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MNC’s Honda Yamaha & Suzuki are coming in a very big way to capture Indian 2-Wheeler domestic market
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samad patel
May 7, 2013, 12:15:50 PM5/7/13
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MNC’s Honda Yamaha & Suzuki are coming in a very big way to capture Indian 2-Wheeler domestic market
Overview:
We are cautious on the Indian 2-W sector growth, as we have witnessed volumes slowing down over the previous few quarters and that scenario only worsening further. Demand sentiment continued to suffer from weak macroeconomic conditions, increasing fuel prices, inflation and high interest rates. As per our interactions with companies’ managements and channel checks with dealers and financier, Indian Domestic player continues to bore the maximum brunt of the current economic slowdown leading to discounts going up due to poor demand.
As per SIAM report, last year motorbikes growth was 1% negative, according to us, it is more than 10% negative due to inventory sales. Over 2/3rd of the dealers indicated that inventory sales have increased from 2 weeks to 6-8 weeks or higher with Bajaj auto, Hero & TVS topping the list. The scooter segment will further continue to grow at 16% in coming years due to convenient usage to all age group (18-60 & ladies/gents) & consumers changing preference, but in motorbike segment further negative growth is expected for the next 3-4 years. In Rural area, the target segment already owns a two-wheeler further jeopardize the rural demand.
Hero Motocorp
The world's largest two-wheeler maker by volume, Hero MotoCorp, will invest 2,575 crore to set up two new manufacturing plants in Gujarat, Rajasthan and a new R&D centre by 2013-14. The company have started despatches to new international markets in Central and Latin America and Africa. The first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa . It would also start assembly plants in Kenya, Nigeria , Latin America, Africa and Colombia. In Srilanka, they have a distribution network of more than 50 outlets that would eventually be doubled in the next one year and further to strengthen their customers base , they are giving 5-year warranty on all their two-wheelers. These initiatives are in keeping with Hero MotoCorp's vision of reaching a total of 10 million unit volumes in a few years.
HMSI (Honda Motorcycle and Scooter India)
Japanese two-wheeler maker Honda Motorcycle and Scooter India HMSI vision to be No.1 in India has prepond from 2020 to 2016. The company has invested Rs 1,500 crore in setting up of its third plant in Karnataka, which had taken its total production capacity to 40 lakh units a year. The company has three plants at Manesar in Haryana, Tapukara in Rajasthan and Narasapur in Kolar district near Banglore with an annual output of 16 lakh units, 12 lakh units & 12 lakh units respectively. They are further coming up with their 4th and 5th manufacturing plant most probably in Gujarat and Hyderabad (according to Honda’s executive staff). With their superior technology they have already penetrated in the Premium segment with their CBR 150, Unicorn and CB Trigger. And as per HMSI Vice-President (Sales and Marketing) Y S Guleria (during the inauguration of Sai Point in Nagpur on 18th April )said that the company is planning to launch, CBR 200 to further strengthen their position in sport segment along with CBR 250, where Bajaj Auto has more than 50% market share and it is also reducing the rate of CBR 150 by Rs. 32000-35000. With new launches in Dream series i.e Dream Yuga and Dream Neo would be directly pit ted against Bajaj Auto’s Discover 100T, 125 and Hero’s Splendor. Their sales target in Dream series is 8 lacs units in current financial year and 12 lacs units in the next year. The company further doubling the production capacity of Unicorn & Shine to reduce the waiting period and it also plans to expand its sales outlets to about 2,500 by end of this fiscal.
YAMAHA
Japanese two-wheeler giant Yamaha, said it is working on to develop the cheapest bike at around USD 500 for both India and export markets. They are doubling their production capacity to minimize the waiting period. This year the company is looking to sell 7.1 lakh units per annum of motorcycles and scooters and by 2018 they target to sell a total of 28 lakh units per annum.
SUZUKI
Suzuki, in a bid to carve its place in the India two-wheeler category, has announced an expansion plan under which it will increase its annual production capacity from 3.6 lakh units to 5.4 lakh units and also strengthen its dealer and service network by the end of 2013.
