", and involving as many
as eight brand ambassadors of Hero Honda, the music video has been receiving
rave reviews.
Hero Honda recently won two very coveted awards - "The Most preferred Brand
of two-wheelers" award at the recent CNBC Awaaz Consumer Awards 2008, and
the "NDTV Profit Business Leadership Award".

HERO HONDA CLOSES CALENDAR YEAR


2007 WITH SALES OF OVER 33 LAKH BIKES

HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH IMPRESSIVE


GROWTH OF 15% IN MARCH08
HERO HONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER CENT
INCREASE IN MAY SALES
HERO HONDA CONTINUES TO CONSOLIDATE MARKET LEADERSHIP WITH 27
PER CENT GROWTH IN AUGUST SALES
HERO HONDA NET PROFIT ZOOMS 31% TO Rs 275 CRORE IN Q3 (FY 2007-2008)
HERO HONDA PASSES ON EXCISE DUTY CUT BENEFIT TO CUSTOMERS
HERO HONDA POSTS RECORD 6 LAKH-PLUS UNITS IN RETAIL SALES IN
OCTOBER 2008
HERO HONDAS POSITIVE PERFORMANCE CONTINUES IN NOV08
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HERO HONDAS SEPTMEBER 08 SALES JUMP 22 PER CENT


HERO HONDAS STRONG SALES PERFORMANCE CONTINUES INTO 2008
REPORTS 13% GROWTH IN CUMULATIVE SALES IN APR-NOV08

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ABOUT
PRODUCTS

1.6 DETAILS OF PRODUCTS


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CBZ

The Hero Honda CBZ (pronounced CeeBeeZee) is the latest offering from Hero
Honda for
the Indian market. With a 156cc engine, the company claims that the bike has a top
speed of
100kph within 5.6 seconds. Though the bike has the largest displacement engine,
its top
Speed doesnt match up to many of its competitors. In all other respects, it is a bit
too early to

22

Decide whether the CBZ will sell in the same numbers as the Splendor. Though the
initial
Market response has been good, only time will be the final arbiter.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 156cc
Tachometer : Yes
Max Power : 12.8b hp@8000 rpm
Wheel base: 1,330mm
Ground Clearance: 160mm
Ignition : Electronic CDI
Dry Weight: 140kg
Fuel tank Capacity: 12.5itres
Battery: 12V
Max Torque: 1.26kgm@6500rpm
Bore x stroke: 63.5mmx49.5mm
Max Speed: 120kph
Front Tyre size : 3.25x19"
Rear Tyre size: 3.50x19"

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Splendor

A combination of style and economy makes the Splendor is a bike worth investing
in. The
Latest from the Hero Honda factory offers both performance and looks. It has good
looks,
Excellent handling characteristics and a smooth drive over any type of terrain,
thanks to the
Changes in the suspension at front and near as well as the new frame design. All
these features contribute to the Splendor being one of the best selling four stroketwo-wheelers in India. It also meets all the current pollution standards. A healthier
beat, springy ride and overall low maintenance has aided in the record-breaking
sales of this bike.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
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Max Power : 7.2b hp@8500 rpm


Wheel base : 1,230mm
Ground Clearance : 159mm
Ignition : Electronic
Dry Weight : 100.3kg
Fuel tank Capacity : 10.5itres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 90kph
Front Tyre size : 2.75x18"
Rear Tyre size : 2.75x18"
Stree
t 100

The
Street
100

is

Hero
25

Motor's latest two-wheeler on offer in the step-through category.


The Hero Honda Street 100 is equipped with unique features like
city-clutch, which is designed specially for city driving. It has
rotary gears, which allow the rider to flip directly from the fourth
gear to neutral once the bike has come to a halt, a must for the
present stop-and-go traffic. A self-starter button comes as an
option. The Street can be purchased with a variety of seat layouts
and has options like a water pump, spray can, larger luggage tray,
etc. Its major competitor is the much cheaper K4 from Kinetic.
Major plus points that justify the higher price are the centrifugal
clutch and the rotary gears. However, the liberal use of plastics
negates much of the feel good factor and has hindered sales to a
large extent.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : N/A
Max Power : N/A
Wheel base : 1,205mm
Ground Clearance : 133mm
Ignition : Electronic
Dry Weight : 101kg
Fuel tank Capacity : 11litres
Battery : 12V
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F/R suspension : Telescopic


