TWO-WHEELER INDUSTRY IN INDIA 

- September 20th, 2007

SUBJECT: - MARKETING MANAGEMENT.

INDEX

SR.NO. TOPIC PAGE NO.

1. TWO-WHEELER INDUSTRY IN INDIA. 5
2. PROFILE 8
3. S.W.O.T. ANALYSIS OF KARIZMA 11
4. S.W.O.T. ANALYSIS OF COMPETITOR 13
5. PRODUCT 15
6. PRICING 17
7. PROMOTION 18
8. PLACE 20
9. BIBLIOGRAPHY 22

TWO WHEELERS IN INDIA

The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer
the two wheelers because of their small manageable size, low maintenance, pricing and easy loan
repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers
are seen as a symbol of status by the populace. Thus, in India, we would see swanky four wheels jostling
with our ever reliable and sturdy steed: the two wheeler
India is the second largest producer and manufacturer of two-wheelers in the world. It stands next only to
Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. Indian
two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a
small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in
the country.
Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian
companies are among the largest two-wheeler manufacturers in the world.
In the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto.
Although various government and private enterprises entered the fray for scooters, the only new player that
has lasted till today is LML.
The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike.
The two-wheeler market was opened to foreign competition in the mid-80s. And the then market leaders -
Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese
joint ventures. 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 a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in
the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with
assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for
motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in
the last five years.
The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and
strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed
a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in
1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero Honda, all the major
producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced
purchasing power due to significant rise in general price level and credit crunch in consumer financing.
Factors like increased production in 1992, due to new entrants coupled with the recession in the industry
resulted in company either reporting losses or a fall in profits.

Key players in the Two-wheeler Industry:

There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero
Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS). 

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic
Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic
Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and
Scooterettes/Mopeds.

Motorcycles in India: 
Bikes comprise a major segment of Indian two wheeler industry.

Company : Bajaj Auto Ltd Company : HERO HONDA

* Bajaj Avenger
* Bajaj CT 100
* Bajaj Platina
* Bajaj Discover DTSi
* Bajaj Pulsar DTSi
* Bajaj Wave
* Bajaj Wind 125
* Sonic DTSi * Hero Honda Achiever
* Hero Honda CD Dawn
* Hero Honda CD Deluxe
* Hero Honda Glamour
* Hero Honda Glamour-Fi
* Hero Honda Karizma
* Hero Honda Passion Plus
* Hero Honda Pleasure
* Hero Honda Super Splendor
* Hero Honda Splendor NXG
* Hero Honda CBZ X-Treme
Company : Kinetic Motor Company Company : TVS Motor Company : Yamaha Motor India 
* Kinetic Aquila
* Kinetic Boss
* Kinetic Challenger
* Kinetic Comet
* Kinetic GF
* TVS Apache
* TVS Centra
* TVS Fiero
* TVS Star
* TVS Victor * Yamaha CruxS
* Yamaha G5
* Yamaha Gladiator
PROFILE OF HERO HONDA

History:
The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the
world's single largest two wheeler company but also one of the most successful joint ventures worldwide. 
During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a
vehicle without polluting the roads. The company introduced new generation motorcycles that set industry
benchmarks for fuel thrift and low emission.
Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the
number of people in Finland, Ireland and Sweden put together! 
Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle
sold in the country is a Hero Honda.
Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at
Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per
year. A third state of the art manufacturing facility at Hardwar in Uttranchal will soon be commissioned to
cope with sustained customer demand. 
Hero Honda's extensive sales and service network now spans over 3000 customer touch points.
Hero Honda values its relationship with customers.
Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly
working towards consolidating its position in the market place. The company believes that changing
demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of
new families to the economic mainstream. This would provide the growth ballast that would sustain Hero
Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points
out, "We pioneered India’s motorcycle industry, and it's our responsibility now to take the industry to the
next level. We'll do all it takes to reach there.'' 

Hero Honda’s Mission: 

Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to
produce products and services that meet the quality, performance and price aspirations of its customers. At
the same time maintain the highest standards of ethics and social responsibilities. 

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a
unique and mutually beneficial relationship with all its stake holders. 

MR. BRIJMOHAN LAL MUNJAL, CHAIRMAN AND MR. PAWAN MUNJAL, MD.

Hero Honda’s Mandate: 

Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer
network, efficient supply chain and world-class products with cutting edge technology from Honda Motor
Company, Japan. The teamwork and commitment are manifested in the highest level of customer
satisfaction, and this goes a long way towards reinforcing its leadership status.
HERO HONDA KARIZMA

Hero Honda Karizma was the first real sports bike in India. The bike addresses to those who have a passion
for speed and styling and head-turning looks. It has 17 ps power thrust and picks up 0-60 in 3.8 heart-
stopping seconds. The bike is based on power and styling. Disc breaks and Mag wheels makes Karizma the
safest jet on the road.

