PAWAN CHAVAN -07 PRANIT SHETYE-56 AMEYA RAIKAR-43 SAYALI DEVASTHALI-10 PRAGYA JALAN-18

Type Personal Name

STUDENTS DECLARATION

WE HERE BY DECLARE THAT THE PROJECT REPORT ENTITLED

AUTOMOBILE SECTOR (TWO WHEELER INDUSTRY

Submitted in partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION To University of Pune (India) is my original work

Place: puneDate : 24-03-2014 signature

AUTOMOBILE INDUSTRY

THE INDIAN AUTOMOBILE INDUSTRY IS MANUFACTURING OVER 11 MILLION VECHICLES AND EXPORTING ABOUT 1.5 MILLION EVERY YEAR.

THE DOMINANT PRODUCTS OF THE INDUSTRY ARE TWO WHEELERS WITH A MARKET SHARE OF OVER 56% AND PASSENGER CARS WITH A MARKET SHARE OF ABOUT 37% COMMERCIAL VEHICLES AND THREE WHEELERS SHARE ABOUT 7% OF MARKET BETWEEN THEM.

ABOUT 91% OF VECHICLES SOLD ARE USED BY HOUSEHOLDS AND ONLY ABOUT 9% FOR COMMERCIAL PURPOSES

THE INDUSTRY HAS ATTAINED A TURNOVER OF MORE THAN USD 35 BILLION AND PROVIDES DIRECT AND INDIRECT EMPLOYMENT TO OVER 13 MILLION PEOPLE

INTRODUCTION OF TWO WHEELER INDUSTRY

INDIA, IS SECOND LARGEST PRODUCER OF TWO WHEELERS IN WORLD,IN LAST FEW YEARS,THE INDIAN 2WHEELER HAS SEEN A SPECTACULAR GROWTH,THE COUNTRY STANDS NEXT TO CHINA AND JAPAN FOR PRODUCTION AND SALES.

MAJORITY OF INDIANS, ESPECIALLY THE YOUNGSTERS PREFER MOTORBIKES RATHER THAN CARS.

LARGE VARIETY OF TWO WHEELER ARE AVAILABLE IN THE MARKET,KNOWN FOR THEIR LATEST TECHNOLOGY AND ENHANCED IN LARGE.

INDIAN BIKES AND MOPEDS REPRESENT STYLE AND CLASS FOR BOTH MEN AND WOMEN IN INDIA. FIRST MOTORCYCLE

THE HILDEBRAND & WOLFMULLER WAS THE WORLDS FIRST PRODUCTION MOTORCYCLE.

MANUFACTURER : HILDEBRAND & WOLFMULLER.PRODUCTION :1894-1897ENGINE :1,489 CC TWO-CYLINDER WATERCOOLED FOURSTROCK, SURFACE CARBORETORTOP SPEED : 28 MPH (45 KM/H)WEIGHT :50 KG

INDIAN TWO WHEELER AUTOMOBILE HISTORY

INDIAN TWO WHEELER INDUSTRY IS AS OLD AS 53 YEARS.BAJAJ AUTO BEGAN TRADING IN IMPORTED VESPA SCOOTERS IN 1948.UNTIL THE MID 80S, THERE WERE ONLY THREE MAJOR MOTORCYCLE MANUFACTURERS IN INDIA NAMELY RAJDOOT, ESCORTS,AND ENFIELD.TWO WHEELER MARKET WAS OPENED TO FOREIGN MANUFACTURERS IN THE MID 80S.IN 1984, HERO GROUP ENTERED THE MARKET IN JOINT VENTURE WITH JAPANS HONDA GROUP.In 1990, the entire automobile industry saw a drastic fall in demand. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.

MARKET SHARE OF TWO WHEELER AUTOMOBILE INDUSTRY India has produced more than 11.9 Million Motorcycles in FY 12-13. Hero MotoCorp, Bajaj, Honda, TVS and Yamaha companies stands in top 5 In terms of market share, followed by Royal Enfield, Mahindra & Mahindra, Suzuki etc.

India has produced more than 3.0 Million Scooters in FY 12-13. Honda, Hero MotoCorp, TVS, Suzuki and Yamaha companies stands in top 5 In terms of market share, followed by Mahindra & Mahindra, Piaggio etc.

HERO MOTOCORP

FOUNDER: DR.BRIJMOHANLAL MUNJAL.ESTABLISHED: 1956HEADQUATERS: NEW DELHI(DHARUHERA) REVENUE: 241.66 Billon(US$3.9billon)RECENT LAUNCH: Maestro, Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe.

HONDA MOTOR COMPANY

FOUNDER: SOICHIRO HONDA.ESTABLISHED:1948HEADQUATERS:TOKOYO (JAPAN)REVENUE: 104 Billion USDRECENT LAUNCES:DREAM YUGA,DIO,SHINE.

BAJAJ AUTO LTD

FOUNDER: JAMNALAL BAJAJESTABLISHED:1942-47HEADQUATERS:MAHARASHTRA & UTTRANCHALREVENUE:4.24MILLIONEXPORT-1.55MILLIONRECENT LAUNCHES:PULSAR200(NS),KTM,DISCOVER

Automotive Regulations In India

The automotive regulations in India are governed by the Ministry of Shipping, Road Transport & Highways (MoSRT&H) which is the nodal ministry for regulation of the automotive sector in India. Along with MoSRT&H, ministries such as Ministry of Environment & Forests and Ministry of Petroleum & Natural Gas also have a vital role in the formulation of automotive regulations and standards in India.The principal instrument governing the automotive sector in India is the Motor Vehicles Act, 1988 (MVA) along with the Central Motor Vehicles Rules 1989 (CMVR).The Act governs emission norms and safety standards in India and consolidates the law pertaining to motor vehicles. The CMVR provide the rules that explain the MVA in detail.

Government Initiatives

Indian government encourages foreign investment in automobile sector and allows 100% FDI under the automatic route. It is fully delicensed industry, freely allowing imports of automotive components.The excise duty on small cars, motorcycles, scooters and commercial vehicles has been reduced from 12% to 8% by government.Government have made successive policy changes that allows for stronger growth in the automotive sector. Major among this are:1.Automotive mission plan: The plan has been prepared to accelerate and sustain growth in the automotive sector during the period of 2006-16.It aims to make India a global automotive hub. This will contribute to India GDP and will create an employment. It will also help to increase exports.2.National automotive testing and R&D infrastructure project: This is an USD 400 million initiative of Government of India and various state government. It is aimed at creating a state of art, dedicated testing, validation and R&D infrastructure across the country.

Revenue & Profitability

The Indian automobile industry is the tenth largest in the world.It has an annual production of approximately 2 million units. There has been a sustained growth in the automotive sector of India following the economic reforms of 1991 which opened up 100 percent Foreign Direct Investment in this sector.The industry has been growing annually at 20 per cent. India is set to be a key player in the automotive sector.

Recent Happenings In Industry.

Suzuki Motor Corp aims to sell million units in next 3 years.Eicher Motors plans to invest Rs 600 crore in two years to ramp up production capacity of its motorcycle division Royal Enfield.After Harley Davidson, U.S based UM Global to enter Indian market, assemble sports bikes in India.Kinetic Engineering Limited, the minority stakeholder in Mahindra Two Wheelers, sold its 10.36 per cent stake in the company to Samena Capital.Hero MotoCorp to use Turkey for entering European Market , started its operations in Turkey.