SHAHEED BHAGAT SINGH COLLEGE,

UNIVERSITY OF DELHI

SEMESTER-6 REPORT

B.com(H) - ‘B’

INTERNATIONAL BUSINESS
A Comparative Analysis

TVS v/s Honda

Submitted by: Submitted to:

Krrish Yadav (598) Prof. Subhatra

Prakhar Pathak (631)

Rohit Kumar (621)

 ACKNOWLEDGEMENT

First and foremost, we would like to express our gratitude to our Mentor, Prof. Subhatra, who was
a continual source of inspiration. She pushed us to think imaginatively and urged us to do this
Project without hesitation. Her vast knowledge, extensive experience, and professional
competence in ‘International Business’ enabled us to successfully accomplish this project. This
endeavour would not have been possible without her help and supervision. We could not have
asked for a finer mentor in our studies. This initiative would not have been a success without the
contributions of each and every individual. We were always there to cheer each other on, and that
is what kept us together until the end.

We would like to thank The University of Delhi for providing me with the opportunity to work
on the project (A Comparative Analysis TVS v/s Honda). Last but not least, we would like to
express our gratitude to our family and friends for their invaluable assistance, and we are deeply
grateful to everyone who has contributed to the successful completion of this project.
 INDEX
Particulars Page No.
Introduction 1

International business strategies 2

Domestic and International business operating strategies 4

Market position analysis 7

Marketing and Pricing strategies 9

Domestic and International branding strategies 12

Future global expansion 15

Global Expansion effects on Domestic Country 17

Conclusion 19

Bibliography 20
 INTRODUCTION

TVS Motors and Honda Motors stand as prominent players in the global automotive industry,
each with a rich legacy of innovation, reliability, and market leadership.

Founded in 1978, TVS Motors has evolved into one of India's largest two-wheeler
manufacturers, renowned for its commitment to quality, performance, and customer
satisfaction. With a diverse portfolio of motorcycles, scooters, and three-wheelers, TVS
Motors has solidified its presence not only in the domestic market but also in international
arenas, showcasing its prowess in adapting to evolving consumer preferences and market
dynamics.

On the other hand, Honda Motors, established in 1948, commands a formidable position as
one of Japan's leading automobile and motorcycle manufacturers. Renowned for its
engineering excellence, technological innovation, and global brand recognition, Honda
Motors has captured hearts worldwide with its iconic models and pioneering advancements in
automotive technology. With a steadfast commitment to delivering superior products and
services, both TVS Motors and Honda Motors continue to shape the future of mobility,
driving innovation and excellence across borders.

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 International business strategies

Market Presence:

TVS Motors: TVS Motors exports to over 60 countries and has a global market share of
around 1.5% in the two-wheeler segment.

Honda Motors: Honda's global market share in the motorcycle segment is approximately
30%, with significant presence in regions like Asia-Pacific, North America, and Europe.

Product Portfolio:

TVS Motors: TVS offers a diverse range of products, including motorcycles, scooters, and
mopeds, with international sales constituting around 20% of its total revenue.

Honda Motors: Honda's product portfolio includes motorcycles, automobiles, power

equipment, and other mobility solutions, with two-wheeler sales accounting for
approximately 70% of its total revenue.

Manufacturing and Supply Chain:

TVS Motors: TVS has manufacturing facilities in India, Indonesia, and other countries, with
international sales contributing to around 25% of its total production volume.

Honda Motors: Honda operates over 30 production facilities worldwide, with international
production volume accounting for around 70% of its total output.

Distribution and Sales:

TVS Motors: TVS has over 3,000 dealerships and outlets globally, with international markets
contributing to around 15% of its total sales volume.

Honda Motors: Honda has a global network of over 6,000 dealerships and sales outlets, with
international sales accounting for approximately 60% of its total unit sales.

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Brand Positioning and Marketing:

TVS Motors: TVS invests around 8% of its annual revenue in marketing and advertising
activities, focusing on localized campaigns and sponsorships in international markets.

Honda Motors: Honda's global marketing expenditure exceeds $3 billion annually, with a
strong emphasis on brand building, innovation, and sustainability initiatives.

