Automobile Industry (Two-Wheeler Segment)

Chapter 1
Industry Analysis – The Basics
1.1 INTRODUCTION TO AUTOMOBILE SECTOR
Demographically and economically, India‟s automotive industry is well-

positioned for growth, servicing both domestic demand and, increasingly, export
opportunities. A predicted increase in India‟s working-age population is likely to help
stimulate the burgeoning market for private vehicles. Rising prosperity, easier access to
finance and increasing affordability is expected to see four-wheelers gaining volumes,
although two wheelers will remain the primary choice for the majority of purchasers,
buoyed by greater appetite from rural areas, the youth market and women. The
automobile has brought greater mobility and job creation. The 1900s can be called the
Age of the Automobile, and cars will no doubt continues to shape our culture and
st
economy well into the 21 century.
Automobiles are classified by size, style, number of doors, and intended use. The
typical automobile, also called a car, auto, motorcar, and passenger car, has four wheels
and can carry up to six people, including a driver. Larger vehicles designed to carry cargo
are called vans, minivans, omnibuses, or buses. Those used to carry cargo are called
pickups or trucks, depending on their size and design. Minivans are van-style vehicles
built on a passenger car frame that can usually carry up to eight passengers. Sport-utility
vehicles, also known as SUVs, are more rugged than passenger cars and are designed for
driving in mud or snow
1
Year Events
1930s India was an importer of automobiles.
1940s The Indian automobile industry started its own manufacturing unit
1950- Tremendous trade restrictions could not boost the automobile industry.
60
1960- The market was largely dominated by Hindustan Motors, with the
80 Ambassador model
1983 Maruti came into competition and swept the world
1984- The Govt. of India started promoting the automobile industry; Delhi
92 auto expo was established
2
1992 The year of liberalization and the opening up of FDI
1996 The merger of Maruti and Suzuki swept the market with 60% market
share.
2000 Almost all major car companies expanded their presence in India by
establishing their manufacturing units.
th
2009 India emerged as 4 largest exporter of passenger cars after Japan,
South Korea and Thailand
th nd
2011 India became 6 largest manufacturer in the world. India is Asia‟s 2
largest two wheeler manufacturer.
2017 Power minister Piyush Goyal says India is looking to have all-electric
car fleet by 2030. The idea is no single petrol or diesel car should be
sold in the country.
1.2 NATURE OF INDUSTRY
The automotive industry is one of the key drivers of India‟s economy, accounting
for around 4 percent of India‟s GDP and over 200,000 jobs. India is home to a vibrant
automobile of more than 40 million vehicles. It has been one of the few worldwide which
saw growing passenger car sales during the recession of the past two years. In fact, in
2009-10 it has recorded its highest volumes ever. It is believed this upward trend will be
sustained in the foreseeable future due to a strong domestic market and increased thrust
on exports.
The Indian economy has grown at an average rate of around 9 percent over the
past five years and is expected to continue this growth in the medium term. This is
predicted to drive an increase in the percentage of the Indian population able to afford
3
vehicles. India‟s car per capita ratio (expressed in cars per 1,000 populations) is currently
among the lowest in the world‟s top 10 auto markets.
The Indian auto industry became the 4th largest in the world with sales increasing
9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was
the 7th largest manufacturer of commercial vehicles in 2017.
The Two Wheelers segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations
for the near future. Automobile exports grew 20.78 per cent during April-November
2018. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition,
several initiatives by the Government of India and the major automobile players in the
Indian market are expected to make India a leader in the two-wheeler and four wheeler
market in the world by 2020.
1.3 Players of the Industry:
1. Hero Motocorp
2. Honda Motorcycles and Scooters
3. TVS
4. Bajaj Auto
5. Yamaha Motors
6. Royal Enfield
7. Suzuki
8. Mahindra
9. KTM
10. Piaggio
4
1.4 Market Share of Top Two-wheelers Players in india
5
1.5 Nature of Competition from an economist’s perspective
Sr Scooter Moped Total

Brand Name Motorcycle Sales
No. Sales Sales Sales
1 Hero MotoCorp Ltd 3744181 391019 - 4135200
Honda Motorcycle & Scooter

2 1113801 2182860 - 3296661
India (Pvt) Ltd
3 TVS Motor Company Ltd 529721 645020 445148 1619439
4 Bajaj Auto Ltd 1287133 - - 1287133
5 India Yamaha Motor Pvt Ltd 227002 198385 - 425387
Royal Enfield (Unit of Eicher

6 424805 - - 424805
Ltd)
Suzuki Motorcycle India Pvt

7 39167 291857 - 331014
Ltd
8 Piaggio Vehicles Pvt Ltd - 42289 - 42289
9 Mahindra Two Wheelers Ltd 780 1683 - 2463
UM Lohia Two Wheelers Pvt

10 2115 - - 2115
Ltd
1.6 Pricing Strategy
Hero MotoCorp
Hero MotoCorp gives bikes and two wheelers at a competitive price, focusing on the
mass market. The ex-showroom prices of the products depend upon various parameters
and vary from state to state primarily because of VAT and other Tax constraints. Hero
Motocorp prices its products which is very competitive in the market, thus in turn they
6
over the years they have been able to skim the market and gain the largest market share.
The pricing in its marketing mix is a bit expensive than its competitors like Bajaj, Honda,
TVS. But this is due to the fact that the price varies with the value addition it has for the
buyers. More the features available with the products of Hero MotoCorp more is the price
of the model. A huge amount of purchase intention of Indian customers depends on
mileage than on the price, so Hero MotoCorp manufacture bikes which are highly fuel
efficient and couple it with attractive price helps them to convert purchase intention to
actual purchase.
Honda
Honda has cars which target every segment of the market. Honda has hatchbacks, sedans,
luxury sedans and SUVs. Hence, the pricing strategy in the marketing mix of Honda is
based on various parameters like competition, segment, features etc. These automobiles
target customers from low middle income level to high income level. Dealerships have
limited flexibility over pricing. Prices are determined by Honda and dealers enter into
contracts with them. Base prices around the world are similar and fluctuations may be
due to currency, taxes and other similar factors. Honda Motorcycles also have a wide
range and cater to different segments of the market. Honda uses economies of scale to
meet growing demand at affordable prices especially in emerging economies such as
India, Brazil and Thailand. Honda builds huge manufacturing hubs in developing
countries and exports the bikes in developed countries where cost of production is higher.
Honda also provides luxury bikes and sports bikes which are priced at the higher end.
TVS
TVS motor, a unit of TVS group is which is a 100 year old group is known for its
strong values. There pricing strategy varies according to product category and the
consumer segment. The pricing is often economical pricing with focus on quality and
Indian pricing values and sentiments.
Bajaj Auto
Bajaj Auto has got an extremely competitive pricing strategy in its marketing mix. Key to
capturing of market share and ensuring brand loyalty is the right pricing of products.
Bajaj Auto as an automotive giant in India is armed to the tooth with this knowledge and
realizes that low cost of purchase as well as overall low cost of ownership are key
7
elements to the above philosophy. Bajaj Auto also ensures that service costs of all its two
wheelers are low and affordable. Pricing of essential spares such as disk brake pads, drum
shoes, fork oil, air filter, headlight and taillight assembly as well as consumables such as
engine oil and air filter are priced very competitively.
Yamaha
Yamaha employs the competitive price strategy on its products. This is not at the expense
of quality. In fact, Yamaha products have the best price to performance ratios in the
world. Product price difference is based on the product‟s power and type. Together with
the pricing, some special financing options are offered thus psyching up people to buy
Yamaha.
Royal Enfield
Royal Enfield comes up with a bike which is more demanded by the younger generations.
So Royal Enfield focused on the bike explorers and moderately aged youths who love to
catch up with the new hard style bikes and focuses more on quality then the price. So
with this Royal Enfield follows a premium pricing strategy in its marketing mix by
delivering its customers a high quality products which are worth the value. With the goal
as less of more Royal Enfield manufacturers less number of models but each one of them
is of high quality which helps them in offering a capable and stylish product under its
brand to their users who whole heartedly accept the product regardless of premium price.
After the GST prices Royal Enfield has adopted a different strategy by further
diminishing the prices of its least popular bikes.
1.7 PROFESSIONAL TRADE BODIES
1. ACMA
The Automotive Component Manufacturers Association of India (ACMA) is the
apex body representing the interest of the Indian Auto Component Industry. Its
membership of over 780 manufacturers contributes more than eighty five per cent of
8
the auto component industry's turnover in the organised sector. ACMA is an ISO
9001:2008 Certified Association.
ACMA's charter is to develop a globally competitive Indian Auto Component
Industry and strengthen its role in national economic development as also promote
business through international alliances. The Auto Component industry in India, with
a strong positive multiplier effect, is one of key drivers of India's economic growth.
The well-developed Indian auto component industry manufactures a wide variety of
products including engine parts, drive transmission and steering parts, body and
chassis, suspension and braking parts, equipment and electrical parts, besides others.
In FY 2015-16, the Indian auto-component industry registered a turnover of
2,55,635crore (USD 39 billion) growing by 8.8 per cent, surpassing the Automotive
Mission Plan 2006-16 target. The CAGR of the industry stood at 6 per cent over a
period of six years. For exchange of information and especially for co-operation in
trade matters, ACMA has signed Memoranda of Understanding with its counterparts
in Argentina, Brazil, Canada, Egypt, France, Germany, Hungary, Iran, Italy, Japan,
Kazakhstan, Malaysia, Mexico, Nigeria, Pakistan, Russia, South Africa, South Korea,
Spain, Sri Lanka, Sweden, Taiwan, Thailand, Tunisia, Turkey, UK, USA and
Uzbekistan.
2. SIAM : IT is an important channel of communication for the Automobile Industry

with the Government, National and International organizations. The Society works
closely with all the concerned stake holders and actively participates in formulation of
rules, regulations and policies related to the Automobile Industry. With its regular and
continuous interaction with international bodies and organizations it aims to facilitate up
gradation of technical capabilities of the Indian Industry to match the best practice
worldwide.
SIAM also interacts with worldwide experts to assess the global trends and developments
shaping the Automotive Industry. It has been actively pursuing issues like Frontier
Technologies viz. Telematics: Promotion of Alternative Fuels including Hydrogen
9
Energy for automotive use through cell vehicles and Harmonization of Safety and
Emission Standards etc.
Dissemination of information is an integral part of SIAM'S activities, which it does
through various publications, reports, seminars and conferences.
SIAM provides a window to the Indian Automobile industry and aims to enhance
exchanges and communication expand economics, trade and technical cooperation
between the Automotive Industry and its international counterparts.
3. FADA:
The Federation of Automobile Dealers Associations (FADA) is an apex national
body representing Automobile Dealers of India. It was founded in 1964 by four
regional Auto Trade Associations to protect and promote the Indian retail automobile
market. It is now a registered body under the Companies Act 1956.
The four founder members of FADA are:

• The Automobile Dealers Association of Maharashtra, Mumbai
• The Motor Industries Association, Kolkata.
• The Automobile Traders Association, Delhi.
• Motor Vehicles & Allied Industries Association, Chennai.
FADA has as its members - dealers of passenger cars, commercial vehicles and
two/three wheelers. These members deal in sales, servicing of vehicles and sale of
spare parts as well. They also arrange finance and trade-ins. In some cases they also
sell used cars.
Other than automobile dealers, FADA has representatives of vehicle
manufacturers, tyre manufacturers, insurance and finance sectors and other allied
industries and trade, as supporting members.
10
1.8 Geographical Spread of Plant
1.8.1 Hero Motocorp Plant Locations in India

Hero MotoCorp has manufacturing facilities located at five locations in India. The five
manufacturing plants of Hero MotoCorp have a combined production capacity of more
than 9 million vehicles annually.
 Satyavedu, Andhra Pradesh

 Dharuhera, Haryana
 Gurgaon, Haryana
 Neemrana, Rajasthan
 Haridwar, Uttarakhand
Hero MotoCorp has over 7,000 dealership and service centre units in 29 states and four
union territories of India.
11
Honda
HMSI has plants in

Manesar, Haryana,
Tapukara, Rajasthan
Vithalpur, Gujarat
Narsapura, Karnataka.
Honda Motorcycle and Scooter India
(HMSI) has inaugurated the fourth
assembly line at the company's
Narsapura plant near Bengaluru,
Karnataka, increasing annual
production by 6 lakh units. With this
expansion, the Narsapura plant is now
Honda's biggest two-wheeler plant
worldwide, with 24 lakh annual
production capacity. Honda's total capacity from four plants in India is now 64
lakh units in FY2017-18, up from 58 lakh units.
The Narsapura plant also boasts of being Honda's first plant with 100 per cent
rain-water harvesting and 80 per cent solar power system. It employs cutting edge
manufacturing processes with advanced automated processes and 14 robots. The
plant employs over 7,000 people in all.
12
TVS Manufacturing Plants
TVS Motors has a total of four
manufacturing facilities. Three of
these plants are in India, while one
is situated in Indonesia. The
locations where the plants are
located are:-
 Hosur, Tamil Nadu
 Mysore, Karnataka
 Nalagarh, Himachal Pradesh
 Karawang, Indonesia
The company has annual production capacity of 4 million 2 wheelers & 120,000 three
wheelers. During the year 2006-07, the company has established a new plant in Himachal
Pradesh with an annual production capacity of 4,00,000 units scalable to 6,00,000 units.
1.8.2 Key Locations of Yamaha