ROYAL ENFIELD
Royal Enfield to invest Rs 350 crore for the period of 5 year for a new plants to double the production capacity from existing capacity of 1.5 lac units per annum in 2nd quarter of 2013 to minimize the waiting period.
PIAGGIO
The Italian Auto-Maker, Piaggio is aiming to sell around 1,00,000 units of its retro style premium scooter Vespa, is ready to increase its production capacity from the present 1.5 lakh units per annum to a whooping 3 lakh units per annum by 1st half on 2013
CONCLUSION
MNCs have deeply penetrated the Indian two-wheeler industry and are spreading their reach all over India with extensive distribution network and service stations. They are further targeting 40% Y-o-Y growth in next 3-4 years. Due to this, it will lead to an intense competition and price war directly affecting the local players like Bajaj Auto, Hero and TVS.
For more info find the below various link :-
Honda kickstarts 3-year plan to beat Hero in 2-wheelers
Shinji Aoyama is a breath of fresh air. The Japanese honcho welcomes you with a namaskar. He is comfortable speaking English. He reels out numbers in lakhs and crores (typically Indian denominations). And he knows how to deal with swarming reporters looking for their daily fix without getting flustered. "One by one please. I will answer all your questions," he says calmly.
Aoyama is the operating officer of Honda Corporation's motorcycle business based out of Japan. And he has just infused some vroom in the local two-wheeler industry. "Very soon, we will make the dream to become No. 1 [in India] come true," he announced at a recent press conference.
Former head of Honda Motorcycle and Scooter India (HMSI), who spent four years as India CEO between 2007 and 2011, Aoyama should know what he is talking about. "Given the current scenario in India, I believe it will not be 2020 but 2016 or even 2015 by when we will attain No. 1 position here," he says.
That Honda wants to be numero uno in India is hardly surprising. The two-wheeler giant is the leader in virtually every country it operates in, except China. In Brazil, it has a dominant 80% share, and controls half of the pie in Indonesia.
What is eye-popping is the hurry in which Honda wants to rule Indian roads. A little over two years after it exited a joint venture with the Hero group, HMSI has overtaken TVS and more recently edged ahead of former No. 2 Bajaj Auto to become the second-largest two-wheeler company in India.
http://articles.economictimes.indiatimes.com/2013-03-31/news/38163297_1_keita-muramatsu-scooter-india-india-ceo
Honda Motorcycle & Scooter India planning 4th manufacturing plant, looking for a location
GURGAON: Country's second largest two-wheeler maker Honda Motorcycle & Scooter India today said it is looking for a suitable location to set up its fourth manufacturing facility to ramp up production.
"We are looking for a new site. We are studying various options and talking to different states," Honda Motorcycle & Scooter India (HMSI) Vice-President (Sales and Marketing) Y S Guleria told PTI.
The company, which is a wholly-owned subsidiary of the Japanese auto giant Honda, is exploring possibilities across the country for setting up its fourth plant, he added.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/honda-motorcycle-scooter-india-planning-4th-manufacturing-plant-looking-for-a-location/articleshow/19598162.cms
Honda debuts new bike 'Dream Neo' targeting Hero’s Splendor
NEW DELHI: Honda Motorcycle and Scooter India, country's second-largest two-wheeler company, launched a new 110cc motorcycle, the Dream Neo, targeting its rival Hero MotoCorp's largest selling model, Splendor.
Honda's second bike in the Dream series, Neo would be priced at Rs 43,150 (ex-showroom Delhi), making it the company's cheapest twowheeler model sold in the country. The company aims to sell three-lakh units of Neo in the current fiscal, and around 8 lakh bikes under its Dream badge in the same period.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/honda-debuts-new-bike-dream-neo-targeting-heros-splendor/articleshow/19593259.cms
Yamaha India targets selling 0.71 mn vehicles in FY14
NEW DELHI: Yamaha India unit aims to sell 710,000 vehicles through domestic sales and exports in the fiscal year that began this month, Chief Executive Hiroyuki Suzuki said on Tuesday.
