GLOBAL SCENARIO: AUTOMOBILE INDUSTRY

Automobile industry worldwide has evolved over a period of more than two centuries. From the steam
engine to vehicles powered by internal combustion to petrol engine, the modern automobile has covered a
long distance. Automobiles revolutionized the future of the world, changing forever the way people live,
travel, and do business. the automobile industry is one of the most dynamic and fast growing industries in
the world .it employs million of people and generate revenue in billions of dollars world wild .major
automobile corporations around the world are general motors’ corporation ,ford motor company, Toyota
motor corporation and Nissan motor co. ltd.

Indian automobile market is not far behind .it offers a cars ranging from mid to big sizes, luxury cars to
multi-utility ,from three-wheeler to four–wheeler to four wheeled commercial vehicles .a number of
international brands have developed robust clientele in India such as, Honda India ,general motors ,fords
motors, Toyota India ,and Hyundai motors .along with these brands ,domestic manufactures such as
Maruti Udyog ltd , Tata motors ,and Mahindra & have there loyal customer as ever.

The Indian automobile industry is the tenth largest in the world with an annual production of
approximately 2 million units. Indian auto industry, promises to become the major automotive industry in
the upcoming years and the industry experts are hopeful that it will touch 10 million units mark.

Indian automobile industry is involved in design, development, manufacture, marketing, and sale of
motor vehicles. There are a number of global automotive giants that are upbeat about the expansion plans
and collaboration with domestic companies to produce automobiles in India.

INDIAN AUTO INDUSTRY

India is emerging as one of the world’s fastest growing passenger car markets and second largest two
wheeler manufacturer. According to the International Yearbook of Industrial Statistics 2008 released by
United Nations Industrial Development Organisation (UNIDO), India ranks 12th in the list of the world’s
top 15 automakers. It is home to the largest two wheeler manufacturer and fifth largest commercial
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vehicle manufacturer in the world. The industry is producing about 19 lakh passenger vehicles, 4.5 lakh
commercial vehicles, 90 lakh two wheelers and 5 lakh three wheelers per annum.

In order to make India a power to reckon with in the automotive sector the government launched the
Automotive Mission Plan (AMP) 2006-2016. As per the AMP, it is estimated that the total turnover of the
automotive industry in India would be in the order of USD 122 billion - USD 159 billion in 2016. It is
expected that in real terms, India would continue to enjoy its eminent position of being the largest tractor
and three-wheeler manufacturers in the world and the world's second largest two-wheeler manufacturer.
By 2016, India will emerge as the world's seventh largest car producer (as compared to the eleventh
largest currently) and retain the fourth largest position in world truck manufacturing sector. Further, by
2016, the automotive sector would double its contribution to the country's GDP from current levels of five
per cent to 10 per cent. The Indian automotive industry consists of the following five segments:
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FIGURE 1: INDIAN AUTOMOBILE INDUSTRY

The total two-wheeler sales of the Indian industry accounts for around 77% of the total vehicles sold in
India. With 26,12,881 two wheelers already sold in India in the quarter from Jun-Sep 2009, the Indian
wheeler industry is poised for high growth In the coming years. In terms of volume, about 6% of the two
wheelers manufactured are exported.

Domestic Market Share for 2009-10

16%
4%

4%
Passenger Vehicles
Commercial Vehicles
Three Wheelers
Two Wheelers

76%

FIGURE 2: DOMESTIC MARKET SHARE FOR 2009-10

 The Indian Automobile Industry embarked on a new journey since 1991 with delicensing of the sector
and subsequent opening up for 100 per cent FDI through automatic route. Almost all the global majors
have set up their facilities in India taking the next level of production of vehicles from 2 million in 1991
to 100 + million in 2009.

