Description
TWO WHEELERS
In IIM Calcutta, nPGPEX- III f 2009 d i a n I s t i t u t e o
Honda’s Entry into the Indian 2-wheeler Market
Management
Calcutta
Project Report
Group-8 Abhishek Kapoor (2/3) Anshuman Dikshit (6/3) Ashish Sinha (8/3) Rajul Srivastava (31/3) Suket Gandhi (46/3)
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1.1.1
Table of Contents
1. Indian Market: A perspective......................................................................................3 1.1 1.2 2. Share of different categories of two-wheelers......................................................4 Trends in the industry..........................................................................................5
Why Honda decided to enter on its own......................................................................6 2.1 2.2 Background of Honda...........................................................................................6 History of Honda in India......................................................................................6 Kinetic Honda................................................................................................6 Hero Honda...................................................................................................7
2.2.1 2.2.2 2.3 2.4 2.5 3.
Government Policies............................................................................................7 What are Honda’s options....................................................................................8 Why did Honda enter the market.........................................................................8
Target Customers & Offerings...................................................................................10 3.1 3.2 Scooter Market Segmentation and Targeting.....................................................10 Product Positioning and Promotion.....................................................................11
4.
Why and how Honda was successful in this segment................................................12 4.1 4.2 4.3 Define success – Criteria, Segment, Period........................................................12 Facts..................................................................................................................12 Reasons for success...........................................................................................13
5.
Challenges Ahead.....................................................................................................13 5.1 5.2 5.3 5.4 HMSI Brings Life to Scooters...............................................................................13 HMSI targeting complete motorcycle market.....................................................14 Can HMSI differentiate itself from Hero-Honda in 100cc segment?....................14 HMSI’s Current Strategy.....................................................................................16
6.
Appendix...................................................................................................................18 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Exhibit 1.............................................................................................................18 Exhibit 2.............................................................................................................19 Exhibit 3.............................................................................................................20 Exhibit 4.............................................................................................................21 Exhibit 5.............................................................................................................22 Exhibit 6.............................................................................................................22 Exhibit 7.............................................................................................................23 Exhibit 8.............................................................................................................25 References.........................................................................................................26
References Page 2 of 25
1. Indian Market: A perspective
Automobile industry, as has been the case in the global economy, has been one of the largest industries in the Indian market too. It has been recognized as one of the key economic drivers. The industry has been in existence in India since 1955. According to the SIAM figures for 2003-04 of all the automotive industry, the 2-wheelers account for roughly 80% of the sales. In the initial years, entry of the firms, capacity, expansion, choice of products & technology were all regulated by the government policies. Certain lacunae in the policies resulted in the introduction of fresh policy regulations in the late sixties. Notable among those were the Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA). This resulted in the following implications for the industry: • • • Operations at below minimum level of efficiency Operations at below production function Usage of outdated technology, minimal budget allocation for Research and Development The Indian economy faced a major crisis in 1991. This resulted in the industrial policy shift from a regulatory regime to a more open and liberalized market. Abolition of licences and liberalization in policies helped realize the sector’s full potential. These policies had certain discernible influences on the industry, namely:
• • • •
Increase in competition as foreign players started entering the market on their own Exposure and absorption of new technologies, both in the products and the processes Southward pressure on the costs Driving out of the weaker players from the arena
1 Share of different categories of two-wheelers
The two-wheeler industry is divided into the following categories:
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1. Motorcycles 2. Scooters 3. Mopeds The category shares of the three categories, from 1993 to 2000 are given below: Category distribution in numbers (% of market share) Scooter Motorcycle Moped
799094 984697 1177153 1301434 1276832 1291356 1281285 1013737 48% 47% 46% 45% 42% 40% 35% 26% 430973 606884 776465 933561 1083919 1302788 1662692 2122489 26% 29% 30% 32% 36% 40% 46% 55% 451348 502738 603695 684583 646983 668765 702258 731548 27% 24% 24% 23% 22% 20% 19% 19%
Year
1993 1994 1995 1996 1997 1998 1999 2000
Total
1681415 2094319 2557313 2919578 3007734 3262909 3646235 3867774
(Also refer to Exhibit 8)
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1.1 Trends in the industry
The composition of the two wheeler industry had witnessed a great change since 1991. In 1991, the share of scooters was 48% of the total market. Whereas, in the same year the share of motorcycle was 26% with the remaining share going to the moped category. Since then, the motorcycle segment has been growing at a faster pace than the whole segment. For the scooter and the moped categories the rate of growth has always been less than that of the whole industry. Moreover, since 1998 the moped category has shown signs of steadying but the scooter category registered a negative growth rate in the years 1997, 1999 and 2000. In the year 1998 growth rate of scooter market was a dismal 1%. It is against this backdrop that we shall analyse why Honda’s rational in entering the Indian scooter market. The manufacturer and the category wise distribution during the same period, 1993 to 2000 are represented in the following tables: Production of Scooters by Manufacturers in India (Calendar Year - 1993 to 2002) BAL HSL KHML LML MSL SIL TVS
483342 611520 686672 762127 620546 636708 580135 439397 68384 84330 109133 114288 115826 97914 109031 130642 126927 182135 236750 262981 313680 325181 294946 199796 105167 105817 117516 148536 140859 154525 140182 114675 676 121 156 181 19844 54605 67379 94256 123590 150459
Year
1993 1994 1995 1996 1997 1998 1999 2000
Total
784496 983923 1170071 1342718 1258290 1308584 1247884 1034969
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
1. Why Honda decided to enter on its own 2.1 Background of Honda
The history of Honda Motorcycle Corporation Limited (HMCL) dates back to 1946, when Soichiro Honda, a mechanical engineer, established the ‘Honda Technical Research Institute’ in Hamamatsu, Japan. The idea was to develop and later produce small two-cycle motorbike engines. Honda’s first product, an A-type 50cc bicycle engine, was produced in 1947.
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In 1948, HMCL was incorporated with a capital of one million yen. Soon, the company started to design and produce lightweight motorcycles. Honda’s first motor cycle, D-type two stroke 98cc, was produced in 1949. In the early fifties, the headquarters of the company was shifted from Hamamatsu to Tokyo and the company got listed on the Tokyo Stock Exchange. In 1959, the American Honda Motor Company Inc. was established in Los Angeles. The American venture started modestly with a staff of six and sales figure barely touching 200 motorcycles. In 1963, American Honda launched the “You meet the nicest people on a Honda” advertising campaign, which revolutionized the US motorcycle industry. A few years later, Honda established motorcycle assembly plants in Germany and Belgium. During the 1960s, HMCL expanded its product line by introducing light trucks, compact cars, out board motors, power generators and several new models of motorcycles and motor scooters. New production units were started in Thailand, UK, Malaysia and cumulative motorcycle production reached 10 million units by 1968. During the 1970s, HMCL entered the Philippines, Indonesia and Brazil. In 1972, HMCL introduced the higher-priced and more powerful car – Honda Accord. By the mid 1980s, Honda had emerged as the third largest Japanese automaker behind Toyota and Nissan.