Motor Plants in India
Yamaha Motor India Pvt. Ltd. – It is a

100 percent subsidiary of Yamaha Mot-
or Company. This is the regional head-
quarter and corporate control body. It
looks after the corporate planning and
strategy, business planning and expan-
sion, quality control and regional control
of the Japanese manufacturer's business
in India.
13
Yamaha Motor India Sales Pvt. Ltd. – It is a 100 percent subsidiary of the Yamaha
Motor Company. It provides sales and marketing services. It is based in Chennai, Tamil
Nadu.
Yamaha Motor Research and Development India Pvt. Ltd. – It is a 100 percent
subsidiary of Yamaha Motor Company. It looks after the R&D and the product
development services provided to Yamaha Motor India. It is responsible for developing
new products for domestic as well as foreign markets. It is located in Surajpur, Gautam
Budh Nagar, Uttar Pradesh.
IYM's manufacturing facilities comprise of 3 State-of-the-art Plants at Surajpur (Uttar
Pradesh), Faridabad (Haryana) and Kanchipuram (Tamil Nadu). The infrastructure at
these plants supports production of two-wheelers and parts for the domestic as well as
overseas markets.
Yamaha Dealership in India
There are more than 800 Yamaha customer service centres and 400 dealership outlets
across 29 states and four union territories of India.
Royal Enfield Plants

Royal Enfield has one manufacturing and
assembly facility in Chennai, Tamil Nadu.
This manufacturing plant has been functional
since 1955 and still produces the Royal
Enfield Bullet 350cc and 500cc models.
14
Bajaj Auto Key Locations in India
The Bajaj Auto has massive presence in India as well as oversees, manufacturing two-
and three-wheeler units at a number of locations in India. The Uttarakhand manufacturing
facility is solely for manufacturing two-wheelers, while the Aurangabad plant is used for
manufacturing three-wheelers. Two-wheelers are also manufactured at the Chakan and
Akurdi plants.
 Headquarters and Plant – Akurdi, Pune, Maharashtra
 Manufacturing Facility –Waluj, Aurangabad, Maharashtra
 Manufacturing Facility –Chakan, Pune, Maharashtra
 Manufacturing Plant – Pantnagar,
Uttarakhand
 Corporate Office – Mumbai, Maharashtra
It is the sixth largest manufacturer of

motorcycles in the world and the second
largest in India. They are also considered to
be the third largest three wheeler
manufacturers. The company has a wide
range of spanning automobiles, industries,
home appliances, iron and steel, insurance
and finance. The brand is well known all
over the countries in Latin America, Africa, Middle East, South and South East Asia. The
company was established in 1926, the time when India was fighting against the
Britishers. Bajaj Auto had about 8,050 employees put of which 51 were women and 25
were differently abled, in the year 2013. The present chairman of the group, Rahul Bajaj,
inherited the seat from Kamalnayan Bajaj in 1965. Under his guidance the company was
able to make a turnover of INR 120 billion. The company is a well-known brand in the
global market now. The company has three plants at Aurangabad, Pune and Uttaranchal.
The plant at Pune and Uttaranchal deal with the range of motorcycles whereas the plant at
Aurangabad deals with the range of motorcycles and three wheelers. The company has
always been active as a leader for adopting various measures for a greener and cleaner
15
environment for various purposes. A few of the examples include using wind power for
energy requirements, usage of alternate fuels like CNG and LPG for its commercial
vehicles, green plantation and water treatment in its manufacturing facilities and the
usage of advanced engine technology like the DTS-i to reduce emissions.
1.9 Key factors effecting demand
Two wheeler market in India is the biggest contributor to the automobile industry the size
of 1 lakh million. the two wheeler market in India comprises of three types of vehicles,
namely motorcycle and mopeds.
Foreign collaboration have been play a major role in the growth of the Indian two
wheeler market, and most of them are Japanese firms. the modern two wheeler forms in
India have been manufacturing new categories of two wheelers such as step thrus and
scooterettes. These have been produced by combining two or more two-wheeler
segments.Foreign firms have already taken initiative to own their two wheeler
subsidiaries in India. Among the three segments of the Indian two wheeler market major
growth Trends have been seen in the motorcycle segment for the last 4 to 5 years one
good reason for such increase in demand for motorcycles is due to its resistance and
balance even on bad Road conditions.
Most of the rural areas in India do not have recent roads and hence the need for good
shock-resistant and study two wheeler such as motorcycles has been built some of the
major players in the Indian motorcycles market for Hero Honda CBZ, Bajaj Pulsar, TVS
Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, boxer, CD
Dawn, Karizma calibre etc. Having classified the motorcycle brands into economy
executive and premium segment Bajaj stands as a leader in the economic segment Hero
and Honda leaves in the executive statement and there is a competition in the premium
segment between Hero Honda and Bajaj the following are the main factors that affect two
wheeler cells in a increasing credit and financing for auto vehicles two wheeler loans and
financial has been on the rise.
 Increase consumer‟s salary due to opportunities offered by multinational is the
disposable incomes of salaried individuals have increased manifold.
16
 Constant petrol prices today the Government of India has been working on
reducing subsidies on kerosene and diesel which will keep petrol prices at more or
less the same level.
 Delay in English version of mass transport system is probably a future threat to
the two wheeler market the implementation of the mass transport system has been
taken over the two wheeler market in India is a fast growing market due to its
technological advancements and product manufacturing and emphasis on design
innovation.
17
Chapter 2
PROMOTERS AND MANAGEMENT ETHOS
2.1 BRIEF DETAILS OF EACH PLAYER
1 Company Name HERO MOTOCORP

2 Profile World „s largest manufacturer of two-
wheelers
3 Company belongs to which sector Automobile – 2 wheeler
4 Establishment Year 13 January 1984
5 Brief of the company Hero Honda started its operations in
1984 as a joint venture between Hero
Cycles of India and Honda of Japan. The
name of the company is changed from
Hero Honda Motors Limited to Hero
MotoCorp Limited on 29 july 2011.
6 Name of CMO/MD/VP of the company Mr. Pawan Mumbai
7 Is it multinational company? Yes
8 Head Office/Corporate office Gurgaon, India
9 Is it NSE/BSE Listed? Yes
10 What is their current share price? 2696.45 INR
(India/USD)
11 How many branches/Unit across World? 25
12 How many branches/Unit across India? 5
13 Total Turnover in (US $)/ Indian Rupees Rs 476.53 Crore
14 Products and Services offered Bikes, Scooter.
15 Major Competitors (Product Specific) Honda, Suzuki, Bajaj
16 Customer Segment Youth, Sub-urban
17 Brand Endorsement Ranbir kapoor, Alia Bhatt
18 Current News about the company Hero Motocorp falls 4% as stock trades
ex-dividend
18
1 Company Name TVS MOTOR COMPANY
2 Profile Tvs mtor company is third largest two
wheelers manufacturer in india, with
revenue of 15129 cr inr (2017-18) the
company has annual production
capacity of 4 million 2 wheelers.
3 Company belongs to which sector AUTOMOBILE MANUFACTURING
4 Establishment Year 1978
5 Brief of the company TVS Group spans across industries like
Automobile, Aviation, Education,
Electronics, Energy, Finance, Housing,
Insurance, Investment, Logistics,
Service and Textiles. Has over 90
companies under the umbrella. TVS
Group turnover including all key
subsidiaries and associates is Rs 59400
Cr for FY 2017-18, approximately USD
8.5 Billion.
6 Name of CMO/MD/VP of the TV Sundram (Founder), Venu
company Srinivasan (Chairman & Managing
Director), Sudarshan Venu (Joint
Managing Director)
7 Is it multinational company? Yes.
8 Head Office/Corporate office Chennai, Tamil Nadu, India
9 Is it NSE/BSE Listed? Listed In BSE and NSE
10 What is their current share price? 479.30 (BSE) and 479.10 (NSE)
(India/USD)
11 How many branches/Unit across 11
World?
India?
13 Total Turnover in (US $)/ Indian 1.9 billion USD, 15472 Cr INR
Rupees
14 Products and Services offered Motorcycles, Scooters, Moped, Three
wheeler.
15 Major Competitors (Product Specific) Hero Motocorp (Splendor), Bajaj
(Pulsar), Yamaha Honda (CBR 150R),
Yamaha (YZFRR15).
16 Customer Segment Economic buyers, Premium buyers,
sub-urban population
17 Brand Endorsement Virat Kohli, Ms Dhoni
18 Current News about the company Prabhudas lilladher recommended
accumulate rating on TVS Motors with
a target price of Rs 665 in its research
report.
19
1 Company Name Bajaj Auto Limited
2 Profile Present in over 70 nations, Bajaj Auto is
the world‟s 4th largest manufacturer of
motorcycles and the largest manufacturer
of three – wheelers.
4 Establishment Year November 29, 1945
5 Brief of the company 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 manufacture
6 Name of CMO/MD/VP of the Rahul Bajaj (Chairman), Rajiv Bajaj

company (CEO)
7 Is it multinational company? Yes.
8 Head Office/Corporate office Ahmedabad, India.
9 Is it NSE/BSE Listed? Listed In BSE and NSE
10 What is their current share price? 2818.90 (BSE), 2821 (NSE)
(India/USD)
World?
India?
13 Total Turnover in (US $)/ Indian Rs. 25,164.92 Crores
Rupees
14 Products and Services offered Motorcycles, Scooters, Three wheeler,
Low Cost Car.
15 Major Competitors (Product Honda, TVS, Heromoto corp, Yamaha,
20
Specific) Royal Enfield.
16 Customer Segment Youth, Sub – urban, Rural, Premium.
17 Brand Endorsement Aamir khan
18 Current News about the company Bajaj Auto launches 2019 Dominar 400 at
Rs 1.74 lakh. Bajaj Auto domestic sales up
25% in FY19.
1 Company Name YAMAHA MOTOR CORPORATION

2 Profile Yamaha Motor India Pvt. Ltd. (YMI) is a
100% subsidiary of YMC and functions as
the regional headquarters and corporate
control body of India business operations for
YMC. IYM's manufacturing facilities
comprise of 3 State-of-the-art Plants at
Surajpur (Uttar Pradesh), Faridabad
(Haryana) and Kanchipuram (Tamil Nadu).
IYM is highly customer-driven and has a
country-wide network of over 2,200
Customer touch-points including 500
dealers.
4 Establishment Year July 1, 1955 (JAPAN), 1985 (INDIA).
5 Brief of the company
YMC is a Japanese manufacturer
of motorcycles, marine products such as
boats and outboard motors, and other
motorized products. The company's
products
includes motorcycles, scooters, motorized
bicycles, boats, sail boats, personal water
craft, swimming pools, utility boats, fishing
boats, outboard motors, 4-wheel ATVs,
recreational off-road vehicles, go-
21
kart engines.
6 Name of CMO/MD/VP of the HIROYUKI YANAGI (CHAIRMAN AND
company RD), YOSHIHIRO HIDAKA(PRESIDENT
AND RP)
7 Is it multinational company? YES
8 Head Office/Corporate office 2500 Shingai, Iwata-shi, Shizuoka-ken,
Japan. Chennai, India.(for Indian market)
9 Is it NSE/BSE Listed? NOT LISTED ON BSE/NSE.

LISTED ON TOKYO STOCK QOUTE
10 What is their current share price? 2275 ¥
(India/USD)
World?
India?
13 Total Turnover in (US $)/ Indian 1.52 Billion USD.
Rupees 18566 CRORE INR.
14 Products and Services offered Motorcycles, Scooters, Motorized bicycles,
Boats and Engines.
15 Major Competitors (Product Honda, TVS, Heromoto corp, Yamaha,
Specific) Royal Enfield.
Students and urban population.
17 Brand Endorsement John Abraham and Deepika Padukone.
18 Current News about the company Yamaha‟s Scooter line up revs in excitement
with Unified Braking Sytem (UBS) and
maintenance free battery.
1 Company Name ROYAL ENFIELD (India)

2 Profile ROYAL ENFIELD is a Indian motor
cycle manufacturing brand with the tag of
“oldest motor cycle brand in continues
production manufacture in factory in
Chennai india”. It now subsidiary of
eicher motor ltd, an Indian auto maker.
4 Establishment Year 1901(Britain), 1955(India)
5 Brief of the company The company makes the royal enfield
bullet and other single cylinder
motorcycle. Royal enfield makes similar
bikes in 350cc and 500cc model along
with several model with different market
22
segment.
6 Name of CMO/MD/VP of the company Vinod Dasari(CEO), Rudratej
singh(President)
7 Is it multinational company? YES
8 Head Office/Corporate office Chennai
9 Is it NSE/BSE Listed? YES (As a name of Eicher motor)
10 What is their current share price? 20550(BSE), 20595.45(NSE)
(India/USD)
13 Total Turnover in (US $)/ Indian Rupees 7037.97 Cr
14 Products and Services offered Motorcycles
15 Major Competitors (Product Specific) Honda, TVS, Heromoto corp, Yamaha,
Royal Enfield.
Students and urban population.
17 Brand Endorsement Jeff Martin
18 Current News about the company Royal enfield 650 twins post 40%
monthly growth in January 2019
1 Company Name Honda Motorcycle and Scooter india