Automobile Production Trends (Number of Vehicles)

Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Passenger Vehicles 989,560 1,209,876 1,309,300 1,545,223 1,777,583 1,838,593 2,351,240

Commercial Vehicles 275,040 353,703 391,083 519,982 549,006 416,870 566,608

Three Wheelers 356,223 374,445 434,423 556,126 500,660 497,020 619,093

Two Wheelers 5,622,741 6,529,829 7,608,697 8,466,666 8,026,681 8,419,792 10,512,889

Grand Total 7,243,564 8,467,853 9,743,503 11,087,997 10,853,930 11,172,275 14,049,830

Source : SIAM INDIA

Automobile Domestic Sales Trends (Number of Vehicles)

Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Passenger Vehicles 902,096 1,061,572 1,143,076 1,379,979 1,549,882 1,552,703 1,949,776

Commercial Vehicles 260,114 318,430 351,041 467,765 490,494 384,194 531,395

Three Wheelers 284,078 307,862 359,920 403,910 364,781 349,727 440,368

Two Wheelers 5,364,249 6,209,765 7,052,391 7,872,334 7,249,278 7,437,619 9,371,231

Grand Total 6,810,537 7,897,629 8,906,428 10,123,988 9,654,435 9,724,243 12,292,770

 OVERVIEW OF TWO WHEELER SECTOR

Two Wheeler Industry

Indian two -wheeler contributes the largest volumes amongst all the segments in automobile industry.
This segment can be broadly categorized into 3 sub-segments viz.; scooters, motorcycles and mopeds. In
the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at
the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the
bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the
share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19%
to 17% during the year 2008-09.

The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment
to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise
duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has aided in
propelling the demand for motorcycles.

Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as
against a deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle has been taking away
the share of scooters and mopeds in a 4.3 million two-wheeler market and surging ahead with its market
share of 68%. The increasing demand from semi-urban and rural segments may have caused this positive
shift towards motorcycles. Also, easy credit coupled with low interest rate regime, constrained personal
transport, increasing income levels in middle class and higher aspirations of young people all seem to be
the factors responsible for such high growth in two-wheelers. The growth in two-wheelers has been
robust enough to counter the slowdown and other factors constraining the overall business activity in the
country.

The TCS study rankings are conducted at the motorcycle segment-level to provide comparisons among
similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are:
Hero Honda CD100 SS (best standard motorcycle segment); Hero Honda Splendor (best executive
motorcycle segment); Bajaj Pulsar (best premium motorcycle segment); and Royal Enfield Bullet
Electra (best cruiser motorcycle segment).

The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians
prefer the two wheelers because of their small manageable size, low maintenance, and pricing and easy
loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two
wheelers are seen as a symbol of status by the populace. Two wheelers in India are the second largest
producer and manufacturer of two-wheelers in the world. It stands next only to Japan and China in terms
of the number of two-wheelers produced and domestic sales respectively
leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-
Japanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting
in Hero Honda - then the only producer of four stroke bikes (100cc category), gaining a top slot.

Two wheeler fleet composition

Two wheeler sales growth accelerate in 2009-10

After reporting a decline in 2007-08, two-wheeler demand revived, posting a 4.6 per cent growth in 2008-
09. We expect this growth to accelerate to 6.1 per cent in 2009-10. Sales will slightly fall short of
crossing the 90,00,000 mark at 89,53,462 vehicles in 2009-10. Two wheeler demand is expected to grow
at a faster pace in the second half than in the first half of 2009-10.We expect motorcycles demand to
accelerate in 2009-10. Sales will expand by 5.9 per cent to 72,09,421 vehicles, faster than four per cent
growth recorded in 2008-09. New launches, increasing demand for fuel efficient vehicles and increased
rural penetration will aid growth in motorcycles sales in 2009-10. Scooter demand is expected to continue
to grow at a healthy pace of 8.7 per cent in 2009-10, faster than motorcycles. In case of scooters too, new
launches are expected to drive growth in demand. Growth in moped sales is expected to decelerate to
below one per cent in 2009-10 compared to 1.5 per cent in 2008-09.

