A STUDY ON

AUTOMOBILE INDUSTRY
WITH REFERNCE TO

BAJAJ

A Mini Project report submitted to JAWAHARLAL NEHRU TECHNOLOGICAL

UNIVERSITY KAKINADA

In partial fulfillment of the requirements

For the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
M.AHMED SHAIK, (MBA).
(REGD. NO: 18H41E0049)
Under the esteemed guidance of
Mrs. A. R A SATYAVATHI,
MBA
Department of Management Studies

DEPARTMENT OF MANAGEMENT STUDIES

BONAM VENKATA CHALAMAYYA INSTITUTE OF TECHNOLOGY AND SCIENCE
(Affiliated to JNTU, KAKINADA)
Batlapalem, Amalapuram
(2018-2020)

1
 BONAM VENKATA CHALAMAYYA INSTITUTE OF TECHNOLOGY
AND SCIENCE BATLAPALEM, AMALAPURAM-533 201
DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the Mini project report titled “A STUDY ON AUTO
MOBILE INDUSTRY WITH REFERNCE TO BAJAJ.,” is a bonafied work of
M.AHMED SHAIK(Regd No.18H41E0049) submitted in partial fulfillment
of requirements for Degree of MASTER OF BUSINESS
ADMINISTRATION
of Jawaharlal Nehru Technological University, Kakinada during the year
2018-2020.

Mrs. A.R A SATYAVATHI,

Project Guide
Department of Management Studies

2
 BVC INSTIUTE OF TECHNOLOGY AND SCIENCE

AMLAPURAM-533201

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is certify that the mini project report titled “ AUTOMOBILE

INDUSTRY “is a
bonafied work of M.AHMED SHAIK,(Regd No. 18H41E0049), submitted in
partial
fulfillment of requirements for the award of the Degree of MASTER OF
BUSINESS
ADMINISTRATION of Jawaharlal Nehru Technological University Kakinada
during
the year 2018-2020.
Signature of the Head of the Department……………………….

3
 DECLARATION

I M.AHMED SHAIK., hereby declare that the Mini project work entitled “A STUDY ON

AUTOMOBILE INDUSTRY WITH REFERNCE TO BAJAJ.,” has been submitted to

Jawaharlal Nehru Technological University- Kakinada, in partial fulfillment for the Award of

the Degree of Master of Business Administration under the esteemed guidance of Mrs. AsA.R A

SATYAVATHI, Assistant Professor. I further declare that this project report has not been

submitted to any other University or Institution for any purpose and not published any time

earlier.

Place:

Date:

(M.AHMED SHAIK,)

4
 ACKNOLWEDGEMENT

It gives me a great pleasure to extend my thanks and gratitude to those who guided and
instructed me in completion of this project.

I would like to express my sincere gratitude to Dr .G.M.V Prasad, B.E., M.Tech.,

Ph.D., FIETE, FIE, MIEEE., MSEMCE, MISTE Principal, BVCITS, Amalapuram for giving
me opportunity to work on this Project.

I am grateful to Mr. A. S NARAYANA, M.B.A, M.Com, M.Phil (Ph.D). Head - Department of

Management Studies, for his kind encouragement.

I would like to express my sincere gratitude to the faculty guide Mrs.A.R A

SATYAVATHI, Assistant Professor, Department of Management Studies, BVCITS,
Amalapuram for his care and directing me towards completion of my project.

(M.AHMED SHAIK,)

5
 CONTENTS
• OBJECTIVES OF STUDY

• METHODOLOGY OF THE STUDY

• AUTOMOBILE INDUSTRY INTRODUCTION

• HISTORY OF THE INDUSTRY

• INDUSTRY IN INDIA

• INDUSTRY GROWTH

• KEY DRIVERS

• INTRODUCTION OF BAJAJ COMPANY

• HISTORY

• PRODUCT DEVELOPMENT

• TECHNOLOGY

• CONCLUSION

6
 INTRODUCTION OF AUTOMOBILE INDUSTRY
The automotive industry is a wide range of companies and organizations involved in the
design, development, manufacturing, marketing, and selling of motor vehicles. It is one of
the world's largest economic sectors by revenue. The automotive industry does not include
industries dedicated to the maintenance of automobiles following delivery to the end-user,
such as automobile repair shops and motor fuel filling stations.

The word automotive is from the Greek autos (self), and Latin motivus (of motion) to refer
to any form of self-powered vehicle. This term, as proposed by Elmer Sperry[need quotation
to verify] (1860-1930), first came into use with reference to automobiles in 1898

The automotive industry is the technological trendsetter among manufacturing industries. It

keeps evolving on a fast pace and is a driver of the new era of digitalization. Digitalization
7
helps the automotive industry to turn their ideas into successful vehicles faster and more
efficiently.

