A motorcycle (also called a motorbike, bike, or cycle) is a two- or three-wheeled motor vehical.

Motorcycle design varies greatly to suit a range of different purposes: long distance travel, commuting,
cruising, sport including racing, and off-road riding. Motorcycling is riding a motorcycle and related
social activity such as joining a motorcycle club and attending motorcycle rallies.
In 1894, Hildebrand & Wolfmller became the first series production motorcycle, and the first to be
called a motorcycle. In 2014, the three top motorcycle producers globally by volume were Honda,
Yamaha (both from Japan), and Hero Motocorp (India).
Motorcycles are usually a luxury good in the developed world, where they are used mostly for
recreation, as a lifestyle accessory or a symbol of personal identity. In developing countries,
motorcycles are overwhelmingly utilitarian due to lower prices and greater fuel economy. Of all the
motorcycles in the world, 58% are in the Asia Pacific and Southern and Eastern Asia regions, excluding
car-centric Japan.
According to the United States Department of Transportation the number of fatalities per vehicle mile
traveled was 37 times higher for motorcycles than for cars.The Indian automotive industry is growing
very fast and currently is one of the largest in the world with an annual production of nearly 23.37
million vehicles in the financial year 2014-15, following a growth of nearly 8.68% if compared to few
of the previous years. The total gross domestic product (GDP) of the country, the contribution that
comes from the automobile industry accounts for 7.1%. If we talk about the Indian Automobile market
the Two Wheelers segment, with 81% market share, owing to a growing middle class and a young
population. Moreover, the growing interest of companies in penitrating into the rural markets further
aided the growth of the sector. The overall Passenger Vehicle segment in India is near about 13%
market share.
India is also considered to be a prominent auto exporter and has strong export growth expectations in
the near future. The automobile sector has seen a growth in exports by 15% over the last year. In
addition, several steps are implemented by the Government of India as well as the major automobile
players in the Indian market for the betterment of this sector. If these steps are followed properly then it
has the efficiency to make India a leader in the Two Wheeler as well as Four Wheeler market segment
in the world by the end of year 2020.
Size of Market:
The automobile industry produced a total 14.23 million vehicles including personal vehicles,
commercial vehicles, three wheelers and two wheelers during the month of AprilOctober 2015, as

against 13.93 million in month of AprilOctober 2014, thus forcasting a marginal growth of 3.07 per
cent, year after year.
The sales of private vehicles grew by 8.51 per cent in the month of AprilOctober 2015 over the same
period in the previous year. The overall commercial vehicles segment registered a growth of 8.04% in
month of AprilOctober 2015 as compared to same period last year. Medium as well as Heavy
Commercial Vehicles registered an extremely very strong growth of 32.3% while sales of Light
Commercial Vehicles has deteriorated by 5.24% during the month of AprilOctober 2015, year after
year.
In the month of AprilOctober 2015, overall automobile exports growth was recorded to be 5.78%.
Private Vehicles, commercial vehicles, three wheelers and two wheelers have shown growth of nearly
6.34%, 17.75%, 18.6% and 3.24%, respectively, in month of AprilOctober 2015 over month of April
October 2014.
INVESTMENTS:

In order to sustain with the growing demand, several auto manufacturers have started investing in a
large sum in various segments of the industry during past few months. The industry has able to attract
foreign direct investment (FDI) worth US$13.48 billion during the time slot of April 2000 to June
2015, according to data brought forward by Department of Industrial Policy and Promotion (DIPP).
Some of the major developments and investments in the automobile sector in India are listed below:
The global auto manufacturer Ford plans to make in India two families of engines by 2017, a
2.2 litre diesel engine code-named Panther, and secondly a 1.2 liter petrol engine code-named
Dragon, which are expected to be installed in nearly 270,000 Ford vehicles around the globe.
Next the worlds largest air bag suppliers namely Autoliv Inc, Takata Corp, TRW Automotive
Inc and Toyoda Gosei Co are in process to set up plants in order to increase capacity in India.
General Motors plans to invest US$1 billion in India by 2020, mainly to increase the capacity at
the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025.
US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525 million) in
Maharashtra, to manufacture Jeep Grand Cherokee model.
Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company has
doubled its India assembly capacity to 20,000 units per annum.

 Germany-based luxury car maker Bayerische Motoren Werke AGs (BMW) local unit has
announced to procure components from seven India-based auto parts makers.
Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot
Motorcycles (PMTC).

Government Initiative:

The Government of India encourages foreign investment in the automobile sector and allows 100 per
cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
The Government of India aims to make automobile manufacturing the main driver of "Make in
India" initiative, as it expects the passenger vehicles market to triple to 9.4 million units by
2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced plans to provide credit of Rs
850,000 crore (US$127.5 billion) to farmers, which is expected to boost sales in the tractors
segment.
The government plans to promote eco-friendly cars in the countryi.e. CNG-based vehicles,
hybrid vehicles, and electric vehiclesand also to make mandatory 5 per cent ethanol blending
in petrol.
The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric
and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020, to encourage
the progressive introduction of reliable, affordable, and efficient electric and hybrid vehicles
into the country.
The Automobile Mission Plan (AMP) for the period 20062016, designed by the government is
aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory
Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in
providing a boost to this sector.

