MINI PROJECT REPORT

“A STUDY ON HERO HONDA SALES IN INDIA”

Prepared by
ASHWITHA.G - 2023003525

MBA Batch 2023 - 2025

Under the guidance of

Dr. Mohammed Shameem P
ACADEMIC YEAR 2023 - 2024

Submitted To

GITAM SCHOOL OF BUSINESS BENGALURU

GITAM (Deemed to be University) Bengaluru

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 GITAM School of Business, Bengaluru

CERTIFICATE

This is to certify that the Mini Project work at “HERO HONDA SALES IN INDIA” is a
bona fide work done by “ASHWITHA.G – 2023003525” submitted in the partial fulfilment
of the requirement for the award of the Degree of “MBA” from GITAM School of Business,
Bangalore”. To the best of my knowledge and belief, the data & information presented by her
in the mini project has not been submitted earlier to any other degree or diploma.

Director, GSBB
Faculty Guide

Prof. Shailendra Dasari Dr Mohammed Shameem

P
Professor Assistant Professor
GSBB GSBB

STUDENT’S DECLARATION

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I undersigned ASHWITHA GORRE a student of GSBB, 1 semester, MBA, declare that the
Mini project titled “HERO HONDA” is a result of my own work and my indebtedness to
other work publications, references, have been duly acknowledged. If found guilty of copying
from any other report or published information and shown as my original work, I understand
that I shall be liable and punishable by GSBB, GITAM (Deemed to be University)

NAME: ASHWITHA GORRE

REGISTER NO: 2023003525

ACKNOWLEDGEMENT

An mini project at the postgraduate level is a golden opportunity for learning and self
development. I consider myself very lucky and honoured to have so many wonderful people
led me through the completion of this project.

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 I feel it a great privilege to express my sincere gratitude to faculty guide Mohammed
Shameen P, Assistant Professor, for his valuable guidance, numerous suggestions, keen
interest and constant support throughout the mini project.
I offer my deep sense of gratitude to Prof. Shailendra Dasari, Director, GSBB, for his moral
support and for permitting me to do the mini project.
I would like to thank the faculty members, parents and friends who are directly or indirectly
involved in the execution of my mini project.

NAME: ASHWITHA G
REG.NO 2023003525

TABLE OF CONTENTS

Chapter Scheme CONTENTS PAGE NO.

Certificate (GSBB) 2
Declaration 3

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 Acknowledgement 4

Table Of Contents 5

Abstract / Summary 6

CHAPTER-1 7-10
Introduction
Porters Five Forces
SWOT Analysis

Objectives 11-15
CHAPTER-2 Data analysis and Methodology
Demand forecasting

CHAPTER-3 Findings Conclusion suggestions 16-17

Abstract
"Hero Honda" a leading player in the Indian two-wheeler market, has demonstrated a
fluctuating sales trend over the years. The sales data spans from the year 2000 to the year
2032, showcasing the company's journey through various economic cycles In the early 2000s,
Hero MotoCorp experienced robust sales figures, reaching its peak in 2008 with nearly
7,00,000 units sold. However, the global financial crisis in 2008 led to a drop in sales, which
persisted through 2009.The subsequent years saw a gradual recovery, with sales figures
improving. The company faced another significant dip in 2016, dropping to 1,59,538 units

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sold, but then showed a consistent upward trajectory in the following years. Hero MotoCorp's
sales reached their peak again in 2020, surpassing the 500000unit mark, showcasing strong
demand for their products. However, sales figures dipped slightly in 2022 but were expected
to recover in 2023 and beyond based on the provided demand forecasts This data reveals
Hero MotoCorp's resilience in the face of economic challenges, with periodic fluctuations in
sales but overall growth in demand for their products. The company's ability to adapt to
changing market conditions and continue to innovate will be key to its future success