HISTORY OF INDUSTRY
The automotive industry began in the 1860s with hundreds of manufacturers that pioneered
the horseless carriage. For many decades, the United States led the world in total automobile
production. In 1929, before the Great Depression, the world had 32,028,500 automobiles in
use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had
one car per 4.87 persons. After World War II, the U.S. produced about 75 percent of world's
auto production. In 1980, the U.S. was overtaken by Japan and then became world's leader
again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank
until 2009, when China took the top spot with 13.8 million units. With 19.3 million units
manufactured in 2012, China almost doubled the U.S. production, with 10.3 million units,
while Japan was in third place with 9.9 million units.From 1970 (140 models) over 1998
(260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown
exponentially.

The automobile was first invented and perfected in Germany and France in the late 1800s,
though Americans quickly came to dominate the automotive industry in the first half of the
twentieth century. Henry Ford innovated mass-production techniques that became standard,
and Ford, General Motors and Chrysler emerged as the “Big Three” auto companies by the
1920s. Manufacturers funneled their resources to the military during World War II, and
afterward automobile production in Europe and Japan soared to meet growing demand.
Once vital to the expansion of American urban centers, the industry had become a shared
global enterprise with the rise of Japan as the leading automaker by 1980.

8
The early history of the automobile can be divided into a number of eras, based on the
prevalent means of propulsion. Later periods were defined by trends in exterior styling, size,
and utility preferences.

In 1769 the first steam-powered automobile capable of human transportation was built by
Nicolas-Joseph Cugnot. In 1808, François Isaac de Rivaz designed the first car powered by
an internal combustion engine fueled by hydrogen.

In 1870 Siegfried Marcus built the first gasoline powered combustion engine, which he
placed on a pushcart, building four progressively more sophisticated combustion-engine
cars over a 10-to-15-year span that influenced later cars. Marcus created the two-cycle
combustion engine.[citation needed] The car's second incarnation in 1880 introduced a four-
cycle, gasoline-powered engine, an ingenious carburetor design and magneto ignition. He
created an additional two models further refining his design with steering, a clutch and a
brake.

The four-stroke petrol (gasoline) internal combustion engine that still constitutes the most
prevalent form of modern automotive propulsion was patented by Nikolaus Otto. The
similar four-stroke diesel engine was invented by Rudolf Diesel. The hydrogen fuel cell, one
of the technologies hailed as a replacement for gasoline as an energy source for cars, was
discovered in principle by Christian Friedrich Schönbein in 1838. The battery electric car
owes its beginnings to Ányos Jedlik, one of the inventors of the electric motor, and Gaston
Planté, who invented the lead–acid battery in 1859.[citation needed]

9
In 1885, Karl Benz developed a petrol or gasoline powered automobile. This is also
considered to be the first "production" vehicle as Benz made several other identical copies.
The automobile was powered by a single cylinder four-stroke engine[citation needed].

In 1913, the Ford Model T, created by the Ford Motor Company five years prior, became the
first automobile to be mass-produced on a moving assembly line. By 1927, Ford had
produced over 15,000,000 Model T automobiles.

10
INDUSTRY IN INDIA
In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and
in small numbers.

An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was
launched in 1942, long-time competitor Premier in 1944, building Chrysler, Dodge, and Fiat
products respectively. Mahindra & Mahindra was established by two brothers in 1945, and
began assembly of Jeep CJ-3A utility vehicles. Following independence in 1947, the
Government of India and the private sector launched efforts to create an automotive-
component manufacturing industry to supply to the automobile industry. In 1953, an import
substitution programme was launched, and the import of fully built-up cars began to be
restricted.

1947-1970
The 1949 Hindustan 10 built by Hindustan Motors under license from Morris Motors, UK
The Hindustan Ambassador dominated India's automotive market from the 1960s until the
mid-1980s and was manufactured till 2014 Fiat 1100D, built under license by Premier
Automobiles later re-christened 'Premier Padmini' was the Ambassador's only true
competitor

The 1952 Tariff Commission

In 1952, the government appointed the first Tariff Commission, one of whose purposes was
to come out with a feasibility plan for the indigenization of the Indian automobile industry.
In 1953, the commission submitted their report, which recommended categorizing existing
Indian car companies according to their manufacturing infrastructure, with licensed capacity
to manufacture a certain number of vehicles, with capacity increases allowable, as per
demands, in the future. The Tariff Commission recommendations were implemented with
new policies that would eventually exclude companies that only imported parts for
assembly, as well as those with no Indian partner. In 1954, following the Tariff Commission
implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants
in Mumbai, decided to move out of India. The Tariff commission policies, including similar
restrictions that applied to other industries, came to be known as the "license raj", which
proved to be the greatest undoing of the Indian automotive industry, where bureaucratic red
11
tape ended up causing demand to outstrip supply, with month-long waiting periods for cars,
scooters, and motorcycles.