Regulatory Compliance and Localization:

TVS Motors: TVS invests approximately 5% of its international revenue in research and
development for product localization and regulatory compliance.

Honda Motors: Honda allocates around $1.5 billion annually for research and development,
with a significant portion dedicated to product adaptation and regulatory compliance in
international markets.

Financial Performance:

TVS Motors: TVS Motors' international business generates annual revenue of approximately
$500 million, contributing around 25% to its total revenue.

Honda Motors: Honda's international sales generate annual revenue of over $30 billion,
constituting around 60% of its total revenue.

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 Domestic and International business
operating strategies

Domestic Business Strategies:

TVS Motors (India):

Product Focus: TVS Motors emphasizes innovation and customization to cater to diverse
segments of the Indian market. It continuously launches new models and variants to meet
changing consumer preferences.

Distribution Network: TVS has a widespread distribution network across India, comprising
dealerships, service centers, and retail outlets. It focuses on expanding its presence in tier-II
and tier-III cities to tap into emerging markets.

Marketing and Branding: TVS engages in targeted marketing campaigns to build brand
awareness and loyalty among Indian consumers. It sponsors sports events, engages in digital
marketing, and collaborates with influencers to reach its target audience.

After-sales Service: TVS prioritizes after-sales service and customer support to enhance
customer satisfaction and loyalty. It invests in training service personnel and improving
service infrastructure to provide a superior ownership experience.

Honda Motors (India):

Product Diversification: Honda offers a diverse range of products in India, including

motorcycles, scooters, and automobiles. It focuses on introducing technologically advanced
and fuel-efficient vehicles to meet the evolving needs of Indian consumers.

Extensive Dealer Network: Honda has a vast dealer network in India, with a strong presence
in urban and rural areas. It invests in dealership infrastructure and training programs to ensure
a consistent customer experience across its network.

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Brand Building: Honda invests in brand-building activities to position itself as a premium and
aspirational brand in the Indian market. It leverages its reputation for quality, reliability, and
innovation to attract customers and gain market share.

Customer Engagement: Honda engages in customer-centric initiatives such as loyalty

programs, feedback mechanisms, and community engagement activities to foster long-term
relationships with Indian consumers.

International Business Strategies:

TVS Motors (International):

Market Selection: TVS Motors adopts a selective approach to international expansion

targeting markets with high growth potential and favorable regulatory environments. It
focuses on regions like South Asia, Africa, and Latin America where there is demand for
affordable two-wheelers.

Product Localization: TVS customizes its products to suit the preferences and requirements
of international consumers. It adapts its product offerings, features, and specifications to
comply with local regulations and cater to diverse market needs.

Partnership and Alliances: TVS collaborates with local partners, distributors, and dealerships
to establish its presence in international markets. It forms strategic alliances and joint
ventures to leverage local expertise, distribution networks, and market knowledge.

Brand Positioning: TVS positions itself as a value-for-money brand in international markets,

emphasizing reliability, performance, and affordability. It focuses on building brand equity
through effective marketing communication and customer engagement activities.

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Honda Motors (International):

Global Production Network: Honda operates a global production network with manufacturing
facilities in key regions worldwide. It utilizes a decentralized production strategy to optimize
cost, quality, and efficiency across its international operations.

Standardization and Localization: Honda standardizes its production processes and quality
standards while also adapting its products to local market preferences. It balances global
consistency with local customization to meet diverse customer needs effectively.

Brand Consistency: Honda maintains a consistent brand image and messaging across its
international markets, emphasizing its core values of quality, innovation, and sustainability. It
leverages its global reputation to gain consumer trust and loyalty in new markets.

Market Penetration: Honda adopts a market penetration strategy in international markets,

investing in marketing, distribution, and after-sales service to gain market share. It focuses on
expanding its dealer network and brand visibility to strengthen its competitive
position globally.

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 Market position analysis

TVS Motors:

Before Global Expansion:

Market Size: TVS Motors primarily operated in the domestic market of India, which is one of
the largest two-wheeler markets globally with millions of units sold annually.

Market Share: TVS had a relatively smaller market share compared to competitors like Hero
MotoCorp, Bajaj Auto, and Honda Motorcycle & Scooter India (HMSI).