HISTORY:

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in small
numbers.
The 1952 Tariff Commission
In 1952, the government appointed the first Tariff Commission, and one of the purpose was to come out
with the feasible plan for indigenization of the Indian automobile industry. This was to keep a check on
over production of vehicles that would strain the investments as well as price control. In 1953 the
commission submitted the report which recommended categorizing the existing Indian companies
according to their then infrastructure with license capacity to manufacture a certain number of vehicle
with capacity increase allowable as per demands in future. The Traffic commission recommendation
were incorporated into the new policy thus cleaning out manufacturers with only imports as well as the
ones with no Indian partner. Following the Taffif commission implementation, in 1954, General
Motors, Ford and Rootes Group twho has assembly plants in Mumbai to India decided to move out of
India. The Tariff commission along with similar restriction applied to other Industries can to be known
as the license raj that later proved to be the greatest undoing for the Indian automotive industry where
bureaucratic red tape ended up making demand outstripping supply with month long waiting period for
cars, scooter and motorcycles.
Passenger Cars
Hindustan Motors, Calcutta - technical collaboration with Morris Motors to manufacture Morris
Oxford models that would later become HM Ambassador.
Premier Automobiles, Bombay - technical collaboration with Chrysler to manufacture Dodge.
Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would
later with Premier Padmani range.
Standard motor production of India, Madras - technical collaboration from Standard-Triumph to
manufacture Standard Vanguard, Standard 8, 10 and later Standard Herald.
Utility and Light Commercial Vehicles
Mahindra & Mahindra, Bombay - technical collaboration with Willys to manufacture CJ Series
Jeep.

 Bajaj Tempo, Poona now Force Motors - technical collaboration with Tempo (Company) to
manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as
Tempo Matador in India.
Standard Motor products of India - technical collaboration from Standard has licence to
manufacture the Standard-T passenger van with panel van and one-tonne one tonne pickup
variants.

Medium and Heavy Commercial Vehicles

Tata Motors, Pune, earlier known as TELCO - technical collaboration with Mercedeze Benz to
manufacture medium as well as heavy commercial vehicles both Bus and Trucks.
Ashok Motors, later Ashok Leyland, Madras - technical collaboration with Leyland Motors to
manufacture medium to heavy commercial vehicles both Bus and Trucks. Ashok Motors also
discontinued its Austin venture formed in 1948 to sell Austin A40 and retooled the factory to
make trucks and buses.
Hindustan Motors - technical collaboration with General Motors to manufacture the Bedford
range of medium bus chassis and lorry.
Premier Automobiles - technical collaboration with Chrysler to manufacture the Fargo, Dodge,
range of medium lorry, panel vans, mini-bus and bus chassis.
Simpsen & Co, Madras part of Amalgamations group (TAFE Tractors)- technical collaboration
with Ford to manufacture medium lorry and bus chassis, but did not utilise that option till 80's.
Scooters, Mopeds and Motorcycles

Many of the two-wheelers manufacturers were granted licenses in early 60's well after the tariff
commission was enabled.

Royal Enfield (India), Madras - technical collaboration with Royal Enfield, UK to manufacture
the Enfield Bullet range of motorcycles.
Bajaj Auto, Pune - technical collaboration with Piaggio, Italy to manufacture their best selling
Vespa range of scooters and three wheelers with commercial option as well.
Automobile products of India, Bombay (Better known for API Lambretta - technical
colloboration with Innocenti of Milan, Italy to manufacture their Lamberrat range of mopeds,

scooters adn three-wheelers. This company was actually the Rootes Group car plant that was
bought over by M.A. Chidambaram family.
Mopeds India Limited, Tirupathi - technical collaboration with Motobence, France to
manufacture their best selling Mobylette mopeds.
Escort Group, New Delhi - technical collaboration with CEKOP of Poland to manufacture the
Rajdoot 175 motorcycle whose origin was DKW RT 125
Ideal Jawa, Mysore - in technical collaboration with CZ - Jawa of Czechoslovakia for its Jawa
and Yezdi range of motorcycles.
1970 to 1983
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the License
Raj, hampered the growth of Indian private sector.
The beginning of the 1970s saw some growth potential and most of the collaboration license
agreements came to an end but with option to continue manufacturing with renewed branding. Cars
were still meant for the elite and Jeeps were largely used by government organizations and some rural
belts. In commercial vehicle segments some developments were made by the end of the decade to cater
improved goods movements. The two-wheeler segment remained unchanged except for to increased
sales in urban among middle class. But more fillip was target towards farm tractors as India was
embarking on a new Green Revolution. More Russian and eastern bloc imports were done to increase
the demand.
But after 1970, with restrictions on the import of vehicles set, the automotive industry started to grow;
but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a
major luxury item. In the 1970s, Price controls were finally lifted, inserting a competitive element into
the automobile market. However, by the 1980s, the automobile market was still dominated by
Hindustan and Premier, who sold superannuated products in fairly limited numbers. During the
eighties, a few competitors began to arrive on the scene.
The OPEC oil crisis saw increase need to installing or redesign some vehicle to fit diesel engines on
medium commercial vehicle. Till early 70's Mahindra Jeeps were on Petrol and Premier commercial
vehicles had Petrol model options. The Defence sector too had most trucks on Pertol engines.

1984 to 1992
First generation Maruti 800 launched in 1984
End of 70's and beginning of 80's saw no new models but the country continued with 2 decade old
designs forcing government to encourage and let more manufacturers into fray.

In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The 1986 Expo
was a showcase for how the Indian automotive industry was absorbing new technologies, promoting
indigenous research and development, and adapting these technologies for the rugged conditions of
India. The nine-day show was attended by then Prime Minister Rajiv Gandhi.
Post-1992 liberalisation
Tata Indica, launched in 1997
Eventually multinational automakers, such as, Suzuki and Toyata of Japan and Hyundai of South
Korea, were allowed to invest in the Indian market, furthering the establishment of an automotive
industry in India. Maruti Suzuki was the first, and the most successful of these new entries, and in part
the result of government policies to promote the automotive industry beginning in the 1980s. As India
began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures
with existing Indian companies. The variety of options available to the consumer began to multiply in
the nineties, whereas before there had usually only been one option in each price class. By 2000, there
were 12 large automotive companies in the Indian market, most of them offshoots of global companies.
Slow export growth
Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring
countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some
growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to
Indian manufacturers by multinationals were not competitive. This was not to last, and today India
manufactures low-priced cars for markets across the globe. As of 18 March 2013, global brands such as
Pronton Holdings, PSA Group, Mazda, Kia, Dodge, Geely Holding Group and Chrysler were shelving
plans for India due to the competitiveness of the market, as well as the global economic crisis.