Passenger Cars
Hindustan Motors, Calcutta - technical collaboration with Morris Motors to manufacture
Morris Oxford models that would later become HM Ambassador.

Addison's - An Amalgamations Group company, was the agent for Nuffield's Morris,
Wolseley, and Riley cars, and Chrysler's Plymouth, Dodge, and De Soto cars and trucks.
The first Morris Minor assembled in India and the first car assembled in Madras was driven
out from Addison's twin-plants on Smith Road by Anantharamakrishnan on 15 November
1950.

Premier Automobiles, Bombay - technical collaboration with Chrysler to manufacture

Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which
would later with Premier Padmini range.

Standard Motor Products of India, Madras - technical collaboration from Standard-Triumph

to manufacture Standard Vanguard, Standard 8, 10 and later Standard Herald.

Utility and Light Commercial Vehicles

Vehicle Factory Jabalpur - started manufacturing Jonga Light Utility Vehicles and Vahan 1
Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the
main troop carriers of the Indian Armed Forces and much powerful than any other vehicle of
their class. Mahindra & Mahindra, Bombay - technical collaboration with Willys to
manufacture CJ Series Jeep.

Bajaj Tempo, Poona now Force Motors - technical collaboration with Tempo (company) to
manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known
as Tempo Matador in India.

Standard Motor Products of India - technical collaboration from Standard has licence to
manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne
pickup variants.

Medium and Heavy Commercial Vehicles

Vehicle Factory Jabalpur - started manufacturing Shaktiman trucks with technical assistance
from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army
with several specialist variants. VFJ still is the sole supplier of B vehicles to the Indian
Armed Forces.
12
Heavy Vehicles Factory - was established in 1965 in Avadi, near Chennai to produce tanks
in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta,
Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank
manufacturing facility of India.

Tata Motors, Poona, then known as TELCO - technical collaboration with Mercedes Benz to
manufacture medium to heavy commercial vehicles both Bus and Trucks.

Ashok Motors, later Ashok Leyland, Madras - technical collaboration with Leyland Motors
to manufacture medium to heavy commercial vehicles both Bus and Trucks. Ashok Motors
also discontinued its Austin venture formed in 1948 to sell Austin A40 and retooled the
factory to make trucks and buses.

Hindustan Motors - technical collaboration with General Motors to manufacture the Bedford
range of medium lorry and bus chassis.

Premier Automobiles - technical collaboration with Chrysler to manufacture the Dodge,

Fargo range of medium lorry, panel vans, mini-bus and bus chassis.

Simpsons & Co, Madras - part of Amalgamations Group (TAFE Tractors)- technical
collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise
that option until the 198

Scooters, Mopeds and Motorcycles

The Vespa 150 Sprint

known as Bajaj Chetak, by Bajaj became the largest sold scooter in the worlD

Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after
the tariff commission was enabled.

Royal Enfield (India), Madras - technical collaboration with Royal Enfield, UK to

manufacture the Enfield Bullet range of motorcycles.

Bajaj Auto, Poona - technical collaboration with Piaggio, Italy to manufacture their best
selling Vespa range of scooters and three wheelers with commercial option as well.

Automobile Products of India, Bombay (Better known for API Lambretta - technical
collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of
mopeds, scooters and three-wheelers. This company was actually the Rootes Group car
plant that was bought over by M. A. Chidambaram family.
13
Mopeds India Limited, Tirupathi - technical collaboration with Motobécane, France to
manufacture their best selling Mobylette mopeds.

Escorts Group, New Delhi - technical collaboration with CEKOP of Poland to manufacture
the Rajdoot 175 motorcycle whose origin was DKW RT 125

Ideal Jawa, Mysore - in technical collaboration with CZ - Jawa of Czechoslovakia for its
Jawa and Yezdi range of motorcycles.

1970 to 1983
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the
license raj, which hampered the growth of the Indian private sector.

The beginning of the 1970s saw some growth potential; and most of the collaboration
license agreements came to an end, but with the option to continue manufacturing with
renewed branding. Cars were still meant for the elite and Jeeps were largely used by
government organizations and in some rural regions. By the end of the decade, some
developments were made in commercial vehicle segments to facilitate the movement of
goods. The two-wheeler segment remained unchanged except for to increased sales to the
middle class in urban areas. There was emphasis on having more farm tractors, as India was
embarking on a new Green Revolution; and Russian and eastern bloc imports were brought
in to meet the demand.

But after 1970, with restrictions on the import of vehicles set, the automotive industry
started to grow; but the growth was mainly driven by tractors, commercial vehicles and
scooters. Cars still remained a major luxury item. In the 1970s, price controls were finally
lifted, inserting a competitive element into the automobile market.However, by the 1980s,
the automobile market was still dominated by Hindustan and Premier, who sold
superannuated products in fairly limited numbers. During the eighties, a few competitors
began to arrive on the scene.