2 Profile Honda Motorcycle and Scooter India,
Private Limited (HMSI) is the wholly
owned Indian subsidiary of Honda
Company, Limited, Japan
3 Company belongs to which sector Automobile (Two wheelers)
4 Establishment Year 20 August 1999
5 Brief of the company Honda Motorcycle and Scooter India,
Private Limited(HMSI) is the wholly
owned Indian subsidiary of HondaMotor
Company, Limited, Japan Founded in
1999, it was the fourth Honda automotive
venture in India, after Kinetic Honda
Ltd(1984 - 1998), Hero Honda (1984-
2011) and Honda Siel Cars India (1995 -
2012). HMSI was established in 1999 at
Manesar, District Gurugram, Haryana.
6 Name of CMO/MD/VP of the company Minoru Kato, President and CEO (w.e.f
1st April 2017)
23
7 Is it multinational company? Yes
8 Head Office/Corporate office Gurugram, India
9 Is it NSE/BSE Listed? No
10 What is their current share price? 2,973 ¥
(India/USD)
13 Total Turnover in (US $)/ Indian Rupees 2038.7 billion ¥
14 Products and Services offered Motorcycles, Scooters, Moped, Sports
Bikes.
15 Major Competitors (Product Specific) Honda (Activa), Suzuki (Access), Honda
(CB Shine), Bajaj (Pulsar), Tvs (Apache),
Yamaha Honda (CBR 150R)
16 Customer Segment Economic buyers, Premium buyers.
17 Brand Endorsement Akshay Kumar
2.2 Corporate Social Responsibility

2.2.1 Hero Motocorp:
At Hero MotoCorp, the principles of CSR are integral to the way we conduct our
business. We believe in 'Manufacturing Happiness' through our various factories, where
man, machine and nature work together in harmony to minimize environmental impact
and develop a healthy ecosystem. Our efforts focus on activities that enhance
environmental capital, support rural development and education, facilitate healthcare,
create sustainable livelihoods and promote sports and road safety awareness. We Care is
our CSR Umbrella, under which we have four flagship programmes – Happy Earth, Ride
Safe India, Hamari Pari and Educate to Empower, that are aimed at fulfilling the CSR
vision to have a Greener, Safer and Equitable world.
CSR Vision
To have a Greener, Safer and Equitable World.
Greener
Environment Sustainability, Sanitation & Hygiene Programs aimed at creating a Greener
and Cleaner World.
24
Happy Earth
Aims at bringing change in our environment for, literally, making our world a happy
place to live in. Happy Earth is focused to address environmental degradation, climate
change or global warming, which is the greatest threat we have ever faced.
Safer
A Road Safety initiative that aims to make Indian Roads safer by spreading awareness
about traffic rules and regulations.
A 360 degree initiative on making Indian Roads safer to drastically reduce fatalities. We
are setting up Road Safety Riding schools across India and plan to do campaigns on
ground, on air, on social media, and in schools to educate the masses & empower them to
make a tangible difference. This initiative is supported by the Ministry of Road Transport
& Highways, Government of India.The Ride Safe India initiative is a nationwide
campaign launched by Hero MotoCorp to promote the cause of road safety in India.The
initiative includes adopting of Traffic Parks in several locations around the country, and
setting up of Two-Wheeler Riding Schools across multiple locations in the country.
Hamari Pari
An effort to specifically empower the women of tomorrow – a concentrated initiative
targeted towards the girl child aged 6+ from the underprivileged sections of the society to
help and support them in their holistic development. Hamari Pari ensures that over
1,60,000 young underprivileged adolescent girls grow up in the right conditions, with the
right support and in the right environment. From fixed-deposit certificates to regular
motivational sessions and guidance camps with families, our non-profit partners ensure
that each beneficiary completes her primary education and goes on to live an independent
and dignified life.
Educate To Empower
'Education is the most powerful weapon that you can use to change the world,' said
Nelson Mandela. It is in fact a 'social vaccine' that benefits not only the individual being
educated but also the entire community and the country as a whole.
Through E2, Team Hero aims to holistically tackle deep-seated issues within India‟s
education system. Whether it is about increasing enrolment in schools or facilitating
higher attendance, the programme seeks to look beyond the obvious symptoms and find
25
long-term solutions. It focuses as much on improving school infrastructure as on finding
innovative solutions to improve quality of education and learning outcomes. The
programme also encourages development of life skills as well as technical skills, ensuring
employability of its beneficiaries.
2.2.2 Honda
2.2.2.1 Title and applicability
 The document describes the Corporate Social Responsibility Policy (“CSR policy”)
of Honda Motorcycle and Scooter India Pvt. Ltd. (“HMSI” or “the company”). It
includes HMSI‟s vision, mission and other relevant attributes of Corporate Social
Responsibility.
 The CSR policy shall be guided by HMSI‟s corporate philosophy of respect for the
individual and the society at large.
 The CSR policy has been formulated in accordance with Section 135 of the
Companies Act 2013 and the CSR Rules 2014 and the relevant amendments /
notifications / circulars.
 The CSR policy shall apply to all CSR programs of HMSI
2.2.2.2 Vision and Mission

HMSI is committed to build a sustainable business with strong social relevance and a
commitment to inclusive growth and contribute to the society by supporting causes on
various concerns including road safety, healthcare, environmental sustainability,
promoting education, promoting sports and other rural development activities.
In pursuance of our vision that HMSI desires to be a „Company which society wants to
exist‟, we are dedicated towards fulfilling the social objectives through various CSR
activities. The Company shall make its endeavour to positively impact and influence the
Society for its sustainable development.
26
2.2.2.3 Purpose
The Companies Act, 2013 has brought greater emphasis on CSR with rules that provide
guidance on minimum CSR spend, focus areas, implementation mechanism and reporting
to the shareholders of the company.
HMSI CSR Policy has been designed keeping in view the company‟s business vision, its
CSR vision and long-term social objectives that the company wants to achieve. HMSI
CSR Policy has been created with the purpose to outline its CSR focus areas, review
mechanism, execution process and reporting mechanism.
2.2.2.4 CSR Committee
Constitution of CSR Committee
A Corporate Social Responsibility Committee (“the CSR Committee”) has been

constituted by the Board of Directors to oversee the CSR agenda of the Company. The
committee has been formed as per the requirements of Section 135 of the Companies Act,
2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014.
Board of Directors shall be empowered to take decision for making or effecting changes
in the constitution of the CSR Committee.
The composition of CSR Committee shall be disclosed in the Board of Directors‟ Report.
Responsibilities of the CSR Committee
a) To formulate & recommend to the Board of Directors, a CSR Policy indicating the
activities to be undertaken as specified in Schedule VII of the Companies Act, 2013
and modify / amend the same as required;
b) To review and approve annual budgets with respect to CSR programs;
c) To develop and institutionalize a CSR reporting mechanism in light with Section 135,
Rule 8 of the Companies Act 2013;
d) To ensure that HMSI corporate website displays the approved CSR policy of the
company
e) To monitor the CSR Policy, Projects and Programs from time to time.
27
2.2.2.4 Areas of CSR Activities
The Company is hereby devoted to direct its CSR resources, to a reasonable extent, for
improving the quality of life of the people by focusing on the social causes, including but
not limited to the following areas:
Eradicating hunger, poverty and malnutrition, promoting health care including preventive
health care and sanitation, including contribution to the Swacch Bharat Kosh set-up by
the Central Government for the promotion of sanitation and making available safe
drinking water;
i. Promoting education, including special education and employment enhancing
vocation skills especially among children, women, elderly, and the differently
abled and livelihood enhancement projects;
ii. Promoting gender equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by
socially and economically backward groups;
iii. Ensuring environmental sustainability, ecological balance, protection of flora and
fauna, animal welfare, agroforestry, conservation of natural resources and
maintaining quality of soil, air and water, including contribution to the Clean
Ganga Fundset-up by the Central Government for rejuvenation of river Ganga;
Protection of national heritage, art and culture including restoration of buildings and
sites of historical importance and works of art; setting up public libraries; promotion
and development of traditional arts and handicrafts.
2.2.3 TVS
PREAMBLE TVS Motor Company Limited („TVSM‟ or „the Company‟), a part of the
100 year old, TVS group, is the manufacturer of two and three wheelers. The Company
has been an early adopter of Corporate Social Responsibility („CSR‟) initiatives, along
with its holding company, namely Sundaram-Clayton Limited, its subsidiaries and
associates (SCL Group of companies). SCL Group of companies recognized that
integrating social, environmental and ethical responsibilities into the governance of
28
businesses would ensure their long term success, competitiveness and sustainability. SCL
Group of companies believe that in alignment with its vision, it will continue to enhance
value through its CSR initiatives and promote social sustainability, sustainable
development of the environment and social welfare of the people and society at large,
more specifically for the deprived and underprivileged persons. Accordingly, SCL Group
of companies established Srinivasan Services Trust (SST) in 1996, as its social arm
aimed at providing a dedicated approach to community development and also to fulfill
their CSR commitments. Over the past 18 years, SST has made effort to bring a change in
the lives of the people in rural India by creating self-reliant models of sustainable
development and environment, and to make our planet a better place for future
generations. Besides, the Group has been rendering various charitable activities / services
through its specific organizations that cater to the well being of the society by providing
education, medical assistance, and other benefits to the needy. The Company in
accordance with the requirements under the Companies Act, 2013 (“Act”) and the
Companies (Corporate Social Responsibility Policy) Rules, 2014 (“Rules”), constituted a
CSR Committee, which formulated Policy on Corporate Social Responsibility (“CSR
Policy”) and recommended the same to the Board of Directors of the Company (”Board”)
for its approval. The Board vide its resolution dated 3rd February 2015, approved and
adopted the CSR Policy with immediate effect. This policy encompasses the Group‟s
philosophy for giving back to society as a corporate citizen and lays down the guidelines
and mechanism for undertaking socially useful programmes for the welfare and
sustainable development of the community at large through its social arm, namely SST.
This policy shall apply to all CSR initiatives and activities taken up not only at the
various work-centres and locations of the Company but also in any other parts of the
country, for benefit of the society. II. CSR VISION To be a catalyst in creating self-
reliant villages and transforming communities by deploying skills and resources in key
areas such as economic development, quality education, health care, conservation of
environment and the creation, maintenance of infrastructure, art, culture and protection of
places of public and historical importance. III. OBJECTIVES CSR Policy intends to: a)
Strive for (1) economic development, (ii)healthcare (iii) quality education (iv)
conservation of environment and (v) infrastructure development that positively impact
29
the society at large, [especially the weaker sections of society and rural parts]; b)
Embrace responsibility for the Company‟s actions and encourage a positive impact
through its activities on eradicating poverty, promoting education, enhancing
employment skills, promoting environment sustainability, amongst others; c) Empower
the people to ensure sustainable and permanent improvement in the lives of the people
living in the villages; d) Protecting the national heritage, art and culture including
restoration of places of public and historical importance; and e) Ensuring environmental
sustainability, ecological balance, protection of flora and fauna, animal welfare, agro
forestry, conservation of natural resources and maintaining quality of soil, air and water.
IV. CSR PROJECTS OR PROGRAMS The Company shall implement the CSR Policy in
accordance with the requirements under Section 135 of the Act and the Rules framed
thereunder, and currently, the Company‟s CSR activities will focus on: A. ECONOMIC
DEVELOPMENT: Empowering women through self help groups; promoting improved
agriculture practices through adoption of scientific methods of agriculture; improve
livestock management through organizing of regular veterinary camps in rural areas;
improve employability by providing enhancing vocational skills and providing career
counselling. Survival, protection and education of girl children will be given primary
focus to improve child sex ratio
2.2.3.1 EDUCATION :
Promoting education, including special education, especially among children, women
and the differently abled, including by way of setting up of balwadis in rural areas;
establishing village level adult education centres, contributing towards improving the
infrastructure of schools by building additional classrooms and other infrastructure,
providing study and play materials, building of toilets and ensuring adequate water
supply. Providing special care to introduce digital technology in primary and secondary
education for improving quality of education.
2.2.3.2 ENVIRONMENT:
Ensuring environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare, agroforestry, conservation of natural resources and maintaining quality of
30
soil, air and water, including by way of : (i) educating the public on effective solid waste
management; (ii) construction and periodic cleaning of drains for free flow of liquid
waste; (iii) undertaking afforestation measures and supporting conservation measures to
protect forest areas and prevent forest fires; and (iv) construction of various water and
soil conservation structures, including rain water harvesting systems to increase the
groundwater level, reduce soil erosion and increase crop cultivation area.
2.2.3.3 HEALTH:
Reduction of infant mortality and maternal mortality rate; reduction of malnutrition
among children; reduction of anaemia among women by conducting nutrition
demonstration programmes and supply of iron and calcium supplements to women and
especially people belonging to the weaker section of society. Reduction of open
defecation by individuals by construction of toilets and promoting awareness of the
disadvantages of open defecation; and promoting access to safe drinking water.
2.2.3.4 HUNGER, POVERTY, MALNUTRITION AND HEALTH:

Eradicating extreme hunger, poverty and malnutrition, promoting preventive healthcare
and sanitation.
2.2.3.5 NATIONAL HERITAGE, ART AND CULTURE:

