Two Wheeler Industry in India and

Integrated Marketing Communication

Presented By: Vikas Misar

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History

• In 1955, the Indian government needed sturdy and reliable

motorcycles for its Army and police to patrol the rugged border

highways. The first batch of 350cc Bullet from the Royal Enfield

Company of UK were received and assembled at Chennai.

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Overview• India, is the second largest producer of two-

wheelers in the world. In the last few years, the Indian two-wheeler industry has seen

spectacular growth. The country stands next to China and Japan in terms of production and

sales respectively.  

• Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing

a large share in the two-wheeler industry, bikes and scooters cover a major segment.

Bikes are considered to be the favorite among the youth generation, as they help in easy

commutation. 3

AUTOMOBILE

2 WHEELER 3 WHEELERPASSENGER

VEHICLECOMMERCIAL

VEHICLE

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS

I.C.V. M.C.V. H.C.V.

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Market Size• The two-wheeler market in India is the biggest

contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds. 

• In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers.

• The motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths of the total exports in the two wheeler automobile industry are made in the motorcycle segment. Exports are made mainly to South East Asian and SAARC nations.

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Fleet composition of all

vehicles

Two wheelers

Three wheelers

Cars,Jeeps & Taxies

Buses

Goods Vehicles

Others (Tractors,Trailors & miscellaneous)

Three Wheelers4%

(2.37 million)

Cars, Jeeps and Taxies13%

(7.69 million)

Buses 1%

(0.59 million)

Goods Vehicles5%

(2.96 million)

Others(Tractors, Trailors

and miscellaneous)6%

(3.55 million)

Two Wheelers71%

(42 million)

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Some of the features that deserve attention in respect of the Indian

two wheeler segment are as mentioned:

• The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period reached 8.63 million units.

• The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12, more than double of the current production level.

• India is likely to export 1.39 million two-wheelers in 2011-12 compared with 590,000 in 2006-07.

• Total investment for new capacity generation in two-wheeler segment is likely to be more than $2.2 billion (INR10, 000 crore). 7

Number of players Bajaj Auto

Hero HondaTVS Motors

Yamaha MotorsSuzuki MotorsHonda MotorsRoyal Enfield

KineticLML India

Mahindra Two Wheelers

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Indian 2-Wheeler Market

HONDA

Motorcycle50%

30%13%

4% 1% 2%<1%

-<1%

- 15%28%

- 2%46%

9%<1% -

- -82%

- - - 8% 10% -

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Market Share - Motorcycle

Bajaj Auto, 24.4%

TVS Motors, 17.7%

Yamaha, 3.8%

Others, 5.8%

Honda Motors, 8.5%

Hero Honda, 39.8%

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Top Three Players

• HERO HONDA

• BAJAJ AUTO

• TVS MOTORS

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Hero Honda Motors Ltd is one of the leading companies in the two-wheeler industry. At present, it is the market leader in the motorcycle segment with around 40% of the market share. The company has emerged as one of the most successful players, much ahead of its competitors an account of its superior and reliable product quality complemented with excellent marketing techniques. The company has been consistently addressing the growing demand for motorcycles and has a cumulative customer base of over 5 million customers, which is expected to reach 6mn mark with the rural and semi-urban segment being the new class of consumers.

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Company Profile"Hero", the brand name symbolizing the

steely ambition of the Munjal brothers, came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today.

Joint Venture between Hero Group and the Honda Motor Company of Japan, has today become the World's single largest two wheeler Company. Started with the initial investment of Rs.55 crores, Hero Honda Motors Limited came into existence on January 19, 1984.

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Hero Honda offers the following products

CD 100  KarizmaCD 100 SS AmbitionSplendor  Ambition 135Passion Splendor +CBZ Passion PlusCD Dawn CBZ Star

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Advertising StrategyHHML is an organization, which is known for

its innovative & Aggressive Marketing. The advertising budjet is of Rs.120 crores. All the mediums are used extensively, be it print or mass media like T.V & hoardings.

HHML also promotes sports in the country. It is also the sponsor of the ICC world Cup 2003 and half of the Indian team represents Hero Honda.

Also, advertising is done at a local level by dealers, in which HHML also contributes to help dealer promote the dealership in the local area.

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Some of the Events Sponsored During the

Years1993

Hero Cup – Five Nation Cricket Tournament. 1999

Masters Golf Championship.7th Cricket World Cup in England. 

2000NKP Salve Challenger Trophy.

Stardust Hero Honda Millennium Honors Award.Masters Golf Championship.

20th Cinema Express Award. 2002

India-England Women's Cricket Series.Masters Golf Championship.