The OPEC oil crisis saw increase need to installing or redesign some vehicle to fit diesel
engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on
Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too
had most trucks on Petrol engines.

14
1984 to 1992

First generation Maruti 800 launched in 1984

From the end of the 1970s to the beginning of the 1980s saw no new models but the country
continued with 2 decade old designs forcing government to encourage and let more
manufacturers into fray.

In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory
Medak, near Hyderabad. It started manufacturing Infantry Combat Vehicles christened as
Sarath, the backbone of India's mechanised infantry. OFMK is still the only manufacturing
facility of ICVs in India. To manufacture the high-power engines used in ICVs and main
battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the
auto industry, the government established the Delhi Auto Expo. The 1986 Expo was a
showcase for how the Indian automotive industry was absorbing new technologies,
promoting indigenous research and development, and adapting these technologies for the
rugged conditions of India. The nine-day show was attended by then Prime Minister Rajiv
Gandhi.

Post-1992 liberalisation
Tata Indica, launched in 1997

Mahindra Scorpio was launched in 2001

The Maruti Suzuki Dzire and its hatchback version, the Suzuki Swift are the largest selling
cars in recent years in India

Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of
South Korea, were allowed to invest in the Indian market, furthering the establishment of an
automotive industry in India. Maruti Suzuki was the first, and the most successful of these
new entries, and in part the result of government policies to promote the automotive
industry beginning in the 1980s. As India began to liberalise its automobile market in 1991,
a number of foreign firms also initiated joint ventures with existing Indian companies. The
variety of options available to the consumer began to multiply in the nineties, whereas
before there had usually only been one option in each price class. By 2000, there were 12
large automotive companies in the Indian market, most of them offshoots of global
companies.

15
Slow export growth
Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and
neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe
(Hungary). After some growth in the mid-nineties, exports once again began to drop as the
outmoded platforms provided to Indian manufacturers by multinationals were not
competitive. This was not to last, and today India manufactures low-priced cars for markets
across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA Group,
Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to
the competitiveness of the market, as well as the global economic crisis.

Emission norms
In 2000, in line with international standards to reduce vehicular pollution, the central
government unveiled standards titled "India 2000", with later, upgraded guidelines to be
known as Bharat Stage emission standards. These standards are quite similar to the stringent
European emission standards and have been implemented in a phased manner. Bharat Stage
IV (BS-IV), the most stringent so far, was implemented first, in April 2010, in 13 cities—
Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat,
Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.

Local manufacture encouraged

India levies an import tax of 125% on foreign imported cars, while the import tax on
components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage
cars to be assembled in India rather than be imported as completely built units.

Manufacturing facilities
The majority of India's car manufacturing industry is evenly divided into three "clusters".
Around Chennai is the southernmost and largest, with a 35% revenue share, accounting for
60% of the country's automotive exports, and home of the operations of Heavy Vehicles
Factory, Engine Factory Avadi, Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,
Hindustan Motors, Daimler, Caparo, Mini, and Datsun.

Near Mumbai, Maharashtra, along the Chakan corridor near Pune, is the western cluster,
with a 33% share of the market. Audi, Volkswagen, and Skoda are located in Aurangabad.
Mahindra and Mahindra has an SUV and engine assembly plant at Nashik. General Motors,
Tata Motors, Mercedes Benz, Land Rover, Jaguar, Fiat, and Force Motors have assembly
plants in the area.
16
The northern cluster is around the National Capital Region, and contributes 32%. Gurgaon
and Manesar, in Haryana, are where the country's largest car manufacturer, Maruti Suzuki,
is based.

An emerging cluster is the state of Gujarat, with a manufacturing facility of General Motors
in Halol, and a facility for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki, and
Peugeot-Citroen plants are also planned for Gujarat.

Kolkata with Hindustan Motors (inactive), Noida with Honda, and Bengaluru with Toyota
are other automotive manufacturing regions around the country.

GROWTH OF INDUSTRY
Around the world, there were about 806 million cars and light trucks on the road in 2007,
consuming over 980 billion litres (980,000,000 m3) of gasoline and diesel fuel yearly.[8The
automobile is a primary mode of transportation for many developed economies. The Detroit
branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will
be in the four BRIC markets (Brazil, Russia, India and China). Meanwhile, in the developed
countries, the automotive industry has slowed down. It is also expected that this trend will
continue, especially as the younger generations of people (in highly urbanized countries) no
longer want to own a car anymore, and prefer other modes of transport.Other potentially
powerful automotive markets are Iran and Indonesia. Emerging auto markets already buy
more cars than established markets. According to a J.D. Power study, emerging markets
accounted for 51 percent of the global light-vehicle sales in 2010. The study, performed in
2010 expected this trend to accelerate. However, more recent reports (2012) confirmed the
opposite; namely that the automotive industry was slowing down even in BRIC countries. In
the United States, vehicle sales peaked in 2000, at 17.8 million units.