Company Stroke Maximum Power Displacement

Hero Honda Motors India Ltd. 4-Stroke 16.8 bhp @ 7000 rpm 232 cc

Striking Features:
1 Style 
2 Sporty position of the seat. 
3 It stands on its feet even at speeds reaching up to 130 kmph.
4 Fuel Efficiency. 
S.W.O.T. ANALYSIS OF KARIZMA

STRENGTH:

• It has a good speed and sporty look

.
• Karizma is the First bike in India launched under Sports Bike Segment.

• Loyal Customer Base: In the past four years, Karizma has been successful in building up a good and loyal
base among its customers.

• After Sales Service: Till today, customers are satisfied with the after sales service provided by Hero Honda
for this particular product.

• Refinement, comfort, great handling and that much-sought-after big bike feel are all available on the
Karizma.

• Brand Recall: the name Karizma itself is a metaphor to its success. The brand Karizma has given a good
platform to this product in the Sports Bike Segment.

WEAKNESS:

• High Maintenance: The maintenance of Karizma is high as compared to its biggest competitor Bajaj Pulsar
200cc and 220cc.

• Fuel Efficiency: The pulsar 200cc offers an impressive mileage of 38.3kpl in city and 42.4kpl in highway
against the Karizma offers only 30kpl in city and a decent figure of 45kpl in highway.

• Less Promotion: the promotions and ads of Karizma are very less as compared to its competitors.

OPPORTUNITIES:

• If Hero Honda comes up with the idea of changing some features of Karizma, like self canceling indicators,
soft touch handle bar and digital speedometer, it will help them to boost up the sales of Karizma.

• If they are able to improvise the fuel efficiency of Karizma, it will be a golden opportunity to take over the
market.

THREATS:

• The major threat faced by Hero Honda Karizma is from Bajaj Pulsar, who has always been the market
leader in the 150 plus segment with 60% market share.

• Karizma’s strong competitors Bajaj and TVS, in 150 cc plus segment, already posses certain features like
self-controlling indicators, soft touch handle bar which Karizma lacks.
• The competitor Pulsar 200cc has already come up with oil cooled engine which delivers maximum power.
This is again a major threat to Karizma. 

S.W.O.T. ANALYSIS OF COMPETITOR 

(BAJAJ PULSAR 200cc)

STRENGTHS:

• Pulsar 200cc features India’s First Oil Cooled Engine which delivers maximum power making it most
powerful engine offered by Bajaj.

• New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is for the First time in this
segment in India.

• Fuel efficiency: Pulsar 200cc delivers an impressive mileage of 38.2 kmpl in city as compared to Karizma
which delivers 30 kmpl in city.

• Customer Base: In past decade Bajaj has established a strong base amongst its customers. 

WEAKNESS:

• Style and Design: PULSAR 200cc and 220cc derives their styling from there previous version Pulsar 150
Dts-i and 180 Dts-i.

• Pricing ; Bajaj 220cc(Rs 82449 basic price) is costlier than karizma(Rs 78000 basic price)

OPPORTUNITIES:

• If they derive new styling, shape, design for pulsar 200cc and 220cc then they can attract more
customers.

• Taking into consideration the reviews of the customers regarding the “fairing” of 220cc and making the
needful changes will be an opportunity to capture an even larger share of the 200cc+ segment.

THREATS:

• The biggest threat is faced from the goodwill of Karizma in this segment who is the “Four-Stroke Two
Wheeler Ruler” of the Indian bike market. 

• Certain technical faults in the bike design which are potentially dangerous to the rider’s safety can be
disastrous to the image of the bike.

4 P’s OF MARKETING

PRODUCT

DESIGN, ENGINEERING AND INTERIORS:

Hero Honda has taken a lot of styling cues for this bike from Honda’s old model VFR 800, the Japanese
giant’s legendary and largest selling superbike. Similarities are visible in the alloy die-cast wheels, the
tailpiece, the front indicators, the fairing, the silencer unit, seat, panel shapes and instrument binnacle. Even
the way Hero Honda has painted parts of the side panels silver to look like exposed aluminium frame
sections, reminds one of the genuine thing on the VFR. One cannot help but think that the steering column
section of the bike looks crude and empty just below the handlebar mounts. Fit and finish is excellent and no
less than the high standards we have come to respect Hero Honda for. The company has kept with the
times, and grafted an aircraft-type fuel filler cap onto the tank. The tank recesses easily accommodated the
legs of our tallest testers. The amber backlighting for instruments is exciting. Being connected directly to the
battery, all lights and instruments work independently of the rpm of the engine, and are a boon at night. 