First-Mover Advantage: TVS had established itself as a key player in the Indian two-wheeler
market, particularly in the commuter and premium segments, leveraging its strong brand
presence and product offerings.

After Global Expansion:

Market Size: TVS expanded its presence into over 60 countries, targeting emerging markets
in South Asia, Africa, and Latin America. While the global two-wheeler market is sizable,
TVS's international presence contributed to diversifying its revenue streams and tapping into
new growth opportunities.

Market Share: TVS increased its market share in international markets, although exact
figures may vary by region. In some markets, it faced stiff competition from local players and
established international brands, limiting its market share gains.

First-Mover Advantage: TVS capitalized on its early entry into select international markets,
leveraging its expertise in product development, distribution, and brand building. However, it
faced challenges such as regulatory barriers, cultural differences, and intense competition,
limiting its first-mover advantages in certain regions.

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Honda Motors:

Before Global Expansion:

Market Size: Honda Motors operated in the Japanese domestic market, which is one of the
largest automobile and motorcycle markets globally, characterized by high demand and
advanced technology.

Market Share: Honda had a significant market share in Japan, particularly in the motorcycle
segment, where it competed with other Japanese manufacturers like Yamaha and Suzuki.

First-Mover Advantage: Honda established itself as a pioneer in the Japanese motorcycle

market, known for its innovative engineering, reliable products, and strong dealer network.

After Global Expansion:

Market Size: Honda expanded its operations into numerous countries and regions,
establishing a global presence in both the automobile and motorcycle markets. It targeted key
regions such as North America, Europe, Asia-Pacific, and Latin America, capitalizing on
growing demand for mobility solutions.

Market Share: Honda achieved substantial market share gains in international markets,
becoming one of the leading players in the global automotive and motorcycle industries. It
leveraged its strong brand reputation, technological expertise, and diverse product portfolio to
capture market share in various regions.

First-Mover Advantage: Honda leveraged its early entry into international markets to
establish manufacturing facilities, distribution networks, and brand recognition. It benefited
from its reputation for quality and reliability, gaining first-mover advantages in emerging
markets and expanding its global market presence..

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 Marketing and Pricing strategies

TVS Motors:

Domestic (India) Marketing and Pricing Strategies:

Marketing: In India, TVS Motors employs a mix of traditional and digital marketing
strategies. It engages in TV and print advertisements, sponsors sports events, and participates
in promotional activities to increase brand visibility. Additionally, TVS focuses on digital
marketing channels, social media campaigns, and influencer partnerships to target younger
demographics.

Pricing: In the Indian market, TVS adopts a competitive pricing strategy. It offers a range of
products across various price segments, targeting different customer preferences and budget
constraints. TVS periodically introduces promotional offers, discounts, and financing
schemes to attract customers and drive sales.

International Marketing and Pricing Strategies:

Marketing: Internationally, TVS Motors tailors its marketing strategies to suit local market
dynamics and consumer preferences. It emphasizes localized advertising campaigns, brand
partnerships, and sponsorships to enhance brand recognition and customer engagement. TVS
utilizes a mix of distribution channels and promotional activities to penetrate international
markets effectively.

Pricing: TVS adopts a flexible pricing strategy in international markets. It considers factors
such as exchange rates, import duties, and local competition when pricing its products. TVS
aims to offer competitive pricing while maintaining profitability, balancing affordability with
product quality and brand positioning.

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Honda Motors:

Domestic (India) Marketing and Pricing Strategies:

Marketing: In India, Honda Motors employs a comprehensive marketing approach. It invests

in TV, print, and digital advertising campaigns to promote its products and strengthen brand
awareness. Honda also engages in promotional activities, events, and sponsorships to connect
with Indian consumers and reinforce its brand image.

Pricing: Honda adopts a premium pricing strategy for its products in the Indian market. It
positions itself as a high-quality and aspirational brand, pricing its vehicles at a premium
compared to competitors. Honda focuses on value-added features, product differentiation, and
brand reputation to justify its pricing strategy and maintain profitability.

