Future of High End Bikes

Future of High End Bikes
In India
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TABLE OF CONTENTS PAGE NO
EXECUTIVE SUMMARY
CHAPTER 1 – INTRODUCTION – TRENDS AND LIFESTYLE
1.1 Trends – Definitions and Introduction
1.2 India – Rising Aspirations
1.3 Bikes in India – Rising Figures
CHAPTER 2 - BIKES MARKET – INDIA
2.1 Bikes Market – An Overview
2.2 Current Status of Indian Bike Industry
2.3 Size and Growth of Bikes Market
2.4 Companies Targeting Bikes Market
2.5 Objectives of the Study
CHAPTER 3 - TRENDS & FACTORS
3.1 Key Trends Shaping Bikes Market
3.2 Factors Driving Companies to Target Indian Market
CHAPTER 4 - RESEARCH METHODOLOGY
4.1 Need & Significance
4.2 Research Objective
4.3 Sampling Procedure
4.4 Limitation of the Study
4.5 Primary Data Collection
CHAPTER 5 – DATA INTERPRETATION AND DATA
ANALYSIS
CHAPTER 6 – SUGGESTION AND RECOMMENDATION
CHAPTER 7 – CONCLUSION
ANNEXURE
Bibliography
EXECUTIVE SUMMARY
The Sports bike market in India has seen a lot of frantic activity in the last few years. We
wanted to study the Sports bike market in India and how major players operating in the
business. We also wanted to study the opportunities and challenges facing this sector.
We tried to cover all the aspects that affect Sports bike market in India, like the domestic
politics of our country and legal regulations which are made keeping these in mind. We have
also looked at how the Indian market is unique when compared to Western market players,
which are now entering India has a lot of experience and what is it that attracts these
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companies to India. We have also tried to cover the criticism that these giants are now
attracting as well as the key players in the market and the activity so far.
We conducted a survey which covers the overall high end bike segment in India. Our sample
size was Forty and we conducted the survey using questionnaires and interviews. Our survey
threw up some interesting facts about the most important attributes while purchasing a high
end bike and the factors which make people chose a particular brand. While studying we
came to know that the High end Bike industry is growing at Very good speed, Growth in this
sector is being propelled by Better roads and growing motor sports passion has helped the
superbike market to grow in India. Also, increase in disposable income, reduction in import
duties. The Indian companies which are facing Tough competition from foreign players, we
were able to pinpoint the areas were these companies were faltering. We have also given
some recommendations as to how these challenges can be overcome and converted into
strengths.
The survey was done in the city of Mumbai and the sports Bike users were asked about the
factors they consider most important in a sport bike, their expectations from companies in
Future sport bikes and whether these companies have actually been able to help them make
more money. The sport Bike users we interviewed were very cooperative and described to us
in detail how they deal when it comes to attributes while purchasing a new bike and the
company. We will describe all this in more detail later in this report.
In today's highly competitive markets, big brands are at logger-heads when it comes to
products, each having a similar product to that of a rival. Where does one brand gain that
quintessential advantage - Speed, service, promise of trust, Looks, or even the all important
price factors? India seems to be the best platform where brands prefer to compete on - right
from hiring the best advertising agencies to getting the biggest celebrities to focus on right
audience. What would be the formula to success then? Well, a good creative a Product, a
large enough promotional budget and a huge amount to invest in a particular high end bike
model to endorse your brand would definitely ensure in the minds of a company management
team a feeling of security, success and a triumph over the competitors brand.
Now a days India is the hottest place whether you talk about Information technology or any
other industry, similarly same applies to High end bike segment in India. Lot of big brands
are targeting India as the primary target to launch their product as well as sell their product.
These companies are also trying to get as much possible revenue as much they can from
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Indian market, and they are giving tough competition to companies like Bajaj, Hero Honda
and TVS etc. Companies like Ducati has already entered the Indian market officially by
opening their showrooms in prime places like Mumbai, Delhi and Bangaluru etc. Companies
in Cruiser bike segment like Harley-Davidson also planning to hit the Indian road by the end
of this year. Suzuki, Yamaha, Ducati are focussing on Niche segments in India and they are
smiling on Indian bike makers by selling 1000 sports bike instead of 1lac Indian
manufacturers bike, Yamaha also converting their high end bike models into lower Power
bike like RZ1 instead of R1 etc.