R/R suspension : Swing arm and Hydraulic dampers
Max Speed : N/A
Front Tyre size : 2.25x17"
Rear Tyre size : 2.50x17"

CD100SS

27

The CD100SS is designed for those who live life in the fast lane, rough and tough,
for those who would love to take a bike on the stumbling village roads. It shares
almost all components with the CD100, except for the additional reinforcement.
With larger, reinforced shock absorbers, wider tyres, heavier body weight and
engine guard, the Hero Honda CD 100 SS weights slightly more, resulting in some
cut down in the fuel economy it offers. Minor problems of the CD100 have been
rectified in the SS model. If you wish to ride into the hinterland, this is the bike for
you.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.0bhp@8000rpm
Wheel base : 1,220mm
Ground Clearance : 165mm
Ignition : Electronic
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Dry Weight : 103kg


Fuel tank Capacity : 10.1litres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 85kph
Front Tyre size : 2.57x18"
Rear Tyre size : 3.00x18"
2516664320

Features:
Engine

4-stroke, single cyclinder, air-cooled

Displacement

97.2cc

Clutch type

Manual

Clutch Primary

Clutch Secondary

Multi-plate wet

Transmission

4-speed constant mesh

Final Drive

Roller chain

Ignition

Electronic

Starting

Kick starter

Frame

T-Bone type

Suspension (Front)

Telescopic hydraulic fork


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Suspension (Rear)

Swing-arm with hydraulic dampers

Dimensions (LxWxH)

1885x770x1060mm

Wheel Base

1210mm

Ground Clearance

135 mm

Dry Weight

95 kg

Tyres:Front/Rear

2.50"x18"/2.75"x18"

Max.Power

7.0 PS @ 8000 rpm

Max.Speed

85 Kmph

Fuel Tank Capacity

10.1 liter(1.3 ltr reserve)

Ambition 135
Features:
Engine
Displacement
Maximum Power
Maximum Speed
Gears
Frame
Tyres: (Front)
Tyres: (Rear)
Headlight

4 stroke
133 cc
11 BHP / 11.15 PS @ 8000 rpm
100 KMPH
5
Tubular single cradle, diamond type
2.75 X 18
3.00 X 18
Trapezoidal 35 / 35 W
30

Fuel Efficiency

55 KMPL

CD DAWN

Features:
Engine
Displacement
Clutch
Gear box
Frame
Battery
Head lamp
Suspension(front)
Suspension(rear)
Wheelbase

4-stroke, air-cooled, single cylinder OHC


97.2cc
Multiplate wet
4 speed constant mesh
Tubular double cradle
12V - 2.5 Ah
35W / 35W - Halogen bulb
Telescopic hydraulic shock absorber
Swing arm with hydraulic shock absorber
1230 mm
31

Dimensions (LxWxH)
Ground clearance

1980x720x1045 mm
150 mm

Kerb weight

108 kgs

Tyre (front)
Tyre (rear)
Max power
Max torque
Bore x Stroke
Compression ratio
Starting

2.75 x 18-4 PR
2.75 x 18-6 PR
7.4 PS @ 8000 rpm
0.79 Kg-m @ 5000 rpm
50.0 x 49.5 mm
8.8: 1
Kick start
KARIZAMA.

If you look at the 223c mill of the Karizma, you can make out the
familiar streak that runs through the engines on the CBZ and the
Ambition. No prizes on this count as to the reason but the 223cc
Karizma engine represents - for the moment - the maximum
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capacity this modular design theme can be taken to. The


crankcase is of virtually the same size though the covers do
have some detail differences and the engine mounts are the
same as in the other two bikes and completing the picture are
the scaled-up barrel (with an additional fin) and head.
The single overhead cam motor features slightly under square
cylinder dimensions with a 65.5mm bore and a 66.2mm stroke to
give a 223cc swept volume. Hero Honda has designed in the
latest convex-type combustion chamber (compression ratio
being 9.0 : 1) for silent running and good power delivery while
also giving it the latest Keihin VE 3EA constant vacuum type
carburetor which also packs in the CCVI switch. The CCVI term
stands for carb-controlled variable ignition timing which as it
suggests actuates - via throttle position - one of two ignition
maps, for low and high speed operation. This was one area which
disappointed appreciably in the CBZ wherein the engine sounded
and felt harsh as one went past the middle range but here this
detail has eliminated such a glitch completely. Just for the record,
the 223cc engine gets the latest version of Honda's AMI
(advanced microprocessor ignition) system which incorporates a
three

tier,

multi-stage

digital

ignition

system.

