SUMMER PROJECT

PROGRESS REPORT NO. 2

ON

MARKET (SECTOR) ANALYSIS OF BAJAJ

(MARKETING)

SUBMITTED TO: SUBMITTED BY:

Ms. REEPU ASHISH BHADURI

ASST.PROF . UID:- 20MBA1314

Chandigarh University MBA-Batch

2020-22

Location: Gharuan, Mohali

Bajaj Auto Limited is an Indian multinational two-wheeler and three-wheeler manufacturing

company based in Pune, Maharashtra It manufactures motorcycles, scooters and auto rickshaws.
Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the
1940s. The company has plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand The oldest plant at Akurdi (Pune) houses the R&D centre 'Ahead'.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in
India It is the world's largest three-wheeler manufacturer.
The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416.
In December 2020, Bajaj Auto crossed a market capitalisation of 1 lakh crore (US$ 13.6 billion),
making it the world's most valuable two-wheeler company.[

COMPANY ANALYSIS:

Strengths in The SWOT analysis of BAJAJ

1. Bajaj Auto, is the world’s fourth largest two and three-wheeler auto manufacturer in the
world. The company manufactures motorcycles, passenger carriers and goods carriers. The
most popular brand in the two wheeler segment of Bajaj Auto’s portfolio is Bajaj Pulsar. In
the three-wheeler segment, it has a range of 2-stroke and 4-stroke passenger as well as
goods carrier.
2. Sustainable business: The company’s extensive range of products allows them to cater to a
wide range of customers. Also, it helps the company to deliver sustainable business growth.
3. Alliance with KTM: Bajaj Auto through its subsidiary Bajaj Auto International Holdings
(BAIH) holds a 48% stake in Europe’s second-largest sports motorcycle manufacturer,
KTM of Austria. KTM has a strong brand equity globally and the alliance with Bajaj Auto
help both the companies to deliver sustainable result focusing on offering cost and quality
benefits. KTM provides Bajaj Auto with a large global reach.
4. Strong Distribution: Bajaj Auto has dealers throughout India and it has always maintained
a smooth supply chain. Bajaj motorcycles and three wheelers are always in demand and are
supplied to various small and large cities. Hence, there are various Bajaj Auto service
centres throughout the country.
5. Awards and recognition: Bajaj Auto was ranked 96th in Forbes’ most innovative
companies list in 2014. Bajaj Auto was also named Company of the year in 2011
by Economic Times. Bajaj Pulsar has been received various awards and recognition.
6. Market share in two wheeler category: As can be seen from the graph below, Bajaj auto
has a 13% of market share in the two wheeler category. It is 3rd in the two wheeler
category.

Weaknesses in The SWOT analysis of BAJAJ

 1. Lack of Presence in the scooter market: Bajaj Auto was the leader in the scooter market
till the motorcycle momentum picked up in the 1990s. Bajaj shut down its scooter business
post that, but the scooter business is blooming and showed a growth of 12% in 2016.
Today, Honda Activa and other such models are the leders in scoothers. The company is
losing out on a huge market by not re-entering the scooter market.

2. Labour issues: Bajaj Auto has been involved in Labor and wage issues in the recent past.
In February 2014, workers in its Chakan plant threatened to go for hunger strikes. In 2013,
Chakan and Pune plant workers went on strike. This damages Bajaj’s image and it also has
an adverse effect on the production.

3. Not a Global brand: Even after producing in high volume, Bajaj is not recognised as a
global brand. It has not entered other markets or not expanded internationally as fast as it
could. It is predominantly an Indian market player. 

Opportunities in The SWOT analysis of BAJAJ

1. Growth in motorcycle market: The global motorcycle manufacturing is expected to grow

strongly in the years to come. According to the market line, the global motorcycle industry
generated about $75000 million in 2016. It showed a growth of about 6.3%. The market is
expected to grow at 7% CAGR for the 2016-19 period to approximately reach $93450
million.

2. Growing India three wheeler Industry: The three wheeler market registered a growth of
11.51% in FY2016 and is expected to grow at a CAGR of 4.4% to approximately reach $4.2
billion by 2017.