2.2 History of Honda in India
2.2.1 Kinetic Honda Kinetic, founded by H.K. Firodia in 1972 was primarily in the Moped Market. Its Luna became a huge success with the middle class sector in India.
In 1985 Honda and Kinetic tied up to form Kinetic Honda Motors Ltd. The company’s primary business was to manufacture scooters. The “KH-100”, the first gearless, self start and auto choke scooter in India was a huge success. 2.2.2 Hero Honda The other joint venture agreement between HMCL and the Hero Group resulted in formation of Hero Honda Motors Limited (HHML) in 1984. HMCL held a 23 per cent equity stake in the joint venture. The Indian motorcycle market was very sluggish at
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that time. Many Indian consumers were of the opinion that scooters were much safer than motorcycles. In 1985, HHML launched the Hero Honda CD-100 motorcycles, the first four-stroke bike in India. Its unique features such as a four-stroke engine, fuel efficiency (approximately 80 km/l) and low emission made the model a runaway success with Indian customers.
2.3 Government Policies
Under the regulated regime (1940-1990), foreign companies were not allowed to operate in India and imports were strictly controlled. It was a sellers market with the waiting period for getting a Bajaj scooter being as long as 12 years. The motorcycle segment was no different, with only three manufacturers – Enfield, Ideal Jawa and Escorts. The motorcycle segment was initially dominated by the Enfield 350cc motorcycle and Escorts 175cc motorcycle. The scenario began to change in the mid-1980s when the Indian Government started permitting foreign companies to enter the market through minority joint ventures. The then market leaders – Escorts and Enfield – were caught unawares by the onslaught of 100cc bikes from four Indo-Japanese joint ventures – Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda – then the only producer of four stroke bikes (100cc category) – gaining the top slot.
2.4 What are Honda’s options
In 1991, after the economic liberalization Honda did not have any obligation to operate in India through partners. Honda was the proven leader in two wheeler industry. Through joint ventures Honda’s brand name was firmly established in India. It did not needed much brand building in India. Besides it had gained sufficient experience and understanding of the Indian market by now. At this point, Honda had three options: • Continue with the existing partners – This no longer being a regulatory
requirement was not the best option at this point. Honda had enough expertise, experience and brand image to go independently in India.
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•
Buy Stakes of the Partner – One option was for Honda to buy the stakes in
their partner. Honda did this with their partner Sriram. Honda tried to buy stakes in Kinetic Honda but it did not work out. • Sell Stakes and Start on its own – Honda could sell its stakes in the existing
JVs and enter the market on its own.
2.5 Why did Honda enter the market
In the above scenario, Honda sold its stakes in Kinetic-Honda JV and decided to enter the market on its own as Honda Motorcycles and Scooters India (HMSI) Pvt Ltd. India is the largest 2-wheelers market - at 38.67 lakh units in 2000, and growing rapidly, it was too lucrative a market to share with anybody. Contractual obligations in Hero-Honda JV prevented Honda to launch motor-cycles until 2004. However, Honda was free to enter the scooter market subsequent to termination of KineticHonda JV. Scooter demand was sluggish in late 90’s and had dropped to 10 lakh units in 2000. Entering the 2-wheeler market with scooters, Honda ran the risk of entering a dying market. However, Honda saw an opportunity to grow the scooter segment. Firstly, India’s GDP was rising and so was the per capita income. Along with young male working professionals, number of working women was increasing steadily (Exhibit 3). Honda saw a huge potential market for its scooters. Declining as it may be, scooter demand still stood at 10 lakh units in 2000. Market environment was changing rapidly and so were the pollution norms. Scooters until 2000 predominantly had a 2-stroke engine and geared transmission. 2-stroke engine was unable to meet the increasingly stringent pollution norms. Geared transmission was falling out of favour with the customers. In the declining scooter market, two companies with rising sales were TVS and Kinetic Honda, both riding on the success of their gearless scooters. Honda had a globally established product line of gearless 4-stroke scooters, which were high on style, comfort, ease of use /maintenance, and mileage. Honda was thus well poised to enter the scooter market in India. Situation Analysis as Honda prepared to enter the Indian 2 wheeler on its own is outlined below.
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1. Target Customers & Offerings
This section analyses needs of different target customers vis-à-vis features offered by various Honda products. Subsequently, details and positioning of each product is explained.
1.1 Scooter Market Segmentation and Targeting
Target Family Needs Comfort Features – Self Start – Less Noise & Vibration – Long Seat – Large Storage Low and Easy – Metal panels instead of Maintenance plastic panels – Convenient Lift up Independent Cover Better Mileage Easy to Handle Youth Style – Tyres with tuff-up technology – 50 kms per litre – Light-weight gearless – Centrally balanced engine – Futuristic design – Vibrant body colours with Better Mileage Comfort attractive graffiti art – 50 kms per litre – Self Start – Less Noise & Vibration – Long Seat Low and Easy – Convenient Lift up Maintenance Easy to Handle Working class Elegance Safety Independent Cover – Tyres with tuff-up technology – Light-weight gearless – Centrally balanced engine – Revolutionary design – Disc brake improves safety
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Offerings
Activa
Dio
Aviator
Target
Needs Strength
Features – Contemporary telescopic front suspension – 12-inch alloy wheels
–
Offerings
Body is combination of metal and high impact resistant ABS parts
Full Size scooters
Power Mileage efficiency Rugged
– Other standard features – 150cc – 60 kms per litre – Water-proof electrical components and stainless steel tuff-up cable – One direction gear system – Large storage
Eterno
Comfort
– Other standard features
1.1 Product Positioning and Promotion
Activa Activa was the first scooter launched by Honda in 2001. It revitalised the scooter market since its launch in 2001. Activa was designed keeping in view the preferences of Indian consumers who felt that the conventional Indian scooter was too big and difficult to handle. Promotion: The print (Exhibit 7) and TV advertisements reinforced the message that Activa is the ideal mode of communication for the family. The advertisements also emphasized the ‘easy to handle’ features, ‘speed and pick up’ and low maintenance of Activa. Dio Dio is India’s first motoscooter. DIO was meant to add passion and excitement with its stunning looks and performance, by incorporating the latest world trends that made it a scooter that is much ahead of its time. Promotion:
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•
A print promotion (Exhibit 7) showed the scooter and a fashionably dressed young man carrying expensive glasses. The promo had the caption - ‘you and Dio complete the design’
•
Other advertisements emphasized style & comfort
Aviator Honda Aviator scooter presented an amalgam of new styling, comfort and performance. The international design and styling of Aviator made it look sophisticated & luxurious. Its lightweight 12-inch-alloy wheels are a first for the scooter industry in India. Eterno Honda entered the geared scooter segment of India with this 4-stroke 150cc scooter called Eterno. This model derives its name from the word eternal that represents the reliable technology prowess of Honda brand. Honda Eterno is a power packed machine with robust design and trendy looks.
