A

PRESENTATION
ON
FUNDAMENTAL ANALYSIS OF
TWO WHEELER AUTOMOBILE
INDUSTRY
 ECONOMIC ANALYSIS

 INDUSTRY ANALYSIS

 COMPANY ANALYSIS
ECONOMIC ANALYSIS
 AGRICU INDUSTRY SERVICE PUBLIC
ADMINISTR
AGREGATE
GDP
LTURE ATION
&DEFENCE
1971-1980 1.83 4.05 4.26 5.38 3.15

1981-1990 3.54 7.10 6.76 6.49 5.63

1991-2000 2.69 5.68 7.69 6.64 5.60

TOTAL 2.69 5.61 6.24 6.15 4.80

YEAR INDUSTRIAL PRODUCTION
GROWTH RATE

2003 6.00%

2004 6.50%

2005 7.40%

2006 7.90%

2007 7.50%

2008 8.50%

2009 4.80%

2010 7.60%
INDUSTRY ANALYSIS
 India, is the second largest producer of two-wheelers in the world.

 The Indian two wheeler market has a size of over Rs100,000

million.

 The segment can be broadly categorized into scooters, motorcycles

and mopeds.

 The motorcycle market share is about 76.5 % of the total two

wheeler market in India.
 According to the Society of Indian Automobile Manufacturers
(SIAM), overall vehicle sales grew 30 per cent in May 2010 to
12,08,851 units, and 8 per cent over the previous month of April
2010. Two wheeler sales rose 29 per cent, with motorcycle sales
increasing 26 per cent to 7,25,311 units, and scooter sales rising 45
per cent to 1,57,509 units in May 2010. Commercial vehicle sales
rose 58 per cent in May 2010
 Market share of two wheeler automobile
sector
Hero Honda

35.60% 27.50% Bajaj Motors

TVS Motors

Yamaha
Motors
Honda Motors

Others
9.50% 16%
4% 7%
 Skilled low cost manpower.
 State of the art machinery in most of the auto

companies
 Domestic auto company’s wide range

experience e.g. TVS Motors,Bajaj Auto ltd. etc

> Weakness:-
 Dependence on oil,iron and steel sector

heavily.
 Low in exports.
 Low income group (general public).
 1)GROWING MARKET.
       -High Quality Machinery,
       -Quality Systems in place,
-Increasing per capita income
-Certain favourable govt policies
2) Globally tuned organisation open for Foreign
Collaborations
> Threats:-
1) Foreign Players.
2)Slow Growth In Auto Sector.
3) Govt Policies
Announcement Impact

Change in income Positive This will increase the disposable income

tax slab in the hands of people, supporting
demand. Positive for two-wheelers and
car manufacturers like Bajaj Auto, Hero
Honda, TVS Motors, Maruti Suzuki, Tata
Motors and M&M
Though the rollback of 2% is less than the
expectation of 4%, it is negative for all
automobile manufacturers as prices will
Rollback of excise rise on two-wheelers (Rs 600- 1,500),
Negative
duty by 2% . three wheelers (Rs 1,700- 5,000), small
cars (Rs 3,000- 15,000), large cars (Rs
5,000- 50,000) and CVs (Rs 4,500-
50,000)
Steel prices have already started rising and
Rollback of excise a further pass on due to a rise in excise
Negative
duty on steel duties can pressurize margin of auto and
ancillary companies
Increase in spend on road
infrastructure and state Positive
transport NHAI target of 20 km/day
reiterated.

Fuels have not been spared

either with Rs. 1 per liter excise
duty being levied on Petrol and
Rise in petrol and diesel Diesel amounting to a price hike
Negative
prices
of Rs 2.67 a liter on petrol and
Rs 2.58 per liter for diesel
Vehicle running expenditure to
rise
 Market Reaction