The company, which makes motorcyles and scooters, sold about 448,000 vehicles in the first 11 months of the fiscal year that ended in March
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/yamaha-india-targets-selling-0-71-mn-vehicles-in-fy14/articleshow/19456671.cms
Yamaha to develop $500 bike in India for global markets
NEW DELHI: Japanese two-wheeler giant Yamaha on Tuesday said it is working on to roll out a motorcycle priced at around $500 from India with the setting up of its fifth global research and development centre.
Claiming that the bike will be "the world's cheapest motorcycle", the company said India will become the global hub for development of low-cost bikes, which will be exported to other countries in Africa and Latin America.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/yamaha-to-develop-worlds-cheapest-bike-in-india-for-global-markets/articleshow/19456810.cms
Eicher Motors to invest Rs 350 crore in Chennai for Royal Enfield's new plant
MUMBAI: Buoyed by the increase demand for its motorcycles, the maker of Royal Enfield, Eicher Motors Limited has signed a MoU with the government of Tamil Nadu to invest Rs 350 crore in the state for the period of 5 years. The investment will largely be towards the current and future capacity expansion projects of Royal Enfield in Chennai that have been undertaken owing to the growing demand of its motorcycles worldwide.
The new plant will enable Royal Enfield to expand production capacity to 1,50,000 units per annum in the first phase. The work is on schedule for the proposed Royal Enfield plant and the first phase is slated for completion by the first quarter of 2013. Siddhartha Lal, director & CEO of Eicher Motors Limited told ET, "Once the new plant comes on stream, it will be a great help to deliver more number of motorcycles to the waiting customers.
http://articles.economictimes.indiatimes.com/2012-05-14/news/31701276_1_royal-enfield-siddhartha-lal-new-plant
Suzuki Motorcycles plans to expand capacity with an investment of Rs 500 Crore
The Indian subsidiary of Japanese two-wheeler giant- Suzuki continues their campaign here in the subcontinent with plans to expand capacity over the coming years. The bike maker has chalked out plans to setup a new manufacturing unit at Rohtak, Haryana by 2014-15. They are also looking at increasing the capacity of the current assembly line at Gurgaon with an additional investment of Rs 500 crore. That said, they haven’t disclosed the amount that will be invested in the upcoming Rohtak unit.
http://www.gaadi.com/blog/suzuki-motorcycles-plans-to-expand-capacity-with-an-investment-of-rs-500-crore
Piaggio Plans To Expand Vespa’s Presence In India
Piaggio is aiming to sell around 1,00,000 units of its retro style premium scooter Vespa, as the Indian market gave an overwhelming response to the product. According to Ravi Chopra, chairman and MD, Piaggio Vehicles, the target of selling 1,00,000 units of the Vespa can be achieved by rolling out different versions of the scooter and expanding the brand’s market presence. Piaggio currently offers Vespa LX125 model in India with automatic transmission, which in comparison with other automatic scooters is quite expensive.
Mr. Chopra has confirmed that the company is considering a disc brake version along with a sporty version of the Vespa to launch during this year. He added that Piaggio is going to increase the production capacity by October this year, currently the capacity is 1,50,000 units. The company has already invested 30 million Euros (Rs. 217 crores) in the facility till date and will invest for the development of new variants accordingly. After the launch of Vespa, the company has sold around 25,000 units of the scooter till date
http://www.motorbeam.com/bikes/vespa/piaggio-plans-to-expand-vespas-presence-in-india/
Hero MotoCorp announces five-year warranty on all two wheelers
NEW DELHI: Country's largest two-wheeler maker Hero MotoCorp has announced a warranty of five years on all its models.
The warranty will be of five years or 70,000 km on motorcycles, whichever is earlier and five years or 50,000 km on scooters, whichever is earlier, the company said in a statement.
"Staying true to our splendid legacy, all Hero two- wheelers will now have a 5-year warranty. Hero MotoCorp is the first manufacturer in the country to offer this benefit," Hero MotoCorp Senior VP (Marketing and Sales) Anil Dua said.
