Hero Motocorp

INDIAN AUTOMOBILE INDUSTRY

ANALYSIS

The Indian automobile market is the second largest in the world and has
surpassed China a couple of years ago.

It has grown up very fast in last one decade due to rising family income,
changing lifestyle, low vehicle penetration, easy finance availability,
rapid urbanization and poor public transport system.

Last year auto market growth was flat to negative due to slowdown in
economy growth. However market recovered in this financial year 201415.

The long-term demand seems to be very strong due to growing demand,

policy support and increasing investment. Indian automobile industry is
clearly dominated by 2 to 3 players in every vehicle category.

Industry SWOT Analysis

TWO WHEELER INDUSTRY ANALYSIS

India is Worlds second largest producer in Two Wheeler segment. India

stands next only to Japan and China in terms of the number of twowheelers produced and domestic sales respectively.

CAGR (compound annual growth rate) is 13.7% from last five years.

The two-wheeler production in India for FY13-14 is increased by 7% to

16.9 million units against 15.7 million units in FY12-13.

Growing young and working population from both rural and semi urban
areas have contributed for the strong growth in last 5 years in two
wheeler industry.

About Hero Motorcorp

Industry Automotive

Type -Public Company

Founded- 19 January 1984

Founder(s)- Brijmohan Lall Munjal

Headquarters- New Delhi, India

Area served- India, Sri Lanka

Key people-Brijmohan Lall Munjal (Chairman) Pawan Munjal (MD & CEO)

Products- Motorcycles, Scooters

Revenue- Rs 241 Billion (2013)

Net Income- Rs 21 Billion (2013)

History & Background

Hero MotoCorp Ltd is the world's largest manufacturer of two wheelers.

Formally it was known as Hero Honda .It started in 1984 as a joint

venture between Hero Cycles of India and Honda of Japan.

In 2010, when Honda decided to move out of the joint venture, Hero
Group bought the shares held by Honda.

In August 2011 the company was renamed Hero MotoCorp with a new
corporate identity.

The new brand identity and logo of Hero MotoCorp were developed by
the British firm Wolff Olins.

Vision & Mission

Vision

A mobile and an empowered India, powered by its two wheelers. Hero

MotoCorp Ltd., company's new identity, reflects its commitment towards
providing world class mobility solutions with renewed focus on
expanding company's footprint in the global arena.

Mission

To become a global enterprise fulfilling its customers' needs and

aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates.

Operations

Hero MotoCorp has three manufacturing facilities based at Dharuhera

and Gurgaon in Haryana and at Haridwar in Uttarakhand.

Plants together have a production capacity of 6.9 million 2-wheelers per

year.

It has a sales and service network with over 3,000 dealerships and
service points across India.

The company has a stated aim of achieving revenues of $10 billion and
volumes of 10 million two-wheelers by 201617.

COMPETITION
Sales (Units sold)
Apr-June 2014
501643 205006
1395001678476
953501
490841

Main Competitors- HMSI, Bajaj Auto

HMSI
Overtook Hero in 125-150cc segment(20% vs 19.6%)
Closing sales gap in 110-125cc segment(3418 units from 26542
units)

Bajaj
Market leader in 125-150cc segment (46%)

SWOT ANALYSIS
Strengths

Weakness

1. Huge brand equity and one of the

biggest players in the two wheelers
Indian market2. Excellent R&D, and
wide variety of products in every
segment.3. Excellent distribution,
over 3000 dealerships and service
centers 4. Good advertising and
excellent rebranding from Hero
Honda to Hero Moto Corp

1. Absence in the premium bike

segment2.High imports for its spare
parts i.e. over 30% imports3. Most of
the products have similar features
and low on design and innovation

SWOT ANALYSIS
Oppurtunities

Threats

1.Two-wheeler segment is one of the

most growing industries2.Export of
bikes is limited i.e. untapped
international markets

1. Strong competition from Indian as

well as international brands2.
Dependence on government policies
and rising fuel prices3. Better public
transport will affect two-wheeler
sales

Product Portfolio

Achiever

Ambition 133, Ambition 135

CBZ, CBZ Star, CBZ Xtreme, Hero New Xtreme 2014

Glamour, Glamour F.I.

Hunk

Karizma, Karizma R, Karizma ZMR FI

Passion, Passion Plus

Splendor, Splendor+,

Hero Impulse

Hero Ignitor

Code of conduct

Avoid receiving, or permitting members of their immediate family to

receive, improper personal benefits from the company

Comply with all applicable laws, regulations, confidentiality obligations

and corporate policies of the Company

In carrying out their duties and responsibilities, Director and Specified

employees should endeavour to deal fairly, and should promote fair
dealing by the Company, its employees and agents, with customers,
suppliers and employees.

Dream Job - Program

Job Title - Program Manager Supply Chain

Key Roles & Responsibilities

Participatein idea generation. Best market practices benchmarking,

Replication, New Product Development, Supplier Design Optimization
etc.

Implementation of cost reduction ideas for sourcing, features

optimization, Out-bound Logistics etc. as per cost, quality & delivery
agreements

Co-ordinate with various functions like in-house, suppliers & external

consultant to ensure ideas are implemented as per plan.

Sr. Manager

Roles & Responsibility

- Prospecting, identifying and developing new corporate clients.
- Achieving monthly sales targets
- Understands the training business and what drives profitability
- Analysing leads and opportunities to identify prospects and strategize sales pitch
- Ability to work under pressure
- Managing existing clients
- Maintains good long term relations with existing and new clients

Industry Knowledge
- Understands corporate training products and services
- Understands process improvement initiatives
- Knowledge about the competitors of HMIL

Skills & Preferences

- Excellent communication and writing skills
- Good presentation skills
- Self motivated
- Self starter
- Good knowledge of computers (MS Office)

Thank You !!