1. Why and how Honda was successful in this segment 4.1 Define success – Criteria, Segment, Period
HMSIL being a private limited company is not mandated to make public its financial statements. Hence, success of the company is measured in terms of its annual production, exports and market share.
4.2 Facts
Total scooter production fell from 10,13,737 units in 2001 to 9,07,895 units in 2003. However by 2008, production was back to 11,22,575 units. Scooter sales are rising steadily since 2006 while motorcycle sales are declining in the same period (Exhibit 7). In 2008, HMSI has 59% market share of total domestic scooter market with 6,64,459 units sold. It exported 10,543 units to account for 40% of scooter exports. In the same period, HMSI sold 3,22,452 motorcycle units to account for 5% of the domestic market. It exported 36,269 units to account for 10% of B3 segment (Motorcycles with engine capacity ranging from 125cc to 250 cc) and 4% of total motorcycle exports.
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4.3 Reasons for success
Main reasons for Honda’s success are : ? Ability to identify the right opportunities and shape the market In a declining market, Honda was able to identify opportunities of growth. ? By providing products that satisfied customer needs It had a repertoire of products that fit the customer needs. It spotted the trend, and provided a gearless scooter across various segments. ? Through leadership in design and technology, Honda has core strength in 4-stroke small engine technology. Besides it had superior products with contemporary styling, high comfort, ease of use, and fuel efficiency. Honda introduced new features like puncture resistant tyres, and mono-shock in its products. ? Backed by a globally trusted corporate identity. Honda is known for its product reliability and innovation. It is market leader in 2-wheelers in the Americas, and globally. Honda is a respected name in passenger cars, known for its reliability and value for money.
1. Challenges Ahead
4
4.1 HMSI Brings Life to Scooters
The waiting list in scooter market has made a comeback. Scooters, which almost disappeared, are making a comeback. The waiting period for new Activa 100cc is one month which used to be just 10 days 6 months back. During 2006, only 12% of the 2 wheelers sold in India used to be scooters. The percentage is expected to be 20% this year. Additionally, the scooter market grew in double digits last fiscal, outperforming the two-wheeler market, which grew 2.6 per cent in the same period. Naresh Rattan, HMSI’s divisional head (sales and marketing), said many urban markets in India were seeing a transition from motorcycles to scooters. “An increasing number of people are opting for scooters over bikes because they are hassle-free and very convenient, with mileage almost on a par with motorcycles. We do not think that a growth of 15 per cent year-on-year is difficult to achieve,” he said.
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4.2 HMSI targeting complete motorcycle market
As the non-compete agreement between Hero Honda and HMSI had ended, HMSI is ready to take on its own long-time partner in India, Hero Honda (in which Honda has a 26 per cent stake), and in the latter’s key area of dominance, the 100cc motorcycle market. Hero Honda commands 80 per cent market share in the 100cc segment (60 per cent of its sales), far ahead of its nearest competitor, Bajaj Auto. HMSI is working on entering the same segment, with a sporty bike, in 2010. It hopes to sell a few lakh of these a year, to begin with. “The 100cc motorcycle that we plan to launch in India will be a totally new offering. It’ll not be a basic version and will be the sporty type,” says Shinji Aoyoma, president & CEO of HMSI. (Exhibits 4,5 and 6) Aoyoma is also planning to ensure that in the next few years, motorcycles make up for half of total sales. This would be a big change from its current mix, where scooters comprise 65 per cent of all sales. And he is clear that he hopes to do so by entering the 100cc bike segment, which is two-thirds of the 5.7 million per year motorcycles market. The 100cc motorcycle market is currently divided into two basic segments, entry and deluxe. The sales, too, are equally divided. The entry-level motorcycle segment is pegged between Rs.30,000–35,000, while deluxe models are priced at Rs.37,000–45,000. Industry experts say it is in the upper end of this price band that Honda is planning to position its 100cc bike.
4.3 Can HMSI differentiate itself from Hero-Honda in 100cc segment?
To highlight the product differentiating features, Anil Dua, senior vice-president, sales & marketing, Hero Honda says, “When a customer buys a motorcycle from the Hero Honda stable, he buys a package, which includes the brand, design, the valuefor-money promise, and the largest servicing network in the country. We field six brands in the 100cc segment, where each brand is uniquely positioned without cannibalising the other. The same will happen when Honda enters the segment”. Dua says there is a large untapped market in the 100cc segment as 70 per cent of the urban population and 90 per cent of the rural one have not bought their first motorcycle. “There’s room for everyone,” says Dua. HMSI further reinforces the same argument and notes that the 100cc market has many segments and it will operate in areas where its partners do not. “If you divide
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the 100cc motorcycle segment into 10, starting from the entry to the deluxe level, there’s potential in every segment. So, our entry into the top end of the motorcycle segment does not mean we are taking on our partner, Hero Honda. We don’t sell our brands based on engine cc classification or pricing. We cater to a particular segment of customers who value the brand Honda,” says NK Rattan, divisional head, sales & marketing, HMSI. “The overall direction at HMSI is to focus more on fun biking and move away from basic commuting. This is what will make us unique while ensuring that there is no cannibalisation with Hero Honda’s motorcycles in the process,” said Mr Shinji Aoyama, President and CEO of HMSI. The recent launch of the 125cc Stunner is a move in this direction and this is what the 100cc bike, due to debut this fiscal, is intended to do too. “Its price could be a bit higher but the styling and performance will be unique to HMSI and customers will know the difference,” he added. However, conflicting views emerge from both, Honda companies as well as the industrial sector. Recently, Pawan Munjal, managing director and CEO, HHML, said since both operated in the 100-150cc segment, there had been some cannibalisation of products. Hero Honda sells as many as 14 products in the local market and HMSI sells six. In Bangalore, while launching a new version of the CBF Stunner, a 125cc motorcycle, Honda Motorcycle president and CEO Shinji Aoyama said that HMSI has turned profitable and aims to maintain 17% sales growth in 2009-10. Further, he added, “Business is getting better, but our profits are not as big as our competitors like Hero Honda (Motors Ltd) or Bajaj (Auto Ltd),” which indicates recognition of Hero-Honda as a competitor as well.
