SHAHEED BHAGAT SINGH COLLEGE,

UNIVERSITY OF DELHI

REPORT

INTERNATIONAL BUSINESS
A Comparative Analysis

TVS v/s Honda

Submitted by: Submitted to:

Krrish Yadav (598) Subhatra Ma’am

Semester 6 - B.com(H) - ‘B’

Q1 Comparison of the international business strategy of TVS
Motors and Honda

International business strategy involves a holistic approach that integrates various functional
areas of business to effectively compete and succeed in the global marketplace.

Market Entry Strategy:

TVS Motors entered the Bangladesh market in 2016 through a joint venture with Rian
Motors, investing around $3 million initially. This strategic partnership allowed TVS to
leverage local expertise and infrastructure while minimizing investment risks.

In contrast, Honda Motors adopted a diversified market entry strategy, establishing wholly-
owned subsidiaries like Honda Motorcycle & Scooter India (HMSI) in 1999 with an initial
investment of approximately $100 million. Honda's approach emphasizes direct control and
long-term commitment to key markets.

Product Adaptation:

TVS Motors focuses on customizing its products to suit local market preferences and
conditions. In the financial year 2020-2021, TVS launched over 10 new products in India,
including the Apache RTR 200 4V and the Jupiter ZX, demonstrating its commitment to
product adaptation.

Similarly, Honda Motors adapts its products to local market requirements. In India, Honda
offers more than 20 models of motorcycles and scooters, such as the Activa, CB Shine, and
Dio, catering to diverse consumer segments and preferences.

Marketing and Distribution:

TVS Motors utilizes an extensive network of over 3,500 dealerships and service outlets
across India to reach its target audience. This multi-channel approach combines traditional
and digital marketing strategies to enhance brand visibility and customer engagement.
Honda Motors maintains a robust distribution network comprising more than 6,000
authorized dealerships and service centres in India, emphasizing brand visibility through
aggressive marketing campaigns and sponsorship activities.

Supply Chain Management:

TVS Motors optimizes its supply chain through efficient inventory management and just-in-
time manufacturing practices. With over 500 suppliers globally, TVS emphasizes lean
manufacturing principles and close collaboration with suppliers to ensure quality and timely
delivery of components.

Honda Motors operates 93 production facilities worldwide, with a global supply chain
network involving thousands of suppliers and logistics partners. Honda leverages advanced
technologies like data analytics and automation to enhance production processes and
streamline logistics.

Legal and Regulatory Compliance:

TVS Motors maintains total compliance with environmental regulations, as reported in its
annual report for the fiscal year 2020-2021, ensuring adherence to safety, environmental, and
labour regulations in all markets of operation.

Conversely, Honda Motors faced legal challenges, such as a $70 million fine by the U.S.
Department of Transportation in 2015 for failing to report deaths and injuries related to its
vehicles, highlighting the importance of robust compliance frameworks.

Human Resource Management:

TVS Motors prioritizes employee development and engagement through training programs
and career advancement opportunities, investing approximately $2 million annually in
employee training. TVS fosters a culture of inclusivity and diversity across its global
workforce.

Honda Motors, with over 200,000 employees worldwide, invests heavily in employee welfare
and career development initiatives, emphasizing talent acquisition and retention to drive
innovation and sustainable growth.

Financial Management:
TVS Motors reported a revenue of approximately $2.9 billion in the financial year 2020-
2021, with a net profit of around $150 million, reflecting a prudent approach to financial
management and a focus on profitability and liquidity.

In comparison, Honda Motors reported a revenue of approximately $138 billion in the fiscal
year 2020-2021, with a net profit of around $4.5 billion, highlighting its scale of operations
and global market presence.

Risk Management:

TVS Motors identifies supply chain disruptions as a key risk factor in its annual report for the
fiscal year 2020-2021, highlighting measures taken to mitigate such risks, including
inventory management and supplier relationships.

Honda Motors faced production disruptions due to semiconductor shortages in 2021,

impacting its global operations and sales targets. This underscores the importance of
proactive risk management strategies in mitigating supply chain risks.
Q2 What is the difference in their respective operating strategies
concerning their domestic business and international business?