Industry’s capacity expand to 13.6 million two-wheelers in 2009-10

The two & three-wheeler industry continues to attract investments quarter-after-quarter. We expect two
wheelers capacity to have scaled up to 11.5 million vehicles per annum in 2008-09. However, only
8.4million vehicles were produced during 2008-09. This reflects a capacity utilization of around 73 per
cent in 2008-09. On commissioning of few projects, we expect the industry’s capacity to scale to 13.6
million vehicles per annum in 2009-10, up 18.3 per cent y-o-y. As two wheeler productions is expected to
grow by 6.5 per cent to 8.9 vehicles in 2009-10, the industry’s capacity utilization rate is expected to fall
to around 66 per cent in 2009-10. Among the large companies, Bajaj Auto’s capacity utilization is
expected to be the lowest in 2008-09. To a large extent it has pulled down the industry’s capacity
utilization rate. Total outstanding investment in the sector surged to Rs.5,055 crore as of 31 March 2009.
This was spread across 24 projects out of which nine projects of Rs.2,913 crore were under
implementation. During the quarter ended March 2009, CMIE’s CapEx team captured two investments
worth Rs.810 crore. This was the fifth successive quarter for the industry to attract investment. Of the
two, Vibgyor Allied Industries’ Rs.660 crore two-wheeler manufacturing facility at Dhulagori, Howrah
was the largest. The company has already invested Rs.120 towards the project. It has not disclosed details
regarding the capacity and duration of the project. The second project that was captured during the quarter
was Suzuki Motorcycles’ Rs.150 crore brown field expansion project. The company will ramp up the
capacity at its Gurgaon facility from 1,75,000 bikes to 4,50,000 bikes per annum. During the March
quarter, Honda Motorcycles & Scooters commissioned its Rs.400 crore two-wheeler expansion project at
Manesar.
The company has expanded its annual manufacturing facility from nine lakh to 12 lakh vehicles per
annum. Eight projects with total investments of Rs.3,113 crore are expected to be commissioned in the
coming 12 months leading to an increase of 21,32,000 vehicles capacity per annum. Among them, Hero
Honda Motors’ Rs.1,450 crore phase - II expansion project of its Haridwar plant (addition of 10,00,000
vehicles capacity) was the largest. This was followed by Mahabharat Motors’ Rs.1,000 crore West Bengal
two-wheeler project (5,00,000 vehicles capacity) and Honda Motorcycles & Scooters’ Rs.300 crore
expansion project of its Manesar plant (addition of 3,00,000 vehicles capacity). Ajanta Manufacturing
(2,000 vehicles), Suzuki Motorcycles (80,000 vehicles), Hero Electric (50,000 vehicles) and TVS Motors
(2,00,000 vehicles) will also commission their capacities in 2009-10.
Growth in two-wheeler sales continues to improve
After dipping from 8.7 lakh units in September 2008 to 5.5 lakh units in December 2008, two-wheeler
sales crossed seven lakh units in February 2009 and eight lakh units inMay 2009. Two wheeler sales in
May 2009 were a healthy 11.5 per cent higher than in May 2008.
The recovery was a cumulative effect of several factors such as
• Aggressive interest cuts by lenders over the past six months
• Return of liquidity in the financial markets
• receding of economic uncertainty and revival in consumer confidence
Scooters and bikes perform better than mopeds
Two-wheelers comprise mopeds, scooters and motorcycles. A break of the sales statistics of these three
different types of two-wheelers reveals that the motorcycle segment, which accounts for about 80 per cent
of the total two-wheeler sales, grew by 11.4 per cent in May 2009. As a result, two-wheeler sales grew by
11.5 per cent in May 2009. Nearly 6.6 lakh motorcycles were sold in May 2009. This was the highest
since September 2008 when a record 7.2 lakh motorcycles were sold. That motorcycle sales recovered
from a low of 4.3 lakh units in December 2008 to 6.6 lakh units in May 2009 indicates that the demand
for motorcycles continues to be robust. Demand for both, the low-power entry level segment as well as
the mid-powered 125-249 cc segment has recovered. Both segments clocked over 11 per cent growth in
May 2009. Demand for luxury motorcycles with more than 250 cc engines appears to be growing even
more vigorously This segment never witnessed a year-on year decline in any month even during October-
January 2008. However, it may be noted that the luxury segment is a very low volume segment with just
over 4,000 motorcycles being sold per month compared to a total of over six lakh motorcycles being sold
per month. The scooters segment, which accounts for less than 15 per cent of total two-wheeler sales,
grew by 10.4 percent in May 2009. About 1.1 lakh scooters were sold in May 2009. The scooters segment
as a whole never recorded a year-on-year decline in any of the months since June 2008. This was mainly
because of the continuing robust growth in the mid-sized 75-124 cc segment. While the other two
segments – less than 75 cc and 125-250 cc– are continuously falling, the 75-125 cc segment has almost
never recorded a decline. The segment nearly accounts for all the scooter sales. From 91.5 per cent in
May 2008, the share of this segment in total scooter sales has risen to 98.5 per cent by May 2009.
Company-wise sales numbers show that Hero Honda Motors, Eicher Motors, Suzuki Motorcycle and
Honda Motorcycle are growing at units sold at double digit rates. Hero Honda continues to dominate the
market. It sells 45-50 per cent of the total two-wheelers sold in the market.
Bajaj Auto is witnessing declining sales since October 2008. During the last 14 months Bajaj Auto’s
monthly sales ranged between 1.2 lakh units and 2.2 lakh units. In January 2009, its sales had dipped to a
low of 1.2 lakh units. Thereafter, the company managed to post a smart recovery and sell 1.7 lakh units in
May 2009. It aims to sell 2.5 lakh bikes per month. In the second half of June 2009 the company launched
the new Pulsar 220 cc bike with 21.04 PS of power and priced at Rs.70,000. It plans to launch two more
models in July 2009 and December 2009. According to media reports, it plans to launch a powerful sports
scooter next year with a price tag of Rs.45,000-Rs.50,000. At present, the company’s scooter performance
is disastrous. Its scooter sales dropped below 1,000 units per month in November 2008 and went further
down to 648 units by May 2009. A total of 1.1 lakh scooters were sold in May 2009.