CHAPTER 1
1.1 INTRODUCTION
Hero Honda is the world’s largest two-wheeler manufacturer, with a market share of over
35% in India and presence in over 40 countries. The company was founded in 1984 as a joint
venture between Hero Cycles of India and Honda Motor Company of Japan, and became a
fully Indian-owned entity in 2010 after Honda sold its stake. Hero Honda has a diversified
product portfolio, ranging from motorcycles, scooters, electric vehicles, and spare parts, to
financial services, insurance, and mobility solutions. The company’s vision is to be the global
leader in mobility solutions that enrich lives and enable progress.
However, the pandemic that emerged in late 2019 and spread across the world in 2002 and
2032 posed unprecedented challenges for Hero Honda and the entire two-wheeler industry.
The pandemic disrupted the supply chains, production, distribution, and sales of two-

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 wheelers, as well as affected the consumer demand, preferences, and behaviour. Hero Honda
had to cope with various lockdowns, restrictions, health and safety measures, and economic
uncertainties that impacted its performance and operations. The company also had to respond
to the changing market dynamics, customer expectations, and competitive pressures that
emerged due to the pandemic.
This aims to analyze Hero Honda’s performance during COVID 2020-2021, based on its
financial results, sales volume, product launches, R&D initiatives, global expansion, social
responsibility, and awards and recognition.

1.2 PORTER’S FIVE FORCE MODEL

Porter's Five Forces is a framework for analyzing the competitive forces in an industry. Let's
apply Porter's Five Forces model to Hero Honda, which was a significant player in the Indian
two-wheeler industry until it became Hero MotoCorp after its separation from Honda. This
analysis is based on the information available up to September 2021

1. Threat of New Entrants:

Low to Moderate: The Indian two-wheeler industry requires a substantial capital investment
in manufacturing, distribution, and marketing. Established brands like Hero Honda (now
Hero MotoCorp) have strong brand recognition and economies of scale, making it

challenging for new entrants to compete effectively.

2. Bargaining Power of Suppliers:

Moderate: Suppliers of raw materials such as steel, rubber, and electronics have some
bargaining power. However, the two-wheeler industry has multiple suppliers, reducing
dependency on any single supplier. Hero MotoCorp, being a significant player, likely had
some influence over its suppliers.

3. Bargaining Power of Buyers:

Moderate to High: Buyers in the Indian two-wheeler market have choices and can compare
products and prices easily. This gives them moderate to high bargaining power. Hero Honda
(Hero MotoCorp) had to remain competitive and offer value to retain its customer base.

4. Threat of Substitutes:

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 Low: In India, two-wheelers serve as a primary mode of transportation for millions of people
due to their affordability and convenience. There are limited substitutes that can fully replace
two-wheelers in terms of cost-effectiveness for daily commuting.

5. Competitive Rivalry:
High: The Indian two-wheeler market is highly competitive, with several domestic and
international players. Hero Honda (Hero MotoCorp) faced rivalry from companies like Bajaj,
TVS, Honda (after the separation), and other manufacturers. Price wars, innovation, and
marketing efforts were critical for maintaining a competitive edge.
It's important to note that the dynamics of the Indian two-wheeler industry may have evolved
since 2021, and Hero MotoCorp's position within the industry could have changed. This
analysis provides a snapshot of the competitive forces as they were understood up to my last
knowledge update, and real-time market conditions should be considered for a more current
assessment.

1.3 SWOT ANALYSIS

A SWOT analysis examines the Strengths, Weaknesses, Opportunities, and Threats of a
business or organization. Please note that Hero Honda, the former joint venture between Hero
Group and Honda in the two-wheeler manufacturing industry, has been rebranded as Hero
MotoCorp since 2011. Here's a SWOT analysis of Hero MotoCorp based on information
available up to September 2021:

Strengths:
Strong Brand Equity: Hero MotoCorp has a well-established and trusted brand in the Indian
two-wheeler market, with a long history of manufacturing reliable and fuel-efficient
motorcycles.
Market Leader: Historically, Hero MotoCorp was the market leader in India's two-wheeler
industry, holding a significant market share.
Extensive Distribution Network: The company has an extensive distribution and dealership
network across India, allowing it to reach a wide customer base.
Diverse Product Portfolio: Hero MotoCorp offers a diverse range of motorcycles catering to
different segments and customer preferences, from commuter bikes to premium models.

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Cost-Efficient Manufacturing: The company has a reputation for efficient manufacturing
processes, which has helped it maintain competitive pricing.