4.4 HMSI’s Current Strategy
HMSI has set a sales growth target of 18 per cent for the financial year 2009-10. HMSI aims to continue being the leader in the market and looks forward to continue meeting the customers' requirement with the changing times.
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HMSI also states that volumes and market share are not priority areas. “I do not care about market share because this does not make customers happy. The focus for us is on quality products and services,” says Mr. Aoyama. Rising price of raw material has hit HMSI recently but global slowdown has kept the price in check for some time. From Honda’s point of view, India remains an attractive market for two-wheelers. “There are a huge number of youngsters in India with disposable incomes getting higher. I expect demand to grow consistently, though it could be in single digit figures, in the coming years,” he said. “Indian 2wheeler market is progressing from mass market to a diversified market due to changes in lifestyle of consumers. HMSI is committed to provide unique experience to Indian customers through its innovative products and quality in every aspect of business. To maintain this quality and advanced value creation, HMSI is mainly focusing on- Fun, Safety & Environment. Honda will spread Fun Biking in a responsible manner with emphasis on safe riding and good customer services. In the Environment, many significant efforts have been made like eliminating use of asbestos, lead free paint & hazardous material from our manufacturing to protect the environment. In India we will continue to bring exciting products and be a full line company to serve every kind of customer” adds Mr. Shinji Aoyama.
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1. Appendix 2 3 4 6.1 Exhibit 1
Production of Motorcycles by Manufacturers in India (Calendar Year - 1993 to 2002)
Year 1993 1994 1995 1996 1997 1998 1999 2000 BAL 128305 175380 241725 287441 306889 349578 408489 567832 YML 97382 151852 173865 228271 174662 177340 228527 213290 HHML 139869 174242 218422 247971 375720 498374 682353 985043 KEL LML IJPL 1563 4673 6932 2133 REML 13201 14629 21490 22707 23718 17700 23289 22733 TVS 44394 79315 114564 157388 201322 252308 314494 360814 Total 424714 600091 776998 945911 1082311 1295300 1657152 2164950
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
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6.2 Exhibit 2
Production of Mopeds by Manufacturers in India (Calendar year 1993 to 2000)
Year 1993 1994 1995 1996 1997 1998 1999 2000 BAL 72842 71683 71075 70206 58724 38211 69475 58381 KEL 127145 121865 158432 156944 163191 160903 162615 159424 MAL 104561 119505 118091 137240 138381 128195 111119 107524 Royal Enfield 4091 0 0 0 0 0 0 0 TVS 149157 202334 257487 294919 294589 334540 381301 369645 YMI 0 1549 19035 18765 12357 9850 0 0 Total 457796 516936 624120 678074 667242 671699 724510 694974
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
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6.3 Exhibit 3
Women employees in organized sector Calender Year 1992 - 2006
Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Women (’000) 3889.8 4026.3 4153.9 4227.9 4426.4 4637 4773.6 4829.2 4922.8 4949.3 4935.4 4969 4934 5016 5121 Total (’000) 27055.7 27176.6 27374.8 27524.7 27940.9 28244.5 28165.8 28113.1 27959.7 27789.2 27205.5 27000 26443 26458 26993 % Women 14.4% 14.8% 15.2% 15.4% 15.8% 16.4% 16.9% 17.2% 17.6% 17.8% 18.1% 18.4% 18.7% 19.0% 19.0%
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6.4 Exhibit 4
6.5 Exhibit 5
6.6 Exhibit 6
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6.7 Exhibit 7 Honda Activa
Features: • • • 110cc smooth engine Combi Brake for shorter braking distance with stability Anti-theft Key shutter for safety of vehicle Price : Rs. 35,628 - Rs. 39,052
•
• •
18 litre storage capacity Puncture Resistant Tuff-up tube in the rear tyre Under standard conditions, mileage of 50 km per litre
Honda Dio
.
Features: • • 102 cc engine Sleek aerodynamic design • • Light weight body Effective shock absorption
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•
Low positioned seat with high ground clearance
•
Stays balanced even during emergency braking
Price : Rs. 40,000 – Rs. 42,000
Honda Aviator
Features :
•
Front facade styling with large clear lens multi-reflector lamps
• • •
Adequate 20 Litre of under seat space Telescopic front suspension for better on road control High impact resistant body
• •
Lightweight 12 inches alloy wheel Puncture resistant tuff-up tube
Price: Rs. 45,175 - 48,935
Eterno
Features : • • Aerodynamic Body with masculine looking body style Ground Clearance of 161 mm
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• •
Dual Spring Suspension technology for better comfort Spacious Flat Board
•
Grab rails for convenience and safety
•
CLIC - Lift Up Independent Cover for easy maintenance
Price: Rs 36,000-38,000
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6.1 Exhibit 8
Y on Y growth in 2-wheeler categories Scooter Motorcycle Moped Total
23% 20% 11% -2% 1% -1% -21% 41% 28% 20% 16% 20% 28% 28% 11% 20% 13% -5% 3% 5% 4% 25% 22% 14% 3% 8% 12% 6%
Year
1993 1994 1995 1996 1997 1998 1999 2000
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
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6.2 References
1. http://www.honda2wheelersindia.com 2. http://world.honda.com 3. http://indiaeconomicstat.com 4. http://indiastat.com 5. http://www.livemint.com 6. http://auto.indiamart.com 7. http://www.thehindubusinessline.com 8. http://ia.rediff.com 9. http://www.bikeindia.in 10.http://www.team-bhp.com 11.http://www.financialexpress.com 12.http://www.indiaprwire.com 13.http://www.mydigitalfc.com 14.http://www.business-standard.com 15.http://findarticles.com 16.http://www.ibef.org And 17.Dealer in Kolkata – TodiHonda – Discussion and visit
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doc_357092461.pdf
TWO WHEELERS
In IIM Calcutta, nPGPEX- III f 2009 d i a n I s t i t u t e o
Honda’s Entry into the Indian 2-wheeler Market
Management
Calcutta
Project Report
Group-8 Abhishek Kapoor (2/3) Anshuman Dikshit (6/3) Ashish Sinha (8/3) Rajul Srivastava (31/3) Suket Gandhi (46/3)
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1.1.1
Table of Contents
1. Indian Market: A perspective......................................................................................3 1.1 1.2 2. Share of different categories of two-wheelers......................................................4 Trends in the industry..........................................................................................5
Why Honda decided to enter on its own......................................................................6 2.1 2.2 Background of Honda...........................................................................................6 History of Honda in India......................................................................................6 Kinetic Honda................................................................................................6 Hero Honda...................................................................................................7
2.2.1 2.2.2 2.3 2.4 2.5 3.