Indian bike manufacturer have already feeling the heat produced by these high end bike
makers, and they have already started answering to their competitors by producing Powerful
bike models which Indian consumers will like. Companies like Bajaj have come up with
Bajaj Pulsar 200cc, 220cc and they have also introduced a new model in collaboration with
Kawasaki i.e Bajaj Kawasaki Ninja250R. The Indian bike market is witnessing lot if frantic
activity and there is very tough fight between Indian players and International players in this
industry because of which Indian bike lovers are getting more options to choose from and
they are expecting more quality products from these High end bike makers, This what the
project is all about “Future of High End Bikes in India”.
CHAPTER 1
INTRODUCTION – TRENDS AND LIFESTYLE
1.1Trends - Definition and Introduction:
1.1.1 - Indian Two-Wheeler Industry:
The Indian two-wheeler industry has come long way since its humble beginning in 1948
when Bajaj Auto started importing and selling Vespa scooters in India. Since then, the
customer preferences have changed in favour of motorcycles and gearless scooterettes that
score higher on technology, fuel economy and aesthetic appeal, at the expense of metal
bodied geared scooters and mopeds. These changes in customer preferences have had an
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impact on fortunes of the players. The erstwhile leaders have either perished or have
significantly lost market share, whereas new leaders have emerged.
Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by
the financing companies have all fuelled the growth of two-wheeler sales in the country.
Besides, mounting traffic chaos and limited parking space has also increased the demand for
two wheelers from households that can afford or actually do own a car.
Furthermore, with increasing women working population, changing social philosophy and
broad-mindedness, the penetration of two wheelers that is currently at abysmally low level is
expected to increase significantly going forward.
A sport bike is a type of motorcycle under the street classification and is generally designed
for optimised performance. Its main features are summarized best by the following
definitions:
 With the emphasis of a sport bike being on speed, acceleration, braking, and
manoeuvrability, there are certain design elements that most motorcycles of this type
will share. Sport bikes have comparatively high-performance engines resting inside a
lightweight frame. The combination of these help maintain structural integrity and
chassis rigidity. Braking systems combine higher performance brake pads and disc
brakes with multi-piston calipers that clamp onto oversized vented rotors. Suspension
systems are advanced in terms of adjustments and materials for increased stability and
durability. Front and rear tires are larger and wider than tires found on other types of
motorcycles to allow higher cornering speeds and greater lean angles. Fairings may or
may not be used on a sport bike; when used, fairings are shaped to
reduce aerodynamic drag as much as possible and provide wind protection for the
rider.
 A term applied to light weight, high horsepower motorcycles with designed with
emphasis on acceleration, cornering and stopping power. Sport Bikes have an
aggressive riding position with the rider's belly to the gas tank. Their weight makes
them easy to handle but the sensitive and powerful accelerator can get an
inexperienced rider into trouble. These bikes are very popular with young riders.
1.1.2 - Evolution of Two-wheeler Industry in India:
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Two-wheeler segment is one of the most important components of the automobile
sector that has undergone significant changes due to shift in policy environment. The two-
wheeler industry has been in existence in the country since 1955. It consists of three segments
viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company
dealing in automobile sector. The main key players who are dealing in this sector are Hero
Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in
India as well as in the world and playing a very important role in two wheeler automobile
sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are
international automobile brand.
Over the last decade, the two wheeler automobile sector has successfully changed its
image. Its product range encompasses Scooterettes, Scooters and Motorcycles. The main
product ranges of two wheeler automobile sector are as follows:
 Scooters
 Motorcycles
 Scooterettes
No. of players in the two wheeler automobile sector (India):
 Hero Honda motors ltd.

 Bajaj auto ltd.
 TVS motors company ltd.