International Marketing and Pricing Strategies:

Marketing: Internationally, Honda Motors implements localized marketing strategies tailored

to each market's characteristics. It emphasizes brand consistency while adapting its
messaging, advertising channels, and promotional activities to suit cultural preferences and
consumer behavior. Honda leverages its global reputation for quality and innovation to gain
customer trust and loyalty.

Pricing: Honda adopts a strategic pricing approach in international markets. It assesses

factors such as local competition, consumer purchasing power, and regulatory requirements
when determining pricing strategies. Honda aims to offer competitive pricing while
maintaining its brand premium and profitability, aligning prices with perceived value and
market positioning.

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Data Points:

Marketing Expenditure: TVS Motors spends approximately 8% of its annual revenue on

marketing activities in India. Honda Motors allocates over $500 million annually for
marketing and advertising in India.

Pricing Analysis: TVS Motors' pricing strategy in India involves offering products priced
competitively within the range of INR 50,000 to INR 1.5 lakhs (approximately $700 to
$20,000). Honda Motors positions its products at a premium, with motorcycles and scooters
priced between INR 60,000 to INR 2 lakhs (approximately $800 to $27,000).

International Marketing: TVS Motors focuses on localized marketing strategies in

international markets, with advertising expenditure varying by region. Honda Motors invests
in global marketing campaigns while adapting messaging and promotional activities to local
market nuances and preferences.

International Pricing: TVS Motors adjusts its pricing strategy in international markets based
on factors such as currency fluctuations, import duties, and competitive landscape. Honda
Motors employs a strategic pricing approach, considering factors like market positioning,
brand perception, and local consumer behavior to determine prices in international markets.

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 Domestic and International branding
strategies

TVS Motors:

Domestic (India) Branding Strategy:

Brand Image: In India, TVS Motors positions itself as a trusted and innovative brand with a
focus on reliability, performance, and value for money. It emphasizes its heritage,
technological prowess, and customer-centric approach to differentiate itself in the competitive
Indian market.

Brand Communication: TVS engages in extensive brand communication activities in India,

leveraging various channels such as television, print media, digital platforms, and on-ground
events. It emphasizes product features, technological advancements, and customer
testimonials to build brand credibility and trust.

Brand Endorsements: TVS collaborates with celebrities, sports personalities, and influencers
to endorse its products and enhance brand visibility in the Indian market. These endorsements
help reinforce brand associations and appeal to target demographics.

International Branding Strategy:

Localization: In international markets, TVS adapts its branding strategy to resonate with local
cultures, preferences, and consumer behaviors. It customizes brand messaging, advertising
content, and communication channels to effectively connect with diverse audiences across
regions.

Brand Partnerships: TVS forms strategic partnerships and sponsorships with local
organizations, events, and initiatives to enhance brand recognition and credibility in
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international markets. These partnerships help increase brand visibility and establish trust
among local consumers.

Consistency: While localizing its branding efforts, TVS maintains consistency in its core
brand values, messaging, and visual identity across international markets. It ensures that the
brand remains recognizable and coherent while catering to regional nuances and market
dynamics.

Honda Motors:

Domestic (India) Branding Strategy:

Brand Reputation: In India, Honda Motors has built a reputation for quality, reliability, and
technological innovation. It positions itself as a premium and aspirational brand, targeting
discerning consumers who value performance, comfort, and style.

Brand Communication: Honda invests in extensive advertising campaigns and marketing

initiatives to reinforce its brand image and appeal in the Indian market. It focuses on
highlighting product features, safety standards, and environmental sustainability to resonate
with Indian consumers.

Brand Loyalty: Honda fosters brand loyalty through its consistent product quality, after-sales
service, and customer engagement initiatives. It focuses on building long-term relationships
with Indian consumers by delivering superior experiences at every touchpoint.

International Branding Strategy:

Global Branding: Internationally, Honda maintains a consistent global brand image while
adapting its branding strategies to suit local market dynamics and cultural nuances. It
emphasizes its core values of quality, innovation, and reliability to establish itself as a trusted
and respected brand in diverse regions.