Protecting national heritage, art and culture including restoration of buildings and sites of
historical importance and works of art, setting up public libraries and promoting and
developing traditional arts and handicrafts. The CSR activities shall be undertaken within
the territory of the Republic of India, and the Company shall give preference to the local
area/ areas around where it operates, for spending the amount earmarked for CSR
activities. CSR projects, programmes or activities that benefit only the employees of the
Company and their families shall not be considered as CSR activities. Also, activities
undertaken in pursuance of the normal course of business of the Company and any direct
/ indirect contributions to any political party shall not constitute CSR activities.
31
2.2.4 Bajaj
2.2.4.1 Health
Bajaj Auto works with a wide array of partners on issues related to Health. The supported
projects include projects on mid-day meals, clean drinking water, sanitation, blood banks,
path lab services in remote mountain villages, breast cancer research, and vision care.
Bajaj Auto and YCMH Hospital Pune, in collaboration with NACO, have also been
operating the ART center in YCMH hospital. This center supports more than 5000
patients currently. Bajaj Auto has also supported Sri Aurbindo Society, Puducherry, to set
up the “International Center of Excellence for Integral Yoga”.
2.2.4.2 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.
2.2.4.3 Environment & Natural Resources
The extreme drought faced by many parts of the country, including in Maharashtra in
2014-15 and 15-16, have highlighted the need for water conservation and increasing
water availability. Bajaj Auto has been working with Jankidevi Bajaj Gram Vikas
Sanstha (JBGVS) on this for a long time and has now expanded the size and scope of this
activity to make it a focus area in the coming years. Bajaj Auto, in partnership with other
32
Bajaj group companies, is supporting JBGVS in launching the Bajaj Water Conservation
Project (BWCP) at Aurangabad. BWCP aims to cover an area of 21,500 ha over the next
4 years with JBGVS and looking for partner NGO to take up additional 44,000 ha under
Bajaj Water Conservation Project. In addition Bajaj Auto has supported Paani Foundation
for water conservation work in Maharashtra. Bajaj Auto has continued its support to
Swachh Bharat Abhiyan by taking part in „Bajaj Majhi City Taka-Tak‟ programme run
by CRT, Municipal Corporation, Aurangabad and CII. This programme aims to make
Aurangabad a clean city, with minimal quantity of garbage going to landfills. Bulk of the
wet garbage will be composted or used for bio-gas production and recyclable wastes will
be sent to a recycling agency. The process is on and is likely to be completed by end
2017. Bajaj Auto also supported ICRIER in construction of a new Green Building
starting in 2016-17.
2.2.4.4 Women’s Empowerment & Self Reliance

Bajaj Auto has supported IISER, one of India‟s leading research institutes, in
constructing a dedicated Hall of residence for Women Research Scholars. Bajaj Auto has
continued to support the Banasthali Vidyapeeth (a women‟s university) in setting up a
Hostel and a Bajaj center for Automation and Bajaj Law School. Bajaj Auto also supports
the Kailash Satyarthi Children‟s Foundation in its work on holistic development and
empowerment of children.
2.2.4.5 Rural Development & Other Projects

Bajaj Auto has supported Sevagram Pratishthan at Wardha for renovation of Bapu Kutir
and associated buildings. Bajaj Auto has also initiated a partnership with Raja Dinker
Kelkar Museum at Pune for renovation of the museum.Other supported organisations
include Social Work Research Center - Barefoot College(Tilonia), Development
Initiative for Self-Help and Awakening – DISHA (Pune), Chinmaya Organization for
Rural Development (New Delhi), Prafulla Dahanukar Arts Foundation (Mumbai) etc.
33
2.2.5 Yamaha
The Corporate Philosophy of the Yamaha Corporation Group is, "With our unique
expertise and sensibilities, gained from our devotion to sound and music, we are
committed to creating excitement and cultural inspiration together with people around
the world."
Based on this philosophy, Yamaha conducts its CSR activities according to the
following guidelines, seeking to contribute to the sustainable development of society
and to further strengthen the bond of trust with its stakeholders through sound,
transparent management methods, and corporate activities that balance social and
environmental concerns.
1. By creating new values through products and services focused on social and
environmental issues, Yamaha contributes to the sustainable development of society.
2. Through business development and social contributions based in each region of the
globe, Yamaha contributes to the promotion and popularization of music, and to the
development of communities.
3. By understanding the significance of protecting the natural environment and
maintaining biodiversity, and by promoting the reduction of environmental burden
through measures such as sustainable procurement of timber and lowering
greenhouse gas emissions, Yamaha works to maintain a healthy global environment.
4. Yamaha observes laws, ordinances, and social norms, and moreover, conducts
business in a fair and impartial manner throughout the entire value chain, including
activities such as socially responsible procurement carried out in cooperation with
business partners.
5. Yamaha endeavors to prevent abuses of human rights, responding appropriately to the
effect of its business activities as well as to any attendant risks to human rights, with
the goal of achieving a society that safeguards the dignity of all.
Yamaha works to create an atmosphere that holds in high regard the employee diversity
that is a source of the new values created within the company, and which allows each
34
person to fully demonstrate their sensibilities and creativity through training and use,
without regard to race, nationality, gender, or age.
2.2.5.1 Basic Policy

The mission of the Yamaha Group is to continue pursuing its corporate philosophy of
"With our unique expertise and sensibilities, gained from our devotion to sound and
music, we are committed to creating excitement and cultural inspiration together with
people around the world. To put this philosophy into practice, Yamaha is working to
understand the impact of our business activities on the environment and society and
pursue dialogue with stakeholders, while solving challenges toward the creation of a
sustainable society.
2.2.5.2 CSR Management Applying ISO 26000
The Yamaha Group continues to engage in a variety of CSR issues by offering products
and services and engaging in business processes and corporate activities in regional
societies. In promoting CSR initiatives, it is important to respond as well as possible to
the needs and expectations of society in addition to the issues on which the Yamaha
Group itself focuses. Based on this recognition, as of fiscal 2014, the Yamaha Group has
been applying ISO 26000 Guidance on Social Responsibility to inspect the status of CSR
behavior. We are also organizing activities in accordance with the core subjects of ISO
26000, and managing the promotion plan and progress of CSR activities.
2.2.5.3 Promotion of Strategic CSR Themes
In fiscal 2016, the Yamaha Group made sure that we understood the demands and need
of our customers, the local communities in which we work, NPOs and NGOs, our
employees, socially responsible investment (SRI) research organizations, and others, and
listened to external experts. From this, we then devised the themes necessary for further
promotion. On the basis of medium- and long-term management strategies, those themes
were discussed at the executive level and we formulated “The Strategic CSR Themes”
with a medium-to long-term focus. Based on the strategic CSR themes, in fiscal 2017, we
revised our Yamaha Corporation Group CSR Policy, and incorporated these themes in
35
our mid-term business plan as an ESG challenge. We make effort to manage progress and
promotion by monitoring the status of each theme activity and conducting reviews in the
Management Council which is overseen by the president.
2.2.6 Royal Enfield

2.2.6.1 Community Initiatives
Eicher Motors Limited is the parent company of Royal Enfield. When we define Eicher
as a company committed to the community, we mean community in its broadest sense:
the totality of the social, economic, and natural spheres in which we do business and live
our lives. This commitment takes many forms, with special attention to enhancing
education and quality of healthcare facilities throughout the country.
2.2.6.2 Goodearth Education Foundation
Foundation set up by the Eicher Group of companies to implement its mission: "To
educate India's children with a special emphasis on the girl child starting with primary
education for the rural poor."This mission statement emerged from the deep desire
among Founder members of the company to contribute to efforts in the field of education,
which they believe is a key area for facilitating change and progress in India.The work of
the Foundation has, as its focus, interventions for improvement in quality of education
initially in the government primary schools in rural areas. Work started in 1996 by
providing support to an initiative based in Rai Bareilly district in U.P. This project
covered 63 schools and has Goodearth Education Foundation benefited about 15,000
children over a period of 4 years. In 1998, further efforts were initiated in Thane district
(Maharashtra), Alwar district (Rajasthan) and Solan district (Himachal Pradesh) where in
the first phase we are covering a total of approximately 90 schools and 9,000 children.
2.2.6.3 What We Do
• Training of teachers to build their capacities and motivation
• Ongoing facilitation and resource support to teachers to help them improve quality of
education
36
• Development of appropriate teaching - learning material
Regular interaction with parents and other community members to develop awareness
and mobilize support for education
• Regular interaction with Cluster, Block and District level education authorities. Need
based school improvement activities like repair and maintenance of building etc
• Setting up of alternative schools for children unable to access the government

schools.
2.2.6.4 Dr Shroff Charitable Eye Hospital
Vision: "To have a major impact on blindness and deafness eradication in India,
especially among poor, by building an accessible, self-sufficient model institution, that
has internationally approved performance standards and is focussed on quality,
excellence and patient-care".
Founded in 1926, Dr. Shroff's Charity Eye hospital is a non-commercial, non-profit trust
setup to enable people from all walks of life and all sections of society to receive quality
eyecare. SCEH has a strong 75-year old tradition of eye care, and more recently, ear,
nose and throat care. It has been known for both, its high quality as well as the
compassionate treatment it has offered its patients. The Eicher group started providing
substantial assistance to this hospital in 1996 and started to support this institution with
funds and expertise. And gradually this hospital has started to emerge as one of the finest
ophthalmic and ENT hospitals in Delhi owing to its international standards and
adherence to hygiene and quality.
37
2.3 Corporate governance initiative
2.3.1. Hero Motocorp
At Hero, we firmly believe that corporate governance is about doing the „right things‟ in
the „right manner‟. It is a reflection of us - our value system, work culture and thought
process. The Company is committed to benchmark itself with the best standards of
corporate governance, not only in „form‟ but also in „substance‟
BOARD OF DIRECTORS The Company has put in place an internal governance