World motor vehicle production

Production volume (1000 vehicles)

1960s: Post war increase

1970s: Oil crisis and tighter safety and emission regulation.

1990s: production started in NICs

17
2000s: rise of China as top producer

Automotive industry crisis of 2008–2010

to 1950: USA had produced more than 80% of motor vehicles.

1950s: UK, Germany and France restarted production.

1960s: Japan started production and increased volume through the 1980s. US, Japan,
Germany, France and UK produced about 80% of motor vehicles through the 1980s.

1990s: Korea became a volume producer. In 2004, Korea became No. 5 passing France.

2000s: China increased its production drastically, and became the world's largest producing
country in 2009 .

2010s: India overtakes Korea, Canada, Spain to become 5th largest automobile producer.

2013: The share of China (25.4%), India, Korea, Brazil and Mexico rose to 43%, while
the share of USA (12.7%), Japan, Germany, France and UK fell to 34%.

World motor production (1997-2016)

By year

See also: List of countries by motor vehicle production

Year Production Change Source

1997 54,434,000 —

1998 52,987,000 Decrease 2.7%

1999 56,258,892 Increase 6.2%

2000 58,374,162 Increase 3.8%

2001 56,304,925 Decrease 3.5%

2002 58,994,318 Increase 4.8%

2003 60,663,225 Increase 2.8%

2004 64,496,220 Increase 6.3%

2005 66,482,439 Increase 3.1%

18
2006 69,222,975 Increase 4.1%
2007 73,266,061 Increase 5.8%

2008 70,520,493 Decrease 3.7%

2009 61,791,868 Decrease 12.4%

2010 77,857,705 Increase 26.0%

2011 79,989,155 Increase 3.1%

2012 84,141,209 Increase 5.3%

2013 87,300,115 Increase 3.7%

2014 89,747,430 Increase 2.6%

2015 90,086,346 Increase 0.4%

2016 94,976,569 Increase 4.5%

2017 97,302,534 Increase 2.36%

19
World Motor Vehicle Production

1960s: Post war increase

1970s: Oil crisis and tighter safety and emission regulation.

1990s: production started in NICs

2000s: rise of China as top producer

Automotive industry crisis of 2008–2010

20
Top 20 motor vehicle producing countries (2017)

Country Motor vehicle production (units)

China 29,015,434

United States 11,189,985

Japan 9,693,746

Germany 5,645,581

India 4,782,896

South Korea 4,114,913

Mexico 4,068,415

Spain 2,848,335

Brazil 2,699,672

France 2,227,000

Canada 2,199,789

Thailand 1,988,823

United Kingdom 1,749,385

Turkey 1,695,731

Russia 1,551,293

21
KEY DRIVERS
1 Toyota

2 Volkswagen Group

3 Hyundai

4 General Motors

5 Ford

6 Nissan

7 Honda

8 Fiat Chrysler Automobiles

9 Renault

10 PSA

11 Suzuki

12 SAIC

13 Daimler

14 BMW

15 Changan

22
COMPANY PROFILE

23
 INTRODUCTION

Bajaj Auto Limited is a global two-wheeler and three-wheeler manufacturing company based
in India. It manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of
the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. It is based
in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand. The oldest plant at Akurdi (Pune) now houses the R&D centre
'Ahead'.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-largest in
India. It is the world's largest three-wheeler manufacturer.
On May 2015, its market capitalisation was ₹640 billion (US$8.9 billion), making it India's 23rd
[7]
largest publicly traded company by market value. The Forbes Global 2000 list for the year
2012 ranked Bajaj Auto at 1,416.

BAJAJ COMPANY LOGO

24
HISTORY OF BAJAJ

Bajaj Auto came into existence on 29 November 1944 as M/s Bachraj Trading Corporation
Private Limited It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained a license from the Government of India to manufacture two-wheelers and three-
wheelers and obtained Licence from Piaggio to manufacture Vespa Brand Scooters in India and
started making Vespa 150 scooters. It became a public limited company in 1960. In 1970, it
rolled out its 100,000th vehicle. In 1977, it sold 100,000 vehicles in a financial year. In 1985, it
[9]
started producing at Waluj near Aurangabad. In 1986, it sold 500,000 vehicles in a financial
year. In 1995, it rolled out its ten millionth vehicle and produced and sold one million vehicles in
a year.
With the launch of motorcycles in 1986, the company has changed its image from a scooter
manufacturer to a two-wheeler manufacturer.
In 2017 it was announced that Bajaj Auto and Triumph Motorcycles Ltd would form an alliance
.
to build mid-capacity motorcycles
According to the authors of Globality: Competing with Everyone from Everywhere for
Everything, Bajaj has operations in 50 countries creating a line of bikes targeted to the
preferences of entry-level buyers