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Brand Equity: Honda leverages its global brand equity and reputation to gain consumer trust
and loyalty in international markets. It capitalizes on its strong heritage, technological
expertise, and track record of success to differentiate itself from competitors and command
premium pricing.

Innovation: Honda highlights its innovative products, cutting-edge technologies, and

environmental initiatives in its international branding efforts. It positions itself as a forward-
thinking and socially responsible brand, appealing to consumers who value innovation and
sustainability.

Data Points:

Brand Perception: TVS Motors is perceived as a reliable and value-for-money brand in India,
with a strong emphasis on performance and affordability. Honda Motors is viewed as a
premium and aspirational brand in India, known for its quality, innovation, and reputation.

Advertising Expenditure: TVS Motors spends approximately 8% of its annual revenue on

marketing and advertising in India. Honda Motors allocates over $500 million annually for
marketing and advertising in India.

Brand Recognition: TVS Motors has a brand presence in over 60 countries, with international
branding efforts tailored to suit local market dynamics and consumer preferences. Honda
Motors has a global brand presence in over 30 countries, with consistent branding strategies
adapted to regional nuances and market conditions.

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 Future global expansion

TVS Motors:

Southeast Asia (e.g., Indonesia, Thailand, Vietnam): These markets offer significant growth
opportunities due to increasing urbanization, rising disposable incomes, and a growing
middle class. Moreover, the demand for two-wheelers is high in these countries due to their
affordability, fuel efficiency, and suitability for congested urban environments. TVS Motors
can leverage its experience in neighboring markets like India and its expertise in
manufacturing cost-effective, high-quality two-wheelers to penetrate these markets
effectively.

Africa (e.g., Nigeria, Kenya, Ethiopia): Africa presents untapped potential for TVS Motors,
with a large population, rapid urbanization, and a burgeoning demand for affordable
transportation solutions. Despite challenges such as infrastructure limitations and regulatory
complexities, several African countries are experiencing economic growth and increasing
consumer purchasing power. TVS Motors can capitalize on this opportunity by offering
products tailored to local needs, establishing a robust distribution network, and building
strategic partnerships with local stakeholders.

Latin America (e.g., Brazil, Mexico, Colombia): Latin America represents a promising
market for TVS Motors, characterized by a growing middle class, urbanization, and a
youthful population. The demand for motorcycles and scooters is rising in these countries due
to their cost-effectiveness, ease of maneuverability, and suitability for urban commuting. TVS
Motors can leverage its product portfolio, brand reputation, and manufacturing expertise to
gain market share in Latin America by offering reliable, fuel-efficient, and affordable two-
wheelers.

15
Honda Motors:

Southeast Asia (e.g., Indonesia, Thailand, Vietnam): Similar to TVS Motors, Honda Motors
can further expand its presence in Southeast Asia due to the region's growing demand for
motorcycles and scooters. Honda already has a strong foothold in these markets, but there is
still room for growth, particularly in segments like automatic scooters and premium
motorcycles. By leveraging its extensive product portfolio, brand equity, and distribution
network, Honda can maintain its leadership position and capture additional market share in
these countries.

Africa (e.g., Nigeria, Kenya, Ethiopia): Africa presents significant growth opportunities for
Honda Motors, given its large and rapidly urbanizing population. While the market is
challenging due to infrastructure limitations, regulatory complexities, and economic
volatility, several African countries offer untapped potential for motorcycle and scooter sales.
Honda can capitalize on its reputation for quality, reliability, and fuel efficiency to address the
transportation needs of African consumers and establish a strong presence in key markets.

Latin America (e.g., Brazil, Mexico, Colombia): Latin America remains an attractive market
for Honda Motors, with a growing demand for motorcycles and scooters driven by
urbanization, economic development, and changing consumer preferences. Honda already has
a substantial market share in countries like Brazil and Mexico, but there are opportunities for
further expansion, especially in segments like commuter motorcycles and entry-level
scooters. By leveraging its brand strength, product innovation, and distribution capabilities,
Honda can capitalize on the growth potential in Latin America and strengthen its
position in the region.