structure with defined roles and responsibilities of every constituent within the system.
The Board has an optimum combination of executive and nonexecutive directors. As on
March 31, 2017, the Company‟s Board comprised eleven Directors, of which two are
Executive Directors, one of them being the Chairman, one Non-Executive Director and
eight Non-Executive and Independent Directors, including one woman Director. None of
the Directors on the Board is a Director in more than 10 public companies or is a member
in more than 10 Committees or Chairperson of more than 5 Committees. Majority of
Directors on the Board of the Company are Independent Directors. None of the
Independent Directors of the Company is serving as an Independent Director in more
than 7 listed companies. Further, no Independent Director of the Company who is a
whole time Director in another listed company is serving as an Independent Director in
more than 3 listed companies
Decision And Direction The Board critically evaluates Company‟s strategic direction,
management policies and their effectiveness. Agenda for the Board includes strategic
review from each of the Board Committees, a detailed analysis and review of annual
strategic and operating plans and capital allocation and budgets.
The Board periodically reviews possible risks and risk mitigation measures, financial
reports from the Chief Financial Officer, compliance reports from the Company
Secretary and business reports from other executive management teams. These detailed
meetings and one-to-one interactions set the agenda and provide the strategic roadmap
for the Company. The Board has also established various Committees to discharge its
responsibilities in an efficient and effective manner. The Chairman, Managing Director &
38
CEO provides overall direction and guidance to the Company and is assisted by the
Executive Management Team („EMT‟).
Board Support and Role of Company Secretary in Overall Governance Process. The
Company Secretary plays a key role in ensuring that the Board procedures are followed
and regularly reviewed, investors‟ queries are handled promptly and reports to the Board
about compliance with the applicable statutory requirements and laws. The process for
the Board and Committee meetings provides an effective post meeting follow-up, review
and reporting of decisions taken by the Board and Committee members at their respective
meetings. Important decisions taken at Board and Committee meetings are communicated
promptly to the concerned departments/HoDs. Action taken reports (ATRs) on decisions
taken or recommendations made by the Board/Committee members at the previous
meeting(s) are circulated at the next meeting.
Ms. Neerja Sharma was appointed as Company Secretary effective August 8, 2016. She
has also been designated as Chief Compliance Officer.
Board Meetings During FY 2016-17, the Board met five times viz. on May 5, 2016,
August 8, 2016, October 26, 2016, February 8, 2017 and March 7, 2017. The gap
between any two consecutive meetings of the Board of Directors of the Company was not
more than 120 days.
2.3.2 Honda
2.3.2.1 Background
All the businesses of Honda are guided by the two fundamental beliefs derived from
the Honda Philosophy, namely: - Respect for the Individual, and - The Three Joys
Thus, Honda Philosophy emphasizes the obligations we have towards our customers,
suppliers /dealers and communities, to society and to each other. HMSI is committed
to conducting business fairly and honestly. Our aim is to have our customers and
society, as well as our shareholders and investors, place even greater trust in us and to
ensure that Honda is striving to be “A company that society wants to exist by sharing
joys with people throughout the world.” Therefore, Honda Corporate Governance
(HCG) has been established. It ensures, commitment to values and ethical conduct of
39
business, transparency in business transactions, statutory and legal compliances,
adequate disclosures, effective decision-making to achieve corporate objectives.
2.3.2.2 Business Ethics Proposal Line – Vigil Mechanism Policy
HMSI is committed to the highest possible standards of ethical, moral and legal
business conduct. In line with HMSI‟s commitment to open communication and
transparency, the Business Ethics Proposal Line (BEPL) has been established with the
aim to provide an avenue for directors and associates to raise concerns. The
Companies Act, 2013, vide section 177, has also made it mandatory for certain class
of companies to establish a “Vigil Mechanism” in order to provide an avenue to the
Directors and employees to report genuine concerns. Accordingly, HMSI has aligned
its existing BEPL in accordance with the requirement of the Companies Act 2013 and
re-named it as “Business Ethics Proposal Line – Vigil Mechanism Policy” The Policy
aims at giving reassurance that complainant (Whistle Blower) will be protected from
reprisals or victimization. Anyone can report workplace malpractice without any fear
of reprisal or action.
2.3.2.3 Scope
The Business Ethics Proposal Line – Vigil Mechanism Policy is intended to cover
serious concerns that may have large impact on HMSI like: 2.1.1. Violation of Laws;
2.1.2. Incorrect data/MIS related to critical/significant Divisional activities/
responsibilities; 2.1.3. Gross waste or misappropriation of funds 2.1.4. Actions not in
line with company Policy, including the Code of Conduct or Ethics. 2.1.5. Substantial
and specific danger to associate safety and health. 2.1.6. Otherwise amount to serious
improper conduct. Sometimes concerns reported may not be constituted as an
improper conduct. The preliminary investigation assesses whether or not these appear
to be an improper activity. However, just because an investigation is not launched
doesn‟t mean that the complaint won‟t be looked into. It might be referred to Human
Resource or other appropriate Department/Division/Operation for review rather than
investigation.
40
2.3.2.4 Confidentiality
Confidentiality will be maintained to the extent possible within the limitations of HMSI
Rules and Regulations and the legitimate needs of the investigation. Complainant‟s
(Whistle Blower) identity will, of course, be known to personnel with a legitimate need to
know in order to carry out an investigation. BEC shall determine whether or not to treat
an issue as a secret, according to the request of the complainant and the contents thereof.
Even otherwise, the intention in each case should be to treat it as confidential. BEC
Members, Internal Audit, the complainant (Whistle blower), persons against whom
complaint is being investigated, and other persons engaged in BEPL activities /process
shall maintain secrecy in accordance with the previous provision as under:
Not discuss the matter in any informal/social gatherings/meetings; Discuss only to the
extent or with the persons required for the purpose of completing the process and
investigations; Not keep the papers unattended anywhere at any time; Keep the electronic
mails/files under password. If anyone is found not complying with the above, he/she shall
be held liable for such disciplinary action as is considered fit by the BEC.
Communication
Directors and associates shall be informed of the Policy through e-mails, putting up of
Posters on the notice boards, regular awareness sessions, E-portal and the website of the
Company.
Retention of Documents
All Protected disclosures in writing or documented along with the results of investigation
relating thereto, shall be retained by the Company for a period of 8 (eight) years or such
other period as specified by any other law in force, whichever is more.
Amendment
The Company reserves the right to amend or modify the Policy, at any time without
assigning any reason. However, no such amendment would be binding unless same is
notified to the Directors and Associates.
2.3.3 TVS
Philosophy of code of governance tvs motor company limited (TVSM), in line with TVS
Group philosophy, truly believes in independence, responsibility, transparency,
41
professionalism, accountability and code of ethics, which are the basic tenets of corporate
governance. TVSM always seeks to achieve optimum performance at all levels in
adopting and adhering to best corporate governance practices. TVSM has always focused
on corporate governance as a means to maximize long-term stakeholders‟ value through
disciplined and sustained growth and value creation. CODE This code of business
conduct and ethics helps to ensure compliance with legal requirements and standards of
business conduct. The board of directors (the board) has adopted a code of business
conduct and ethics (the code) for all board members and senior management personnel
viz., all members of management one level below executive directors, including all
functional heads. Every board member and senior management personnel is expected to
read and understand this Code and its application to the performance of his or her duties,
functions and responsibilities. COMPLIANCE OFFICER Company secretary is the
compliance officer for the purpose of this code. The compliance officer shall refer to the
chairman of the board any complaint received for necessary action. HONESTY &
INTEGRITY All board members and senior management personnel shall: • Conduct their
activities, on behalf of TVSM and on their personal behalf, with honesty, integrity and
fairness; • Act in good faith, responsibility, with due care, competence and diligence,
without allowing their independent judgement to be subordinated; • Act in the best
interest of TVSM, its various stakeholders including TVSM shareholders and fulfill the
fiduciary obligations; • Not engage in conduct that is likely to bring discredit upon
TVSM; and • Comply with every provision of this Code.
CORPORATE OPPORTUNITIES
All board members and senior management personnel shall not exploit for their own
personal gain opportunities that are discovered through the use of TVSM property,
information or position unless the opportunity is disclosed fully in writing to the board
and the board declines to pursue such opportunity.
CONFIDENTIAL INFORMATION
All board members and senior management personnel shall maintain confidentiality of
information (price sensitive or otherwise) they receive while being in office of TVSM
and they may also ensure security of information of TVSM.
CONFIDENTIAL INFORMATION OF OTHERS
42
TVSM is required to abide by the terms of the relevant non-disclosure agreement and
limit its use to the specific purposes for which it was disclosed and to disseminate it only
to others with a need to know the information. All board members and senior
management personnel shall not attempt to obtain a competitor‟s confidential information
by improper means.
2.3.4 Bajaj
In accordance with the provisions of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (hereinafter referred to as „SEBI Listing Regulations,
2015‟), given below are the corporate governance policies and practices of Bajaj Auto
Ltd. for the year 2017-18. This Report, therefore, states compliance as per requirements
of the Companies Act, 2013 and SEBI Listing Regulations, 2015, as applicable to the
Company. As will be seen, the Company‟s corporate governance practices and
disclosures have gone well beyond complying with the statutory and regulatory
requirements stipulated in the applicable laws, including SEBI Listing Regulations, 2015.
Philosophy
The commitment of the Bajaj Group to the highest standards of good corporate
governance practices predates SEBI and the provisions of the recent SEBI Listing
Regulations, 2015. Ethical dealings, transparency, fairness, disclosure and accountability
are the main thrust of the working of the Bajaj Group. Bajaj Auto Ltd. („BAL‟ or „the
Company‟ or „Bajaj Auto‟) maintains the same tradition and commitment
Composition
As on 31 March 2018, the Board of the Company consisted of sixteen directors, of whom
three were executive, eight were non-executive independent (including one woman
director) and five were non-executive and non-independent. The Board has no
institutional nominee director. The Company has an executive Chairman. According to
regulation 17 (1) (b) of the SEBI Listing Regulations, 2015, where the Chairman is
executive or a promoter, at least one-half of the Board of the Company should consist of
independent directors. As Table 1 shows, this provision is met at BAL. In view of the sad
demise of Naresh Chandra, an independent director of the Company, on 9 July 2017,
43
pursuant to section 149 of the Companies Act, 2013 and regulation 17(1)(b) read with
regulation 25(6) of the SEBI Listing Regulations, 2015, Anami Roy was appointed as an
additional director in the category of non-executive, independent director of the
Company, in the meeting of the Board held on 14 September 2017.
2.3.5 YAMAHA
• From a shareholder‟s perspective, ensure the rights and equal treatment of

shareholders
• Taking into consideration our relationships with all stakeholders, proactively
fulfill the Company‟s social responsibilities
• Ensure that information is disclosed appropriately and the management is transparent
• By separating the oversight and executive functions and strengthening the oversight
function, ensure that the Board of Directors is highly effective while at the same time
executing decisions appropriately and with a sense of urgency
• Proactively engage in dialogue with shareholders
In addition, on our website we have posted Their Corporate Governance Guidelines,
which contain these basic philosophies Yamaha Corporation made the transition to a
Company with Three Committees (Nominating, Audit, and Compensation) from June 22,
2017, with the objectives of making a clear separation between the oversight and the
execution in management, thereby enhancing the oversight function of the Board of
Directors and speeding up the execution of business.
Regarding the composition of the Board of Directors, the Company has appointed a
Board with two thirds (2/3) of the members from outside with a diversity of backgrounds
and specialties, including persons with management experience in other industries. Also,
by forming a Nominating Committee, Audit Committee, and Compensation Committee
with a majority of Outside Directors, as obligated by law, the Company can execute its
oversight function with transparency and objectivity.
The Audit Committee, which replaces the Board of Corporate Auditors, will strengthen
the oversight function through audit by implementing validity checks in addition to
conventional legal checks, in cooperation with the Internal Audit Division. Also, as an
44
official function under the Companies Act, the Executive Officer position has been newly
established. Persons in this role bear direct responsibility to shareholders and they have
been delegated major authority from the Board of Directors
By implementing the abovementioned measures to strengthen the oversight functions and
speed up the execution, the Company endeavours to further strengthen corporate
governance and increase corporate value on a sustainablee basis.
2.3.6 Royal Enfield India

The governance processes of the Company include creation of empowered sub-
committees of the Board to oversee the functions of executive management. These sub-
committees of the Board mainly comprises of Non-executive Directors and Independent
Directors, which meet and deliberate regularly to discharge their obligations
Company‟s Board has an optimum combination of Executive, Non-executive and
Independent Directors with one women Director, as per the requirements of Regulation
17 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 („SEBI
Listing Regulations‟). The composition of the Board and the Independent Directors of the
Company meet all the criteria mandated by SEBI Listing Regulations and the Companies
Act, 2013.
Appointment of Directors Directors are appointed or re-appointed with the approval of
the shareholders and shall remain in office in accordance with the provisions of the law
and terms and conditions of appointment. The Company has issued letter of appointment
to all the Independent Directors and the terms and conditions of their appointment have
been disclosed on the Company‟s website.
45
2.4 KEY PEOPLE
HERO MOTOCORP
Mr. Pawan Munjal

Chairman, Managing Director & CEO
Mr. Pawan Munjal has consistently demonstrated a

visionary leadership skill and has emerged as one of
India‟s highly- respected business leaders. Even in a
highly-competitive and volatile market, he has not only
guided Hero MotoCorp in consolidating its leadership
status, but also helped expand its global footprint across
continents. Under his able leadership, MotoCorp achieved
the coveted title of world‟s No. 1 two-wheeler Company
(in terms of volume of sales by a single company in a calendar year) in 2001 and has
successfully retained this position till date. The Company was awarded the title of
„Indian MNC of the Year‟ by the All India Management Association (AIMA) in 2017.
Mr. Munjal has led Hero MotoCorp to command a dominant share in the domestic
motorcycle market in India and under his leadership, the Company has expanded its
presence in 37 countries across Asia, Central and South America.
BAJAJ
Mr. Rahul Bajaj

Chairman
Rahul Bajaj is an Indian billionaire businessman,

politician and philanthropist. He is the chairman of
Indian conglomerate Bajaj Group and member of
46
parliament. Bajaj comes from the business house started by a Rajasthani Marwadi
businessman Jamnalal Bajaj. He was awarded the third highest civilian award Padma
Bhushan in 2001. In a recent interview for the Creating Emerging Markets project at
the Harvard Business School, Bajaj provides a devastating critique of Indian industrial
policies before the liberalization in the 1990s.
He was born on 10 June 1938 and is the grandson of Indian independence fighter and
philanthropist, Jamnalal Bajaj. Bajaj is an alumnus of Harvard Business School in the
US, St. Stephen's College, Delhi, Government Law College, Mumbai and Cathedral and
John Connon School He took over Bajaj Group in 1965. In 2005, Rahul Bajaj stepped
down from his role as chairman, his son Rajiv became the Group's managing director.On
the Forbes 2016 list of the world's billionaires, he was ranked #722 with a net worth
of US$2.4 billion.
Mr. Rajiv Bajaj

MD & CEO
Rajiv Bajaj (born 21 December 1966) is an Indian

businessman, and the managing director of Bajaj
Auto since 2005. He introduced the Pulsar range of
motorcycles credited with reviving the fortunes of the
ailing company. India Today magazine ranked him, 42nd
in their India's 50 Most powerful people of 2017 list.
Son of Rahul Bajaj, chairman of the Bajaj Group, Bajaj
completed his schooling from St Ursula High School in Akurdi, Pune. He earned a
bachelor's degree in mechanical engineering from the College of Engineering, Pune, and
a master's degree in manufacturing systems engineering from the University of Warwick,
UK.
47
TVS
Mr. Venu Srinivasan

Chairman & MD
Venu Srinivasan is an Indian industrialist, who is the

Chairman of Sundaram-Clayton Group, which
includes TVS Motor Company, India‟s third largest maker
of two-wheelers. He also serves on the board of Tata Sons
Ltd., the holding company of the conglomerate the Tata
Group, TVS & Sons and Cummins India. He is also vice
chairman of Tata Trusts.Tata Trusts holds 66% of the
equity capital of Tata Sons.
Venu Srinivasan is the grandson of the TVS Group's founder, T. V. Sundaram Iyengar.
After graduating from the College of Engineering, Guindy, he completed a Master of
Science degree in Management from Purdue University in the USA.
He has received a Doctor of Management by Purdue University and a Doctor of Science "
by University of Warwick, UK & IIT Kharagpur, India.
He became the Managing Director of Sundaram-Clayton in May 1979. He went on to

become the Chairman of TVS Motor Company.
Mr. K. N. Radhakrishnan
CEO
Mr. K. N. Radhakrishnan, M. Tech. has been the
President of TVS Motor Company Limited since April
1, 2006 and serves as its Chief Executive Officer. Mr.
Radhakrishnan serves as Additional Whole-Time
Director of TVS Motor Company Limited since
October 23, 2018. He began his career in Sundaram
Clayton in 1986 as a Management Trainee (1986) and
48
rose to become the head of Business Planning and TQM for the group. In this role he led
SundaramClayton to win the prestigious Deming Prize, becoming the first Indian
company to do so. In 2004, he was promoted as Executive Vice President of TVS Motor
and in 2006 became its President. Under his leadership TVS Motor has become the third
largest selling two wheeler brand in India. Mr. Radhakrishnan has led the expansion of
TVS Motor into over 60 international markets. Mr. Radhakrishnan is known for his focus
on quality, passion for customers, strategic planning and eye for technology. Mr.
Radhakrishnan holds a Master‟s degree from the Indian Institute of Technology (IIT),
Chennai and has also undergone a Management Education Program from the Indian
Institute of Management (IIM), Ahmedabad.
YAMAHA
Mr. Hiroyuki Yanagi
Chairman, YMC Ltd.
Mr. Hiroyuki Yanagi has been serving as Chairman of
the Board and Representative Director in Yamaha
Motor Co., Ltd. since January 1, 2018. He is also
serving as Independent Director in Yamaha
Corporation, and working for Japan Boating Industry
Association. He joined the Company in April 1978.
His previous titles include President, Executive
President, Executive Officer, Senior Executive Officer,
Senior Director of Motorcycle, Chief Director of
Production, Senior Director of SyS in Main Motorcycle Business Unit and Director of
China Business in the Company. He used to work for two subsidiaries, including MBK
Industrie and Yamaha Motor India Pvt. Ltd
49
Mr. Yoshihiro Hidaka
CEO, President & Representative Director, YMC Ltd.
Mr. Yoshihiro Hidaka has been Chief Executive Officer

and President of Yamaha Motor Co. Ltd. since January
2018 and its Representative Director since March 2017.
Mr. Hidaka served as Executive General Manager of
Corporate Planning & Finance center and Senior
Executive Officer at Yamaha Motor Co., Ltd. since
March 2017. He joined Yamaha Motor Co. Ltd. in April
1987. He served as Vice President of Yamaha Motor
Corporation, U.S.A. since July 2010. Mr. Hidaka served as Executive Officer, Executive
General Manager of 1st Business Unit - Motorcycle Business Operations and General
Manager of Southeast & East Asia Sales Division, 1st Business Unit - Motorcycle
Business Operations at Yamaha Motor Co. Ltd. since 2016 until March 2017 and served
as its Executive General Manager of 3rd Business Unit & Motorcycle Business
Operations since 2013. He served as Executive Officer of Yamaha Motor Co., Ltd. Since
2014. He has been a Director of Yamaha Motor Australia Pty. Ltd. since April 27, 2015.
He is Outside Director at Yamaha Corporation since June 2018. He served as Executive
General Manager of 2nd Business Unit, MC Business Operations of Yamaha Motor Co.,
Ltd. since 2015.
HONDA
Mr. Minoru Kato
CEO, President, Honda Motorcycle
and Scooter India Pvt.Ltd.
Mr. Minoru Kato has been the Chief Executive