 Yamaha motors India
 Honda motorcycle and scooters India
 Royal Enfield
 Suzuki Motors
1.2 INDIA - Rising Aspirations:
There is a very good chance that for most of us in India; a humble 100 cc motorcycle would
have been the stepping stone into the world of motorcycles. But as the years roll by, the need
for speed bug bites at least some of the passionate bikers the others move on to 4 wheelers
and the 100 cc motorcycle now seems inadequate in squeezing the adrenaline juice from our
young and maybe not so young bodies as well. Like an addict, we begin to crave for
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increasing doses of excitement from our two wheelers. This basic instinct can be satiated only
by getting astride and twisting the throttle on bigger and more powerful engines.
Picture 1.1
Speedometers
Even though motorcycles from international brands like Ducati, Harley Davidson and not to
forget the big 1000 cc bikes like the Yamaha R1, Honda CBR1000RR, Suzuki Hayabusa etc.
can now be bought from a showroom in India, these ultimate dream machines remain well…
mostly a dream to a middle class "biker next door" like me. But companies like Yamaha,
Kinetic, Hero Honda and Bajaj are trying their best by launching their sport bikes in Indian
market to satisfy the hunger for speed of people who desire every attribute in their bike in
small budget. Since date these companies have launched models like Karizma223, Karizma
ZMR, Pulsar 200cc and 220cc, Kinetic have launched Comet in collaboration with its Korean
partner Hyosung and many more. Initially fastest bikes hit the Indian roads, whenever the
word bike strike in mind first name is Pulsar 220 then the latest Apache RTR 180, Yamaha
R15, Hero Honda Karizma etc. Two wheeler manufactures are trying their best to showcase
the best they have in the two wheeler segment. The 2009 Pulsar is capable of 144 kph top
speed.
Yamaha YZF-R15, which was the fastest production bike here before Bajaj's Pulsar
220cc.TVS Apache RTR 180cc trying to make a competition with others. Hero Honda
Karizma most popular bike in India has its own image in Indian road.
1.3 Bikes in India – Rising Figures:
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More cash in the wallet and rising consumer confidence has led to an unexpected surge in the
demand for sport motorbikes. Customers are waiting between three weeks and six weeks for
motorcycles from manufacturers like Hero Honda, Bajaj Auto, India Yamaha, Suzuki and
Honda Motorcycle & Scooter India. The last time there was a waiting period for new
motorcycles was in early 2008, when customers typically had to wait for a maximum of three
weeks. Now it’s a six-week waiting period for our deluxe and premium bikes, and has
increased the number of shifts to meet the demand.
Since January this year, the demand for models like Hero Honda’s Karizma and Hero
Honda’s Karizma ZMR, Pulsar200, Pulsar220, Comet and Yamaha’s R15 has more than
doubled. Bajaj Auto has a waiting list of three weeks for their top- selling product Pulsar,
pushing demand for these bikes up to 50,000 units per month from 35,000 units. Honda
Motorcycle & Scooter India (HMSI) has a waiting period of four weeks for their Sport bikes.
This year, the motorcycle segment has grown by more than a quarter with 94 lakh bikes sold
across the country. This is the highest number of bikes ever sold in the local market, with
most consumers picking premium and deluxe models with capacity of 150cc and 200cc. The
whole of last year saw 74.3 lakh bikes sold, according to Society of Indian Automobile
Manufacturers (SIAM).
Two-wheeler majors clearly did not expect this surge in demand. Since January, demand has
surged by 20%. Bajaj Auto increasing its manufacturing capacity to meet a sales target of an
average of 3, 00,000 vehicles a month. Companies are streamlining operations, opening new
manufacturing facilities, strengthening distribution and improving logistic operations. The
two wheeler industry has seen strong sales in the past four months. The growth will continue
in FY11- (automotive practice) Ernst & Young India.
India Yamaha Motors has increased the number of shifts to cater to the rising demand. The
company has a waiting time of 2–6 weeks for bikes like YZF-R15, FZ series and Fazer. The
upsurge is now reflected in the sales figures. In March, India Yamaha sold 27,460 bikes, a
threefold growth over last year.