Index Closed Points %Change

BSE Sensex 16,429.55 +175.35 +1.08%

BSE Auto 7,195.71 +349.05 +5.10

AUTOMOBILE TWO WHEELER
INDUSTRY ANALYSIS
 BAJAJ Auto LTD

 TVS LTD

 HERO HONDA LTD

 Hero Honda Motors Ltd is the World's single largest two-
wheeler motorcycle company.
 Hero Honda Motors Ltd was incorporated in the year 1984.
 The joint venture between India's Hero Group and Honda
Motor Company, Japan has not only created the world's single
largest two wheeler company but also one of the most
successful joint ventures worldwide.tor Company of Japan and
Hero Group.
 when it produced 1.3 million motorbikes in a single year.
During the fiscal year 2009, the company has sold 4, 01,290
units in comparison to 3, 85,262 units last year. And the net
profit of the company stood at Rs 1281.7 core up 32% from
the previous fiscal year.
 LISTED STOCK EXCHANGES
 Hero Honda headquarters in Delhi, India. Their share trade on
the Bombay stock exchange (BSE) & National stock exchange
(NSE). In BSE Code 500182 and NSE Code HEROHONDA.

 Financial stage
 Market Cap: [Rs.Cr.] 39612.49
 Revenue [Rs.Cr.] 4122.32
 Operating Income: [Rs.Cr.] 221
 Net Income: [Rs.Cr.] 12,540
 Total assets: [Rs.Cr.] 3,879
 Mr. Brijmohan Lall Munjal
Chairman & Whole-time Director
 Mr. Pawan Munjal

Managing Director & CEO

 Mr. Toshiaki Nakagawa

Joint Managing Director

 Mr. Sumihisa Fukuda

Technical Director
 Mr. Om Prakash Munjal

Non-executive Director
 Mr. Sunil Kant Munjal

Non-executive Director
 Mr. Masahiro Takedagawa

Non-executive Director
 Hero Honda CD-dawn
 Hero Honda CD-Deluxe
 Hero Honda Splendor Plus
 Hero Honda Splendor NXG
 Hero Honda Passion Plus
 Hero Honda Super Splendor
 Hero Honda Glamour
 Hero Honda Achiever
 Hero Honda CBZ Xtreme
 Hero Honda Hunk
 Hero Honda Karizma Hero Honda Karizma ZMR
 Hero Honda Pleasure
 1983Joint Collaboration Agreement with Honda Motor Co. Ltd.
Japan signed Shareholders Agreement signed
 1984Hero Honda Motors Ltd. incorporated
 1985First motorcycle "CD 100" rolled out
 1987100,000th motorcycle produced
 1989New motorcycle model - "Sleek" introduced
 1991New motorcycle model - "CD 100 SS" introduced 500,000th
motorcycle produced
 1994 New motorcycle model - "Splendor"
introduced 1,000,000th motorcycle produced
 2000 4,000,000th motorcycle produced Environment
Management System of Gurgaon Plant certified ISO-14001 by
DNV Holland  Splendor declared 'World No. 1' - largest selling
single two-wheeler model 
 2003 Becomes the first Indian Company to cross the cumulative
7 million sales mark
 BALANCE SHEET

 PROFIT & LOSS ACCOUNT

 RATIO ANALYSIS
 Head Quarter at Akurdi Pune
 Key people

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman
Rajiv Bajaj Managing Director
S Sridhar CEO
 Revenue : Rs. 81.063 billion
 Employees: 10250
 Stock code: BSE: 532977
NSE: BAJAJ AUTO
 Founded in 1945, by Jamnalal Bajaj as M/S Bachraj
trading corp. it started by selling imported two &
three wheelers in India.
 In 1959 it obtained license to produce 2 & 3 wheelers
 In 1960 it went into public
 In 1977 they produced & sold 1 lac vehicles in single
year
 In 1990 Bajaj auto had technical tie up with
Kawasaki
 Bajaj
auto has three plants in Maharashtra, at
Akurdi, Walunj, and Chakan.

 The2nd largest 2- wheeler manufacturer in

India and the largest 3 wheeler manufacturer.

 Distribution network covers 50 countries.