The operating strategies for domestic and international businesses often differ due to the
unique challenges and opportunities presented by each market. Here's a breakdown of some
key differences:

Market Understanding and Adaptation:

Domestic Business:

TVS Motors (India): TVS Motors held approximately 15% of the two-wheeler market in
India in 2021, showcasing its strong position and understanding of local consumer
preferences. The company offers a diverse range of motorcycles and scooters tailored to
various segments, reflecting its deep understanding of the domestic market.

Honda Motors (Japan): In 2020, Honda was the leading motorcycle manufacturer in Japan,
with a market share of approximately 30%, indicating its successful adaptation to domestic
consumer needs and preferences. Honda leverages its strong brand reputation and
technological expertise to offer a wide range of vehicles, meeting the high standards of
Japanese consumers.

International Business:

TVS Motors (International): In the fiscal year 2020-2021, international sales accounted for
approximately 20% of TVS Motors' total revenue, demonstrating its effective market
adaptation and expansion strategies. TVS Motors adapts its product offerings and marketing
strategies to suit local market preferences and conditions in international markets.

Honda Motors (International): In 2020, Honda sold approximately 10 million motorcycles

worldwide, with significant contributions from regions such as Southeast Asia, demonstrating
its ability to tailor products and marketing approaches to diverse markets. Honda customizes
its products and services to meet the specific requirements of international consumers.

Supply Chain and Logistics:

Domestic Business:

TVS Motors (India): In 2020-2021, TVS Motors produced approximately 4 million units of
two-wheelers in India and sold 3.5 million units domestically, highlighting its robust
domestic supply chain and logistics capabilities. TVS Motors focuses on efficiency and
responsiveness to meet the demands of the Indian market.

Honda Motors (Japan): In Japan, Honda achieved a production volume of approximately 2.5
million units of motorcycles in 2020, with efficient logistics operations ensuring timely
delivery to dealerships across the country. Honda operates a sophisticated supply chain and
logistics network to support its domestic manufacturing operations.

International Business:

TVS Motors (International): In countries like Bangladesh and Indonesia, TVS Motors
operates manufacturing facilities with annual production capacities of 500,000 units,
supported by efficient logistics networks for timely delivery to dealers and customers. TVS
Motors adapts its logistics strategies to overcome challenges such as transportation costs,
customs regulations, and lead times in different regions.

Honda Motors (International): In Southeast Asia, Honda's regional production reached

approximately 7 million units in 2020, facilitated by optimized logistics operations to serve
diverse markets effectively. Honda leverages economies of scale and strategic partnerships to
optimize logistics costs and ensure timely delivery of products worldwide.

Legal and Regulatory Compliance:

Domestic Business:

TVS Motors (India): TVS Motors regularly files financial reports with regulatory authorities
such as the Securities and Exchange Board of India (SEBI), showcasing its commitment to
transparency and regulatory compliance. TVS Motors maintains strong corporate governance
practices to ensure adherence to legal requirements.
Honda Motors (Japan): As a publicly traded company in Japan, Honda is subject to regulatory
oversight by authorities such as the Financial Services Agency (FSA) and Tokyo Stock
Exchange (TSE), ensuring adherence to legal requirements. Honda invests in research and
development to ensure compliance with evolving regulations and industry standards.

International Business:

TVS Motors (International): TVS Motors obtains regulatory approvals and certifications for
its products from relevant authorities in export markets, ensuring compliance with safety,
environmental, and quality standards. TVS Motors adheres to local laws and regulations
specific to each international market of operation.

Honda Motors (International): Honda maintains compliance with local laws such as
emissions standards, vehicle safety regulations, and intellectual property rights protection in
international markets, mitigating legal risks and ensuring business continuity.

Risk Management:

Domestic Business:

TVS Motors (India): Despite economic fluctuations and industry challenges, TVS Motors has
maintained a strong balance sheet and profitability, indicating effective risk mitigation
strategies. TVS Motors implements risk mitigation strategies such as diversification, hedging,
and contingency planning to safeguard its business interests.