Bajaj scooter built under license from Vespa

25
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a
wide range of industries, spanning automobiles (two wheelers manufacturer and three wheelers
manufacturer), home appliances, lighting, iron and steel, insurance, travel and finance. The
group's flagship company, Bajaj Auto, is ranked as the world's fourth largest three and two
wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin
America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of
India's movement for independence from the British, the group has an illustrious history. The
integrity, dedication, resourcefulness and determination to succeed which are characteristic of the
group today, are often traced back to its birth during those days of relentless devotion to a
common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of
Mahatma Gandhi. In fact, Gandhiji had adopted him as his son.
This close relationship and his deep involvement in the independence movement did not leave
Jamnalal Bajaj with much time to spend on his newly launched business venture. We are
celebrating 125th Birth anniversary of Shri. Jamnalal Bajaj on 4th of November 2014.
His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too was close
to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention
to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into
various manufacturing activities. The present Chairman of the group, Rahul Bajaj, took charge of
the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company
has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the
brand has found a global market. He is one of India’s most distinguished business leaders, bike
manufacturer india and internationally respected for his business acumen and entrepreneurial
spirit.
Business history deals with the history of business organizations, of business methods, of
government regulation of businesses, of labor relations, and of business impacts on society. It
also includes biographies of individual companies, executives, and entrepreneurs. It is related to
economic history.

26
27
 Company profile

Bajaj Auto Ltd.

Type Public

Traded as BSE: 532977

NSE: BAJAJ-AUTO
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Automotive
Founded November 29, 1945; 73 years ago
Founder Jamnalal Bajaj

Headquarters Pune, India

Key people Rahul Bajaj (Chairman)
Rajiv Bajaj (CEO)
Products Motorcycles, three-wheeler vehicles and cars
Revenue ₹270 billion (US$3.8 billion) (2017–18)

Net income ₹35.6254 billion(US$500 million) (2015–16)

Number of employees 9,119 (March 2014)
Parent Bajaj Group

Website www.bajajauto.com

28
Vision

• To be the first choice insurer for customers

• To be the preferred employer for staff in the insurance industry
• To be the number one insurer for creating shareholder value

Mission

• As a responsible, customer focused market leader, we will strive to understand the insurance
needs of the consumers and translate it into affordable products that deliver value for money.
• A Partnership Based on Synergy
Bajaj Allianz offers technical excellence in all areas of General and Health Insurance, as well
as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth
understanding of the local market and extensive distribution network with the global
experience and technical expertise of the Allianz Group. As a registered Indian Insurance
Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite
all lines of insurance business including health insurance.
Our Achievements

• Bajaj Allianz has received iAAA rating, from ICRA Limited, an associate of Moody's
Investors Service for seven consecutive years. This rating indicates highest claims paying
ability and a fundamentally strong position.
• Bajaj Allianz General Insurance was recognised as the Aon Best Employer 2016 highlighting
the company's excellence in promoting a transparent culture and healthy work environment
along with designing employee friendly policies. The award was an outcome of the Aon Best
Employers 2016 Study which was conducted in partnership with Businessworld and
Bloomberg TV. Bajaj Allianz GIC was chosen as one of the best Health Insurance Providers
of the Year by Outlook Money Awards 2015, for best-in-class and innovative products and
services and exceptional claims management processes

29
• Bajaj Allianz General Insurance was conferred the Economic Times Best Corporate Brand
Award as an outcome of Economic Times Best Brands Survey 2016 identifying the company
as one of the best brands according to the consumers in urban India. The company was
recognized as the Most Admired Health Insurance Company of the Year by Pharma Leaders
Power Brands Awards 2015 recognizing its contribution in the health insurance space and
exceptional claim settlement services to our customers.
• Bajaj Allianz General Insurance has been adjudged as the "Best General Insurance Company
in the Private Sector" by ABP News - Banking, Financial Services Awards in the year 2014.
The Company was awarded in the same category by Indian Insurance Awards in the year
2013, by Bloomberg UTV Financial Leadership Awards in 2012 and by CNBC TV18 India
Best Bank and Financial Institution Award in 2012 and 2011.
• Bajaj Allianz was conferred with the Golden Peacock Award 2014 in the category of
Innovative Products/Service. It was awarded as "Claims Service Company of the Year" by
the Indian Insurance Awards 2013, for its superior claims paying ability. In the same year
Bajaj Allianz won an award for "Claims Innovation of the Year" in the Asia Pacific Region at
the Claims Awards Asia 2013.

Overview
Bajaj Group believes that the true and full measure of growth, success and progress lies beyond
balance sheets or conventional economic indices. It is best reflected in the difference that
business and industry make to the lives of people.

Through its social investments, Bajaj Group addresses the needs of communities residing in the
vicinity of its facilities, taking sustainable initiatives in the areas of health, education,
environment conservation, infrastructure and community development, and response to natural
calamities.
For society, however, Bajaj is more than a corporate identity. It is a catalyst for social
empowerment. It is the reason behind the smiles that light up a million faces.