Officer and President at Honda Motorcycle
and Scooter India Pvt. Ltd. since April 1, 2017. Mr. Kato served as Chief Executive
50
Officer of Honda Vietnam Co. Ltd since 1 April, 2014. He has 29 years of experience
working at Honda Motor Co. He has expertise in production control, motorcycle planning
and sales across Europe, Japan and South-East Asia. He started his career in Honda Japan
in 1988 in the production control division of automobile operations at the Saitama plant.
ROYAL ENFIELD
Mr. Vinod Kumar Dasari

CEO & MD
Mr. Vinod Kumar Dasari, BS (Engg), MEM,

MBA, serves as Chief Executive Officer of Royal
Enfield and Executive Director of Eicher Motors
Limited since April 01, 2019. Mr. Dasari served as
the Managing Director of Ashok Leyland Limited
since April 1, 2011 until March 31,2019 and
served as it's Chief Executive Officer since April 01, 2016 until March 31,2019. Mr.
Dasari served as the Managing Director of Hinduja Automotive Limited. Mr. Dasari
served as the Chief Operating Officer of Ashok Leyland Ltd. since April 6, 2005 and
served as the Head of its manufacturing, strategic sourcing and corporate quality
engineering divisions. Mr. Dasari served as a Joint Managing Director of Cummins India
Ltd. He joined Cummins in 2002. He commenced his career with the General Electric
Company in 1986. Mr. Dasari has also served as the President of the Society of Indian
Automobile Manufacturers (SIAM) from 2015 to 2017 and as President of Automotive
Research Association of India (ARAI), from 2013 to 2015. He was conferred “CEO of
the Year” by Business Today and most recently by Business Standard. He has also been
honoured as the “CV Man of the Year” by the CV Magazine and has won the “Autocar
Professional of the Year. Mr. Dasari holds a BS degree in Engineering from University of
Louisville, USA, a Masters Degree in Business Administration from J.L. Kellogg School
of Management, USA in 1992 and a Masters Degree in Engineering Management from
McCormick School of Engineering, USA.
51
Chapter 3
External Environment
3.1 Controlling ministry and/or regulator for the industry

India's automobile industry is one of the biggest in the world. The industry contributes
around 7% to the GDP of the nation. The annual production of the automobile sector is
almost 20 million vehicles, across all segments. The growth of the automobile industry
has been ON a constant rise after 1991 when the government started allowing 100% FDI
in the automobile sector. The Ministry of Shipping, Road Transport and Highways
(MoSRT&H) is the primary agency for formulating, implementing and regulating the
automotive laws in India. (http:// www.ibef.org/ industry/ India- automobiles.aspx)
There are two principal instruments that can be considered as the stepping stones for
governing the automotive sector in the country. These two are-
1) The Motor Vehicle Act,1988

2) The Central Motor Vehicle Rules,1989
3) Research and Development Cess Act,1986
Three committee has been constituted by the Ministry to aid and advice it in relation to
formulating the regulations for emissions and safety standards. These two committees are
the Central Motor Vehicle Rules-
1) Technical Standing Committee (CMVR-TSC)

2) Standing Committee on the Implementation of Emission Legislations (SCOE)
3) Automotive Industry Standards Community (AISC)
4) Automotive Research Association of India (ARAI)
5) Bureau of Indian Standards (BIS)
3.2 Regulatory action

Automotive Research Association of India- ARAI is a cooperative research
association, and this has been established by the Ministry of Heavy Industries and Public
52
Enterprises. The objective of this Association to do research and development and testing
based on which al norms are created. The Director of ARAI also acts as the Chairman of
AISC. But again, the Association is constituted under the CMRV-TSC.
Bureau of Indian Standards- the Standards which are formulated by the AISC are
converted into uniform Indian Standards by the BIS. The BIS form their own standards
also which are then submitted to the CMVR-TSC for approval who then sends them to
the Ministry for finalization. Standards formulated by both AISC and BIS are taken into
consideration.
3.2.1 Laws and regulations affecting the Automotive Industry

Transfer Pricing Regulations: - Since it is already discussed above that the Automotive
Sector in India is one of the largest in the world and producing almost 20 million units a
year, the industry is often subjected to rigorous transfer pricing scrutiny, which may lead
to slower growth in the Automotive Sector.
Research and Development Cess Act, 1986: - The main work of Automotive Research
Association of India (ARAI) is to do research and development work for the Automotive
Sector. Here the Research and Development Cess Act comes into play. The act states that
all payment made towards import of technology will attract a cess of 5 %
Customs Duty– Customs duty is charged when any product is imported to India.
Automobile manufacturers based in foreign countries who want to avail lower custom
duties and pass on the benefits to the customers can import Completely Knocked Down
Kits (CKD) Kits which are charged concessional Customs duty at 10%. At present, if a
completely built unit of any vehicle is imported it attracts a duty of 105%. That is more
than twice of the actual cost of the vehicle itself. While on the other hand a Semi Knock
Down Kit attracts an import duty of only 62% as compared to it.
3.2.2 Bharat Stage Emission Standard:

Bharat stage emission standards (BSES) are emission standards instituted by the
Government of India to regulate the output of air pollutants from internal combustion
53
engines and Spark-ignition engines equipment, including motor vehicles. The standards
and the timeline for implementation are set by the Central Pollution Control Board under
the Ministry of Environment & Forests and climate change.
3.2.3 Central Motor Vehicles rules 1989 (CMVR):
The CMVR - Technical Standing Committee (CMVR-TSC) advises MoRT&H on
various technical aspects related to CMVR. This Committee has representatives from
various organizations namely; Ministry of Heavy Industries & Public Enterprises
(MoHI&PE), MoRT&H, Bureau of Indian Standards (BIS), Testing Agencies such as
International Centre for Automotive Technology (ICAT), Automotive Research
Association of India (ARAI), Vehicle Research and Development Establishment
(VRDE), Central Institute of Road Transport (CIRT), industry representatives from
Society of Indian Automobile Manufacturers (SIAM), Automotive Component
Manufacturers Association (ACMA) and Tractor Manufacturers Association (TMA) and
representatives from State Transport Departments.
Under Rule 126 of the CMVR, various test agencies are established to test and certify the
vehicles based on the safety standards and emission norms prescribed by the Ministry.
Every manufacturer of motor vehicle has to submit a prototype of the vehicle to be
manufactured to any of the test agencies mentioned hereafter. After testing the vehicle for
compliance of all standards and norms, the test agency shall grant a certificate to the
manufacturer. The test agencies are – Automotive Research Association of India, Pune
(ARAI), Vehicle Research & Development Establishment, Ahmednagar, Central Farm
Machinery Testing and Training Institute, Budhni, Indian Institute of Petroleum,
Dehradun, Central Institute of Road Transport, Pune and International Centre for
Automotive Technology, Manesar.
3.3 KEY INITIATIVES BY GOVERNMENT TO PROMOTE THE

INDUSTRY
The Automotive Mission Plan 2016-26 (AMP 2026) is one such initiative. It clearly lays
out the government‟s collective vision on how the automotive sector should grow
regarding size, contribution to national development, technological maturity, global
54
competitiveness and institutional structure. It aims to make India among the top three
automotive industries in the world and increase exports exponentially to reach 35-40% of
overall output. It also intends to increase its contribution to the GDP to over 12 %,
generating 65 million more jobs as well as increasing the size to USD 300 billion by
2026.
Another initiative launched by the government was the Faster Adoption and
Manufacturing of Hybrid and Electric (FAME) India scheme in 2015 with a capital
outlay of USD 122.3 million. It is based on NEMMP (National Electric Mobility Plan)
2020 road map and covers all segments i.e. two, three wheelers, cars, LCVs, buses, and
all forms of hybrid and pure electric vehicles.
With the emergence of 5 large automotive clusters in the country i.e. the Delhi-Gurgaon-
Faridabad in the north, Sanand-Halol and Mumbai-Pune-Nasik-Aurangabad in the west,
Chennai-Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east, India is fast
on its way to becoming the primary global automobile manufacturer. The government of
India is more than willing to lead this charge and assist this sector in every way to help it
achieve its full potential.
3.4 ENVIRONMENT ISSUES

A survey shows that environmental issues top the list of challenges facing the automotive
industry, outranking cost reduction for the first time in 14 years. The survey was
conducted by DuPont and the Society of the Automotive Industry. A total of 53 percent
of the respondents said that a basket of environmental factors such as fuel economy,
CAFÉ, and emissions or clean air regulations are the top challenges versus 32 percent
who cited cost. The survey, released April
"While cost reduction remains very important, the automotive industry's emphasis is on
the environment and the demands that it puts on innovation," said Chris Murphy, director
-- Americas, for DuPont Automotive. "In the results, environmental considerations are
driving system and vehicle design and development and are a differentiator in the
consumer marketplace. Automotive designers and engineers are working with suppliers
like DuPont to address these issues and to design and develop cost-effective, fuel-
efficient vehicles with reduced environmental impact."
55
The annual survey was conducted by Consumer Insights, Inc. Key findings include:
• Fifty-four percent of respondents say that fuel-efficient vehicles with reduced
environmental impact are important to consumers. Forty-one percent say enhanced safety
and 37 percent say improved comfort and convenience are important to consumers.
• For the fifth consecutive year, alternatively powered vehicles are predicted to have the
greatest impact on the industry. Sixty percent selected alternatively powered vehicles in
2008, while 15 percent selected safety features and 16 percent selected
electrical/electronic advances.
• Fifty percent of respondents see diesel engine technology as a key focus to help achieve
2020 efficiency regulations (35-mpg in United States and sub-120g/km carbon dioxide in
Europe), while 46 percent say hybrid-electric powertrains, and 42 percent say extensive
use of lightweight materials.
• In 10 years, vehicles will run on bio-based diesel fuel (27 percent); petroleum-based
diesel (20 percent), and E85 (20 percent). Only 18 percent predict gasoline will dominate.
3.4.1 What is needed is a resource-efficient model for this sector, which would
include:
• Design of automobiles integrating design for environment aspects,
• Adoption of clean and resource efficient technologies in manufacturing of
automobiles,
• Extending the lifetime of a vehicle,
• Scientific and safe methods for recycling end of life vehicles,
• A regulatory environment conducive to promoting innovation for new mobility,
• Promoting clean fuel technology for motorized modes,
• Strengthening infrastructure and access for public transport, and
• Support energy efficient and green modes of transport.
3.4.2 Pollution:
The category for Indian Automobile Industry is “Red” which represents the highly
polluting industry several automobile exhaust pollutants are as follows:
• Hydrocarbons: These are emissions caused by partially burnt fuel molecules and they
react in the presence of nitrogen oxides and sunlight to form ground level ozone.
56
• Nitrogen Oxides : These are the gases of precursors to the formation of ozone and
also contribute in the formation of acid rain. Ironically the catalytic converters are
designed to break down nitrogen gases are generally forming nitrous oxides which is
as potent as pollutant than carbon dioxide as greenhouse gas.
• When a vehicle starts carbon monoxide is emitted without proper air supply , when
the tuning of the vehicle is not proper and when a vehicle is driven at high altitudes
where the oxygen content is lesser than in the plains. Carbon monoxide emissions
great share comes from the commercial vehicles especially the heavy ones.
• Carbon dioxide in greater quantities traps the earth‟s heat and contributes to global
warming.
57
CHAPTER 4
FINANCIAL STATEMENTS
4.1 Revenue
4.1.1 Hero Motocorp
Revenue for Hero Motocorp is Rs.32, 774.75crore for year 2018. There was 11%
increase in revenue of Hero Motocorp compared to last year 2017.
4.1.2Honda Motorcycle& Scooters India