The all aluminum alloy engine (with pressed-in steel liner)


features an automatic cam chain tensioned, an air cut off valve
(to prevent afterburning in the exhaust muffler) and like on the
CBZ and Ambition, an air injection valve to keep tail pipe
33

emissions in check. With all this and the extra cubic capacity, the
Karizma engine develops 16.76bhp at 7000rpm and 18.35Nm of
torque at 6000rpm. This is about 2bhp and 5Nm more than what
the Pulsar 180 makes but the reasoning is that the engine had to
be stress free and this fact holds true when out on the roads .
Transmission is via a five-speed gearbox which has had its final
drive ratios revised from those in the CBZ. A stronger multi-plate
clutch is used to take care of the enhanced power and torque
figures. This time round Hero Honda has not faulted and
equipped the engine witan electric starter even though the kick
starter to be actuated requires the front right footrest to be
folded out of the way.
ENGINE:
TRANSMISSION:

PASSION PLUS

34

FEATURES:
Displacement
Maximum Power
Gear Box
Clutch
Max. Speed
Frame
Suspension(Front)
Suspension (Rear)
Tyre Size (Front )
Tyre Size (Rear )
Brakes (Front)

97.2 cc
7.5 Ps at 8000 rpm
4 Speed Constant Mesh
Multi-Plate Wet Type
85 Kmph.
Tubular Double Cradle
Telescopic Hydraulic Fork
Swing Arm with 5 step adjustable hydraulic damper.
2.75 * 18- 4 PR /42 P
3.00*18-4/6 PR
Internal
Expanding
Shoes
Type

(130mm)/ Hydraulic Disc Type (Optional)


Brakes (Rear)
Internal Expanding Shoes Type (130 mm)
Final Drive
Roller Chain
Battery
12 V-2.5 Ah
Ignition
Electronic CDI
Starting
Kick Starter
Wheelbase
1235 mm
Ground Clearance 160mm
Length
1980 mm
Width
720 mm
Height
1060 mm
Kerb Weight
116 kgs.
Fuel
Tank 12.8 liters (Reserve 1.1 liters)
Capacity
Head light
Halogen Bulb 35 W / 35 W
SUPERSPLENDOR

35

36

FEATURE OF SUPERSPLENDER
Engine
4-Stroke OHC, Single Cylinder, Air Cooled
Bore X Stroke
52.4 X 57.8 mm
Displacement
124.7 cc
Compression
9.1: 1
Ratio
Max Power
6.72 Kw (9 BHP) @ 7000 rpm
Torque
10.35 Nm @ 4000 rpm
Max Speed
90 Kmph
Clutch
Multiplate Wet
Final Drive
Roller Chain
Ignition
Digital
CDI
Ignition
(AMI)
Advanced Micro Processor Ignition system
Starting
Self Start
Frame
Tubular Double Cradle
Suspension
Front
:
Telescopic
Hydraulic
Fork
Rear : Swing Arm with Hydraulic Shock
Absorbers
Dimensions
1995 X 735 X 1095 mm
(LXWXH)
Wheel Base
1265 mm
Ground Clearance 150 mm
Kerb Weight
121 Kg
Tyres
Front : 2.75 X 18 - 4 PR / 42P
Rear : 2.75 X 18 - 6 PR / 48P
Brakes
Front Drum Type : Internal Expanding Type 130
mm
Dia
Rear Drum Type : Internal Expanding Type 130 mm Dia
Fuel
Tank 12 Ltrs. (Min)
Capacity
Head Light
12V - 35W Multi Reflector Halogen Bulb - AC
Type

HUNK
37

38

BRAND AMBASSADOR
The company signed the Indian skipper of cricket team Saurav Ganguly,
Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its brand
ambassadors joining the add campaign together to promote Ambition. All of
these celebrities are the member of Indian cricket team and very much popular in
younger generation. In the last year with the launch of its new premium bike
Karizama Hero Honda signed its new brand ambassador who is a cine star and is
also very popular. He is Hritik Roshan.