Honda Motors (Japan): Through diversification, hedging, and strategic investments, Honda
mitigates financial and operational risks, ensuring long-term sustainability in the Japanese
market. Honda employs a comprehensive risk management framework to identify, assess, and
mitigate risks associated with its domestic operations.

International Business:

TVS Motors (International): TVS Motors conducts comprehensive risk assessments and
scenario analyses to identify and mitigate geopolitical, economic, and operational risks in
overseas operations, safeguarding its global business interests. TVS Motors implements
robust risk management frameworks tailored to each international market's specific
challenges.

Honda Motors (International): By leveraging its experience and expertise in diverse markets,
Honda implements robust risk management frameworks tailored to each region's specific
challenges, ensuring resilience and agility in an ever-changing business environment. Honda
adopts a proactive approach to risk identification and mitigation in its
international operations.
Q3 Analyse the market position of the companies before and after
expanding globally in terms of market size, market share, first-
mover advantages if any, etc.

TVS Motors

Pre-Globalisation -

Market Presence-

TVS Motor Company (formerly TVS-Suzuki) was a prominent player in the Indian two-
wheeler market, known for its innovative products and customer-centric approach. TVS had a
strong presence in India since 1978 and was among the early players in the market. It had
established a wide dealership network and brand recognition. The company's collaboration
with Suzuki (1987) played a crucial role in its early success, allowing it to access advanced
technology and establish a strong presence in India.

Market share -

The Indian Two-Wheeler market was prominently dominated by the Honda (Hero - Honda)
and Bajaj Auto in the 1990's. Although TVS motors was renowned for its innovative products
it market share was considerably lower in comparison to Honda and Bajaj Auto, making it the
third-largest two-wheeler manufacturer in India during that time. The company introduced
innovative models like the Suzuki Fiero and Suzuki Shaolin, which were well-received by
consumers.

First Mover Advantage -

TVS leveraged its first mover advantage in India to establish a strong brand presence and a
wide dealership network. The company's product portfolio included a range of motorcycles,
scooters, and mopeds, catering to various segments of the domestic market.

Post Globalisation
Market Presence -

TVS expanded its operations globally, in 1990's through exports in the Southeast Asian,
Mexican and Egypt and these were followed by entering markets in Africa, South America,
and Southeast Asia, among others. This expansion allowed the company to tap into larger
markets with higher demand for two-wheelers. The company began its global expansion with
the acquisition of Indonesia's second-largest motorcycle manufacturer, PT TVS Motor
Company Indonesia, in 2007. This move marked TVS's first major step into the global
market, aiming to tap into the rapidly growing Southeast Asian market. Recently The
Vietnam expansion and the entry in European market with France are major plans of the
company.

Market share -

TVS Motors expanded its operations to over 60 countries still the market share of TVS
Motors after the global expansion is estimated to be around 3% in the two-wheeler segment.
Though In India, TVS Motors has a stronger market presence as second largest two-Wheeler
manufacturer. It is due to intense competition from local manufacturers and established
global players in international markets. TVS Motors has been working to increase its global
market share through various strategies. The company has focused on introducing new
models tailored to the specific needs of different markets. For example, in Africa, TVS
Motors has launched models with higher ground clearance and robust build quality to cater to
the local terrain and usage patterns.

First Mover Advantage-

India, TVS enjoyed a first mover advantage, having started its operations in the country in
1978. However, in international markets, TVS faced challenges in establishing a similar first
mover advantage due to the presence of established players and local manufacturers. The
company had to differentiate itself through product innovation, quality, and customer service
to gain traction in global markets.TVS's brand recognition in international markets was not as
strong as some of its competitors with longer global presence. The company had to invest in
marketing and brand-building activities to increase its visibility and compete effectively with
established players.
Honda

Pre-Globalisation

Market Presence

Honda was not a big player, as successful as in its pre globalisation period in 1940s the
domestic two-Wheeler market was dominated by pre-established local manufacturers like
Yamaha, Suzuki. During that time, Honda was one of several Japanese companies entering
the motorcycle market with the aim of developing and producing motorized bicycles. Its first
product was a motorized bicycle called the Honda A-Type, which was powered by a 50cc
two-stroke engine. This laid the foundation which helped establish Honda's reputation for
quality and innovation in the Japanese market.