The company said initiatives like this have resulted in strong customer commitment and trust in Hero.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/hero-motocorp-announces-five-year-warranty-on-all-two-wheelers/articleshow/19540668.cms
Overview:
We are cautious on the Indian 2-W sector growth, as we have witnessed volumes slowing down over the previous few quarters and that scenario only worsening further. Demand sentiment continued to suffer from weak macroeconomic conditions, increasing fuel prices, inflation and high interest rates. As per our interactions with companies’ managements and channel checks with dealers and financier, Indian Domestic player continues to bore the maximum brunt of the current economic slowdown leading to discounts going up due to poor demand.
As per SIAM report, last year motorbikes growth was 1% negative, according to us, it is more than 10% negative due to inventory sales. Over 2/3rd of the dealers indicated that inventory sales have increased from 2 weeks to 6-8 weeks or higher with Bajaj auto, Hero & TVS topping the list. The scooter segment will further continue to grow at 16% in coming years due to convenient usage to all age group (18-60 & ladies/gents) & consumers changing preference, but in motorbike segment further negative growth is expected for the next 3-4 years. In Rural area, the target segment already owns a two-wheeler further jeopardize the rural demand.
Hero Motocorp
The world's largest two-wheeler maker by volume, Hero MotoCorp, will invest 2,575 crore to set up two new manufacturing plants in Gujarat, Rajasthan and a new R&D centre by 2013-14. The company have started despatches to new international markets in Central and Latin America and Africa. The first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa . It would also start assembly plants in Kenya, Nigeria , Latin America, Africa and Colombia. In Srilanka, they have a distribution network of more than 50 outlets that would eventually be doubled in the next one year and further to strengthen their customers base , they are giving 5-year warranty on all their two-wheelers. These initiatives are in keeping with Hero MotoCorp's vision of reaching a total of 10 million unit volumes in a few years.
HMSI (Honda Motorcycle and Scooter India)
Japanese two-wheeler maker Honda Motorcycle and Scooter India HMSI vision to be No.1 in India has prepond from 2020 to 2016. The company has invested Rs 1,500 crore in setting up of its third plant in Karnataka, which had taken its total production capacity to 40 lakh units a year. The company has three plants at Manesar in Haryana, Tapukara in Rajasthan and Narasapur in Kolar district near Banglore with an annual output of 16 lakh units, 12 lakh units & 12 lakh units respectively. They are further coming up with their 4th and 5th manufacturing plant most probably in Gujarat and Hyderabad (according to Honda’s executive staff). With their superior technology they have already penetrated in the Premium segment with their CBR 150, Unicorn and CB Trigger. And as per HMSI Vice-President (Sales and Marketing) Y S Guleria (during the inauguration of Sai Point in Nagpur on 18th April )said that the company is planning to launch, CBR 200 to further strengthen their position in sport segment along with CBR 250, where Bajaj Auto has more than 50% market share and it is also reducing the rate of CBR 150 by Rs. 32000-35000. With new launches in Dream series i.e Dream Yuga and Dream Neo would be directly pit ted against Bajaj Auto’s Discover 100T, 125 and Hero’s Splendor. Their sales target in Dream series is 8 lacs units in current financial year and 12 lacs units in the next year. The company further doubling the production capacity of Unicorn & Shine to reduce the waiting period and it also plans to expand its sales outlets to about 2,500 by end of this fiscal.
YAMAHA
Japanese two-wheeler giant Yamaha, said it is working on to develop the cheapest bike at around USD 500 for both India and export markets. They are doubling their production capacity to minimize the waiting period. This year the company is looking to sell 7.1 lakh units per annum of motorcycles and scooters and by 2018 they target to sell a total of 28 lakh units per annum.
SUZUKI
Suzuki, in a bid to carve its place in the India two-wheeler category, has announced an expansion plan under which it will increase its annual production capacity from 3.6 lakh units to 5.4 lakh units and also strengthen its dealer and service network by the end of 2013.
ROYAL ENFIELD
Royal Enfield to invest Rs 350 crore for the period of 5 year for a new plants to double the production capacity from existing capacity of 1.5 lac units per annum in 2nd quarter of 2013 to minimize the waiting period.