Emission norms
In 2000, in tune with international standards to reduce vehicular pollution, the central government
unveiled standards titled "India 2000", with later, upgraded guidelines to be known as Bharat stages.
These standards are quite similar to the stringent European standards, and have been implemented in a
phased manner, with the latest upgrade being implemented in 13 cities and, later, in the rest of the
nation. Delhi (NCR), Kolkata, Chennai, Mumbai,Bangalore, Pune, Ahemdabad, Surat, Lucknow,
Kanpur, Agra and Solapur are the 13 cities where Bharat Stage IV has been imposed while the rest of
the nation is still under Bharat Stage III.
Local manufacture encouraged
India levies an import tax of 125% on electric cars, while the import tax on components such as
gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India
rather than be imported as completely built units

Facilities Provided for Manufacturing:The majority of India's car manufacturing industry is evenly divided into three "clusters". Around
Chennai is the southernmost and largest, with a 35% revenue share, accounting for 60% of the
country's automotive exports, and home of the India operations of Hyundai, Renault, Ford, Mitsubishi,
BMW, Nissan, Hindustan Motor works, Daimler, Mini, Caparo, and Datsun.
Near Mumbai in Maharastra, along the Chakan corridor near Pune, is the western cluster, with a 33%
share of the market. Few more motor companies present in Maharashtra are Volkswagan, Audi and
Skoda are located in Aurangabad, Mahindra & Mahindra has an SUV and engine assembly plant at
Nashik. Tata Motors, General Motors, Jaguar Cars, Mercedes Benz, Land Rover, Force Motors, and
FIAT have assembly plants in the area.
The northern cluster is around the National Capital Region, and contributes 32%. Gurgaon and
Manesar, in Haryana, are where the country's largest car manufacturer, Maruti Suzuki, is based.
Now a days Gujrat is emerging cluster providing the best facilities for Automobile Sectors. The current
plants in Gujrat are manufacturing plant of General Motors in Halol, and a plant of Tata Nano at
Sanand. Ford, Maruti Suzuki, and Peugeot - Citreon plants are also planning to come down to Gujarat.
Hindustan Motors, Kolkata (inactive), Honda in Noida, and Toyata in Bangalore are other automotive
manufacturing regions around the country.

Andhra Pradesh
Isuzu Motors at Sri City, Andhra Pradesh
Gujarat
Passenger vehicles
General Motors India Private Limited
Chevrolet Sales India Pvt Ltd - Halol
Tata Motors - Sanand
Commercial vehicles
Asia Motor Works Bhuj
Haryana
Two wheelers
Harley Davidson India, Bawal
Hero MotoCorp Dharuhera, Gurgaon
Honda Motorcycles & Scooter India - Manesar
India Yamaha Motors Faridabad & Manesar
Suzuki - Gurgaon
Passenger vehicles
Maruti Suzuki Gurgaon and Manesar
Himachal Pradesh
Two wheelers

TVS Motors Nalagarh

Passenger vehicles
ICML Motors Amb

Commercial vehicles
TAFE Tractors Parwoona
Jharkhand
Commercial vehicles
Tata Motors Jamshedpur
Karnataka
Two wheelers
TVS Motors Mysuru
Honda Motorcycles and Scooter India Pvt. Ltd - Narsapura
Passenger vehicles
Mahindra REVA Electric Motors Bengaluru
Toyota Kirloskar Motor Pvt Ltd - Bidadi
Commercial vehicles
Bharat Earth Movers - Bengaluru
Scania Commercial Vehicles India Private Limited Bengaluru
TAFE Tractors Doddaballapur
Tata Motors Dharwad
Bharat Earth Movers - Mysuru
Volvo India
Volvo Trucks India, Volvo Buses India, Volvo Construction Equipment India Hosakote
Kerala
Commercial vehicles
Bharat Earth Movers - Defense Products - produces Tatra Trucks 12x12, 10x10,8x8, 6x6, 4x4 &
Variants
Karela Automobiles Limited

Madhya Pradesh
Two wheelers
Mahindra & Mahindra Pithampur
Commercial vehicles
Eicher Motors, Hindustan Motors, CASE Construction Equipment and Force Motors Private
Limited Pithampur
TAFE Tractors - Mandideep
John Deere Tractors - Dewas
Maharashtra
Two wheelers
Bajaj Auto Chakan (Pune), Waluj Aurangabad
KTM Sportmotorcycles Chakan (Pune)
Vespa Scooters Baramati (Pune)
Kinetic Engineering Pune, Ahmednagar
Passenger vehicles
Mahindra & Mahindra Automotive Division Nashik, Chakan (Pune)
Ssangyong Motor Company Chakan (Pune)
Tata Motors Limited
Tata Motors Pimpri Chinchwad (Pune)
Jaguar Cars and Land Rover Pune
Mercedes Benz Passengers Cars Chakan (Pune)
Fiat Automobiles Ranjangaon (Pune)
General Motors India Chakan (Pune)
Volkswagen Group Sales India Private Limited
Volkswagen Chakan (Pune)
Audi AG - Aurangabad
Skoda Auto Aurangabad
Chinkara Motors Karlekhind Alibag