Government Policies............................................................................................7 What are Honda’s options....................................................................................8 Why did Honda enter the market.........................................................................8
Target Customers & Offerings...................................................................................10 3.1 3.2 Scooter Market Segmentation and Targeting.....................................................10 Product Positioning and Promotion.....................................................................11
4.
Why and how Honda was successful in this segment................................................12 4.1 4.2 4.3 Define success – Criteria, Segment, Period........................................................12 Facts..................................................................................................................12 Reasons for success...........................................................................................13
5.
Challenges Ahead.....................................................................................................13 5.1 5.2 5.3 5.4 HMSI Brings Life to Scooters...............................................................................13 HMSI targeting complete motorcycle market.....................................................14 Can HMSI differentiate itself from Hero-Honda in 100cc segment?....................14 HMSI’s Current Strategy.....................................................................................16
6.
Appendix...................................................................................................................18 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Exhibit 1.............................................................................................................18 Exhibit 2.............................................................................................................19 Exhibit 3.............................................................................................................20 Exhibit 4.............................................................................................................21 Exhibit 5.............................................................................................................22 Exhibit 6.............................................................................................................22 Exhibit 7.............................................................................................................23 Exhibit 8.............................................................................................................25 References.........................................................................................................26
References Page 2 of 25
1. Indian Market: A perspective
Automobile industry, as has been the case in the global economy, has been one of the largest industries in the Indian market too. It has been recognized as one of the key economic drivers. The industry has been in existence in India since 1955. According to the SIAM figures for 2003-04 of all the automotive industry, the 2-wheelers account for roughly 80% of the sales. In the initial years, entry of the firms, capacity, expansion, choice of products & technology were all regulated by the government policies. Certain lacunae in the policies resulted in the introduction of fresh policy regulations in the late sixties. Notable among those were the Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA). This resulted in the following implications for the industry: • • • Operations at below minimum level of efficiency Operations at below production function Usage of outdated technology, minimal budget allocation for Research and Development The Indian economy faced a major crisis in 1991. This resulted in the industrial policy shift from a regulatory regime to a more open and liberalized market. Abolition of licences and liberalization in policies helped realize the sector’s full potential. These policies had certain discernible influences on the industry, namely:
• • • •
Increase in competition as foreign players started entering the market on their own Exposure and absorption of new technologies, both in the products and the processes Southward pressure on the costs Driving out of the weaker players from the arena
1 Share of different categories of two-wheelers
The two-wheeler industry is divided into the following categories:
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1. Motorcycles 2. Scooters 3. Mopeds The category shares of the three categories, from 1993 to 2000 are given below: Category distribution in numbers (% of market share) Scooter Motorcycle Moped
799094 984697 1177153 1301434 1276832 1291356 1281285 1013737 48% 47% 46% 45% 42% 40% 35% 26% 430973 606884 776465 933561 1083919 1302788 1662692 2122489 26% 29% 30% 32% 36% 40% 46% 55% 451348 502738 603695 684583 646983 668765 702258 731548 27% 24% 24% 23% 22% 20% 19% 19%
Year
1993 1994 1995 1996 1997 1998 1999 2000
Total
1681415 2094319 2557313 2919578 3007734 3262909 3646235 3867774
(Also refer to Exhibit 8)
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1.1 Trends in the industry
The composition of the two wheeler industry had witnessed a great change since 1991. In 1991, the share of scooters was 48% of the total market. Whereas, in the same year the share of motorcycle was 26% with the remaining share going to the moped category. Since then, the motorcycle segment has been growing at a faster pace than the whole segment. For the scooter and the moped categories the rate of growth has always been less than that of the whole industry. Moreover, since 1998 the moped category has shown signs of steadying but the scooter category registered a negative growth rate in the years 1997, 1999 and 2000. In the year 1998 growth rate of scooter market was a dismal 1%. It is against this backdrop that we shall analyse why Honda’s rational in entering the Indian scooter market. The manufacturer and the category wise distribution during the same period, 1993 to 2000 are represented in the following tables: Production of Scooters by Manufacturers in India (Calendar Year - 1993 to 2002) BAL HSL KHML LML MSL SIL TVS
483342 611520 686672 762127 620546 636708 580135 439397 68384 84330 109133 114288 115826 97914 109031 130642 126927 182135 236750 262981 313680 325181 294946 199796 105167 105817 117516 148536 140859 154525 140182 114675 676 121 156 181 19844 54605 67379 94256 123590 150459
Year
1993 1994 1995 1996 1997 1998 1999 2000
Total
784496 983923 1170071 1342718 1258290 1308584 1247884 1034969
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
1. Why Honda decided to enter on its own 2.1 Background of Honda
The history of Honda Motorcycle Corporation Limited (HMCL) dates back to 1946, when Soichiro Honda, a mechanical engineer, established the ‘Honda Technical Research Institute’ in Hamamatsu, Japan. The idea was to develop and later produce small two-cycle motorbike engines. Honda’s first product, an A-type 50cc bicycle engine, was produced in 1947.
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In 1948, HMCL was incorporated with a capital of one million yen. Soon, the company started to design and produce lightweight motorcycles. Honda’s first motor cycle, D-type two stroke 98cc, was produced in 1949. In the early fifties, the headquarters of the company was shifted from Hamamatsu to Tokyo and the company got listed on the Tokyo Stock Exchange. In 1959, the American Honda Motor Company Inc. was established in Los Angeles. The American venture started modestly with a staff of six and sales figure barely touching 200 motorcycles. In 1963, American Honda launched the “You meet the nicest people on a Honda” advertising campaign, which revolutionized the US motorcycle industry. A few years later, Honda established motorcycle assembly plants in Germany and Belgium. During the 1960s, HMCL expanded its product line by introducing light trucks, compact cars, out board motors, power generators and several new models of motorcycles and motor scooters. New production units were started in Thailand, UK, Malaysia and cumulative motorcycle production reached 10 million units by 1968. During the 1970s, HMCL entered the Philippines, Indonesia and Brazil. In 1972, HMCL introduced the higher-priced and more powerful car – Honda Accord. By the mid 1980s, Honda had emerged as the third largest Japanese automaker behind Toyota and Nissan.