Market Share -

Honda market share in the two-Wheeler market segment before global expansion was not
much large though Honda entered as an early player in the two Wheeler market because there
was stiff competition from already established players like Yamaha and Suzuki. There was a
significant increase in Honda market share in the early 1950s. Honda became one of largest
manufacturers of two-Wheeler in the domestic (Japanese) market. Honda research and
development (R&D) played a major role for Honda to in gain foothold in Japanese Two-
Wheeler market by its innovative technology and advancement to its products and machinery.

First Mover Advantage

Honda didn't have a significant first-mover advantage in the Japanese market, as the company
was founded in 1946 and entered the motorcycle market in the late 1940s. However, Honda
did benefit from being an early entrant into the post-war Japanese motorcycle industry, which
was rapidly developing as Japan recovered from World War II. Honda’s early success was
driven by its focus on innovation and quality. The company introduced several
groundbreaking models in its early years, including the Honda Dream D-Type, which
featured a unique pressed-steel frame and a four-stroke engine, setting it apart from
competitors' two-stroke models.

Post Globalisation

Market Presence

After globalisation, Honda has significantly expanded its presence in the global two-wheeler
market. Honda Cub started global expansion with it Type Of motorcycle which was first
exported to Taiwan in 1951 which gained popularity due to its innovative technology and cost
efficiency. Following after that Honda started to expand in North America in 1959 through
establishing its first overseas subsidiary (American Honda Motor Co.) in Los Angeles. Honda
has also expanded its operations in other emerging markets such as Indonesia, Vietnam, India
and Thailand, where it has established manufacturing plants and sales networks. At present
Honda has presence in more than 180 countries of the world.

Market Share -

There has been a enormous increase in Honda market share in the industry as Honda has
become the largest two Wheeler manufacturer in the world and it is dominating the whole
industry since past 50 years giving stiff competition to its competitors viz, Hero, Bajaj Auto,
Yamaha. In 2023, Honda sold 18.4 million two-wheelers globally (+4.3%) near 0.7 million
more than in the previous year. In year 2023 India has emerged as the market with most
revenue generation followed by Thailand and Brazil. Honda occupy second position in India
having share of 26.58% with its competitor Hero sitting on top in the Indian market with a
market share of 32.25%.

First Mover Advantage

Honda's first-mover advantage in the global two-wheeler market post-globalization was

driven by its innovative designs and technology, exemplified by the Honda Cub, the world's
top-selling motor vehicle. This early success propelled Honda to become the world's largest
motorcycle manufacturer by the 1970s. Honda's commitment to research and development
(R&D) has been pivotal, leading to advancements like fuel injection systems and anti-lock
braking systems (ABS). Strategic partnerships, particularly in markets like India and
Southeast Asia, have further bolstered Honda's global expansion.
Q4 How do the marketing and pricing strategies vary for these
firms with respect to their domestic and international business?
TVS Motor Company, an Indian multinational motorcycle manufacturer, has a diverse
marketing strategy tailored to both its domestic and international markets. Here's an overview
of their approach:

1. Product Portfolio: TVS offers a wide range of products catering to different segments of
the market. In India, where it has a strong presence, it offers commuter bikes, scooters, and
premium motorcycles. In international markets, it focuses on segments where it can compete
effectively, such as entry-level motorcycles and scooters.

2. Market Segmentation: TVS segments its target audience based on demographics,

psychographics, and behavioural factors. In domestic markets like India, it targets both urban
and rural consumers with products suited to their needs and preferences. Internationally, it
targets emerging markets with products that offer value for money and reliability.