 Premier Automobiles limited Pimpri Chinchwada (Pune)

Commercial vehicles
Ashok Leyland Bhandara
Bajaj Auto Waluj Aurangabad
Force Motors Pune
Mahindra Navistar Chakan (Pune)
MAN Trucks India Akurdi (Pune)
Piaggio Motors Baramati (Pune)
Premium Automobiles Limited Pimpri (Pune)
Punjab
Commercial vehicles
SML Isuzu Limited Nawanshahar (originally a Swaraj Mazada plant)
Rajasthan
Two Wheelers
Honda Motorcycle and Scooter Tapukara
Passenger vehicles
Honda Cars India - Tapukara
Commercial vehicles
Ashok Leyland and TAFE Tractors - Alwar
Tamil Nadu
Two wheelers
Tvs Motor Hosur
Royal Enfield - Chennai
Yamaha India Motor - Oragadam
Passenger vehicles

 Mitsubishi - Tiruvallur
BMW India Chengalpattu
Ford India Private limited Maraimalai Nagar
Hyundai Motor India Pvt Ltd Sriperumbudur
Renault Nissan Automative India Private Limited
Renault India Pvt Ltd Oragadam
Nissan Motor India Pvt Ltd - Oragadam
Commercial vehicles
TAFE Tractors Chennai
Ashok Leyland Ennore, Hosur
Kamaz Vectra Motors - Hosur
Bharat Benz - Oragadam
TVS Motor - Hosur
SAME Deutz Fahr Tractors Ranipet, Vellore
Uttar Pradesh
Two wheelers
Yamaha Motor India - Noida
LML - Kanpur
Passenger vehicles
Honda Cars India Limited Greater Noida
J.S Auto Pvt. Ltd - Kanpur
Commercial vehicles
Tata Motors - Lucknow
Uttarakhand
Commercial vehicles
Ashok Leyland - Pantnagar

 Mahindra & Mahindra - Haridwar

Tata Motors - Pantnagar
Bajaj Auto - Pantnagar
Hero MotoCorp Haridwar
West Bengal
Passenger vehicles
Hindustan Motor Limited Hindmotor- Kolkata (Inactive)

Customers opinions towards Hero Honda Splendor+ Bikes

Mr. Megharaja.B - Assistant Professor, Dept. of Studies and Research in Commerce, Vijayanagara Sri
Krishnadevaraya University, Post Graduate Centre, Nandihalli, Sandur, Karnataka, India.
October 2014 Vol - 2 Issue- 10
Abstract
In the present era of globalization, companies are finding it difficult to attract the

customers towards their offerings. Proper understanding of consumer buying behavior will help the
marketer to succeed in the market. In India, with increase in purchasing power of people leading to the
change in their life style, there has been a huge demand for automobiles with modern technologies
Hero Honda Splendor + bike have a very good market in India.
The objective of this paper is to study the opinions of consumers while they go for the purchase of
Hero Honda Splendor+ Bike and also to analyze the attributes of the bike which are considered
important.

A Study on Customer Satisfaction of Hero Honda Motor Cycle in Coimbatore, Tamil Nadu
A Vennilla - Lecturer, Anna University, Coimbatore, Tamil Nadu, India
Abstract
This study was carried out for a period of one month. The main objective of the study is to identify the
customer satisfaction on Hero Honda motorcycles in Coimbatore, Tamil Nadu. The objectives also
include, evaluating the opinion of the customers about their preference, and the parameters to improve
the features of Hero Honda motorcycle.

Study of Customer Perception after seperation of Hero & Honda Study with reference to
Faizpur town
Author Mukesh B Ahirrao
Abstract:
Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. In
December 2010, the board of directors of the Hero Honda Group has decided to terminate the joint
venture between Hero Group of India and Honda of Japan in a phased manner in August 2011 the
company was renamed Hero MotoCorp with a new corporate identity. The objective of this study is to
analyze the customer perception at Faizpur location after breakup between Hero and Honda. The study

was conducted at Faizpur region and it is based on primary data. A questionnaire was designed to
collect opinions of existing Hero Honda customers.

The two-wheeler sector recorded an impressive volume CAGR of 10 per cent in the last 10 years,
and it had been the driving force of an otherwise dull automobile industry,particularly in the last
5 years. While Hero Motocorp, Bajaj Auto struggle; Honda continued to grow.
While the year 2015 came as a relief for the Indian passenger car market, it gave a halt to the twowheeler industry which grew tremendously over the last decade or so. The two-wheeler sector recorded
an impressive volume CAGR of 10 per cent in the last 10 years, and it had been the driving force of an
otherwise dull automobile industry,particularly in the last 5 years. However, the 2-wheeler industry
started witnessing a slowdown as soon as the calendar year 2015 began.
In the first quarter of the CY2015, January was the only month when the industry saw a moderate
growth of 1.1 per cent year-on-year; in February and March, the industry saw a decline of 1.0 per cent
and 0.8 per cent respectively. Slowdown in the industry was mainly due to poor demand for
motorcycles, accounting almost 70 per cent of the market share in two-wheeler industry that saw a
decline of over 6 per cent in the first quarter of CY2015. The scooter segment, on the other hand,
recorded an impressive growth of over 18 per cent in the same period.
The second quarter, too, wasn't any better for the two-wheeler sector as it recorded a modest 0.6 per
cent year-on-year growth. While motorcycle volumes declined by 2 per cent year-on-year in the
quarter, scooters recorded 7.3 per cent hike. What is interesting to note here is the fact that the scooter
segment which had maintained a double digit growth for months too had come down to single digit
growth in this quarter.
The third quarter of this calendar year turned out to be even worse as it recorded an year-on-year
decline of 1.4 per cent. Despite low fuel prices and lowered interest rates, the motorcycle volumes
remained sluggish in this quarter as well. The motorcycle demand declined by 2.9 per cent year-onyear.
Performance of top 3 Indian two wheeler players:
Hero MotoCorp
Despite posting an year-on-year growth of over 6 per cent in the FY'15, Hero MotoCorp recorded 3.44
per cent decline in its net profit for the first quarter of the calendar year 2015, or