 Plant Capacity Products
(in units)
 Waluj 1,860,000 Boxer, Platina, XCD
all 3 wheelers
 Chakan 1,200,000 Pulsar, Avenger
Discover
 Pantnagar 900,000 Platina, Platina125
XCD
 Total 3,960,000
Bajaj Pulsar Bajaj Sunny
Bajaj Discover Bajaj Chetak
Bajaj Avenger Bajaj M-80
Bajaj Platina Bajaj Saffire
Bajaj CT100 Bajaj Wave
Bajaj Boxer Bajaj Legend
Bajaj Caliber Bajaj spirit
Bajaj XCD 125 Bajaj Vespa150
Upcoming Models: Bajaj Blade
Bajaj Sonic
 2007-08 2008-09
Nos) (Nos)

Motorcycles 2,139,779 1,907,853

Scooters 21,316 11,772

Total Two wheelers 2,161,095 1,919,625

 Strengths:
 High experienced Management
 Extensive R & D focus
 Legeacy of brand name
 Widespread distribution network
 Weakness:
 Still not have brand to match splendor
 Centralised paternalistic management style
 Not a global player in huge volume
 No collaboration with any of the foreign player
 Opportunities:
 The growing gearless trendy scooter market
 Double digit growth in 2-wheeler market
 Growing demand for motorcycles
 Threats:
 Threat of cheap imported motorcycles from china
 Tough competition faced by foreign as well as
domestic players
 BALANCE SHEET

 PROFIT & LOSS ACCOUNT

 RATIO ANALYSIS
Founded 1978, Founder- Venu Srinivasan
 Headquarters:- Chennai, India.

KEY PEOPLE:-
 Venu Srinivasan, Chairman.

K N Radhakrishnan, President & CEO.

S G Murali, CFO.
 TVS Apache
 TVS Apache RTR FI 160
 TVS Centra
 TVS Fiero FX
 TVS Flame
 TVS Scooty
 TVS Star
 TVS Victor
 TVS Victor GLX 125
 TVS XL Super
 TVS 180 RTR Menace( new)
 TVS Jive (new)
 TVS Apache RTR 220 (new)
 TVS Motors: The flagship company. It was started as
a JV between Sundaram Clayton, a group company,
and Suzuki Motors, Japan. Subsequently the partners
went their separate ways. Revenue was approximately
USD1 billion in 2006-2007.Headed by Venu
Srinivasan.

 Sundaram Finance: The financial services arm of the

group was established in 1954. It owns majority or
substantial stakes in Royal Sundaram Alliance General
Insurance Company, Sundaram BNP Paribas Mutual
Fund and Sundaram BNP Home Finance Limited.

 ZF Electronics TVS (India) Private Limited :The

company manufactures precision snap action
switches, sensors and electromechanical assemblies
in India.
 Wheels India: The company manufacturers automotive wheels and air
suspension in collaboration with Titan Plc, UK. It had revenues of
Rs.1000 crores in 2006-2007. It is headed by Mr. S. Ram.

 Axles India: A subsidiary of Wheels India, the company manufactures

axles used in commercial vehicles. It is headed by S.Ram. It had
revenues of Rs.300 crores in 2006-2007.

 Brakes India: The company manufactures automotive brakes, iron

castings and plastic moulding. It has manufacturing facilities at 6
locations. It is headed by S.Viji. It had revenues in excess of Rs.1000
crores in 2006-2007.

 Sundaram Fasteners: The company is the leading player in the industrial

fasteners space in India.

 Turbo Energy Limited: Manufactures turbo chargers for diesel engines in

collaboration with BorgWarner Turbo Systems, U.S.A. at its
manufacturing facilities located at Pulivalam, around 100 km from
Chennai
 1980 India's first 2 seater 50cc Moped TVS 50, launched in Aug.

 1984 First Indian Company to introduce 100cc Indo-Japanese motorcycles .

 Sept. 1994 Launched first indigenous Scooterette (sub-100 cc variomatic

scooters), TVS Scooty in June. 1996 Introduced first catalytic converter enabled
motorcycle, the 110cc Shogun in Dec.

 In 1997 Launched India's first 5-speed motorcycle, the Shaolin .

 Oct. 2000 Launched TVS Fiero, India's first 150 cc, 4 stroke motorcycle in April.
2001

 Launched TVS Victor, 4-stroke 110 cc motorcycle, in August, India's first fully
indigenously designed and manufactured motorcycle.

 2004 Launched TVS Centra in January, a world-class 4-stroke 100 cc

motorcycle with the revolutionary VT-i Engines for best-in-class mileage.

 Launched TVS Star in Sept, a 100 cc motorcycle which is ideal for rough terrain.