2.2 History of Honda in India
2.2.1 Kinetic Honda Kinetic, founded by H.K. Firodia in 1972 was primarily in the Moped Market. Its Luna became a huge success with the middle class sector in India.
In 1985 Honda and Kinetic tied up to form Kinetic Honda Motors Ltd. The company’s primary business was to manufacture scooters. The “KH-100”, the first gearless, self start and auto choke scooter in India was a huge success. 2.2.2 Hero Honda The other joint venture agreement between HMCL and the Hero Group resulted in formation of Hero Honda Motors Limited (HHML) in 1984. HMCL held a 23 per cent equity stake in the joint venture. The Indian motorcycle market was very sluggish at
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that time. Many Indian consumers were of the opinion that scooters were much safer than motorcycles. In 1985, HHML launched the Hero Honda CD-100 motorcycles, the first four-stroke bike in India. Its unique features such as a four-stroke engine, fuel efficiency (approximately 80 km/l) and low emission made the model a runaway success with Indian customers.
2.3 Government Policies
Under the regulated regime (1940-1990), foreign companies were not allowed to operate in India and imports were strictly controlled. It was a sellers market with the waiting period for getting a Bajaj scooter being as long as 12 years. The motorcycle segment was no different, with only three manufacturers – Enfield, Ideal Jawa and Escorts. The motorcycle segment was initially dominated by the Enfield 350cc motorcycle and Escorts 175cc motorcycle. The scenario began to change in the mid-1980s when the Indian Government started permitting foreign companies to enter the market through minority joint ventures. The then market leaders – Escorts and Enfield – were caught unawares by the onslaught of 100cc bikes from four Indo-Japanese joint ventures – Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda – then the only producer of four stroke bikes (100cc category) – gaining the top slot.
2.4 What are Honda’s options
In 1991, after the economic liberalization Honda did not have any obligation to operate in India through partners. Honda was the proven leader in two wheeler industry. Through joint ventures Honda’s brand name was firmly established in India. It did not needed much brand building in India. Besides it had gained sufficient experience and understanding of the Indian market by now. At this point, Honda had three options: • Continue with the existing partners – This no longer being a regulatory
requirement was not the best option at this point. Honda had enough expertise, experience and brand image to go independently in India.
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•
Buy Stakes of the Partner – One option was for Honda to buy the stakes in
their partner. Honda did this with their partner Sriram. Honda tried to buy stakes in Kinetic Honda but it did not work out. • Sell Stakes and Start on its own – Honda could sell its stakes in the existing
JVs and enter the market on its own.
2.5 Why did Honda enter the market
In the above scenario, Honda sold its stakes in Kinetic-Honda JV and decided to enter the market on its own as Honda Motorcycles and Scooters India (HMSI) Pvt Ltd. India is the largest 2-wheelers market - at 38.67 lakh units in 2000, and growing rapidly, it was too lucrative a market to share with anybody. Contractual obligations in Hero-Honda JV prevented Honda to launch motor-cycles until 2004. However, Honda was free to enter the scooter market subsequent to termination of KineticHonda JV. Scooter demand was sluggish in late 90’s and had dropped to 10 lakh units in 2000. Entering the 2-wheeler market with scooters, Honda ran the risk of entering a dying market. However, Honda saw an opportunity to grow the scooter segment. Firstly, India’s GDP was rising and so was the per capita income. Along with young male working professionals, number of working women was increasing steadily (Exhibit 3). Honda saw a huge potential market for its scooters. Declining as it may be, scooter demand still stood at 10 lakh units in 2000. Market environment was changing rapidly and so were the pollution norms. Scooters until 2000 predominantly had a 2-stroke engine and geared transmission. 2-stroke engine was unable to meet the increasingly stringent pollution norms. Geared transmission was falling out of favour with the customers. In the declining scooter market, two companies with rising sales were TVS and Kinetic Honda, both riding on the success of their gearless scooters. Honda had a globally established product line of gearless 4-stroke scooters, which were high on style, comfort, ease of use /maintenance, and mileage. Honda was thus well poised to enter the scooter market in India. Situation Analysis as Honda prepared to enter the Indian 2 wheeler on its own is outlined below.
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1. Target Customers & Offerings
This section analyses needs of different target customers vis-à-vis features offered by various Honda products. Subsequently, details and positioning of each product is explained.
1.1 Scooter Market Segmentation and Targeting
Target Family Needs Comfort Features – Self Start – Less Noise & Vibration – Long Seat – Large Storage Low and Easy – Metal panels instead of Maintenance plastic panels – Convenient Lift up Independent Cover Better Mileage Easy to Handle Youth Style – Tyres with tuff-up technology – 50 kms per litre – Light-weight gearless – Centrally balanced engine – Futuristic design – Vibrant body colours with Better Mileage Comfort attractive graffiti art – 50 kms per litre – Self Start – Less Noise & Vibration – Long Seat Low and Easy – Convenient Lift up Maintenance Easy to Handle Working class Elegance Safety Independent Cover – Tyres with tuff-up technology – Light-weight gearless – Centrally balanced engine – Revolutionary design – Disc brake improves safety
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Offerings
Activa
Dio
Aviator
Target
Needs Strength
Features – Contemporary telescopic front suspension – 12-inch alloy wheels
–
Offerings
Body is combination of metal and high impact resistant ABS parts
Full Size scooters
Power Mileage efficiency Rugged
– Other standard features – 150cc – 60 kms per litre – Water-proof electrical components and stainless steel tuff-up cable – One direction gear system – Large storage
Eterno
Comfort
– Other standard features
1.1 Product Positioning and Promotion
Activa Activa was the first scooter launched by Honda in 2001. It revitalised the scooter market since its launch in 2001. Activa was designed keeping in view the preferences of Indian consumers who felt that the conventional Indian scooter was too big and difficult to handle. Promotion: The print (Exhibit 7) and TV advertisements reinforced the message that Activa is the ideal mode of communication for the family. The advertisements also emphasized the ‘easy to handle’ features, ‘speed and pick up’ and low maintenance of Activa. Dio Dio is India’s first motoscooter. DIO was meant to add passion and excitement with its stunning looks and performance, by incorporating the latest world trends that made it a scooter that is much ahead of its time. Promotion:
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•
A print promotion (Exhibit 7) showed the scooter and a fashionably dressed young man carrying expensive glasses. The promo had the caption - ‘you and Dio complete the design’
•
Other advertisements emphasized style & comfort
Aviator Honda Aviator scooter presented an amalgam of new styling, comfort and performance. The international design and styling of Aviator made it look sophisticated & luxurious. Its lightweight 12-inch-alloy wheels are a first for the scooter industry in India. Eterno Honda entered the geared scooter segment of India with this 4-stroke 150cc scooter called Eterno. This model derives its name from the word eternal that represents the reliable technology prowess of Honda brand. Honda Eterno is a power packed machine with robust design and trendy looks.