Q4 FY'15. The second quarter of the CY'15, however, posted results better-than-expected with 33 per
cent increase in profit to Rs 750 crore. Having said that, the net sales of the company dropped 2 per
cent to Rs 6,856 crore due to the overall two-wheelers declining 5 per cent to 16.4 lakh units in the
quarter due to poor demand in rural areas. Thanks to festive season, the Indian two-wheeler giant saw a
rise of 1.14 per cent to Rs 722.06 crore recording almost 2.89 per cent growth on quarter-to-quarter
basis. In the second festive month, November, as well, the company recorded a moderate YoY growth
of 0.6 per cent. As against November 2014's 5, 47,413 vehicles, the company sold a total of 5, 50,731
two-wheelers in the same month this year. The sales in the festive season were mainly drive by demand
for the company's new scooters, Duet and Maestro Edge, and the updated Splendor Pro, Passion Pro
and Glambour motorcycles.
Bajaj Auto
In a challenging environment for the Indian two-wheeler industry, Bajaj Auto Ltd recorded a turnover
of Rs 4,894 crore in the first quarter of this calendar year - down by Rs 223 crore over the last year.
While the commercial vehicles continued to do well for the company in this quarter as well, motorcycle
volumes were down by 18.3 per cent. As compared to the Q1 CY15, the second quarter was better as
the overall volumes were up by 30 per cent quarter-on-quarter. As against the Q1's 6, 72,969 units,
Bajaj sold a total of 8,75,235 motorcycles in Q2. The company's export revenue too recorded a growth
of 17 per cent, and the company increased its overall share in the domestic market by 300bps to 18 per
cent in the Q2 CY15.
Thanks to increasing demand for newer vehicles including Pulsar AS 150, Pulsar AS200, RS200 and
the 2015 CT100, Bajaj Auto sold over 9 lakh motorcycles in the third quarter of CY15. This quarter,
the company also recorded its highest ever turnover and profit after tax of Rs 6,250 crore and Rs 933
crore respectively. Though volumes in October 2015 also showed the signs of progress, the motorcycle
segment of the company recorded an year-on-year decline of 8 percent at 3,08,733 units. November,
however, was slightly better with 3 per cent increase in sales over the last year.
Honda Motorcycle and Scooter India
While the overall two-wheeler industry was struggling to get numbers in the first quarter of this
calendar year, Honda Motorcycle & Scooter India (HMSi) continued to post growth. Thanks to great
demand for Activa range, the company sold a total of 11,54,458 units recording an growth of 8.68 per
cent. However, motorcycle segment remained a cause of worry for the Japanese two-wheeler maker in
this quarter since it recorded a decline of 7.89 per cent in motorcycle volumes. The growth continued in

the Q2 CY15 as well, as the company's volumes were up by 6.5 percent year-on-year with a total sales
of over 10.14 lakh units between April-June 2015. Similar to the industry trend, HMSI too saw drop in
its volumes in CY15 third quarter (July-September) as it recorded almost flattened growth. For the first
time this year, the Japanese maker saw a decline of 2.13 per cent in its volumes in September. While
the festive month October helped the company achieve a record sales of 4,31,887, up by 13.31 per cent,
the company saw its steepest fall of 11.82 per cent at 3,11,946 units in November 2015.

Title of the study :Analysing the drop in service level of motorcycles at service stations of Hero Moto Corp post Hero
Honda Split.
Need for the study :Two wheelers are the common mode of transportation for every common man in India. The two
wheeler industry is very vast and there are several companies present in this sector.
One of the he very popular company in this sector was Hero Honda. There was a time when Hero
Honda was a major player in this industry and enjoyed the 1 st position for several years. But after the
split between Hero and Honda in the month of December,2010 Hero started its own independent
venture. As Honda walked out of the whole scenario, the motorcycles which were sold under the
company Hero Honda was decided to be serviced by Hero themselves.

According to the agreement between Hero and Honda, Honda used to design the engine of a
motorcycle where as Hero used to design the body of the motorcycle. When Honda walked out of the
joint venture it took all its machineries and man power with it. Hero was left with nothing and had to
start the organisation from scratch. But now as Hero is not so efficient in engine servicing and
maintenance, the customers of Hero Honda motorcycles are not getting satisfied with the type of
service provided by the company now. Due to this reason the sales of Hero motorcycles are also
decreasing day by day.
Statement of the problem :The problem which has been taken for the study is to know what are the loopholes that the company is
facing in the current scenario. This study will help to find out the reasons because of which the
company is losing its grip over the market. The study will also help the company in satisfying the exact
needs of their customers.
Objectives of the study :1. To understand and analyse the reasons responsible for the drawbacks of Hero MotoCorp.
2. To identify and understand the needs of the customers.
3. To understand and analyse the behaviour of two wheeler riders so that the company can know what
today's customer wants.
4. To provide suggestions to the service stations of hero how to service the customers better.
Sampling :As the number of people owning Hero Honda motorcycles is huge, I would like to choose Random
sampling which will help me to reduce the sampling errors and bias. Thus the sample will be selected
from entire Hero Service stations present in west Bangalore, in order to get more sample size and for
the better analysis of the collected sample size. The sample being selected is 50 customers in 5 service
stations of Hero Moto Corp.
Sources of Data :The sources of data for this research study will be consisting of primary and secondary data. In any real
research the data should be real and original in order to produce the very good results of the study.
The primary source of data is much more important in this kind of research project as the data will be
fresh and first hand and most importantly it will be original and current data. In such kind of projects