Service Your Bike


Hero Honda has always taken a lead in terms of defining service
standards in two wheeler industry with an aim to provide "Total
Customer Satisfaction" for their valuable customers across the
country and also internationally. We are constantly endeavoring to
improve the quality of our service facilities at our Dealerships. The
first and foremost step to achieve this was creating Automated
Workshops at our Authorized Dealerships and Service Centers
across the country.

39

Automated Workshops
Hero Honda has the largest chain of Automated Workshops
providing service to their valuable customers by using latest
service technology. Automated Workshops have standard layout,
hydro electric motor cycle lifts, dust free engine rooms and use
pneumatic tools and equipment to ensure quality repair in
customers motorcycle. The workshop environment and usage of
pneumatic

tools

increases

mechanics

efficiency

and

their

motivation to provide quality service. The layouts have been


standardized to ensure that there is a transparency of service.
The customers can view their motorcycle repair while sitting
comfortably watching TV or relaxing in the customer lounge.
Workshop Automation has become a mandatory service standard
for all Hero Honda Dealers and Service Centers.

40

Training
The regular Technical Training Programmes for Dealers Workshop
staff to keep them updated and refreshed about the latest price
technology, product technical details as well as service and repair
procedures to handle customers motorcycle with utmost care as
well as to provide them the service quality of highest order is a
focus area at Hero Honda. Hero Honda has six (06) training
centers across the country. There are 05 zonal training centers of
Pune, Bangalore, Calcutta, Chennai and Delhi to take care of
technical training requirements of dealers in each zone as well as
local technicians. There is a National Training Center at Dharuhera
to take care of all advanced level technical programmes for our
dealers staff and our in house service engineers. Hero Honda
keeps an organizing Dealers Mechanics Contest at Zonal Level
and

National

Level

to

develop

competitive

spirit

among

mechanics as well as in the process to update their skills and


product knowledge.

Customer Service
Hero Honda keeps on taking always-new initiatives to maintain its
leadership on service as well as enhance customer satisfaction
level on an ongoing basis. Some of the new initiatives related to
customer service are as follows: 41

Service Advisors at Dealerships


Service Plus Scheme for customers
Pre Paid Reply Cards
Automated Mobile Service Workshops
Mega Millennium Camps
On the Job Training Programmes
Local Mechanics Training
There are many more initiatives, which we keep on taking along
with our dealers to keep our customers always in our mind on top
priority.

Safety- "S4" Concept (Sales, Service, Spare Parts &


Safety)
Hero Honda is also launching very soon a novel concept and a
very major initiative - Safety at their S4 Dealerships (Sales, Spare
Parts & Safety)

Safety Education to motorcycle customers shall be an integral


part of Hero Honda's motorcycle delivery process at the
showroom.

Customers

shall

be

educated

on

Safe

Riding

techniques through various audio visual aids. Safety Instructors


shall be imparting riding skills as well as education to the
customers. Dealers shall also conduct a major programme in their

42

respective towns with the association of local traffic police on a


regular basis on safety education and correct riding techniques.

43

PROBLE
MS

PROBLEMS OF HERO HONDA

Honda Motorcycles and Scooters, India can take away market share
and cause joint venture to go sour.
44

Hero is vulnerable in the joint venture because Honda Motor


Company has so much power

Bajaj auto is a strong competitor.

Hero Honda automobile is a strong competitor

Hero is vulnerable in the joint venture because Honda Motor


Company has so much power

45

PARTII
46

OBJECTIVE

47

2.1 OBJECTIVE OF THE STUDY

The study was done primarily with the following objective in mind.
To study the brands of Hero Honda & consumers perception
with its competitors.
To know why people buy Hero Honda and why some people
prefer other company.
To study the features of different brands that give a good
idea of various products and services offered by the
company.
To understand the competitive environment in which the
company is operating and is desired to meet customer need
and satisfaction.