Second Indian Television Academy Award.21st Cinema Express Award.

India-England Test Series.First Indian Television Academy Award. 

20038th Cricket World Cup in South Africa.

2004ICC Champions Trophy in England.

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Brand Ambassadors

Indian Cricket team Players: Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh, Zaheer Khan and Sourav Ganguly.

Superstar Hrithik Roshan is also a Brand Ambassador who helps to promote company’s "We Care" campaign comprising safety riding, environment and friendliness

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Some of the famous ads…

• ‘Fill it - Shut it - Forget it’ (Splendor).• ‘We Care’ campaign.• ‘Hero Honda Dhak Dhak Go’ (Music Video)• ‘Jet Set Go’ (Karizma)

A fighter plane is on a regular sortie when the pilot notices a moving object. Zooming his camera, he captures a bike cruising at high speed. Informing the control tower, the pilot dives in for a closer look.

The bike gathers speed and enters a tunnel to beat the fighter aircraft. Reaching the air-base, the rider meshes with the staff as they examine the images... ... of the motorcycle, unaware that its owner is amidst them.

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Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. It then obtained a production license in 1959 and struck a technical collaboration with Piaggio of Italy in 1960 and continued with the same for the next two decades. Its collaboration with Piaggio expired in 1971 and since then the Company's scooters and three wheelers are sold under the "Bajaj" brand name. And then entered in Motorcycle market.

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Bajaj Auto offers the following products

CT 100 Avenger

Platina Discover

Caliber 115 Eliminator Wind 125 Kawasaki Ninja Pulsar 150 KS 

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Advertising Strategy

Bajaj Auto is an aggressive advertiser. The advertising Budget of Bajaj Auto is more than Rs.100 Crore. Bajaj has a distinct style of promoting its products, for every product launched there’s a new and fresh advertising strategy, developing the firm-positioning platform.

Brand Ambassador :Cine Star of Asia, Jackie Chan.

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Some of the famous ads…

• The very first TV Commercial of the Bajaj Discover DTSi (125 cc at that time) in 2004 featured the Cine Star of Asia, Jackie Chan..!!

• New Bajaj Pulsar DTS-Fi 220, the sountrack in the video plays ‘Hamara Bajaj’ in its latest avatar..!!

• Pulsar mania – bike stunts of different range.• ‘The Fastest Indian’ – New Pulsar 135

Robber robs the bank and disappear within few minutes on bike before cops arrives.

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Chatting merrily, three

girls

walk by a line of

motorbikes.

One's dupatta skims over

the

bikes and then gets

stuck...

...making her turn in

consternation. She pulls it

away

slowly to reveal...

... The logo,

"Pulsar“.

’Definitely

Male’

Some of the famous ads contd…

• TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-wheeler manufacturers. With a turnover of over Rs.2800 crores, the Company manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. Little wonder, it boasts of more than 9.5 million happy customers.

• The year was 1980, was a year to remember for the Indian two-wheeler industry. For it was this year that saw India's first two-seater moped, TVS 50, rolling out on the Indian roads. For some it was freedom to move. 

• With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the first Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984. Through an amicable agreement the two companies parted ways in September 2001.

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TVS Motors offers the following products

Star City Victor GLX

Star Sport Fiero F2/FX

Jive Apache

Centra Flame Victor GL

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Advertising Strategy

• The aggressive marketing strategy along with the changed approach to advertisement campaign boosted the demand for the TVS models. 

• Agency created the campaign designs which included print ads, banners, handbills, road show kits, truck floats etc.

• ‘Musical Nite’ for those who booked / purchased bikes during the period was organized by the agency.

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Advertising Strategy contd… ‘Meet Sachin Tendulkar’ Campaign: Lucky draw winners were invited to meet Sachin. Bikes autographed by Sachin were handed

over to the winners and they got a chance to interact with the winners.

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Brand Ambassadors

Sachin TendulkarMS Dhoni

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Racing Bar unleashed (TVS Apache RTR)

Recent Ads

Future of Two Wheeler Industry

Opportunity, Challenges and Plan

Opportunities • Rising rural demand.• Market penetration of only 37

percent.• Collaboration with global firm.• Investment in R&D by government.• Excise duty cut.

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Challenges

• Sustaining the growth rate.• Need for innovation – low cost/

hybrid vehicles.• Upgrading Indian two-wheeler

products.• Taking the products to the global

market.• Capturing Indian as well as global

market. 30

Plans

• Encourage exports.• Provide various two-wheeler

financing schemes among manufacturers.

• Open R&D centers.• Pressurize government to reduce

taxes and duties.• Collaborate with global players.

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Thank you

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