Its goodwill resonates in the two simple words that live in the collective consciousness of Indians
Hamara Bajaj.

Our Activities

30
The Corporate Social Responsibility (CSR) activities of Bajaj Group are guided by the vision
and philosophy of its Founder, late Shri Jamnalal Bajaj, who embodied the concept of
Trusteeship in business and common good, and laid the foundation for ethical, value-based and
transparent functioning.

Education

The two flagship projects for Bajaj Auto have been the Bajaj Education Initiative (BEI) and the
e-Learning Project. The BEI covers 76 low cost schools (a mix of private and government
schools) in Pimpri-Chinchwad area of Pune, and supports them with infrastructure development
and capacity building. The e-Learning project has reached more than 1550 schools till date-
covering Maharashtra and Rajasthan. Both of these are implemented by Jankidevi Bajaj Gram
Vikas Sanstha, our own NGO.

In addition Bajaj Auto has supported school infrastructure development, vocational training for
entrepreneurship, teach-to-lead as well as scholarships for meritorious students.

Bajaj Auto is also supporting Bhartiya Yuva Shakti Trust (BYST) in training 25000 young
persons in Aurangabad and Wardha to create 1000 entrepreneurs in 5 years. Over 177
entrepreneurs have been created in first 2 years of the project.

(Please refer to the CSR report below for a detailed list of partners and grant amounts)

Bajaj Grant Programm

The philosophy of social responsibility and commitment to give back to the society underlines
the Bajaj way of conducting its businesses for a number of decades. Bajaj Group in its quest for
nation building has undertaken various philanthropic activities and social work through its
corporate and non-corporate entities besides providing financial support to such causes. The wide
spectrum of community development endeavors undertaken by Bajaj companies — embracing
everything from health and education to women’s empowerment to water conservation and more
— has touched, and changed, many lives. As a part of its ongoing social responsibility, Bajaj
Auto Ltd proposes to expand its support to voluntary activities in development sector.

The adjoining sections detail the application process to access Bajaj Grants under CSR.

31
Current Products of Bajaj Auto

The Bajaj Auto Limited has earned fame for a number of iconic two-wheeler models in India.
Bajaj Chetak, Bajaj Super, Bajaj Priya, Bajaj Sunny and Bajaj Caliber 115 were some of the
models that earned huge ridership in the past. Bajaj Auto is still one of the major players in the
Indian subcontinent as well as oversees as far as riders’ priorities are concerned, and that’s all
because of its ultra-modern and advanced technology bikes and other two-wheelers. Given are
the various two-wheeler models and their respective starting prices:-

Bajaj Avenger 220 DTS-i (Rs. 75,502)

Bajaj Pulsar RS200 (Rs. 1,18,500)

32
Bajaj Pulsar AS200 (Rs. 93,457)

Bajaj Pulsar AS150 (Rs. 82,690)

33
Bajaj Discover 100 (Rs. 42,859)

Bajaj Platina 100 (Rs. 39,751)

34
Bajaj CT 100 (Rs. 36,828)

35
Manufacturing peocess

1. Market Research

The safest way to launch any product in today’s competitive market is to have research: Research
about who will be the customer, what customer likes, and what customer needs. These researches
are carried out by marketing department of the companies or given to other surveying
companies.

This market research also depends on type of vehicle that a company wants to introduce i.e. new
segment, facelift version of previously launched vehicle, or DNA type vehicle. Market research
becomes more vital when any company plans to launch a new segment. Customers are openly or
circuitously got involved in this type of survey. New segment may be decided with respect to
fuel economy, price tag, top speed, type of engine or type of vehicle.

Generally, market survey becomes worthless at the time of facelift launch. DNA type vehicles
also don’t required detailed survey as they are small scale versions of already successful
vehicles. Company develops few concepts after studying market research and finally one concept
got selected by the authorities either mandatorily or by voting.

2. Sketching

Drawing or Sketching was the first language used by Homo sapiens and still used in all
industries either on paper or on computer screens. It is the most productive and economical
method to develop and predict any concept. Same is also applicable with automobile industry.
Each and every vehicle running on the road today was a conceptualized sketch on the paper
before few years.

36
Numbers of sketches are prepared by the designers on final concept which got selected by the
authorities. Designers also have to include benchmarks of the company along with engineering
aspects. Engineering aspects like dimensions, space, and feasibility of manufacturing of exterior
components are considered in conjunction with aesthetics. First of all, one sketch is selected as a
final product which contains overall look. After that, overall dimensions are selected according
to vehicle’s segment and engineering terms. After deciding vehicle as a whole, designers start
sketching each details of the vehicle like head lights, side indicators, ORVMs, tail lights, tank,
seats, fairings, wheels, axles, muffler, foot rests, locking nuts etc. One more time vehicle is
assembled on paper and final sketch is prepared for modelling.