primary data plays very important role in understanding and analysing the problem. The primary data
helps to keep away from any kind of bias and give the information for systematic analysis.
On the other hand the secondary data will also be needed for the literature review and for
understanding the problem in depth. Thus the both primary and secondary sources of data will be
exercised in this project. In secondary source of data there are many ways to get it like journals
previous reports and thesis etc. The secondary source will also be collected from company website,
service station website and other websites.
Tools for Data collection :The tools for data collection of this project will be both quantitative and qualitative. The survey method
will be done through questionnaire which will be consisting of relevant number of twenty questions.
The questionnaire will be the main tool for data collection which will help to gather all relevant and
important information which is useful for study analysis. Simultaneously the interviews and
observation methods will be exercised which are also important to get the maximum sufficient
information for the further study.

Plan of analysis :Coming to the planning part of the project the data analysis plays a very vital aspect of any research
project. The data analysis will help to determine how the data will be cleaned, transformed and
analysed.
The data analysis of this project will be done through application of statistical tools and graphical
presentation of data. Thus the statistical tool will be used more to understand and analyse the problem
in much better way. The statistical tools like hypothesis testing and other tests will be used to analyse
the data and for giving the absolute solutions of the main problem in this research project.

Hero Motocorp Ltd., earlier known as Hero Honda, is an Indian motorcycle and scooter
manufacturer which is based in New Delhi, India. In India Hero Motocorp Ltd. Is the largest
manufacturer of two wheelers, about 46% of the total market share in 2-wheeler category is acquired
by this company. According to the 2006 Forbes 200 Most Respected companies list has Hero Honda
Motors ranked at 108. As on 31 March 2013, the market capitalisation of the company was INR 308
billion (USD 5.66 billion).
History
The operation for Hero Honda started in the year 1984 as a joint venture between an Indian company
i.e Hero Cycles and a Japanese company Honda. In 2010, Hero Group bought the shares held by Honda
as Honda decided to move out of the joint venture. Subsequently, in August 2011 the company got a
new

corporate

identity

and

was

renamed

as

Hero

MotoCorp.

In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero

Investment Pvt. Ltd. with the automaker. The decision comes 18 months after its split from Hero
Honda.
"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A
joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero
Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in
the Company.
During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. A popular advertising campaign based on the slogan 'Fill it Shut it Forget it'
that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since
inception. In 2001, the company became the largest two-wheeler manufacturing company in India and
globally. It maintains global industry leadership to date. The technology in the bikes of Hero Motocorp
(earlier Hero Honda) for almost 26 years (19842010) has come from the Japanese counterpart Honda.
Timelines :
1956Formation of Hero Cycles in Ludhiana(majestic auto limited)
1975Hero Cycles becomes largest bicycle manufacturer in India.
1983Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders
Agreement signed
1984Hero Honda Motors Ltd. incorporated
1985Hero Honda motorcycle CD 100 launched.
1989Hero Honda motorcycle Sleek launched.
1991Hero Honda motorcycle CD 100 SS launched.
1994Hero Honda Motorcycle Splendor launched.
1997Hero Honda motorcycle Street launched.
1999 Hero Honda motorcycle CBZ launched.
2001 Hero Honda motorcycle Passion and Hero Honda Joy launched.
2002Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.
2003Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, Hero Honda
motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.
2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ Star launched.

 2005Hero Honda motorcycle, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle
Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure.
2007New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda
motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hunk
launched.
2008New Models of Hero Honda motorcycles Pleasure, CBZ and CBZ Xtream, Glamour,
Glamour Fi and Hero Honda motorcycle Passion Pro launched.
2009New Models of Hero Honda motorcycle Karizma ZMR and limited edition of Hero
Honda motorcycle Hunk launched
2010New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle
Hunk and New Hero Honda Motorcycle Super Splendor launched.
2011New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma
launched. New licensing arrangement signed between Hero and Honda. In August Hero and
Honda parted company, thus forming Hero MotoCorp and Honda moving out of the Hero
Honda joint venture. In November, Hero launched its first ever Off Road Bike Named Hero
"Impulse".
2012New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young
generation bike are launched.
2013Hero MotoCorp unveiled line-up of 15 updated products including Karizma R, ZMR,
Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero Motocorp, Super
Splendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also introduced three new
technologies- Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in new
Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart
2014Hero MotoCorp Launched Splendor Pro Classic, Xtreme Sports and new models of
Karizma ZMR, Karizma R, Maestro and Pleasure.
2014In October 2014, Hero updated its 100cc engine range on Passion Pro and Splendor Pro
Classic. Is should be updated on other Hero's 100cc vehicles shortly as well.
2014Hero invests $25 million into American motorcycle manufacturer EBR(Erik Buell
Racing)
Termination of Honda joint venture

In December 2010, the board of directors of the Hero Honda Group had decided to terminate the joint
venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would
buy out the 26% stake of the Honda in JV Hero Honda.

Logo of Hero Honda, as the company was known till August 2011
Under the joint venture Hero Group could not export to international markets (except
Nepal,Bangladesh and Sri Lanka) and the termination would mean that Hero Group can now export.
Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their
bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the
joint venture alone.
The Japanese auto maker will exit the joint venture through a series of offmarket transactions by giving
the Munjal familythat held a 26% stake in the companyan additional 26%. Honda, which also has
an independent fully owned two wheeler subsidiaryHonda Motorcycle and Scooter India (HMSI)
will exit Hero Honda at a discount and get over $1 billion for its stake. The discount will be between
30% and 50% to the current value of Honda's stake as per the price of the stock after the market closed
on Wednesday.
The rising differences between the two partners gradually emerged as an irritant. Differences had been
brewing for a few years before the split over a variety of issues, ranging from Honda's reluctance to
fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014)
as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another
major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to
merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle
and Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by Brijmohan
Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV) to buy out
Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be thrown open
for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis Roberts
(KKR), TGP, Bain Capital, and Carlyle Group.
Honda continued to provide technology to Hero Honda motorbikes until 2014 for existing as well as
future models.