Revenue for Honda Motorcycle& Scooters India is 9253.2 crore for year 2018.
There was 3.2% increase in revenue of Honda Motorcycle& Scooters India
compared to last year 2017.
4.1.3TVS Motor Company

Revenue for TVS Motor Company is Rs.15, 130 crore for year 2018. There was
24% increase in revenue of TVS Motor Company India compared to last year
2017.
4.1.4Bajaj Auto
Revenue for Bajaj Auto is Rs.26, 911 crore for year 2018. There was 11%
increase in revenue of Bajaj Auto compared to last year 2017.
4.1.5 Yamaha Motor India

Revenue for Yamaha Motor India is 88871 crorefor year 2018. There was 11.9%
increase in revenue of Yamaha Motor India compared to last year 2017.
58
4.2 Ratios and Interpretation:
4.2.1 HERO MOTOCORP
Ratios 2017 2018
Profitability Ratios:
1. Net Profit Margin (%) 11.47 11.84
2. Operating Profit Margin (%) 19.87 19.87
Liquidity Ratios:
1. Current Ratio 2.04 1.82
2. Quick Ratio 1.85 1.66
4.2.1 Interpretation:
1. Net Profit Margin: The net profit margin, also known as net margin, indicates how
much net income a company makes with total sales achieved. A higher net profit margin
means that a company is more efficient at converting sales into actual profit. Therefore,
as there is a decrease of 2.94% in the net profit margin of Hero Motocorp, it is not
favourable.
2. Current Ratio: The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. A higher current ratio is
always more favourable than a lower current ratio because it shows the company can
more easily make current debt payments. Therefore, the current situation is favourable
3. Quick Ratio: The quick ratio is an indicator of company‟s short term liquidity. The
quick ratio measures a company‟s ability to meet its short-term obligations with its most
liquid assets. Higher the quick ratio,better is company‟s liquidity position. Therefore,
Hero Motocorp‟s liquidity position is good.
59
4.2.2 HONDA MOTORCYCLES AND SCOOTERS INDIA
Ratios 2014 2018

Liquidity Ratios:
2. D/E Ratio 0.962 0.825
4.2.3 Interpretation:
as there is a decrease of 0.75% in the net profit margin of Honda Motorcylce& Scooters
India, the current situation is not favourable.
more easily make current debt payments. Therefore, the current situation is not
favourable compared to previous year.
liquid assets. Higher the quick ratio, better is company‟s liquidity position. Therefore,
company‟s liquidity position is good as compared to previous year
60
4.2.3 TVS MOTOR COMPANY:
Ratios 2014 2018

Liquidity Ratios:
as there is a decrease in the net profit margin of TVS Motor Company, the current
situation is not favourable compared to previous year.
company‟s liquidity position is not good as compared to previous year.
61
4.2.4 BAJAJ AUTO:
Ratios 2017 2018

Liquidity Ratios:
as there is a decrease of 0.76% in the net profit margin of Bajaj Auto, the current
more easily make current debt payments. Therefore, the current situation is favourable
compared to previous year.
company‟s liquidity position is good as compared to previous year.
62
4.2.5 YAMAHA MOTOR INDIA:
Ratios 2015 2018

1. Net Profit Margin (%)

3.7 6.1
12.6 15.6
2. Return on Equity (%)
3. Divident Payout ratio (%) 25 31
as there is a decrease in the net profit margin of Yamaha Motor India, the current
company‟s liquidity position is not good as compared to previous year.
63
4.3 Factors Contributing Cost
1. Raw Materials
The material you choose will impact the cost of your project. Material costs around the
world are slowly aligning so you can expect fairly similar material costs regardless of
where you manufacture. So finding out your local cost for raw material can give you a
rough idea of material costs. It‟s possible to get both cheaper and more expensive
materials for your product. However, this will mean a trade-off for the final product.
Cheaper raw material will mean a cheaper product but it might lack durability or quality.
A more expensive material will instantly raise the manufacturing costs but provide a
product that lasts longer and is of higher quality.
2. Quality Required
When it comes to manufacturing, you pay for quality. When you‟re working with a
reliable manufacturer it usually means they invest in quality control. Although this adds a
bit to the final cost of your product, it helps ensure that your product is produced using
the right material and follows your specifications. Investing in quality will save you
money in the long run as you will run into fewer issues and avoid non-conformity.
3. Location of Manufacturing Facilities
The location of your manufacturing partner will impact the cost of your project for a
range of reasons. I
According to the index, China is an ideal location for manufacturing parts and products
due to well-developed manufacturing infrastructure as well as competitive pricing. It‟s
worth noting that you‟ll find quite a range of pricing options when manufacturing in
China depending on other considerations such as quality and material used.
4. Lead Time
If you want something quickly this can impact the cost depending on the project.
Manufacturing a product quickly is more expensive than a longer lead-time. It‟s all about
resource management for the manufacturer. A quick turnaround means dedicating more
resources, both in terms of manpower and machinery, which will inevitably be a bit
pricier than a longer turnaround time. So if you want your part quickly, be prepared to
fork out a bit more money. However, there are always limitations to how quickly your
64
parts can be produced. Although allocating additional resources will speed up the
manufacturing process it shouldn‟t compromise the quality of the finished part.
5. Facilities and Equipment
Building complex designs requires a combination of knowledge, skill and equipment.
However, the complexity of the design will also impact your manufacturing costs. With
advanced designs you‟re more likely to require more advanced machines which come at a
higher rate. A manufacturer that works with state-of-the-art machinery will be more
likely to meet all your manufacturing needs but their investment in high-end machinery
will also have an impact on your price as a customer. Advanced equipment does provide
a range of opportunities and will lead to a better manufacturing experience.
65
CHAPTER 5
RECENT DEVELOPMENTS
Impact of key relevant provisions of the latest Fiscal policy on the industry and
various players therein. The financial and economic policies that are put in place by the
government like the monetary policy, has significantly affected the job opportunity rates,
growth rates and pricing of the automotive products. The monetary policy directly affects
the employment cost for the reason that, as the money supply goes up, the value and the
interest rate goes down.
The demand for automotives is increased and by these means, the employment rate is
also increased. Contrastingly, a reduction in the money supply leads to increased interest
rates and value of money and therefore the demand for automotives decreases and as a
result reduces employment rates.
The monetary policy has also impacted on the industry growth, for instance, the increased
interest rates have lead to reduced expenditure by customers. Accordingly, this situation
restricts the growth and expansion of the automotive industry. On the other hand, low
interest rates will increase customer expenditure on automotives and hence increased
sales and in the long run the business will grow.
Furthermore monetary policies are central players in the determination of product prices,
for instance, increased monetary supply leads to low rates and for that reason, the demand
for automotives will increase.
The Federal Reserve Open Market Committee sets monetary policy by raising or
lowering interest rates. This affects rates on everything from mortgages to car loans.
Fiscal policy is set by legislative action or executive order.
5.1 Automobile Industry
The auto industry plays a significant role in the U.S. economy. In October 2010,
employment at auto and parts manufacturing and dealerships was more than 3.3 million,
according to the federal Bureau of Labor Statistics.
66
5.2 Monetary Policy
The health of the auto industry depends on the health of the economy. Monetary policy
sets the tone for the economy. If interest rates are low, cars are more affordable, which
usually means more auto jobs. If interest rates are high, dealerships have more unsold
cars and auto jobs are fewer. This leads to less taxes paid by the industry and more
unemployment insurance payouts, both of which affect fiscal policy.
The present study is an attempt to analyse the impact of fiscal policy in India with
reference to Automobile Industry from the period of 2007-2016. This study seeks to
assess whether corporate tax and government expenditure, as a fiscal policy tools, affect
the sales of the company in selected manufacturing companies in India.
The main objective of this study is to understand the fiscal policy, government
expenditure and tax revenue on automobile sector through regression. And the next
objective is to study and analyze the ratio and financial development of the automobile
industry. To achieve the aims of the study descriptive method was used and data
collected with ten years financial accounts of the selected companies.
This study examines secondary data collected from Annual Survey of Industries (ASI),
from various journals, publications, budgetary control report and financial statements for
the selected automobile companies. The company's financial analysis was confirmed that
companies have a growth rate. The hypothesis formulated for the study was tested with
the simple regression method. The study found that the corporate tax and government
expenditure has a significant effect on sales of the companies.
Also the study recommends that the fiscal policy should be given much more attention
towards the manufacturing sector by raising the level of budget implementation, which
will enhance aggregate spending in the economy and consistent government
implementation will contribute to the performance of automobile sector.
Demonetisation impact: Hero MotoCorp posts 13% fall in sales. The country‟s largest
two-wheeler maker Hero MotoCorp reported a 12.86 per cent fall in sales at 4,79,856
units in November 2015. The company had sold 5,50,731 units in November 2015, Hero
MotoCorp said in a BSE filing. The company said it saw a drop in retail sales after the
demonetisation initiative when the entire industry witnessed decline in sales.
67
5.3 Partnership
5.3.1 Bajaj Auto and KTM
In November 2007, Bajaj Auto acquired 14.5 percent stake in KTM Power Sports AG,
Austrain motorcycle maker. Both parties signed a cooperation deal, by which KTM will
provide the know-how for joint development of small capacity bikes and Bajaj will take
over the distribution of KTM products in India and some other Southeast Asian nations.
Bajaj Auto's Pune plant is also the manufacturing hub of smaller capacity Duke and RC
series bike models. The recently launched Dominar 400 from Bajaj's stable shares same
375cc engine of KTM models. As on March 31, 2013, Bajaj Auto held 47.96 percent
stake in KTM.
5.3.2 BMW Motorrad and TVS Motor Company

German automaker BMW's two wheeler arm, BMW Motorrad formed an alliance with
Chennai based automaket TVS Motor Company in 2013. The deal has been envisioned to
develop and manufacture a new series of motorcycles which will cater to the sub-500cc
segment.
The first offspring of the alliance is the BMW G 310 R motorcycle exclusively
manufactured at TVS' plant in Hosur near, Bengaluru. TVS will soon launch a sportsbike
based on the Akula 310 concept with the technical knowhow of BMW Motorrad.
5.3.3 Bajaj and Triumph

Announcement from Bajaj was the alliance with Triumph of the UK, which will see
production of mid-size motorcycles in the 300 cc to 650 cc range at chakan. If everything
goes according to plan, the first product will roll out in 2020.
68
5.4 Technological Development
Bajaj Auto
5.4.1 DTSI
We at Bajaj Auto Ltd dedicate ourselves to creating new technologies incorporated in our
products that deliver power with fuel efficiency, continually delighting end users. Self-
reliance in all aspects lead to technological breakthroughs without compromises and at an
affordable cost.
At the heart of every Bajaj motorcycles lies a singular driving force: Technology. The
element that keeps every rider, ahead of the rest. Bajaj‟s patented technology, DTSi -
stands for Digital Twin / Triple Spark Ignition. This essentially uses 2 or 3 spark plugs in
the cylinder head coupled with a digital ignition system to augment & exploit lean burn
characteristics for faster combustion that results in more torque, reduced tail pipe
emissions and improved mileage.
69
5.5 4- VALVE
The 4 valve technology has been built keeping in mind an efficient combustion process,
without compromising on low speed ride characteristics. As compared to a similar
displacement and combustion chamber dimensions of a 2 valve engine, the 4 valve
engine has much more intake and exhaust area.
As each valve is service by its own intake or exhaust port, it provides high intake and
exhaust gas breathing efficiency. 4 valve engine valves are smaller and lighter as
compared to an equivalent 2 valve configuration.
This greatly enhances the high rpm breathing efficiency and thus results in more power
and torque than an equivalent 2 valve engine.
5.6 Exhaustec
70
T.E.C in ExhausTEC stands for Torque Expansion Chamber - a tuned box which
functions as a resonator which is optimally and unobtrusively placed in the exhaust
system of the vehicle. It enables the engine to produce more torque in the low to mid-
range RPMs of the engine. By virtue of enhanced low and mid-range torque, ride
characteristics are vastly improved along with benefits of maximizing fuel efficiency.
5.7 SNS
Sns stands for Spring-in-Spring, patented by Bajaj Auto. An engineering break through
that utilizes 2 co-axial springs mounted on a shock absorber at the rear in a twin shock set
up that helps in delivering a comfortable ride on any terrain. It combines the benefits of
long travel suspension and ability to quickly react to varied road surfaces especially for
the utility range of motorcycles.
5.8 Intelligent C.D.I
71
The Digital Capacitor Discharge Ignition continuously senses engine speeds, throttle
inputs, engine temperature and riding conditions to continuously and seamlessly provide
optimum ignition timings. This built in Intelligence in the C.D.I thus provides multiple
benefits of a quick start, brisk pick up, high power, high fuel efficiency and low tail pipe
emissions in a seamless manner to the rider.
5.9 NITROX SUSPENSION
Normally, the suspension on motorcycles are spring absorbed and hydraulically damped.
While this has worked very well over time, riders demand more ride comfort. A variable
rate suspension spring does a good job of absorbing all road irregularities, it is the
hydraulic damping which has some limitations in the initial damping action and which it
is not capable of catering to.
This is primarily due to the presence of a small amount of air in the hydraulic damper,
which causes cavitation and impedes a smooth hydraulic damping action. In a Nitrox
setup, Nitrogen gas under pressure co-exists in a chamber next to the oil, thus preventing
any presence of air in oil and preventing cavitation.
The initial damping action is thus catered to effectively and the net result is a very
smooth ride, especially over small undulations. As the Nitrogen gas molecule is large, it
does not leak easily and is retained in the damping system for a long time.
72
By virtue of Nitrogen being stored in a separate external canister, it gets cooled by
ambient air and thus leads to a highly efficient and consistent damping action over
extended period of usage and any road surfaces.
5.10 Hero MotoCorp reveals 4 new innovation-led two-wheelers
Hero MotoCorp today revealed a quartet of new two-wheelers at the Auto Expo. These
comprise the Splendor iSmart 110, Extreme 200 S, XF3R and the Duet-e scooter. The
company, which is the leader in the two-wheeler space in India, has in the past year come
under selling pressure in the wake of the rural market slowdown.
Sales of its commuter motorcycles have seen a decline compared to its scooter portfolio.
Now, in a bid to boost sales of its Splendor series of commuter motorcycles, Hero
MotoCorp is to introduce i-smart technology in an all-new 110cc Splendor. This
motorcycle has been developed completely in-house by Hero MotoCorp engineers. The
model is powered by a 110cc torque-on-demand engine and will carry forward the i3S
tech first introduced in the 2014 iSmart Splendor.
Developed in-house by Hero MotoCorp‟s Indian R&D team, the i3S technology (idle
stop and start system), a feature more commonly seen on passenger cars, automatically
shuts the engine within five seconds of idling (mostly at traffic signals) and turns it on as
soon as the clutch is engaged.
The naked Extreme 200 S sports bike, which is slated to be launched in 2017, will mark
Hero‟s entry into the premium commuter bike segment. The concept is powered by a
single-cylinder, 200cc engine that develops 18bhp.The XF3R, another concept styling-
cum-design concept, will, according to Pawan Munjal, chairman, MD and CEO, Hero
MotoCorp, “come equipped with a 250cc powertrain.”
The Duet-e is an electric scooter concept aimed at showcasing the manufacturer‟s efforts
at developing future-ready mobility solutions based on alternate energy sources. Based on
73
the current production series Duet scooter, the e-scooter employs current EV technology
and is claimed to be suited for inter-city commuting.
In calendar year 2015, Hero MotoCorp sold a total of 6,296,920 two-wheelers, posting -
2.29 percent year on year growth. In January 2016, the company saw another month of
over 550,000 unit sales. It sold 563,348 units to only 0.78 percent growth YoY (January
2015: 558,982). Saving the blushes was thje the scooter range, led by the new Maestro
Edge and Duet.
5.11 The all-new Splendor iSmart 110