3. Launch new vehicles: Bajaj Auto should further look to strengthen its product portfolio

like it has done in the past with models of Avenger Pulsar, Discover etc. By continuously
encapsulating new technologies into its portfolio, Bajaj’s image of being an innovative
company will also be maintained.
Threats in The SWOT analysis of BAJAJ

1. Intense competition in the 2-wheeler market: The 2-wheeler market in India is highly

competitive with various top brands such as Global and Indian giants such as Suzuki, Hero
Motocorp, TVS etc. fighting to capture market share. Fuel efficiency and price being crucial
for the Indian market, all the brands are constantly innovating to achieve higher fuel
efficiency in low price.
2. High Bank interest rates: In comparison with other countries, India has a higher lending
rate which is growing. The growth in interest rates affects consumer decision on spending
on vehicles etc. bought on interests.
3. Environmental Regulations: Auto companies are subjected to strict environmental
regulations in India. The BS regulations are constantly updated in India and hence the
companies have to constantly modify their products in order to fall in line with the
regulations and hence, this may adversely affect company’s financial condition.

Below are the top BAJAJ competitors:

TVS….

TVS Motor manufactures the largest range of 2-wheelers, starting from mopeds, to
scooters, commuter motorcycles, to racing inspired bikes like the Apache series
and the RR310. Whatever your requirement be, we have one for everyone

TVS has always stood for innovative, easy-to-handle, and environment-friendly

products, backed by reliable customer service. More than 44 million + customers
have bought a TVS product to date. TVS products give you only reasons to smile!

The company has four manufacturing plants, three located in India (Hosur in Tamil
Nadu, Mysore in Karnataka and Nalagarh in Himachal Pradesh) and one in
Indonesia at Karawang.
HERO MOTOCORP

 Hero MotoCorp has been at the forefront of designing and developing technologically advanced
motorcycles and scooters for customers around the world. It became the world's largest two-
wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has
maintained the coveted title for the past 20 consecutive years.
With over 100 million satisfied customers across the globe, it continues to champion socio-
economic progress and empowerment through its range of products and services.
Led by Dr Pawan Munjal, Chairman, Hero MotoCorp, it has taken rapid strides to expand its
presence to 40 countries across Asia, Africa, and South & Central America. Hero MotoCorp is a
truly global enterprise with a workforce that comprises of people from different nationalities
including India, Bangladesh, Colombia, Germany, Austria, Japan and France.
Hero MotoCorp is the dominant market leader in India – the world's largest two-wheeler market
– with over 50% share in the domestic motorcycle market.

HONDA

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), the only Honda in Indian 2Wheeler
industry is the 100% subsidiary of Honda Motor Company Ltd., Japan, started its Indian
operations at Manesar (District Gurgaon, Haryana) in May 2001. Despite being one of the
youngest players in the Indian two-wheelers market, Honda’s consistency of providing high
quality products and services has won the hearts of over 48 million happy Indian customers and
catapulted HMSI to become India’s 2nd largest two-wheeler company today.

The journey started with its first model ‘Activa’ in 2001 which gave a new life to scooter
segment and stays strong India’s favourite scooter even 20 years on. And today, Honda provides
pure Joy of Riding to customers through its diverse portfolio of two-wheelers going up to
1800cc. From the trusted 110cc motorcycle for daily commuting, to an array of scooters that
merge the best of technology with convenience; from fun-to-ride dynamic sports models to
iconic global legends for discerning enthusiasts… Honda is led by its challenging spirit to enrich
the lives of its customers with innovative, technology enriched two-wheelers.

YAMAHA
Yamaha Motor made its initial foray into India in 1985 as a joint-venture. In August
2001, it became a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008,
Mitsui & Co. Ltd. entered into an agreement with YMC to become a joint-investor in
India Yamaha Motor Private Limited (IYM).

IYM's manufacturing facilities comprise of 3 State-of-the-art Plants at Surajpur (Uttar

Pradesh), Faridabad (Haryana) and Kanchipuram (Tamil Nadu). The infrastructure at
these plants supports production of two-wheelers and parts for the domestic as well as
overseas markets.

IYM is highly customer-driven and has a country-wide network of over 2,200 customer
touch-points including 500 dealers. Presently, its product portfolio includes Sports
models such as Blue-Core Technology enabled models such as Sports model YZF-R15
version 3.0 (155 cc), FZS 250 CC, FZ 250 CC, MT-15 (Fuel-Injected 155cc), FZ-S FI
(Fuel-Injected, 149 cc), FZ FI (Fuel-Injected, 149 cc), Fuel-injected 125cc Scooter Range
of Ray-ZR Street Rally 125 Fi (125 cc), Ray-ZR 125 Fi (125 cc), Fascino 125 Fi (125
cc).