Sports Association

Hero MotoCorp began its association with the prestigious Indian Open Golf tournament in
2005. The tournament has helped catapult the popularity of golf in India. Illustrious golfers
from around the world participate in this annual event, which boasts of the largest prize fund
sanctioned solely by the Asian Tour. Hero MotoCorp, the India's largest manufacturer of twowheelers, took over title sponsorship of the World Challenge Hero World Challenge.
Hockey is India's national sport, and Hero is committed to doing its part to promote and
popularize the sport. In 2010, Hero MotoCorp extended its support to Hockey by sponsoring the
'Hockey World Cup 2010' that was held in India. 2 years after this, Hero Motocorp was also the
sponsor of the 'FIH Road to London 2012' tournament. The company is proud to associate with,
and will continue to endorse this great sport in the future.
Our association with cricket goes a long way. Hero MotoCorp has in the past sponsored major
cricket tournaments in association with International Cricket Council (ICC), including the
cricket World Cup and the Champions Trophy. Hero has also been associated with IPL.

Formation of Hero MotoCorp

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited
on 29 July 2011. The new brand identity and logo of Hero MotoCorp were developed by the British
firm wolff olings. The logo was revealed on 9 August 2011 in London, to coincide with the third test
match between England and India.
Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any vendor
for its components instead of just Honda-approved vendors.
On 21 April 2014, Hero MotoCorp announced their plan on a $40 Mn joint venture with Bangladeshs
Notiol Niloy Group in the next five years. also hero updated its 100cc engine range in 2014 for 100cc
bikes except hero dawn.
Operations:-

Hero MotoCorp has four manufacturing facilities based at Dharuhera, Neemrana and Gurgaon in
Haryana and at Haridwar in Uttarakhand. These plants together have a production capacity of 7.6
million 2-wheelers per year. Hero MotoCorp has a sales and service network with over 6,000
dealerships and service points across India. It has a customer loyalty program since 2000, called the
Hero Honda Passport Program which is now known as Hero GoodLife Program.
It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa, AG
Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a majority
of its components.
The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million twowheelers by 201617. This in conjunction with new countries where they can now market their twowheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of
their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or
early-2012.

Products :Current lineup

Pleasure
Maestro
Maestro Edge
Duet
HF Dawn
HF Deluxe
HF Deluxe Eco
Splendor+
Splendor Pro
Splendor Pro Classic
Splendor iSmart
Passion Pro

 Passion Pro TR
Passion XPro
Super Splendor
Glamour
Glamour FI
Ignitor
Achiever
Impulse
Hunk
Xtreme (Thriller in LATAM)
Xtreme Sports (Thriller Sports in LATAM)
Karizma R
Karizma ZMR

Discontinued
Sleek
Street 100
Ambition 133, Ambition 135
CBZ, CBZ Star
CBZ Xtream
CD 100, CD 100 SS, Hero Honda Joy, CD Dawn (self Start)
In development
HX 250
iSmart 110
Xtreme Sports 200
Prototype
XF3R

 Duet E
Hastur 620
Leap
RNT
Electric-E-City
Company performance
The company has sold over 47 million 2-wheelers since its inception in 1984 till March 2013. It sold
6.07 million 2-wheelers in 2012, out of which 5.5 million were motorcycles. Hero Motocorp sells more
two wheelers than the second, third and fourth placed two-wheeler companies put together. Its most
popular bike Hero Honda Splendor sells more than one million units per year.
In 2013, Hero MotoCorp registered best ever calendar year performance of more than 6.1 million unit
sales. By selling 6.25 lakh units in the month of October, it became the first-ever manufacturer to cross
landmark 6 lakh unit sales in a month. In the last quarter of the year or say in the festive season, the
company sold more than 1.6 million units, while in non festive time in AprilMay 2013, it managed to
sell out quite good numbers of units- 1.1 million.
Listings and shareholding
The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange where it is a constituent
of the BSE SENSEX index, and the National Stock Exchange of India where it is a constituent of the
S&P CNX Nifty
As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero
Motocorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares. Foreign Institutional
Investors hold approx. 30% shares in the company.
Shareholders (as on 31-Dec-2013)
Promoter Group
Foreign Institutional Investors (FII)
Foreign Corporate Bodies
Individual shareholders
Insurance companies
Mutual Funds / UTI
Bodies Corporate
Financial Institutions / Banks

Shareholding
39.92%
30.63%
12.29%
06.44%
05.38%
02.56%
01.60%
00.53%

Others
Total

00.60%
100.0%

Employees
As on 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%). It also
had approx. 13,800 temporary employees on that date. The company had an attrition rate of 5.1% in the
FY 2012-13. The company spent INR 8.21 billion on employee benefits during the FY 2012-13.
Awards and recognition
The brand trust report published by Trust Research Advisory has ranked Hero Honda in the 7th
position among the most trusted brands in India.
It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two Wheelers
Category at the Auto India Best Brand Awards 2012.

Initiatives
The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as Hero
Honda Motors Ltd., that looks after:

Raman Munjal Vidya Mandir (an educational institution)

Raman Munjal Memorial Hospital

During the financial year, the company spent INR 14 million on Corporate Social
Responsibility.