PIAGGIO
The Italian Auto-Maker, Piaggio is aiming to sell around 1,00,000 units of its retro style premium scooter Vespa, is ready to increase its production capacity from the present 1.5 lakh units per annum to a whooping 3 lakh units per annum by 1st half on 2013
CONCLUSION
MNCs have deeply penetrated the Indian two-wheeler industry and are spreading their reach all over India with extensive distribution network and service stations. They are further targeting 40% Y-o-Y growth in next 3-4 years. Due to this, it will lead to an intense competition and price war directly affecting the local players like Bajaj Auto, Hero and TVS.
For more info find the below various link :-
Honda kickstarts 3-year plan to beat Hero in 2-wheelers
Shinji Aoyama is a breath of fresh air. The Japanese honcho welcomes you with a namaskar. He is comfortable speaking English. He reels out numbers in lakhs and crores (typically Indian denominations). And he knows how to deal with swarming reporters looking for their daily fix without getting flustered. "One by one please. I will answer all your questions," he says calmly.
Aoyama is the operating officer of Honda Corporation's motorcycle business based out of Japan. And he has just infused some vroom in the local two-wheeler industry. "Very soon, we will make the dream to become No. 1 [in India] come true," he announced at a recent press conference.
Former head of Honda Motorcycle and Scooter India (HMSI), who spent four years as India CEO between 2007 and 2011, Aoyama should know what he is talking about. "Given the current scenario in India, I believe it will not be 2020 but 2016 or even 2015 by when we will attain No. 1 position here," he says.
That Honda wants to be numero uno in India is hardly surprising. The two-wheeler giant is the leader in virtually every country it operates in, except China. In Brazil, it has a dominant 80% share, and controls half of the pie in Indonesia.
What is eye-popping is the hurry in which Honda wants to rule Indian roads. A little over two years after it exited a joint venture with the Hero group, HMSI has overtaken TVS and more recently edged ahead of former No. 2 Bajaj Auto to become the second-largest two-wheeler company in India.
http://articles.economictimes.indiatimes.com/2013-03-31/news/38163297_1_keita-muramatsu-scooter-india-india-ceo
Honda Motorcycle & Scooter India planning 4th manufacturing plant, looking for a location
GURGAON: Country's second largest two-wheeler maker Honda Motorcycle & Scooter India today said it is looking for a suitable location to set up its fourth manufacturing facility to ramp up production.
"We are looking for a new site. We are studying various options and talking to different states," Honda Motorcycle & Scooter India (HMSI) Vice-President (Sales and Marketing) Y S Guleria told PTI.
The company, which is a wholly-owned subsidiary of the Japanese auto giant Honda, is exploring possibilities across the country for setting up its fourth plant, he added.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/honda-motorcycle-scooter-india-planning-4th-manufacturing-plant-looking-for-a-location/articleshow/19598162.cms
Honda debuts new bike 'Dream Neo' targeting Hero’s Splendor
NEW DELHI: Honda Motorcycle and Scooter India, country's second-largest two-wheeler company, launched a new 110cc motorcycle, the Dream Neo, targeting its rival Hero MotoCorp's largest selling model, Splendor.
Honda's second bike in the Dream series, Neo would be priced at Rs 43,150 (ex-showroom Delhi), making it the company's cheapest twowheeler model sold in the country. The company aims to sell three-lakh units of Neo in the current fiscal, and around 8 lakh bikes under its Dream badge in the same period.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/honda-debuts-new-bike-dream-neo-targeting-heros-splendor/articleshow/19593259.cms
Yamaha India targets selling 0.71 mn vehicles in FY14
NEW DELHI: Yamaha India unit aims to sell 710,000 vehicles through domestic sales and exports in the fiscal year that began this month, Chief Executive Hiroyuki Suzuki said on Tuesday.