3. Software Modelling

Modelling is done before starting any designing for vehicle. This provides idea about space
available with engineers to design any component. It already has become very easy to prepare a
model for any product with the help of softwares and robots. In the case of automobile, this

37
process is very important and required precision. Modelling gives three dimensional judgement.

Today’s computer technologies help engineers to prepare full model of vehicle in just few mouse
clicks because modelling of individual components itself is easy with the help of extraordinary
softwares along with readymade libraries. Special libraries are available for each and every
component commonly used in the automobiles. Parametric facilities also help engineers to
develop models very quickly. Individual teams work simultaneously to generate models of each
and every component because number of parts used in vehicle is very large. Finally all the
components are assembled to have complete model of vehicle.

4. Clay/ Wax Modelling

Besides soft modelling, many companies also prepare clay or wax models of vehicle. These
models are used to judge the bulk and to predict aerodynamic characteristics of vehicle.
Generally, clay models are prepared for expensive rides. It is just like a hard copy or printout of
any softcopy from the computer.

38
Robots are used to create these types of model. Robots help to get precision and reduce process
time. Before technical revolution in computers, this was only method used for modelling of any
vehicle.

5. Designing

Designing is a complex synthesis and analysing process of forces and stresses on any
component. Each and every component of vehicle is analysed with the help of softwares.
Designing software works with that model which is generated in modelling software. This is
done with the help of Interface facilities. Engineer has to import the ready model of component
from modelling software to designing/ analysing software.

39
Earlier, trial and error method was used to analyse components or systems. It got disappeared
quickly with technological revolution because of cost and time consumption. Manufacture had to
spent lots of money at the time of failures. Analysis softwares have made this designing system
very prolific and errorless. Engineer can check any component under static, dynamic, thermal, or
cyclic loads and can predict component’s life.

6. Simulations

Particularly for automobiles, simulation softwares are computer logics for vehicle’s dynamic
conditions. Simulation so

40
ftwares can generate identical road and wind conditions which an original vehicle is going to
face.

This helps engineers and designers to predict and modify any of the dynamic characteristic of
vehicle before actual production. Just like analysis softwares, simulation software also reduces
cost and time for testing a vehicle. Different road profiles like smooth road, bumps, pit holes etc.
can be generated and vehicle model can be tested without original vehicle.

7. Testing

No one can remain dependable on softwares when safety comes into picture. Software can
generate wrong results if input data differs slightly. That’s why each and every company tests it’s
each vehicle before starting its production.

41
Generally 5 to 10 vehicles are manufactured after completing all design, analysis and simulation
processes. These vehicles are used for different road tests, rollover tests and crash tests.
Experience test drivers are allowed to drive these vehicles up to extreme conditions on the
testing tracks. This testing period is kept long enough to get exact idea about any failures. Many
a times new failure arises which is not exposed by the analysis or simulation softwares.

8. Pilot Vehicles

Spy photos which we all are watching on our website frequently, in which bike mostly remains
covered with black cloths, are called pilot vehicles. Pilot vehicles are limited edition type
original vehicles produced for testing purpose only. Testing of manufacturing facilities within the
plant, testing of machining ease, testing of interchangeable parts, testing of material handling etc.
takes place with the help of pilot vehicle.
42
After satisfactory modifications in plant operations, these pilot vehicles are allowed to run on
road. Whole bunch of pilot vehicles is distributed between company’s local test drivers. The
company collects feedbacks for different driving conditions. All the necessary modifications in
vehicle get completed before final starting of production.

9. Production

Finally production starts after completing all the required modifications in manufacturing
facilities. These modifications includes testing rigs, testing tracks, material handling methods,
material handling racks, manpower, production of subassemblies, assembly lines, quality testing,
paint shop, vendor management etc. Company announces official launch of vehicle and starts
distributing fix numbers of produced vehicle amongst each dealers.

43
Then sales department studies the market demand through dealers. New production schedule is
introduced according to demand and supply chain. Each vehicle is tested according to minimum
standards decided by country’s governing body (As ARAI in India). Vehicles are distributed in
different numbers to different dealers according to their regional demand.

10. Sales

At last, day comes when we are called by dealer for vehicle delivery. It is I think the most
precisions moment of any biker’s life when he holds his vehicle very first time. From that
instant, vehicle becomes everything in his life for which he has waited for a long time, has
crossed many obstacles and has worked hard.

44
conclusion
th
Bajaj auto is a major Indian automobile manufacture . It is India’s largest and worlds 4
largest to and three wheeler maker.

BAL is committed to prevention of pollution , continual improvement of environment

performance and compliance within all environmental legislation and regulations .

They always believes in provides the customer value for money and keeps an special eye

45