3. Brand Positioning: TVS positions itself as a manufacturer of high-quality, reliable, and

affordable two-wheelers. In India, it emphasizes its strong engineering heritage and local
manufacturing capabilities. Internationally, it positions itself as a competitive alternative to
other Asian manufacturers.

4. Distribution Channels: In its domestic market, TVS utilizes an extensive network of

dealerships and service centres to reach customers across urban and rural areas.
Internationally, it partners with local distributors and dealers to establish its presence and
provide after-sales support.

5. Promotional Activities: TVS engages in various promotional activities to increase brand

awareness and drive sales. This includes advertising through traditional media such as
television, print, and radio, as well as digital marketing channels. In international markets, it
also participates in events and sponsorships to enhance brand visibility.

6. Innovation and Technology: TVS continuously invests in research and development to

innovate its products and stay competitive in the market. It focuses on developing
technologies that improve fuel efficiency, performance, and safety, which appeals to both
domestic and international customers.
7. After-Sales Service: TVS places a strong emphasis on after-sales service to ensure
customer satisfaction and loyalty. It offers warranty programs, maintenance services, and
spare parts availability to support its customers throughout the ownership lifecycle.

8. Adaptation to Local Markets: In its international business, TVS adapts its products and
marketing strategies to suit local preferences and regulations. This includes customizing
product features, pricing, and promotional campaigns to resonate with target audiences in
different countries.

Marketing strategy of Honda

Honda, a global automotive and motorcycle manufacturer, employs a multifaceted marketing

strategy tailored to its domestic and international markets. Here's an overview of Honda's
approach:

Domestic Market (Japan):

1. Quality and Reliability: Honda emphasizes its reputation for producing high-quality,
reliable vehicles. In its domestic market of Japan, where consumers highly value these
attributes, this reputation helps maintain customer loyalty.

2. Innovation: Honda has a strong focus on innovation and technology. In Japan, it often
launches new models with advanced features and technologies to appeal to tech-savvy
consumers.

3. Customer Service: Honda prioritizes excellent customer service in Japan, offering

comprehensive after-sales support, maintenance services, and warranty programs to ensure
customer satisfaction.

4. Brand Loyalty: Honda has built a strong brand image in Japan over many decades. Its
marketing in the domestic market often capitalizes on this brand loyalty, emphasizing the
company's heritage and commitment to quality.

International Markets:

1. Localized Marketing: In international markets, Honda adapts its marketing strategies to

suit local preferences, regulations, and cultural norms. This includes tailoring product
features, advertising campaigns, and promotional activities to resonate with target audiences
in different countries.

2. Product Diversification: Honda offers a diverse range of products in international markets,

including motorcycles, cars, power equipment, and marine engines. This diversification helps
the company mitigate risks and capitalize on opportunities in various segments.

3. Global Branding: Despite localized marketing efforts, Honda maintains a consistent global
brand image focused on innovation, reliability, and environmental sustainability. This helps
reinforce its reputation as a trusted and forward-thinking company worldwide.

4. Partnerships and Alliances: Honda forms strategic partnerships and alliances with local
companies or distributors in international markets to strengthen its distribution networks,
increase brand visibility, and access new customer segments.

5. Environmental Initiatives: Honda emphasizes its commitment to environmental

sustainability in its international marketing efforts. This includes promoting fuel-efficient
vehicles, hybrid and electric technologies, and eco-friendly manufacturing processes to
appeal to environmentally conscious consumers.

6. Digital Marketing: Honda leverages digital marketing channels extensively in international

markets to reach a wider audience and engage with consumers effectively. This includes
social media marketing, online advertising, and digital content creation to promote its
products and brand message.

7. Sponsorships and Events: Honda sponsors various sports events, cultural activities, and
community initiatives in international markets to enhance its brand visibility and connect
with local communities.

Pricing strategy of TVS

TVS Motor Company employs different pricing strategies for its domestic and international
businesses to remain competitive and maximize its market share. Here's an overview of the
pricing strategies they might use:

Domestic Market (India):

1. Value-Based Pricing: In the highly competitive Indian market, TVS often adopts a value-
based pricing strategy. This involves setting prices based on the perceived value of their
products relative to competitors. TVS aims to offer features and quality that justify its pricing
compared to other brands in the market.