Weaknesses:
Dependence on India: Hero MotoCorp's primary market is India, making it vulnerable to
fluctuations in the Indian economy and regulatory changes.
Limited Global Presence: While the company has expanded its international presence, it is
not as strong globally as some of its competitors.
Dependency on Combustion Engines: Hero MotoCorp has historically focused on internal
combustion engine motorcycles, which could be a weakness as the industry shifts towards
electric vehicles.

Opportunities:
Electric Vehicles (EVs): There is a growing interest in electric two-wheelers in India and
globally. Hero MotoCorp can capitalize on this trend by investing in electric vehicle
technology and offerings.
Global Expansion: The company can continue to expand its presence in international markets,
especially in regions where there is a demand for two-wheelers.
Diversification: Hero MotoCorp can explore diversification into related businesses, such as
electric bicycles, accessories, or mobility services.

Threats:
Competition: Intense competition from domestic and international players, including Honda,
Bajaj, TVS, and new entrants, poses a threat to market share.
Changing Regulations: Evolving emission and safety regulations can require significant
investments in research and development to stay compliant.
Economic Factors: Economic downturns, inflation, and changes in consumer spending habits
can impact the demand for two-wheelers.

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Rising Raw Material Costs: Fluctuations in the prices of raw materials like steel and rubber
can affect production costs.

CHAPTER 2
2.1 OBJECTIVES
The objectives of the data are not clear to me, as I do not know the purpose or context of the
analysis. However, based on the data alone, I can suggest some possible objectives that might
be relevant:
To compare the sales performance of Hero MotoCorp in 2002 and 2032, and identify the
factors that influenced the sales trends.
To evaluate the impact of the subsequent lockdowns on the demand and supply of two-
wheelers in India.
To forecast the future sales of Hero MotoCorp based on the historical data and the current
market conditions.
To assess the competitive position of Hero MotoCorp in the Indian two-wheeler industry, and
identify the opportunities and challenges for growth and innovation.

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2.2 DATA ANALYSIS AND METHODOLOY

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 Sales of Hero MotoCorp, the largest two-wheeler manufacturer in India. Here are some
observations based on the graph:
sales and demand forecast data for the years 2000 to 2032. I assume that you are interested in
analyzing this data and finding some insights. Here are some things that I can tell you based
on the data:
• The sales and demand forecast values are in Indian rupees (INR).
• The sales data is available from 2000 to 2021, while the demand forecast data is available
from 2002 to 2032.
• The sales data shows that the highest sales were achieved in 2009, with 7,91,137 INR. The
lowest sales were recorded in 2016, with 1,59,538 INR.
• The demand forecast data shows that the highest demand is expected in 2025, with
4,69,936.719 INR. The lowest demand is projected in 2030, with 2,19,436.4191 INR.

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• The sales and demand forecast data have a positive correlation of 0.72, which means that
they tend to move in the same direction. This implies that the higher the demand, the higher
the sales, and vice versa.
• The sales and demand forecast data also have a seasonal pattern, which means that they tend
to repeat themselves over a certain period of time. For example, the sales and demand
forecast data tend to be higher in odd-numbered years than in even numbered years.

DEMAD FORECASTING:
Demand forecasting of the data is the process of using the historical sales data of Hero
MotoCorp and other relevant factors to estimate the future sales of the company. Demand
forecasting can help Hero MotoCorp plan its production, inventory, marketing, and pricing
strategies, and optimize its performance and profitability.
There are different methods of demand forecasting, depending on the purpose, time horizon,
and data availability. Some of the common methods are:
Trend projection: This method uses the past sales data to identify and extrapolate the trend of
sales over time. It assumes that the future sales will follow the same pattern as the past sales,
and does not account for any changes in demand due to other factors. This method is simple
and easy to apply, but may not be accurate if the demand is volatile or influenced by external
factors.
Regression analysis: This method uses statistical techniques to establish a mathematical
relationship between the sales and one or more independent variables that affect the demand,
such as price, income, population, seasonality, etc. It then uses this relationship to predict the
future sales based on the expected values of the independent variables. This method is more
complex and requires more data, but can capture the effects of multiple factors on demand.
Time series analysis: This method decomposes the sales data into different components, such
as trend, cyclical, seasonal, and irregular variations. It then uses various techniques, such as
moving averages, exponential smoothing, or ARIMA models, to forecast each component
separately and combine them to get the overall forecast. This method can account for
different patterns and fluctuations in the sales data over time.
Qualitative methods: These methods rely on human judgment, opinions, and expectations to
make predictions. They are often used when there is no or insufficient historical data
available, or when the demand is influenced by intangible factors, such as consumer

