Operations Strategy Term Paper

Analysis of Indian Two Wheeler Industry with Focus on Operations Strategies of HMSI and Bajaj Auto

OPST Term Paper

Mayur Challawar

Analysis of Indian Two Wheeler Industry with Focus on Operations Strategies of HMSI and Bajaj Auto

Introduction:

Indian 2 wheeler industry is estimated to be around Rs 650 billion with total sales volume of 15.4 billion units during FY 2011-12. In terms of volumes, the industry grew at 12.7 % CAGR between 2007-08 and 2011-12. In terms of sales the industry grew at a 15% CAGR between 2007-8 and 2011-12. Currently the market is characterized many players both domestic and foreign players. Domestic players include Hero Motor Corp, Bajaj Auto Ltd, TVS etc and foreign players include Honda Motor Scooters India (HMSI), Suzuki, and Yamaha etc. The Indian 2 wheeler industry is divided into three segments namely motor cycles, scooters and mopeds. In volume as well as value terms, motor cycles lead the market with 77.6% contribution to total sales volume, followed by scooters (17.3%) and mopeds (5.1%). Companies like Hero Motor Corp, Bajaj Auto, and TVS dominate in motor cycle segment whereas HMSI dominates in scooters segment. Honda (Honda), Yamaha and Suzuki have been expanding their presence in the Indian motorcycles segment.

Indian 2 wheeler industry being one of the fastest growing industries in the world and with competition increasing between players for market share in terms of volume and revenues, various operations strategies are being implemented and worked upon by different companies to match with their competitive strategies. The main focus of this term paper would be on comparison of operations strategies of HMSI and Bajaj Auto Ltd.

Dynamics of the 2 wheeler industry:

HMSI, after its exit from joint venture with Hero Motor Corp is in an aggressive mode to re-establish itself in the market. At the same time Bajaj Auto Ltd, which is the second largest player in motor cycle segment is also expanding at a rapid pace...