COLOUR:

Available Colors
Candy Blazing Red Sparkling Silver 
Turquoise Blue Moon Yellow 
Pearl Composed Red Black
Myth Gold Metallic

SIZE:

Physical measures 
Dry weight: 150.0 kg (330.7 pounds) 
Overall height: 1,160 mm (45.7 inches)
Overall length: 2,125 mm (83.7 inches)
Overall width: 755 mm (29.7 inches) 
Ground clearance: 150 mm (5.9 inches)
Wheelbase: 1,355 mm (53.3 inches) Chassis and dimensions 
Front tyre dimensions: 2.75-18 - 42 P 
Rear tyre dimensions: 100/90-18 - 56 P
Front brakes: Single disc
Front brakes diameter: 276 mm (10.9 inches) 
Rear brakes: Expanding brake (drum brake) 
Rear brakes diameter: 130 mm (5.1 inches) 
Exhaust system: Single Stainless Steel Pipe

BRANDING:
BRAND NAME: KARIZMA
In Hindi, “KARISHMA” means “something inexplicably magical”. In English, “CHARISMA” (pronounced
Karizma) means “the ability to inspire followers with devotion and enthusiasm”. The way this bike has
turned out to be, it is probably both. The monogram of Karizma itself is very attractive and eye catchy
because of the color.

In order to overcome the competition faced from its biggest competitor bajaj220 dts-I, the company has
tried to attract the customers by changing the graphics of Karizma i.e. an attractive new logo, which
represents the bike’s cutting edge imagery of being racy.

International styling graphics with a pronounced `R’ on the tank and an asymmetrical one on the visor in
keeping with the latest international trend.

GUARANTEE AND WARRANTIES:

• ONE YEAR FREE SERVICE FROM COMPANY.

• TWO YEARS GUARANTEE FOR THE PARTS OF THE BIKE.

PRICING

The new Karizma will also continue to be priced at almost the same level as the previous version, with on-
road prices for the regular variant working out to Rs 79,000-80,000. The special edition variant with red
mag-wheels will be costlier by about Rs 1,000. Bajaj has launched 52 Probiking outlets – which will house
only high performance bikes. Pulsar 200cc would be available at such Probiking showrooms at select
locations across the country for an attractive price of Rs.65, 497 (ex showroom, New Delhi).
PROMOTION

ADVERTISEMENT:

Hero Honda Karizma

Agency: 

A fighter plane is on a regular sortie when the pilot notices a moving object. Zooming his camera, he
captures a bike cruising at high speed. Informing the control tower, the pilot dives in for a closer look.

The bike gathers speed and enters a tunnel to beat the fighter aircraft. Reaching the air-base, the rider
meshes with the staff as they examine the images... ... of the motorcycle, unaware that its owner is amidst
them. MVO: "Hero Honda Karizma. Jet Set Go."

The all-new-Karizma has been created by the Hero Honda’s research and development team to mark the
company’s highest-ever sales of over 3.03 lakh units in May 2006. 

Celebrating its milestone of rolling out 15 million bikes, two-wheeler major Hero Honda, presented a tailor-
made ‘all-chrome Karizma’ motorcycle to Bollywood star Hrithik Roshan. 

“This super bike will surely match my super hero image,” Hero Honda brand ambassador Hrithik said, as
Hero Honda Managing Director Pawan Munjal handed over the keys to the star. 

The all-new-Karizma has been created by the Hero Honda’s research and development team to mark the
company’s highest-ever sales of over 3.03 lakh units in May 2006.

The Hero Honda family is elated to have achieved the landmark figure of 15 million motorcycles in the
shortest ever time-span. The customized all-chrome Karizma truly befits our brand ambassador and style
icon Hrithik Roshan,” Mr Pawan Munjal said. Group Chairman Brijmohan Lall Munjal said, entertaiment and
sports are everyone’s favourites. Though, they are not physically involved in sales, celebrities help in
promoting the product, he said.

PLACE

CHANNELS OF DISTRIBUTION:

As a company, dealers play a major role in serving customers, while growing and sustaining markets. Hero
Honda has a network of more than 3500 strong and dedicated Authorized dealers. A network that has
helped Hero Honda’s name and its promise of reliable quality to every part of the country. The power of this
highly efficient and motivated network goes a long way to create goodwill for Hero Honda brand among
countless consumers besides creating availability and after sales services.

The channel of distribution is a direct dealer network. A direct dealer is a dealer who is authorized to
purchase the product directly from the company and sell.

PHYSICAL DISTRIBUTION:

Hero Honda has more than 3500 showrooms in India. Some of the Authorized dealers of Hero Honda
Karizma, in and around Bombay, are:

• Max Motors (Bombay)

• F. P. Motors (Bombay)
• Axis Motors (Thane)

• Ranjeet Motors (Thane)

• Ahir Motors (Kalyan)

• Spectra Motors (New Bombay)

• H. M. Motors (Panvel)