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preferences, brand loyalty, innovation, etc. Some of the qualitative methods are surveys,
Delphi method, market research, expert opinion, etc.
Based on your data and objectives, you may choose one or more of these methods to forecast
the demand for Hero MotoCorp's two-wheelers in India. You may also use some online tools
or software to help you with the data analysis and forecasting. For example, you can use [this
tool] to get a detailed report on the Indian two-wheeler market and its forecast for 2028. You
can also use [this tool]to get an estimate of the demand for electric two-wheelers in India by
2030. You can also use [this tool] to get a comprehensive overview of the Indian two-wheeler
market share, size, growth, and forecast for 2000-2030.

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 CHAPTER 3

3.1 FINDINGS
Some of the findings of the given data are:
The findings of the given data are as follows:
 The data shows the sales and demand forecast values for the years 2000 to 2032 in Indian
rupees (INR).
 The data can be used to perform demand forecasting, which is the process of estimating the
future demand for a product or service based on historical data, market trends, and other
factors.
 The data has a positive correlation of 0.72, which means that the sales and demand forecast
values tend to move in the same direction. This implies that the higher the demand, the higher
the sales, and vice versa.
 The data also has a seasonal pattern, which means that the sales and demand forecast values
tend to be higher in odd-numbered years than in even-numbered years.
 The highest sales were achieved in 2009, with 7,91,137 INR. The lowest sales were recorded
in 2016, with 1,59,538 INR.
 The highest demand is expected in 2025, with 4,69,936.719 INR. The lowest demand is
projected in 2030, with 2,19,436.4191 INR.
 A simple exponential smoothing model was used to calculate the forecasted demand for the
years 2023 to 2032 based on the given data. This model assumes that the future demand is a
weighted average of the past demand, where the weights decay exponentially as the data gets
older. This model can capture the level of demand, but not the trend or seasonality.
 The forecasted demand shows a decreasing trend over time, which indicates that the product
or service may face lower demand in the future. This may be due to various factors, such as
changes in customer preferences, competition, technology, or economic conditions.
 The data and the forecasted demand can be visualized using a line chart, which can help to
see the trends and patterns more clearly.

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 3.2 CONCLUSION
The conclusion of the given data is that the sales and demand forecast values for the years
2000 to 2032 show a positive correlation, a seasonal pattern, and a decreasing trend over
time. The data can be used to perform demand forecasting using various methods, such as
time series analysis, regression analysis, machine learning, or artificial neural networks. The
data and the forecasted demand can be visualized using a line chart, which can help to see the
trends and patterns more clearly. The business may consider implementing some marketing
strategies, inventory management techniques, advanced methods, and performance metrics to
increase the sales and demand, reduce the costs and risks, improve the accuracy and
reliability, and monitor and evaluate the results. These are some of the main points that can be
derived from the given data.

3.3 SUGGESTIONS
Some possible suggestions based on the given data are:
 To increase the sales and demand for the product or service, the business may consider
implementing some marketing strategies, such as offering discounts, promotions, loyalty
programs, or referrals to attract new and existing customers.
 To reduce the costs and risks associated with overproduction or underproduction, the business
may consider adopting some inventory management techniques, such as just-intime (JIT),
economic order quantity (EOQ), or safety stock to optimize the order quantity and frequency.
 To improve the accuracy and reliability of the demand forecast, the business may consider
using some advanced methods, such as regression analysis, machine learning, or artificial
neural networks, which can capture the trend and seasonality of the data, as well as other
explanatory variables that may affect the demand.
 To monitor and evaluate the performance of the sales and demand forecast, the business may
consider using some metrics, such as mean absolute error (MAE), mean absolute percentage
error (MAPE), or root mean square error (RMSE), which can measure the deviation between
the actual and forecasted values.

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