48

To provide useful information to the company about the


product features of various competing companies.

METHODOLOGY

49

2.2 METHODOLOGY
The methodology used in conducting the research work on HERO HONDA with
major emphasis on its sales and marketing strategies involve the following steps:
Why I have selected HERO HONDA only?
I have selected Hero Honda for my research project because it is
the company that is growing day by day. It has
maximum

market

share

with

comparison

to

its

competitors. And it is the company that gives highest


sales

and

it

is

also

the

highest

two-wheeler

manufacturer.

Defining the problem and deciding research objectives:


Defining the objective is the most important part of any study
process. Proper defining of the problem is a must for proceeding
further with the research process. The type of study to be carried
out, the questions to be raised, the sampling procedure to be
50

followed, and the data to be collected, all depends on a correct


understanding of the problem. Also, by clearly focusing on the
real problem, the research job can be simplified and completed
with the minimum cost, effort and data.
Identified problem or the objectives of the research discussed in the report are:

1. Developing the research plan:


In this a plan was developed about how to collect the require information i.e.
whom to contact for gathering the relevant data. Data is the foundation of all
research. It is the raw material with which a researcher functions.
Therefore, it requires great care to select the sources of data. Data, or facts, may be
obtained from several sources. Data sources can either be primary or secondary.
A. Primary data:
Collection of primary data was conducted by visiting the
people

personally for the preparation of the report.

Questionnaire
B. Secondary data:
The sources from which secondary data was collected:
Press releases of the company.
Newsletters and In-house journals.
Brochures and detailed descriptive leaflets
51

Magazines like Business World, Outlook, Auto India, etc.


Websites such as www.herohonda.com, www.google.com. These were the
sources from which secondary data has been gathered. Most of the
information presented in this report was extracted from the above data
sources.

2. Research approach:
It means the way by which the information was collected.
Visiting the various places of Delhi, getting the questionnaire
filled by different individuals.
Beside this, frequent visit to the showrooms of the company
was of great help to conduct the analysis and research work.

3. Contact methods:
Instrument or Data collected Forms: It is the method by which data is gathered.
It could be done through various instruments like questionnaires, observations,
getting information from the staff members of the agency, contacting to the
motor mechanics was sufficient enough to conduct the study.
4. Collection of information:
The primary information was collected by face-to-face and direct interviews
with the peoples and the customers. They provide the relevant information
52

regarding the profile of the company as compared to the other company in the
Indian market. Most employees suggested visiting companys web site, as it was
not possible for them to spare time from their busy schedules.
The secondary sources of information were various web sites of the companies,
newspapers & magazines such as The times of India, The Hindustan Times,
Business world, Auto India, etc.

5. Analyzing the information:


The data collected was carefully analyzed. The research and analysis of the
information has been done on the basis of various sales and marketing strategies
adopted by the company during its tenure.
6. Reporting and conclusions and recommendations:
This is the most vital part of the work undertaken. After collection and analysis
of data, it was recorded in the form as prescribed. The major part of the report is
the findings. The finding also includes charts, tables and diagrams etc. The
report also mentioned the limitations of the project undertaken. Then conclusion
has been drawn out of the findings and various recommendations have been
given at the end of the report. Certain tables on the basis of which the findings
were made have been included in the appendices section followed by the
bibliography.

53

SWOT
ANALYSIS
54

SWOT Analysis
Environmental Scan

Internal Analysis

External Analysis

Strength
Weaknesses
Opportunities
Threats
55

Strength of Hero Honda

Ability to understand customers needs and wants

Recognized and established brand name

Effective advertising capability

Weakness of Hero Honda


Hero is vulnerable in the joint venture because Honda Motor Company has
so much power

Opportunity Hero Honda

Global expansion into the Caribbean and Central America.


56

Expansion of target market (include women)

Threats Hero Honda

Honda Motorcycles and Scooters, India can take away market share and
cause joint venture to go sour .

Bajaj auto is a strong competitor.