Honda Motorcycle & Scooter India (HMSI) is investing Rs 4.7 billion to set up a second
production plant in India, with an annual capacity of 6 lakh units. The new assembly line will
be operational by second half of 2011. It is also increasing capacity at its existing plant to 1.6
million units by next year. The company sold 65,888 bikes in March this year, compared with
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sale of 40,360 units in the same period last year. While Hero Honda, which controls nearly
half of the domestic two-wheeler market, is in talks with various state governments, including
Tamil Nadu, Karnataka and Gujarat, to set up a new factory.
Company (HMSI) is currently doing a feasibility study for a fourth plant and hope to close it
in two months. The company sold 414,638 bikes in March 2010, as compared to 3, 53,342
bikes sold during the same period a year ago. At present, the Indian two-wheeler market is
dominated by Hero Honda, which controls nearly half the $8 million market. Bajaj Auto is
the second-largest two wheeler maker with nearly a fifth of the market.
CHAPTER 2
BIKES MARKET – INDIA
2.1 Bikes Market – An 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
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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 favourite
among the youth generation, as they help in easy commutation. Large varieties of two
wheelers are available in the market, known for their latest technology and enhanced mileage.
Indian bikes, scooters and mopeds represent style and class for both men and women in India.
Two-wheelers are the most popular and highly sought out medium of transport in India. The
trend of owning two-wheelers is due to its- Economical price, Safety, Fuel-efficient and
Comfort level.
Two-wheeler segment is one of the most important components of the automobile

sector that has undergone significant changes due to shift in policy environment. The two-
wheeler industry has been in existence in the country since 1955. It consists of three segments
viz. scooters, motorcycles and mopeds. In India there are some MNC’s and Indian company
dealing in automobile sector. The main key players who are dealing in this sector are Hero
Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in
India as well as in the world and playing a very important role in two wheeler automobile
sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are
international automobile brand.
Bajaj is the first Indian two wheeler automobile company in the market since 1945
with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading
corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license
from the Government of India to manufacture two- and three-wheelers vehicles in 1959.
Hero Honda Motors Limited was established in 1984, as a joint venture

between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor
Company, and created the world's single largest two wheeler company and also one of the
most successful joint ventures worldwide. During the 80s, Hero Honda became the first
company in India. In India Over 19 million Hero Honda two wheelers running on roads
today.
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TVS Motors is the third largest company in the two-wheeler industry with a
market share of 16%. Infect, it is the only Indian company without a foreign collaboration in
the two-wheeler industry. When the company opted out of the collaboration with Suzuki in
2002, many believed that TVS was headed towards extinction. But the company proved the
doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd.
originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki
Motors of Japan, TVS was one of the leaders in two-wheeler industry.
Yamaha Motor Corporation is the auto mobile company of Japan

(1953) which works in India since 1955 and providing latest technology in India from last
two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of
Yamaha motor corporation, Japan.
Honda motors of Japan is not a new name in the two wheeler scenario in the
country, they were in a tie up with the Firodias owned Kinetic group. However in the late 90s
they parted ways after problems arose over issues like introduction of new models,
advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda
motors of Japan joined hands with the largest bicycle maker of India the Hero cycles to create
Hero Honda which in a couple of decades or so have gone on to become the single largest
motorcycle company in the world. Though Honda has come on its own on the Indian market
yet it will be providing technological support to Hero Honda for the next ten years. Thus
presenting a unique situation in which the company will be in direct competition with the
company which it has been associated for nearly two decades. Honda Motorcycles and
Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered
the Indian market with Honda Unicorn in 2004.
The Indian two-wheeler industry has come long way since its humble beginning in 1948
when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the
customer preferences have changed in favour of motorcycles and gearless scooterettes that
score higher on technology, fuel economy and aesthetic appeal, at the expense of metal
bodied geared scooters and mopeds. These changes in customer
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Preferences have had an impact on fortunes of the players. The erstwhile leaders have either
perished or have significantly lost market share, whereas new leaders have emerged.
Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by
the financing companies have all fuelled the growth of two-wheeler sales in the country.