1. Why and how Honda was successful in this segment 4.1 Define success – Criteria, Segment, Period
HMSIL being a private limited company is not mandated to make public its financial statements. Hence, success of the company is measured in terms of its annual production, exports and market share.
4.2 Facts
Total scooter production fell from 10,13,737 units in 2001 to 9,07,895 units in 2003. However by 2008, production was back to 11,22,575 units. Scooter sales are rising steadily since 2006 while motorcycle sales are declining in the same period (Exhibit 7). In 2008, HMSI has 59% market share of total domestic scooter market with 6,64,459 units sold. It exported 10,543 units to account for 40% of scooter exports. In the same period, HMSI sold 3,22,452 motorcycle units to account for 5% of the domestic market. It exported 36,269 units to account for 10% of B3 segment (Motorcycles with engine capacity ranging from 125cc to 250 cc) and 4% of total motorcycle exports.
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4.3 Reasons for success
Main reasons for Honda’s success are : ? Ability to identify the right opportunities and shape the market In a declining market, Honda was able to identify opportunities of growth. ? By providing products that satisfied customer needs It had a repertoire of products that fit the customer needs. It spotted the trend, and provided a gearless scooter across various segments. ? Through leadership in design and technology, Honda has core strength in 4-stroke small engine technology. Besides it had superior products with contemporary styling, high comfort, ease of use, and fuel efficiency. Honda introduced new features like puncture resistant tyres, and mono-shock in its products. ? Backed by a globally trusted corporate identity. Honda is known for its product reliability and innovation. It is market leader in 2-wheelers in the Americas, and globally. Honda is a respected name in passenger cars, known for its reliability and value for money.
1. Challenges Ahead
4
4.1 HMSI Brings Life to Scooters
The waiting list in scooter market has made a comeback. Scooters, which almost disappeared, are making a comeback. The waiting period for new Activa 100cc is one month which used to be just 10 days 6 months back. During 2006, only 12% of the 2 wheelers sold in India used to be scooters. The percentage is expected to be 20% this year. Additionally, the scooter market grew in double digits last fiscal, outperforming the two-wheeler market, which grew 2.6 per cent in the same period. Naresh Rattan, HMSI’s divisional head (sales and marketing), said many urban markets in India were seeing a transition from motorcycles to scooters. “An increasing number of people are opting for scooters over bikes because they are hassle-free and very convenient, with mileage almost on a par with motorcycles. We do not think that a growth of 15 per cent year-on-year is difficult to achieve,” he said.
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4.2 HMSI targeting complete motorcycle market
As the non-compete agreement between Hero Honda and HMSI had ended, HMSI is ready to take on its own long-time partner in India, Hero Honda (in which Honda has a 26 per cent stake), and in the latter’s key area of dominance, the 100cc motorcycle market. Hero Honda commands 80 per cent market share in the 100cc segment (60 per cent of its sales), far ahead of its nearest competitor, Bajaj Auto. HMSI is working on entering the same segment, with a sporty bike, in 2010. It hopes to sell a few lakh of these a year, to begin with. “The 100cc motorcycle that we plan to launch in India will be a totally new offering. It’ll not be a basic version and will be the sporty type,” says Shinji Aoyoma, president & CEO of HMSI. (Exhibits 4,5 and 6) Aoyoma is also planning to ensure that in the next few years, motorcycles make up for half of total sales. This would be a big change from its current mix, where scooters comprise 65 per cent of all sales. And he is clear that he hopes to do so by entering the 100cc bike segment, which is two-thirds of the 5.7 million per year motorcycles market. The 100cc motorcycle market is currently divided into two basic segments, entry and deluxe. The sales, too, are equally divided. The entry-level motorcycle segment is pegged between Rs.30,000–35,000, while deluxe models are priced at Rs.37,000–45,000. Industry experts say it is in the upper end of this price band that Honda is planning to position its 100cc bike.
4.3 Can HMSI differentiate itself from Hero-Honda in 100cc segment?
To highlight the product differentiating features, Anil Dua, senior vice-president, sales & marketing, Hero Honda says, “When a customer buys a motorcycle from the Hero Honda stable, he buys a package, which includes the brand, design, the valuefor-money promise, and the largest servicing network in the country. We field six brands in the 100cc segment, where each brand is uniquely positioned without cannibalising the other. The same will happen when Honda enters the segment”. Dua says there is a large untapped market in the 100cc segment as 70 per cent of the urban population and 90 per cent of the rural one have not bought their first motorcycle. “There’s room for everyone,” says Dua. HMSI further reinforces the same argument and notes that the 100cc market has many segments and it will operate in areas where its partners do not. “If you divide
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the 100cc motorcycle segment into 10, starting from the entry to the deluxe level, there’s potential in every segment. So, our entry into the top end of the motorcycle segment does not mean we are taking on our partner, Hero Honda. We don’t sell our brands based on engine cc classification or pricing. We cater to a particular segment of customers who value the brand Honda,” says NK Rattan, divisional head, sales & marketing, HMSI. “The overall direction at HMSI is to focus more on fun biking and move away from basic commuting. This is what will make us unique while ensuring that there is no cannibalisation with Hero Honda’s motorcycles in the process,” said Mr Shinji Aoyama, President and CEO of HMSI. The recent launch of the 125cc Stunner is a move in this direction and this is what the 100cc bike, due to debut this fiscal, is intended to do too. “Its price could be a bit higher but the styling and performance will be unique to HMSI and customers will know the difference,” he added. However, conflicting views emerge from both, Honda companies as well as the industrial sector. Recently, Pawan Munjal, managing director and CEO, HHML, said since both operated in the 100-150cc segment, there had been some cannibalisation of products. Hero Honda sells as many as 14 products in the local market and HMSI sells six. In Bangalore, while launching a new version of the CBF Stunner, a 125cc motorcycle, Honda Motorcycle president and CEO Shinji Aoyama said that HMSI has turned profitable and aims to maintain 17% sales growth in 2009-10. Further, he added, “Business is getting better, but our profits are not as big as our competitors like Hero Honda (Motors Ltd) or Bajaj (Auto Ltd),” which indicates recognition of Hero-Honda as a competitor as well.