Hero Honda automobile is a strong competitor

SCOPE OF THE STUDY


Hero Honda is spreading its wings and widening its business horizon to reach and
serve customers at new centers in the year ahead. The company services are backed
57

by a highly motivated and technology driven team to achieve customers need,


product expertise and geographic reach.
The study is oriented towards the concept of different brands offered by Hero
Honda and its competitors to its customers. The company has endeavored to move
fast in providing market solution, which maximize customer needs and
convenience, using multiple delivery channels in composing the agency network,
service centers, lower service cost and increased efficiency.

58

DATA
ANALYSIS

2.5 Analysis
Sale of Hero Honda in Rural area and Urban area

59

In the survey of rural as well as urban area it is found that in rural area the sale of
Hero Honda is less but in urban area it gives very exiting result. This may be
because of the conditions of roads there.
Area

% of Respondents

Urban Area

72

Rural Area

28

28%

72%
Urban Area

Rural Area

PARTICULER AREAS OF RESPONDENTS


All the respondents were from different areas. The samples were taken from the
mentioned areas for the survey. It was observed that the people of main town like
to use Hero Honda as they like all features of it. And is according to there pocket
60

Areas

% of respondents

Motijheel

42

Maripur

12

Chatta Chock

26

Mithan Pura

14

Other

6
6%

14%

42%

26%
12%
Motijheel

Maripur

Chatta Chock

Mithanpura

Other

FAMILY INCOME OF RESPONDENTS


The income distribution of the families of respondents shows that the bike, which
was considered earlier to be out of range for middle class families is now
becoming very fast an article for them.

61

Family income (Rs.)

% of Responses

5000-10000

10

10000-15000

46

15000-20000

36

Above 20000

08

8%

10%

36%

46%

5000-10000

10000-15000

15000-20000

Above 20000

PERSONS WHO KNOW TO DRIVE BIKE


Almost every person know how to drive a Bike (In my Survey)
Response
Driving known
Driving not know

% Of respondents
96
04
62

4%

96%
Driving known

Driving not know

FACTOR PROMPT TO BUY HERO HONDA


It should be stated that the performance is the most important factor followed by
look. The possible combination and corresponding number of respondents are
shown in the table below.
Features
Performance

% of respondents
18
63

Look

11

Availability

Price

Maintenance

Brand image

After sale service

10%

12%

36%

8%

2%

22%

10%
Perf ormance

Look

Availability

Price

Maintenance

Brand image

Af ter sale service

HOW DID THE RESPONDENT CAME TO KNOW ABOUT THE BIKE?


The best media of advertisement (according to which the respondents came to
know about the bike) is the ads on television. Friends & magazine are the other
sources. Only 2 % of them came to know through hoardings.
Medium of Advertisement
Television

% of Respondents
46
64

Magazine

36

Friends

14

Hoardings

02

Others

02

2%

14%

2%
46%

36%
Television
Magazine
Friends
Hordings
Others

PURCHASE OF BIKE
Almost 94 % of the respondents say that they have purchased the bike by cash.
Only 6% of the respondents say that they have purchased their bike through bank
loans.

Purchase Type

% of Respondents

Cash Purchase

94
65

Hire Purchase

06

6%

94%
Cash Purchase

Hire Purchase

DECISION INFLUENCED BY
Maximum no. of the Respondents have taken decision to buy the bike
on their own. After that their friends and parents influenced them.
Influencer

% of Respondents

Parents
Self

16
54
66

Friends

18

Relatives

08

Others

04

4%
8%
16%
18%

54%

BIKES PREVIOUSLY USED


More than 60% were using Hero Honda CD100 bikes. They were followed by
Yamaha RX100 & very little have chosen other bikes.
Previously Used

% of Respondents

CD100
Yamaha RX100

62
32
67

Others

06

6%
32%

62%

RATING OF BIKES
42% of the respondents have rated as the best bike they have used, but it is facing a
stiff competition from Pulsar & Fierro.
Bikes