Data Analysis and Interpretation :1) Demographic classification of respondents

a. According to age :Table 1 a

Source - Survey

Age

No. Of Respondents

18 - 22

23 - 30

22

31 - 35

11

35 <

14

Total

50

50
45
40
35
30
25

Respondent

20
15
10
5
0

18 22

23 30

31 35

35 <

50
45
40
35
30
25

Respondent

20
15
10
5
0

18 22

23 30

31 35

35 <

b. According to gender :Table 1 b

Male
39
Source Survey

Female

Total

11

50

Chart 1 b

90
80
70
60
50
40
30
20
10
0

90
80
70
60
50
40
30
20
10
0

Male
Female

Male
Female

Interpretation

The above table shows the demographic classification based on age and gender of the respondent. So
by the help of these tables we can interpret that out of 50 respondents, 09 respondent are in the age
category between the age group of 18 to 22 years. Next between the age group of 23 30years there
are 22 respondents. Then between the age of 31 35 years, I spoke to 11 people and then 35 and above
age I spoke to 14 people.
The second table depicts the number of Male and Female respondent. So out of 50 respondents 39 were
male and 11 female who were owning Hero Honda motorcycles.

2) Which Hero Honda motorcycle do you own ?

a. Splendor
g. Street

b. Passion

c. Glamour

d. CD 100

e. CBZ

f. Pleasure

h. CD Dwan

Table 2 Showing the popularity of Hero Honda Motorcycles brands :Brand Name

No. of Respondents owning the particular

brand

Splendor

11

Passion

08

Glamour

07

CD 100

05

Pleasure

04

Street

03

CBZ

04

CD Dwan

08

Total

50

Chart 2
25
20
15
10
5
0

Motorcycles brands

25
20
15
10

Motorcycles brands

5
0

Interpretation From the above table we can interpret that out of all the brands of Hero Honda present
in the market Splendor, Splendor + and Splendor Super are considered to be the most popular out of all
as out of 50 respondents 11 respondents own Hero Honda Splendor motorcycle. The second best
motorcycle according to the respondents is Hero Honda Passion.
3) What is the quality or feature of Hero Honda that attracts you the most ?
a. Appearance

b. Price

c. Performance

d. After Sales Service

e. Brand Name

f. Reliability
Table 3 showing factors that influences buying behavior of customers :Factors influencing customer buying behavior

No . Of respondents

Appearance

07

Price

06

Performance

07

After Sale service

08

Brand name

15

Reliability

07

Total

50

35
30
25
20
15
10
5
0

35
30
25
20
15
10
5
0

Chart 3

Interpretation: From the above chart we can interpret that most number of people get influenced to buy
Hero Honda bikes because of its brand name in the market. As we all know Hero Honda was the
number 1 manufacturer in the two wheeler segments. So most number of people bought Hero Honda
just because of its brand name. There are also other set of people who other than brand name give
preference to a motorcycles after sales service, reliability and performance. The number of people who
give preference to appearance and price are very less.

4) Are you satisfied with the after sales services of your motorcycle post Hero Honda split ?
Table 4 showing number of people satisfied or unsatisfied with the after sales service of motorcycles
post Hero Honda split :Yes

No

Total

41

59

100

70
60
50
YES

40

No
30
20
10
0

70
60
50
40

YES
No

30
20
10
0

Chart 4

Interpretation From the above table we can interpret that post Hero Honda split the service provided
to the customers is not as good as it would be earlier. Hence most of the consumers are not satisfied
with the post sales services given by the company. There are also instances seen that the customers
prefer to go to unauthorized service people, as they think that service provided by unauthorized people
is better than the authorized one.

5) What you think would be the reason behind the downfall of the service level post the split ?
a. Change in Process

b. Change in man power

c. Change in machineries

Table 5 showing the reasons which respondent think, may be responsible for downfall in service :Reasons

No. of respondents

Change in process

23

Change in man power

12

Change in machineries

15

Total

50

Chart 5

Interpretation From the following table it can be interpreted that the main reason people think behind
the downfall of the service level is change in process. The second reason that may bring downfall in the
service level is change in machineries.

6) Do you find any problem in availing the spare parts of your motorcycle post the split ?
Table 6 showing the no. of people having problem in availing the spare parts :Yes

No

Total

12

38

50

Chart 6

Yes

No

Interpretation From this table we can interpret that post the Hero Honda split most of the customer
have at least not faced any problem regurding the spare parts availability. The bikes which are very
popular such as Splendor, Passion, Glamour etc their parts are easily available. Where as some of the
people face problems in availing the spare parts for motorcycles such as CBZ, Glamour Fi etc.

7) Do you think older features, safety measures, performance and price was better than the new Hero
motorbikes ?
Table 7 showing the number of people satisfaction or dissatisfaction with the features :Yes

No

Total

31

19

50

Chart 7

35
30
25
20
Row 155

15
10
5
0

Yes

No

35
30
25
20
Row 155

15
10
5
0

Yes

No

Interpretation- Here by this table it can be interpreted that most of the customer think that the older
version of Hero Honda was far more better than the new version as the features in the older version
such as safety measures, performance, mileage etc were better than the new version.

8) How do you rate the cleanliness and appearance of the workshop ?

Table 8
Yes

No

Total

22

28

50

Yes
No

Interpretation By this table we come to know that most of the customer are right now not satisfied
with the cleanliness and appearance of the workshop and want the managers of the workshop to take
more care regarding the cleanliness and appearance of the workshop.

9) How do you rate the attitude of the front line staff ?

Table 9
Yes

No

Total

38

12

50

Chart 9

Yes
No

Interpretation This table interprets that the customers are currently happy with the staff members of
the company just they have the problem in the service provided by the company.