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 Global Expansion effects on Domestic
Country
:

Benefits for the Home Country:

Economic Growth and Export Revenue:

India: TVS Motors' global expansion has contributed to India's export revenue. For instance,
in the fiscal year 2020-2021, TVS Motors exported over 612,000 units of two-wheelers,
showcasing a growth of 47% over the previous fiscal year.

Japan: Similarly, Honda Motors' global expansion has bolstered Japan's export revenue. In
2020, Honda's total export value from Japan amounted to approximately 2.48 trillion
Japanese yen, demonstrating the significant contribution of its global operations to the
Japanese economy.

Job Creation and Skills Development:

India: TVS Motors' international expansion has led to the creation of employment
opportunities in India's automotive sector. According to TVS Motor Company's annual report
for 2020-2021, the company's global operations directly employed over 3,000 individuals,
contributing to skills development and economic empowerment.

Japan: Honda Motors' global expansion has also facilitated job creation and skills
development in Japan. Honda's workforce in Japan remains substantial, with over 46,000
employees engaged in various functions, including research and development, manufacturing,
and corporate operations, as of 2021.
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Drawbacks for the Home Country:

Risk of Outsourcing and Offshoring:

India: While TVS Motors' global expansion has created jobs overseas, there may be concerns
about the outsourcing of manufacturing and other functions from India. The extent of
outsourcing and its impact on domestic employment levels would require further analysis.

Japan: Similarly, Honda Motors' global expansion may involve offshoring certain functions
from Japan to lower-cost countries. This could potentially lead to job displacement or
restructuring in Japan's automotive sector, impacting local communities and labor markets.

Competitive Pressure and Intellectual Property Risks:

India: TVS Motors faces intensified competition in global markets from both domestic and
international players. This competitive pressure may necessitate increased investments in
research and development, innovation, and brand building to maintain market share and
profitability.

Japan: Honda Motors encounters similar competitive pressures in international markets,

which may require continuous efforts to protect its intellectual property rights and prevent
infringements. Intellectual property risks pose challenges to Japan's innovation-driven
economy and its global competitiveness in advanced technology sectors.

Regulatory and Compliance Challenges:

India: TVS Motors confronts regulatory challenges and compliance requirements in multiple
countries where it operates. Variations in regulations, trade barriers, and market access
restrictions may increase operational complexities and compliance costs for the company.

Japan: Honda Motors also navigates diverse regulatory frameworks and trade barriers in its
global operations. Regulatory uncertainties, tariff disputes, and geopolitical tensions could
affect Honda's business operations and profitability, impacting Japan's export-
oriented economy.

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 Conclusion

the global expansion strategies of TVS Motors and Honda Motors have significantly
impacted both their home countries, India and Japan, in various ways. While these
expansions have brought about notable benefits such as economic growth, job creation, and
enhanced export revenues, they have also presented challenges such as outsourcing risks,
competitive pressures, and regulatory complexities.

TVS Motors and Honda Motors have demonstrated their ability to adapt to diverse market
environments, leveraging their strengths in product innovation, brand building, and market
penetration to expand their global footprints successfully. Through strategic market selection,
product localization, and brand consistency, both companies have established strong positions
in international markets while maintaining their leadership in their respective domestic
markets.

Looking ahead, continued global expansion presents opportunities for further growth and
diversification for TVS Motors and Honda Motors. By focusing on emerging markets with
high growth potential, investing in research and development, and strengthening their brand
presence, these companies can continue to drive innovation, excellence, and value creation,
benefiting not only themselves but also their home countries and the global automotive
industry as a whole.

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 BIBLIOGRAPHY

1.https://www.motorcyclesdata.com/2024/03/14/best-selling-motorcycles/

2.https://www.statista.com/statistics/610445/two-wheeler-market-share-by-manufacturer-
india/

3.https://international.tvsmotor.com/mm/global-presence.aspx

4.https://global.honda/en/

5.https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3272187#:~:text=The%20international
%20strategy%20of%20TVS,to%20operate%20in%20Bangladesh%20market.

6.https://www.irjmets.com/uploadedfiles/paper/volume3/issue_7_july_2021/14004/16280835
45.pdf

7.https://www.thehindu.com/business/tvs-motor-plans-to-transform-itself-into-a-global-
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shashank-shah/

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