% rating by Respondents

Splendors

38

Passion

08
68

Ambition

06

Pulsar

28

Fierro

14

Others

06

6%
14%
38%

28%

8%

6%

Splendor

Passion

Ambition

Pulsar

Fierro

Others

69

SURVEY REPORT

The Initial Quality Study of Two Wheelers in India


Which model of Motor Cycle would you recommend to your dear
friend?
Does the basic reliability of two-wheelers measure up to the
promises made by the manufacturer?
Where exactly is the quality lacking?
Would they buy the same model again or more importantly from
the manufacturers point of view would they advise
Are buyers happy with the quality they get?
What is the trend over the years?
their friends to buy it?
So let the people know just how the two-wheelers fared on the
road

70

WORKS:
It quantifies the initial quality of two wheelers in the form of the
universally accepted metric Problems per 100 vehicles (PP100V)
Ranks all the popular models as per their quality performance
Links the quality findings with the customer viewpoint

Manufacturer-wise PP100V scores in Survey


Sr.No.

Vehicle

PP100V

Honda

146

LML

Hero Honda 176

Kinetic

183

TVS

196

Bajaj

196

Yamaha

165

223

Executive bikes scored less problems than economy bikes


however simpler machines like scooters have the fewest problems
This year we classified motorcycles by the market as premium,
71

executive and economy...

Amongst the bikes, we found the number of problems were lowest


in executive bikes and highest in economy bikes.

Executive bikes (179 PP100V), then premium bikes (209 PP100V)


and last were economy bike (230 PP100V).

Maximum

Problems found in engine and

transmissions:
46% of the problems reported by customers were problems like
high fuel consumption, starting trouble, erratic / rough gear
shifting, noisy / loose drive chain etc. All these problems are
related to the engine & transmission. Another 12% of the
problems were attributed to miscellaneous aspects like battery
discharged,

stand

hard

to

operate,

etc.

Perhaps this is the most complex part of the two wheelers and
hence poses maximum challenge to the quality control guys in
the manufacturing units.

72

ENGINE Trouble..
Splendors the largest selling executive bike from Hero Honda has
reported the lowest number of problems with ENGINE (37 PP100V)
closely followed by the newly launched geared scooter Eterno (38
PP100V) from Honda.

Simplicity is the beauty


TRANSMISSION WOES:
Gearless scooters/scooterettes have lowest number of
TRANSMISSION problems. Complains who fulfilled the promised
performance and how much?
Sl No.

Manufacturer

% models above category

average
1

Honda

100

LML

Hero Honda

67

Bajaj Auto

43

100

73

TVS

33

Yamaha

33

Kinetic

25

SCOPE AND COVERAGE:


Manufacturers and their Models:
Sr.No.

Manufacturer

List of

models studied
* Bajaj
1

Boxer

Caliber 115

Pulsar 150 /

180
4

Spirit
*Hero Honda

f
5

Ambition

CD-100 / SS /

Dawn / CD Dawn
7

Splendor /

Passion
74

*Kinetic Engineering
8

Boss
*LML

Freedom
*TVS

10

Max 100 R /

DLX / DC

11

Victor
*Yamaha

12

Crux / Crux R

13

Enticer

14

Libero

Aggregates and features covered:

Overall Satisfaction

Overall quality

Instrument Panel / Dash Board

Locks

Control knobs / Switches

Handle
75

Lights

Body

Transmission

Engine

Wheels

Riding

FINDINGS
76

2.6. FINDINGS
It is clear from the report that the Hero Honda Motors is facing
cutthroat competition; hence the companys manager has to be
fast and smart so as to understand the customers needs. They
have to come up with various new techniques or schemes to be
able to cater to different categories of people.
Customers are becoming more wise day by day and they are now
willing to know all the in and out of the things happening around
them. This has led to increased customer awareness.
We can analyze that if the brand is reputed that doesnt win the
customers delight unless its provided same value-added features
or else we can say competitive advantage.

77

For gaining a competitive advantage it has to continuously


compare the product and services with the competitors and
find the weak area of the rivals for gaining competitive
advantage.
Surveys revealed that awareness of Hero Honda Motors is
low among its target segment for creativity awareness. The
company has to take some keen step for promotional
activity.
The company should regularly send the sales person who
have good communication skill to the customers so that they
should be aware about the product and services in market
and know the quality of the services offered by the company.