The company, which makes motorcyles and scooters, sold about 448,000 vehicles in the first 11 months of the fiscal year that ended in March
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/yamaha-india-targets-selling-0-71-mn-vehicles-in-fy14/articleshow/19456671.cms
Yamaha to develop $500 bike in India for global markets
NEW DELHI: Japanese two-wheeler giant Yamaha on Tuesday said it is working on to roll out a motorcycle priced at around $500 from India with the setting up of its fifth global research and development centre.
Claiming that the bike will be "the world's cheapest motorcycle", the company said India will become the global hub for development of low-cost bikes, which will be exported to other countries in Africa and Latin America.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/yamaha-to-develop-worlds-cheapest-bike-in-india-for-global-markets/articleshow/19456810.cms
Eicher Motors to invest Rs 350 crore in Chennai for Royal Enfield's new plant
MUMBAI: Buoyed by the increase demand for its motorcycles, the maker of Royal Enfield, Eicher Motors Limited has signed a MoU with the government of Tamil Nadu to invest Rs 350 crore in the state for the period of 5 years. The investment will largely be towards the current and future capacity expansion projects of Royal Enfield in Chennai that have been undertaken owing to the growing demand of its motorcycles worldwide.
The new plant will enable Royal Enfield to expand production capacity to 1,50,000 units per annum in the first phase. The work is on schedule for the proposed Royal Enfield plant and the first phase is slated for completion by the first quarter of 2013. Siddhartha Lal, director & CEO of Eicher Motors Limited told ET, "Once the new plant comes on stream, it will be a great help to deliver more number of motorcycles to the waiting customers.
http://articles.economictimes.indiatimes.com/2012-05-14/news/31701276_1_royal-enfield-siddhartha-lal-new-plant
Suzuki Motorcycles plans to expand capacity with an investment of Rs 500 Crore
The Indian subsidiary of Japanese two-wheeler giant- Suzuki continues their campaign here in the subcontinent with plans to expand capacity over the coming years. The bike maker has chalked out plans to setup a new manufacturing unit at Rohtak, Haryana by 2014-15. They are also looking at increasing the capacity of the current assembly line at Gurgaon with an additional investment of Rs 500 crore. That said, they haven’t disclosed the amount that will be invested in the upcoming Rohtak unit.
http://www.gaadi.com/blog/suzuki-motorcycles-plans-to-expand-capacity-with-an-investment-of-rs-500-crore
Piaggio Plans To Expand Vespa’s Presence In India
Piaggio is aiming to sell around 1,00,000 units of its retro style premium scooter Vespa, as the Indian market gave an overwhelming response to the product. According to Ravi Chopra, chairman and MD, Piaggio Vehicles, the target of selling 1,00,000 units of the Vespa can be achieved by rolling out different versions of the scooter and expanding the brand’s market presence. Piaggio currently offers Vespa LX125 model in India with automatic transmission, which in comparison with other automatic scooters is quite expensive.
Mr. Chopra has confirmed that the company is considering a disc brake version along with a sporty version of the Vespa to launch during this year. He added that Piaggio is going to increase the production capacity by October this year, currently the capacity is 1,50,000 units. The company has already invested 30 million Euros (Rs. 217 crores) in the facility till date and will invest for the development of new variants accordingly. After the launch of Vespa, the company has sold around 25,000 units of the scooter till date
http://www.motorbeam.com/bikes/vespa/piaggio-plans-to-expand-vespas-presence-in-india/
Hero MotoCorp announces five-year warranty on all two wheelers
NEW DELHI: Country's largest two-wheeler maker Hero MotoCorp has announced a warranty of five years on all its models.
The warranty will be of five years or 70,000 km on motorcycles, whichever is earlier and five years or 50,000 km on scooters, whichever is earlier, the company said in a statement.
"Staying true to our splendid legacy, all Hero two- wheelers will now have a 5-year warranty. Hero MotoCorp is the first manufacturer in the country to offer this benefit," Hero MotoCorp Senior VP (Marketing and Sales) Anil Dua said.
The company said initiatives like this have resulted in strong customer commitment and trust in Hero.
http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/hero-motocorp-announces-five-year-warranty-on-all-two-wheelers/articleshow/19540668.cms
amarjit singh
May 7, 2013, 12:35:27 PM5/7/13
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