2. Penetration Pricing: TVS might employ penetration pricing for new product launches or to
gain market share in specific segments. This involves setting prices lower than competitors to
attract price-sensitive consumers and quickly capture market share. Once a foothold is
established, prices may be adjusted upward.

3. Promotional Pricing: TVS frequently uses promotional pricing tactics such as discounts,
cashback offers, and special financing schemes to stimulate sales during festive seasons or
promotional campaigns. These temporary price reductions can help boost sales volume and
market penetration.

4. Skimming Pricing: For premium products or limited-edition models, TVS may adopt a
skimming pricing strategy. This involves setting higher initial prices to target early adopters
and enthusiasts willing to pay a premium for exclusive features or performance. Over time,
prices may be lowered to attract a broader customer base.

International Markets:

1. Adaptation to Local Markets: In international markets, TVS adjusts its pricing strategies to
reflect local economic conditions, consumer preferences, and competitive landscapes. Prices
may vary significantly across countries to account for factors such as tariffs, taxes, exchange
rates, and distribution costs.

2. Competitive Pricing: TVS closely monitors pricing strategies of competitors in each

international market and adjusts its own prices accordingly. By offering competitive prices
relative to other brands in each market segment, TVS aims to attract customers while
maintaining profitability.

3. Value-Based Pricing: Similar to the domestic market, TVS may use a value-based pricing
approach in international markets. Prices are set based on the perceived value of their
products relative to competing brands, taking into account factors such as quality, features,
and brand reputation.
4. Government Regulations and Incentives: TVS considers local regulations, import/export
duties, and government incentives related to the automotive industry when setting prices in
international markets. Compliance with regulatory requirements and leveraging incentives
can influence pricing decisions.

5. Channel Pricing: TVS collaborates with local distributors, dealers, and retailers in
international markets. Pricing strategies may differ based on the distribution channel used,
with different margins and pricing structures for each channel to ensure competitiveness and
profitability.

Pricing strategy of Honda

Honda, a global automotive and motorcycle manufacturer, implements various pricing

strategies for its domestic and international businesses to effectively compete in diverse
markets. Here's an overview of the pricing strategies they might utilize:

Domestic Market (Japan):

1. Value-Based Pricing: In its home market of Japan, Honda often employs a value-based
pricing strategy. This involves setting prices based on the perceived value of their products
relative to competitors. Honda aims to justify its pricing by offering high-quality vehicles
with advanced technology, reliability, and brand prestige.

2. Premium Pricing: Honda positions itself as a premium brand in Japan, particularly in

segments such as sedans and luxury vehicles. Premium pricing strategies involve setting
higher prices compared to competitors to reflect the perceived superior quality,
craftsmanship, and features of Honda's vehicles.

3. Skimming Pricing: For new and innovative products, Honda may adopt a skimming
pricing strategy in Japan. This involves setting initially high prices to target early adopters
and enthusiasts who are willing to pay a premium for the latest technology or features. Over
time, prices may be gradually lowered to attract a broader customer base.
4. Psychological Pricing: Honda may use psychological pricing tactics in Japan to influence
consumer perception. This could include setting prices just below round numbers (e.g.,
¥1,99,000 instead of ¥2,00,000) to create the perception of a lower price, or using "prestige
pricing" for flagship models to convey exclusivity and status.

International Markets:

1. Adaptation to Local Markets: In international markets, Honda adjusts its pricing strategies
to accommodate local economic conditions, consumer preferences, and competitive
landscapes. Prices may vary significantly across countries to account for factors such as
currency exchange rates, tariffs, taxes, and import/export duties.

2. Competitive Pricing: Honda closely monitors pricing strategies of competitors in each

international market and adjusts its own prices accordingly. By offering competitive prices
relative to other brands in each market segment, Honda aims to attract customers while
maintaining profitability.