CONCLUSIONS
78

2.9. CONCLUSION
The Indian two wheeler industry today offers more than 70
models to a buyer. And manufacturers are launching new
models every day More than 20 models were launched in
the last year.
Top this up with a variety of promises ranging from free gifts
and financial schemes to the attractive looking models and
jingles in the advertisement.
In this whirlwind of speed and confusion maze, choosing the
right pair of wheels can be a trying experience for the
79

common man.
In such a situation, the buyer has to first narrow down his
search to a given category of two wheeler. A lady doctor may
decide to look only at gearless scooters while a collegian
with a rich father may only look at premium bikes.
Most of youngster preferred stylish and good looking bike
which are high capacity engine
In rural area most of people preferred high mileage and
comfortable

bike.

Lesser problems per vehicle for a given model could be a


good enough reason to go for

the model..? Yes! But, within

my selected category of premium bikes So which premium bike


has

lesser

problems?

Do new launches have more problems than older ones?


Naa! Does PPM score
vehicle?

See

depend on who manufactured the


for

yourself!

80

RECOMMENDATI
ON

2.7. RECOMMENDATION

81

While Hero Honda has strong foothold in the industry, the


company should look into the areas of weakness.
In this connection, It is suggested that the company can look into
the following areas:

In order to expand its business it should introduce innovative


schemes for young generations, better financial schemes,
etc.
The company should expand its service centers.
The must move towards the rural areas to expand its sale.

82

LIMITATIONS

83

2.8. LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable


the company to assess how far the customers are satisfied with
product and services of Hero Honda. During the course of the
study the following limitations were observed:

The method will be unsuitable if the number of persons to be


surveyed is very less as it will be difficult to draw logical
conclusions regarding the satisfaction level of customers.
Interpretation of data may vary from individual depending on
the individual understanding the product features and
services of the company.
The method lacks flexibility. In case of inadequate or
incomplete information the result may deviate.
It is very difficult to check the accuracy of the information
provided.

84

Since all the products and services are not widely used by all
the customers it is difficult to draw realistic conclusions
based on the survey.

ANNEXURE

85

Questionna
ire
86

Questionnaire for the survey of


Motorbikes.
1. Name
2.

__________________________________________________

Address _____________________________________________
_____________________________________________

3.

Phone No.
Mobile No.

4.

Age

___________________

___________________
18 22 years [ ]
28 32 years [ ]

23 27 years [ ]
above 32 years

[ ]
5.

Do you have any bike in your house?


Yes [ ]

No

[ ]

87

6. If yes, Name and Company of the bike.


________________________________________________________.
7. If No, Do you have any plan to buy it in next 6
months?
Yes

[ ]

No

[ ]

8. If Yes, Name and Company of the Bike.


________________________________________________________.

9. Which Bike does you like most?


________________________________________________________.
10. Rank the Motorbike manufacturing company.
1.
2.
3.
4.

Hero Honda
Yamaha
Bajaj
L.M.L.

[ ]
[ ]
[ ]
[ ]

11.Do you remember any advertisement of Hero Honda?

88

________________________________________________________.

12.What should the price range in your opinion?


Splendor +
CD dawn

___________________

___________________

CD100

Sufficient [ ]
Sufficient [ ]

___________________

Sufficient

[ ]
Passion + ___________________
CBZ
Karizma

Sufficient [ ]

___________________

Sufficient [ ]

___________________

Sufficient [ ]

13.Any new facilities or any improvement that you want.


________________________________________________________
_____________________________________________________________
___________________________________________________.

14. Give remark to your old Bike Company.


Good
Excellent
Dont have a Bike

[ ]

Very Good

[ ] Out standing
[ ]

[ ]
[ ]

89

15 Give remark to Hero Honda.


Good
[ ]
Excellent
Dont have a Bike

[ ]
[ ]

Very Good
Out standing

[ ]

[ ]

Thanks
Surveyed by:
Checked by

90

BIBLIOGRAPHY

91

BIBLIOGRAPHY
BOOKS:
Marketing Management by Phillip Kottlar.
Marketing Management by T.N.Chabbra.

Marketing Research by B.C.Goel.

MAGAZINES, JOURNALS AND NEWSPAPERS:


Journals published by Hero Honda,
Annual Report
Auto India,
Business World

INTERNET:
www.herohonda.com
www.google.com

92