Two & three wheeler industry sales to grow at CARG of 21.6%during 2010-13

The two-wheeler industry recorded a robust y-o-y sales volume growth of 28.6 percent during the period
April-September 2010. The industry is expected to end the year with a 21.7 per cent rise in sales volumes.
Driven by the robust growth in volumes, the two & three wheeler industry is expected to record an
impressive sales growth of 26.1 per cent in 2010-11. Operating profit margin is, however, likely to
contract by 130 basis points to 16.1 per cent, due to input cost pressures. With the domestic macro-
economic environment expected to remain healthy and corporate and rural incomes expected to rise, the
two-wheeler industry is expected to record a sales volume growth of over 15 per cent during 2011-13.
Three-wheelers sales are also expected to grow at a healthy pace in the coming two years. Hence, driven
by volumes, the industry is expected to record a sales growth of 19-20 per cent during 2011-13. With
prices of key raw materials expected to rise in the next two years, the industry’s operating margin is likely
to come under further pressure. It is likely to contract by 100 basis points to around 15 per cent in the next
two years. However, a slower rise in interest, depreciation and tax expense is likely to partially offset the
rise in manufacturing cost, leading to a marginal 40 basis point contraction in net profit margin to 10.5
per cent during 2011-13.

Two-wheeler industry sales volumes to rise by 21.7%in 2010-11

A robust consumer demand backed by rising income levels, increased rural penetration, stable interest
rates and new models have been driving domestic demand for two-wheelers. Two-wheeler sales rose by
28.6 per cent during the period April-September 2010. We expect the demand for two-wheelers to
moderate but remain healthy in the coming quarters. Hence, we expect domestic two-wheeler sales to rise
by 21.7 per cent in 2010-11. Exports rose by 34.1 per cent during the period April-September 2010 and
the major exporters, Bajaj Auto and TVS Motors are expected to see strong demand even in the coming
quarters. Hence, we expect exports to rise by a robust 27.5 per cent during 2010-11. In order to pass on
the cost of BSIV implementation and higher input expenses to customers, two wheeler makers have
already hiked prices by around two per cent in the June 2010 quarter. Prices of steel, aluminum and
rubber are expected to rise in the second half of 2010-11. This is expected to lead to another 2-3 per cent
price hike by two-wheeler makers. Thus, we expect average realizations to rise by 4.5 per cent in 2010-
11. The two wheeler industry’s market size is expected to expand by 25.5 per cent to Rs.40,636 crore in
2010-11, mainly driven by volume growth. With the domestic macro-economic environment expected to
rise, the two-wheeler industry is expected to continue its strong sales performance in the next two years.
We, therefore, expect the industry to record a sales volume growth of 17.6 and 15.8 per cent in 2011-12
and 2012-13, respectively.