The Splendor iSmart 110 is the first motorcycle developed entirely in-house by Hero‟s
own R&D team. The new bike is powered by a completely new engine chassis and
frame.The bike has Hero‟s intuitive i3S technology at its core and is loaded with smart
features which integrate seamlessly to make the riding experience simpler, more efficient
and enjoyable.
Having set new industry benchmarks in technological innovation and fuel efficiency with
the previous iSmart, the new Splendor iSmart 110cc is the latest in line of the legendary
Splendor series.
Powered by an air cooled, single cylinder, 4-stroke 110cc engine, the bike delivers a
maximum power of 9.1 PS at 7500 rpm and maximum torque of 9 Nm at 5500 rpm. The
engine is mated to a four-speed gear box.
The modern form of the bike is designed to appeal to a larger audience, with a
combination of muscular shoulders, chiseled waistline and a rakish face. The crisp, clean
and contemporary look of the new bike, along with enhanced performance will be a
surefire success with customers and take forward the legacy of the largest-selling
motorcycle in the world.
5.12 The Xtreme 200 S
Showcasing a directional guidance to future products in the super premium category,
HMCL unveiled the new Xtreme 200 S today. A powerful, muscular and dynamic bike,
the Xtreme 200 S comes packed with enhanced performance and assured riding
capabilities with rear mono suspension and modern safety features like ABS.
74
Shaped along the form of a „Cheetah‟, the youthful appeal of Xtreme 200 S is further
accentuated by aggressive styling elements. The compact packaging of mechanical
elements like mono-shock, engine, footrest and muffler cover at the bottom signifies
weight concentration at the base, further enhancing the formidable look of the
motorcycle.
The design of the bike is focused on providing a strong and powerful riding experience.
The conscious adaptation of features like air vents in front cowl, tank-shroud and belly-
pan enhance cooling and improve the power of the engine. Effort has been made to focus
the weight in front while adding a vertical flow towards the rear to create a harmonious
synergy between body and mechanical elements.
Powered by an air cooled, single cylinder, 4-stroke 200cc engine, the bike delivers a
maximum power of 18.6 PS at 8500 rpm and maximum torque of 17.2 Nm at 6000 rpm.
The engine is mated to a five-speed gear box. Built on the strong diamond type chassis
design, the Xtreme 200 S features rear mono suspension, front and rear disc brakes and
LED lights.
5.13 The XF3R
Providing a glimpse into the future of Hero‟s design and development philosophy for
performance bikes is the „Design Concept Vehicle‟ – XF3R. Based on the concept of
„Born to be Wild‟, the XF3R is a Street Fighter motorcycle, with arresting design,
powerful styling, and a mid-segment, high performance engine.
A combination of power and aggression, dynamic stance and grounded core, the XF3R
exudes a modern and cutting edge character, giving it an edge over other bikes in this
segment.
This balance of form and function is the essence of the XF3R, which will be reflected in
future products in this category.
5.14 The Duet-E
Following HMCL‟s vision of „Greenovation‟, the Duet-E is an electric scooter concept
aimed at providing a comfortable, convenient and environment-friendly commuting
option to discerning riders. This concept highlights the company‟s commitment to
providing future-ready, mobility solutions based on alternate energy sources.
75
Using the current electric vehicle technology, the R&D team at Hero MotoCorp has come
up with a new design for an electric vehicle, perfectly suited for intercity commute. The
aesthetics of the scooter combine a white colour with flowing green graphics to give
elegant and soothing overtones.
The Duet-E has been based on a current production series scooter, the Duet, to make it
cost effective and enable engineers to build the vehicle within a realistic timeline. The
scooter has been created in-keeping with the smart mobility needs of the future.
“Enjoy the performance of a manual transmission with the convenience of an automatic.
Honda introduces the world's first dual-clutch transmission for use in a motorcycle.”
Honda
1. What is the Dual Clutch Transmission?

Dual Clutch Transmission is a motorcycle transmission that automates clutch and shift
operation while retaining the essential structure and direct acceleration feel of a manual
transmission. Since clutch operation is not required, the rider is free to focus on operating
the throttle and brakes. Moreover, Dual Clutch Transmission offers acceleration and
shifting while minimizing the power gaps that occur during shifting with a manual
transmission.
As the name suggests, Dual Clutch Transmission features two clutches: one for off-the-
line acceleration and 1st, 3rd and 5th gears, and one for 2nd, 4th and 6th gears. The use of
this technology in a motorcycle is a world‟s first.
76
2. Shift modes to match the rider’s mood
Its ability to respond to riding conditions, the system is able automatically to return to AT
Mode from MT as needed and to maintain a selected gear during cornering. By monit-
oring riding conditions based on vehicle speed, engine rpm and other factors, the system
is able to select gears with extreme precision.
3. Making Dual Clutch Transmission accessible to even more riders

Dual Clutch Transmission lets the rider enjoy the riding feel of a manual without the need
for shifting or clutch operation. To make this system accessible to as many riders as
possible, Honda offers it on a variety of different motorcycles, optimizing its structure to
match the engine and model characteristics of each bike. For example, the NC700S,
NC700X*and Integra are New Midsize Series motorcycles that feature the same frame
and engine, yet the Integra has floor-like steps not found on the other two models. To
harmonize this particular feature with Dual Clutch Transmission, Honda optimized the
clutch and crankshaft layout shared by all three members of the series. In 2014 to reflect
an increased engine displacement, the NC700S and NC700X were renamed NC750S and
NC750X respectively.
77
5.15 Royal Enfield working on three new platforms for its motorcycles; Electric
motorcycles at later stages: Report
At EICMA 2017, Royal Enfiled unveiled their much awaited 650cc twins- Continental
GT650 and Interceptor 650 INT. Now, Royal Enfield is working on three new platforms
and these new platforms will replace the existing ones when the new emission norms
come in, as reports Autocar.
It is expected that the company might bring Royal Enfield Himalayan with bigger
displacement engines and that might be on one of the new platforms. The report also
claims that Royal Enfield might bring electric motorcycles at later stages. The new 650cc
twins are based on a new platform and is powered by a 648cc, parallel twin, 4-stroke,
single overhead cam, air-cooled engine that produces 47 bhp and 52 Nm of torque mated
to a 6-Speed gearbox with the slip-assist clutch.
The new engine has been developed by Royal Enfield‟s UK Technology Centre and
Chennai team. Both the motorcycles can easily cruise upto 120-135 kmph. The company
will roll out both the motorcycles from its Chennai plant by April 2018 to European and
Indian markets. The company has also confirmed that both twins will come equipped
with ABS as it is mandatory for two-wheelers above 125cc from April 2018.
In order to expand its mid-sized motorcycle segment (250cc-750cc) across the globe, the
company is focusing on international markets. In the next five years, the manufacturer
will expand its operations in South East Asia and Latin American markets.
Currently, Royal Enfield has twenty exclusive stores outside India like in Milwaukee,
London, Paris, Barcelona, Madrid, Valencia, Bogota, Medellin, Dubai, Jakarta, Bangkok
and Melbourne. Royal Enfield has also started production of motorcycles from its third
manufacturing unit in Chennai. The company aims to produce motorcycles for both
domestic and export markets. On the development of the new product and platform
manufacturer plans to invest Rs 800 crore in its plant's expansion. In addition, the
company has witnessed a growth of 17.6 percent in the export market in a period between
April - September 2017.
78
REFERENCES:
 www.capitalline.com
 https://businessays.net
 https://bizfluent.com/
 https://www.ibtimes.co.in/
 https://www.macrotrends.net
 https://www.bloomberg.com
Annual reports of 6 competitors.
Company Websites:
 www.heromotocorp.com
 www.yamaha-motor-india.com
 www.bajajauto.com
 www.royalenfield.com
 www.honda2wheelers.com
 www.tvsmotor.com
79

Automobile Industry (Two-Wheeler Segment)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Automobile Industry (Two-Wheeler Segment)

Uploaded by

Copyright:

Available Formats

Chapter 1

Industry Analysis – The Basics

1.1 INTRODUCTION TO AUTOMOBILE SECTOR

Demographically and economically, India‟s automotive industry is well-

1.2 NATURE OF INDUSTRY

1.3 Players of the Industry:

Sr Scooter Moped Total

1 Hero MotoCorp Ltd 3744181 391019 - 4135200

Honda Motorcycle & Scooter

3 TVS Motor Company Ltd 529721 645020 445148 1619439

4 Bajaj Auto Ltd 1287133 - - 1287133

5 India Yamaha Motor Pvt Ltd 227002 198385 - 425387

Royal Enfield (Unit of Eicher

Suzuki Motorcycle India Pvt

8 Piaggio Vehicles Pvt Ltd - 42289 - 42289

9 Mahindra Two Wheelers Ltd 780 1683 - 2463

UM Lohia Two Wheelers Pvt

1.6 Pricing Strategy

1.7 PROFESSIONAL TRADE BODIES

2. SIAM : IT is an important channel of communication for the Automobile Industry

The four founder members of FADA are:

1.8.1 Hero Motocorp Plant Locations in India

 Satyavedu, Andhra Pradesh

HMSI has plants in

1.8.2 Key Locations of Yamaha

Yamaha Motor India Pvt. Ltd. – It is a

Royal Enfield Plants

It is the sixth largest manufacturer of

1.9 Key factors effecting demand

1 Company Name HERO MOTOCORP

6 Name of CMO/MD/VP of the Rahul Bajaj (Chairman), Rajiv Bajaj

1 Company Name YAMAHA MOTOR CORPORATION

9 Is it NSE/BSE Listed? NOT LISTED ON BSE/NSE.

1 Company Name ROYAL ENFIELD (India)

1 Company Name Honda Motorcycle and Scooter india

2.2 Corporate Social Responsibility

2.2.2.2 Vision and Mission

2.2.2.4 CSR Committee

Constitution of CSR Committee

A Corporate Social Responsibility Committee (“the CSR Committee”) has been

Responsibilities of the CSR Committee

2.2.3.4 HUNGER, POVERTY, MALNUTRITION AND HEALTH:

2.2.3.5 NATIONAL HERITAGE, ART AND CULTURE:

2.2.4.3 Environment & Natural Resources

2.2.4.4 Women’s Empowerment & Self Reliance

2.2.4.5 Rural Development & Other Projects

2.2.5.1 Basic Policy

2.2.5.2 CSR Management Applying ISO 26000

2.2.5.3 Promotion of Strategic CSR Themes

2.2.6 Royal Enfield

2.2.6.2 Goodearth Education Foundation

• Training of teachers to build their capacities and motivation

• Setting up of alternative schools for children unable to access the government

2.2.6.4 Dr Shroff Charitable Eye Hospital

BOARD OF DIRECTORS The Company has put in place an internal governance

• From a shareholder‟s perspective, ensure the rights and equal treatment of

2.3.6 Royal Enfield India

Mr. Pawan Munjal

Mr. Pawan Munjal has consistently demonstrated a

Mr. Rahul Bajaj

Rahul Bajaj is an Indian billionaire businessman,

Mr. Rajiv Bajaj

Rajiv Bajaj (born 21 December 1966) is an Indian