3. Value-Based Pricing: Similar to its approach in Japan, Honda may utilize a value-based
pricing strategy in international markets. Prices are set based on the perceived value of their
products relative to competing brands, considering factors such as quality, features,
performance, and brand reputation.

4. Market Skimming or Penetration Pricing: Depending on the market dynamics and product
positioning, Honda may employ either skimming or penetration pricing strategies. Skimming
involves setting higher prices initially to target early adopters or premium segments, while
penetration pricing involves setting lower prices to quickly gain market share or enter new
markets.

5. Channel Pricing: Honda collaborates with local distributors, dealers, and retailers in
international markets. Pricing strategies may differ based on the distribution channel used,
with different margins and pricing structures for each channel to ensure competitiveness and
profitability.
Q5 Comment on the branding strategies of both companies
comparing their domestic and international strategies.

Branding strategies of TVS

TVS, the Indian motorcycle manufacturer, has executed a strategic branding approach both
domestically and internationally.

In India, TVS has leveraged its heritage and reputation for reliability to establish itself as a
trusted household name in the two-wheeler industry. Through innovative marketing
campaigns and a focus on customer satisfaction, TVS has strengthened its brand loyalty
among Indian consumers.

In foreign markets, TVS has adopted a localized branding strategy, tailoring its messaging to
resonate with the cultural preferences and tastes of each region. By understanding the unique
needs of international consumers, TVS has been able to expand its presence in countries like
Indonesia, Bangladesh, and Nigeria

Overall, TVS's branding strategy reflects a balance between preserving its identity as an
Indian brand while also adapting to the diverse preferences of global markets

Branding strategies of Honda

Honda's branding strategy typically emphasizes innovation, reliability, and environmental

consciousness, regardless of whether it's in the domestic or international market. However,
there are some nuanced differences:

1. Domestic (Japan) Market:

2. - Focus on tradition and quality: In Japan, Honda emphasizes its long-standing
reputation for engineering excellence and quality craftsmanship
3. . - Emphasis on local culture: Honda often integrates elements of Japanese culture into
its domestic branding, appealing to national pride and tradition.
 4. - Customer-centric approach: The company tends to tailor its marketing efforts to
Japanese consumer preferences and behaviour, leveraging a deep understanding of the
domestic market

2. International Market:

- Innovation and technology: In international markets, Honda highlights its cutting-edge

technology and innovation to compete effectively against global rivals.

- Adaptability and localization: While maintaining its core brand identity, Honda adapts its
marketing strategies to suit the cultural nuances and preferences of different regions.

- Global brand consistency: Despite local adaptations, Honda maintains a consistent global
brand image cantered around reliability, performance, and environmental sustainability.

Overall, Honda's branding strategy aims to strike a balance between its global brand identity
and local market needs, ensuring relevance and resonance across diverse consumer segments
Q6 In your opinion, which global markets should these companies
expand to now in the current scenario, and why? Support your
answer with substantial research-based evidence.
TVS Motors:

Southeast Asia: According to a report by Research and Markets, the two-wheeler market in
Southeast Asia is projected to grow at a CAGR of 6.8% from 2021 to 2026. Indonesia,
Thailand, and Vietnam are key markets within the region, with Indonesia being the largest
motorcycle market in Southeast Asia. TVS Motors could leverage this growth by introducing
models tailored to local preferences, such as automatic scooters and commuter motorcycles
with fuel-efficient engines.

Africa: The African motorcycle market is witnessing steady growth due to factors like
population growth, urbanization, and improving infrastructure. Research by TechSci
Research indicates that the African motorcycle market is expected to reach a value of $5.8
billion by 2026, with Nigeria, Kenya, and Ethiopia being key markets. TVS Motors could
capitalize on this growth by offering affordable and reliable two-wheelers suitable for both
urban and rural use.