Industry’s capacity to scale up to 18 million by 2010-11

After commissioning a capacity of 2.4 million vehicles in 2009-10, the two & three wheeler industry is
expected to witness a capacity addition of 1.2 million vehicles in 2010-11. This will take the outstanding
capacity of the industry to 18 million vehicles by March 2011. Of the total Rs.658 crore investments to be
made in 2010-11, more than 80 per cent is scheduled to be commissioned in the coming six months. Of
these projects, Bajaj Auto’s capacity expansion plan entails the largest investment. The company’s project
at Pantnagar is under implementation and will be commissioned in March 2011. As per company
officials, this will take the company’s total production capacity to 50 lakh vehicles per annum. With
demand for two-wheelers expected to remain robust, the industry is likely to see fresh investments worth
Rs.4,193 crore in the coming two years. This is expected to take the outstanding capacity of the industry
to 20 million vehicles by March 2013. Hero Honda Motors’ has not disclosed the capacity of its Rs.2,000
crore Greenfield Motorcycles & Ancillary unit. Hence, the actual capacity addition in the next two years
is expected to be higher. Among the projects scheduled to be commissioned in 2011-13, the largest one
belongs to Honda Motorcycles & Scooters’. Its Bhiwadi project is expected to add a capacity of six lakh
vehicles each, in two phases. While the first phase is expected to be completed in June 2011 and will
entail an outlay of Rs.500 crore, the second phase is scheduled for completion in March 2013 and is
expected to entail a cost of Rs.600 crore. Hero Honda Motors has announced a total outlay of Rs.2, 265
crore for capacity expansion and modernization over the next two years. Of this, the company will invest
Rs.115 crore for a capacity expansion of three lakh vehicles per annum at Hardwar. This project is
scheduled for completion in November 2011. However, the commissioning of its Rs.2,000 crore
Greenfield project (fourth plant) is likely to be delayed by six months to June 2012, as the company has
still not finalized the location of the plant. The industry has enough capacity to meet the forecasted
demand for next two years. However, Hero Honda is likely to face capacity constraints on account of
delay in the commissioning of its fourth plant. This is expected to lead to a contraction in its market share
by to 37.5 per cent in 2012-13. Its share in the motorcycle segment is also expected to contract by 510
basis point this year to 46.9 per cent and further to 45 per cent by 2012-13.

STRUCTURE OF TWO WHEELER INDUSTRY

  Mopeds:-

Over the last 15 years, moped’s contribution in overall 2-wheelers has declined significantly and now it
remains a marginal category with just one manufacturer for the product. Its contribution in the 2-wheelers
industry now stands at 5% and we expect that this segment will continue to be marginalised. The only
player in this segment is TVS Motor.

 Scooters:-

Advent of fuel efficient motorcycles in the Indian 2-wheelers industry led to decline of
Scooters. However, over the last five years, it has made a recovery and is emerging as a niche segment
targeted towards women commuters. One of the reasons for this is the increasing need of mobility for the
women commuters especially in the urban areas is due to higher number of college going girls and greater
participation of women in urban work force. The product itself has gone for a complete revamp and now
this category mainly consists of gearless products. This segment is now dominated by Japanese
manufacturers with HMSI having the leadership. HH, which is a late entrant in this segment, has also
cornered a sizeable market share in the scooter segment. Another development in this segment is the
launch of battery operated scooters. However, given the high replacement cost for the batteries, this has
remained a marginal segment.

Premium Segment
In the motorcycle sub-segments then it would be that Bajaj Auto has a significant presence in the
premium segment with a market share of ~55% followed by Hero Honda (~22%), TVS Motors (~13%)
and HMSI (10%).

Executive Segment
Hero Honda dominates this segment with a market share of ~70% followed by Bajaj Auto (20%), HMSI
(~6%) and TVS Motors (1%). This segment retrieves higher revenues from the rural areas, which are less
dependence on finance; therefore comparatively it is among the best performing segments YTD.