4.4 HMSI’s Current Strategy
HMSI has set a sales growth target of 18 per cent for the financial year 2009-10. HMSI aims to continue being the leader in the market and looks forward to continue meeting the customers' requirement with the changing times.
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HMSI also states that volumes and market share are not priority areas. “I do not care about market share because this does not make customers happy. The focus for us is on quality products and services,” says Mr. Aoyama. Rising price of raw material has hit HMSI recently but global slowdown has kept the price in check for some time. From Honda’s point of view, India remains an attractive market for two-wheelers. “There are a huge number of youngsters in India with disposable incomes getting higher. I expect demand to grow consistently, though it could be in single digit figures, in the coming years,” he said. “Indian 2wheeler market is progressing from mass market to a diversified market due to changes in lifestyle of consumers. HMSI is committed to provide unique experience to Indian customers through its innovative products and quality in every aspect of business. To maintain this quality and advanced value creation, HMSI is mainly focusing on- Fun, Safety & Environment. Honda will spread Fun Biking in a responsible manner with emphasis on safe riding and good customer services. In the Environment, many significant efforts have been made like eliminating use of asbestos, lead free paint & hazardous material from our manufacturing to protect the environment. In India we will continue to bring exciting products and be a full line company to serve every kind of customer” adds Mr. Shinji Aoyama.
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1. Appendix 2 3 4 6.1 Exhibit 1
Production of Motorcycles by Manufacturers in India (Calendar Year - 1993 to 2002)
Year 1993 1994 1995 1996 1997 1998 1999 2000 BAL 128305 175380 241725 287441 306889 349578 408489 567832 YML 97382 151852 173865 228271 174662 177340 228527 213290 HHML 139869 174242 218422 247971 375720 498374 682353 985043 KEL LML IJPL 1563 4673 6932 2133 REML 13201 14629 21490 22707 23718 17700 23289 22733 TVS 44394 79315 114564 157388 201322 252308 314494 360814 Total 424714 600091 776998 945911 1082311 1295300 1657152 2164950
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
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6.2 Exhibit 2
Production of Mopeds by Manufacturers in India (Calendar year 1993 to 2000)
Year 1993 1994 1995 1996 1997 1998 1999 2000 BAL 72842 71683 71075 70206 58724 38211 69475 58381 KEL 127145 121865 158432 156944 163191 160903 162615 159424 MAL 104561 119505 118091 137240 138381 128195 111119 107524 Royal Enfield 4091 0 0 0 0 0 0 0 TVS 149157 202334 257487 294919 294589 334540 381301 369645 YMI 0 1549 19035 18765 12357 9850 0 0 Total 457796 516936 624120 678074 667242 671699 724510 694974
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
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6.3 Exhibit 3
Women employees in organized sector Calender Year 1992 - 2006
Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Women (’000) 3889.8 4026.3 4153.9 4227.9 4426.4 4637 4773.6 4829.2 4922.8 4949.3 4935.4 4969 4934 5016 5121 Total (’000) 27055.7 27176.6 27374.8 27524.7 27940.9 28244.5 28165.8 28113.1 27959.7 27789.2 27205.5 27000 26443 26458 26993 % Women 14.4% 14.8% 15.2% 15.4% 15.8% 16.4% 16.9% 17.2% 17.6% 17.8% 18.1% 18.4% 18.7% 19.0% 19.0%
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6.4 Exhibit 4
6.5 Exhibit 5
6.6 Exhibit 6
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6.7 Exhibit 7 Honda Activa
Features: • • • 110cc smooth engine Combi Brake for shorter braking distance with stability Anti-theft Key shutter for safety of vehicle Price : Rs. 35,628 - Rs. 39,052
•
• •
18 litre storage capacity Puncture Resistant Tuff-up tube in the rear tyre Under standard conditions, mileage of 50 km per litre
Honda Dio
.
Features: • • 102 cc engine Sleek aerodynamic design • • Light weight body Effective shock absorption
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•
Low positioned seat with high ground clearance
•
Stays balanced even during emergency braking
Price : Rs. 40,000 – Rs. 42,000
Honda Aviator
Features :
•
Front facade styling with large clear lens multi-reflector lamps
• • •
Adequate 20 Litre of under seat space Telescopic front suspension for better on road control High impact resistant body
• •
Lightweight 12 inches alloy wheel Puncture resistant tuff-up tube
Price: Rs. 45,175 - 48,935
Eterno
Features : • • Aerodynamic Body with masculine looking body style Ground Clearance of 161 mm
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• •
Dual Spring Suspension technology for better comfort Spacious Flat Board
•
Grab rails for convenience and safety
•
CLIC - Lift Up Independent Cover for easy maintenance
Price: Rs 36,000-38,000
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6.1 Exhibit 8
Y on Y growth in 2-wheeler categories Scooter Motorcycle Moped Total
23% 20% 11% -2% 1% -1% -21% 41% 28% 20% 16% 20% 28% 28% 11% 20% 13% -5% 3% 5% 4% 25% 22% 14% 3% 8% 12% 6%
Year
1993 1994 1995 1996 1997 1998 1999 2000
Source: http://www.indiaeconomicstat.com/industries/18/industrialsectors/107700/automobiles/52/stats.aspx
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6.2 References
1. http://www.honda2wheelersindia.com 2. http://world.honda.com 3. http://indiaeconomicstat.com 4. http://indiastat.com 5. http://www.livemint.com 6. http://auto.indiamart.com 7. http://www.thehindubusinessline.com 8. http://ia.rediff.com 9. http://www.bikeindia.in 10.http://www.team-bhp.com 11.http://www.financialexpress.com 12.http://www.indiaprwire.com 13.http://www.mydigitalfc.com 14.http://www.business-standard.com 15.http://findarticles.com 16.http://www.ibef.org And 17.Dealer in Kolkata – TodiHonda – Discussion and visit
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doc_357092461.pdf