Latin America: According to a report by Persistence Market Research, the Latin American
motorcycle market is projected to grow at a CAGR of 5.4% from 2021 to 2031. Brazil,
Colombia, and Mexico are among the largest markets in the region, with a strong demand for
motorcycles and scooters for personal transportation and commercial use. TVS Motors could
enter these markets by establishing partnerships with local distributors and dealerships, along
with investing in marketing campaigns to increase brand awareness.

Honda Motors:

India: India is the world's largest motorcycle market, with over 21 million units sold annually.
According to the Society of Indian Automobile Manufacturers (SIAM), Honda Motorcycle &
Scooter India (HMSI) holds a significant market share in the Indian two-wheeler segment,
with models like the Activa and CB Shine being top sellers. With the Indian government's
push towards electric mobility, Honda could introduce electric two-wheelers to capitalize on
this emerging trend and strengthen its market position.
Southeast Asia: Honda dominates the motorcycle market in Southeast Asia, with Thailand
being one of its largest production hubs outside of Japan. According to data from the ASEAN
Automotive Federation, Honda accounted for over 70% of motorcycle sales in Thailand in
2020. By leveraging its extensive dealer network and brand reputation, Honda can introduce
new models equipped with advanced features and technologies to maintain its leadership
position in the region.

Africa: Africa presents significant growth opportunities for Honda Motors, particularly in
countries with expanding economies and urbanization rates. According to the African
Development Bank Group, Africa's urban population is projected to double by 2050, driving
the demand for affordable and reliable transportation solutions. Honda could introduce entry-
level motorcycles and scooters tailored to the needs of African consumers, along with
providing robust after-sales support and service networks to ensure customer satisfaction.
Q7 Comment on how the global expansion has benefitted or not
benefitted the home country of these companies.

Global expansion can bring both benefits and challenges to the home country of companies.
Here are some considerations for how global expansion may impact the home country:

TVS Motors and India:

Economic Growth and Employment:

TVS Motors' global expansion has positively contributed to India's economic growth and
employment generation. The company's overseas operations create opportunities for Indian
suppliers, contributing to the growth of ancillary industries.

According to TVS Motors' annual report for the fiscal year 2020-2021, the company's
international sales accounted for approximately 20% of its total revenue. This revenue
generated from overseas markets contributes to India's foreign exchange reserves and GDP.

Technological Advancement:

TVS Motors' global presence exposes it to advanced technologies and best practices from
international markets. This knowledge transfer enhances the company's technological
capabilities, benefiting India's automotive sector as a whole.

TVS Motors' collaborations with global partners and investments in research and
development contribute to innovation and technological advancement within India's
automotive industry.

Brand Reputation and Soft Power:

TVS Motors' successful global expansion enhances India's brand reputation and soft power
on the global stage. The company's presence in international markets showcases India's
capabilities in manufacturing and innovation.
TVS Motors' participation in global events and collaborations with international
organizations promote India as a hub for automotive excellence, attracting investment and
talent to the country.

Honda Motors and Japan:

Economic Growth and Trade Balance:

Honda Motors' global expansion has been a significant contributor to Japan's economic
growth and trade balance. The company's exports of vehicles and components generate
substantial revenue and contribute to Japan's export-oriented economy.

According to Honda's annual report for the fiscal year 2020-2021, the company's overseas
sales accounted for approximately 60% of its total revenue, highlighting the significant
contribution of international operations to Japan's GDP.

Employment and Skills Development:

Honda Motors' global operations create employment opportunities in Japan through its
manufacturing facilities and research centres. The company's workforce development
initiatives and skill-building programs contribute to Japan's human capital development.

Honda Motors' partnerships with Japanese suppliers and technology firms stimulate
innovation and knowledge-sharing, fostering a culture of continuous learning and skill
enhancement within Japan's automotive industry.

Diplomatic and Soft Power Influence:

Honda Motors' global success enhances Japan's diplomatic and soft power influence by
promoting the country's reputation for quality and innovation. The company's brand
recognition and market leadership reflect positively on Japan's image as a global leader in
technology and manufacturing.

Honda Motors' collaborations with international partners and participation in global

initiatives strengthen Japan's ties with other nations, fostering international
cooperation and goodwill.