Economy Segment
This segment is a strong foothold for Bajaj Auto which has a market share of ~45% followed by Hero
Honda (~34%) and TVS Motors (~24%). This is the most competitive segment as all the 3players
relatively have a higher presence in the same. But this segment continues to be the worst hit due to the
credit unavailability and global slowdown. The industry has shown a CAGR of ~15% from FY04-FY07
on account of finance availability from PSU Banks and private banks like ICICI Bank. But from FY08 –
FY09 YTD the industry has shown shrinkage as most of the banks reduced their exposure in the auto
finance domain given the unfavourable macro economic situation.
In the initial phase, the market was predominantly in the executive segment. Later on BJAUT developed
the premium segment with their Pulsar range of vehicles. At the same time, BJAUT and TVSL started to
focus on entry level segment. This segmentation became much more visible during FY02-07. With lower
price points, BJAUT and TVSL stimulated the market and this led to market expansion for the
motorcycles. Easy financing accelerated in this process.
Entry Level Segment
This segment is the major reason behind the growth in the domestic motorcycle market.
TVSL was the first one to penetrate this segment with their 'Max' range; however this market was
stimulated by BJAUT with 'Boxer'. This segment was then strengthened by 'Platina'. Easy availability of
financing and aggressive pricing led to strong growth of this segment till FY09. High defaults in the loan
repayment led to exit of many financiers from the segment in 1HFY08 leading to demand contraction.
Even for the manufacturers this segment started to become a problem with wafer thin margins. To
overcome this, BJAUT
started to increasingly focus on development of >100 cc segment. Pulling out of major financiers and
inventory correction in the system led to 24% contraction in the primary sales of entry level segment
products. This trend has continued during the current year with further decline of 17% till January 2009.
This trend will continue till 1HFY10.
Executive Segment

Executive segment is the largest motorcycle segment and this is the stronghold of market
leader HH. Competitors have tried to challenge HH in this segment, however all such challenges have
fizzled out over time. With higher growth in economy segment, the contribution of this segment had
come below 50% in FY06. However over the last three years, it has made a strong come back and now
accounts for almost 60% of the motorcycle share.
Premium Segment
This segment was creation of HH with 'CBZ'; however major boost to the segment was given by BJAUT
through 'Pulsar' which has dominated the segment. HH has remained a marginal player in this segment
and one of the reasons for this is presence of HMSI in this segment. This segment remains a small
segment in the Indian market with contribution of around 14% to the motorcycle industry. This is the
performance segment and customers pay a premium for the novelty. Hence constant up gradation in the
product is a requisite for success in this segment.
Scooters
Advent of fuel efficient motorcycles in the Indian 2-wheelers industry led to decline of Scooters.
However, over the last five years, it has made a recovery and is emerging as a niche segment targeted
towards women commuters. One of the reasons for this is the increasing need of mobility for the women
commuters especially in the urban areas is due to higher number of college going girls and greater
participation of women in urban work force.
The product itself has gone for a complete revamp and now this category mainly consists of gearless
products. This segment is now dominated by Japanese manufacturers with HMSI having the leadership.
HH, which is a late entrant in this segment, has also cornered a sizeable market share in the scooter
segment. Another development in this segment is the launch of battery operated scooters. However, given
the high replacement cost for the batteries, this has remained a marginal segment.
Mopeds
Over the last 15 years, moped’s contribution in overall 2-wheelers has declined significantly and now it
remains a marginal category with just one manufacturer for the product. Its contribution in the 2-wheelers
industry now stands at 5% and we expect that this segment will continue to be marginalized. The only
player in this segment is TVS Motor.
Players in the Indian Two-wheeler Industry
Hero Honda
Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group and Japanese Honda
Motors Company in the year 1983. This joint venture has not only created the world's single largest two
wheeler company but also one of the most successful joint ventures worldwide.
Bajaj Auto Ltd.
Established in 1945, Bajaj Auto Ltd. was incorporated as a trading company. Till 1959, they imported
scooters and three-wheelers from Italy and sold them in India. The company got a production license in
the year 1959 and fastened a technical collaboration with Italian PIAGGIO in 1960.
Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization and among the
top five in terms of annual turnover.
Today, the company has become with annual production in excess of 1.35 million units.
Bajaj Auto Ltd. has started offers products in all segments i.e. mopeds & scooterettes, scooters,
motorcycles, three wheelers
TVS Motor Company
Founded by T V Sundaram Iyengar this company was established in August 1980.
It is the third largest two wheeler manufacturer in India and ranks among the top ten among all the two
wheeler in India