Besides, mounting traffic chaos and limited parking space has also increased the demand for
two wheelers from households that can afford or actually do own a car. Furthermore, with
increasing women working population, changing
Social philosophy and broad-mindedness, the penetration of two wheelers that is currently at
abysmally low level is expected to increase significantly going forward.
At a time when lacs of people crowd for a 1 lakh car, who would expect Indians to buy two
wheeler bikes at over 10 lacs? But positive signs have their own way of speaking. With some
performance oriented launches from almost all manufacturers in India, it’s evident that they
sensed the craving for going fast on big bikes among Indians is growing big time. As the
Indian government eased norms for launching bikes bigger than 800cc in India foreign
manufacturers have been going full swing with launching some of the internationally
acclaimed superbikes for us. Yamaha launched their litre class scintillating YZF R1 and the
1670cc torque monster, the 150 Nm MT01 cruiser. Suzuki launched the electronically
restricted 1340 cc Hayabusa GSX1300R along with the monstrous super heavy cruiser
Intruder and Honda launched two litre class bikes aka 178 PS CBR1000RR Fire blade and
125 PS CB1000R. The most common thing about these bikes is one has to shell out an
amount of over 10 lacs to own these superfast beauties. So how many actually make it out of
the showrooms?
2.2 Current Status of Indian Automotive Industry:
The industry encompasses commercial vehicles, multi-utility vehicles, passenger cars, two
wheelers, three wheelers, tractors and auto components. There are in place 15 manufacturers
of cars and multi utility vehicles, 9 of commercial vehicles, 14 of Two/Three Wheelers and
10 of Tractors besides 5 of engines. With an investment of Rs.50, 000 crores, the turnover
was Rs. 59,500 crores in Automotive Sector during 1999-2000. It employs 4, 50,000 people
directly and 100, 00,000 people indirectly and is now inhabited by global majors in keen
contention.
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India manufactures about 38,00,000 2-wheelers, 5,70,000 passenger cars, 1,25,000 Multi
Utility Vehicles, 1,70,000 Commercial Vehicles and 2,60,000 tractors annually. India ranks
second in the production of two wheelers and fifth in commercial vehicles.
India’s automotive component industry manufactures the entire range of parts required by the
domestic automobile industry and currently employs about 250,000 persons. Auto component
manufacturers supply to two kinds of buyers – original equipment manufacturers (OEM) and
the replacement market. The replacement market is characterized by the presence of several
small-scale suppliers who score over the organized players in terms of excise duty
exemptions and lower overheads. The demand from the OEM market, on the other hand, is
dependent on the demand for new vehicles.
The auto sector (excluding Tractors) attained a steep cumulative annual growth of 22%
between 1992 and 1997. The Tractors achieved a cumulative annual growth of 16%.
Component production grew by 28%. There has been a slowdown in the automobile sector in
the past two years. However, the component industry maintained a low but positive growth
rate mainly due to its export performance. Over the years, the component industry has
maintained a 10% - 12% share of exports in the total production.
Roads occupy an eminent position in transportation as they, as per the present estimate, carry
nearly 65% of freight and 87% of passenger traffic. Although, India has 3.3 million
kilometres of road network, which is the second largest in the world, the Indian highways are
getting overpopulated. Traffic management and road sense also need attention.
2.3 Size and Growth of high end Bikes in Indian Market:

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.
Foreign collaborations have been playing a major role in the growth of the Indian two-
wheeler market, and most of them are Japanese firms. The modern two-wheeler firms in India
have been manufacturing new categories of two wheelers such as Step thus and Scooterettes.
These have been produced by combining two or more two-wheeler segments. Foreign firms
have already taken initiatives to own their two-wheeler subsidiaries in India.
Among the 3 segments of the Indian two wheeler market, major growth trends have been
seen in the motorcycle segment over the last four to five years. One good reason for such
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increase in demand for motorcycles is due to its resistance and balance even on bad road
conditions. Most of the rural areas in India do not have decent roads and hence the need for
good, shock-resistant, and steady two-wheelers such as motorcycles had been felt.
Some of the major players in the Indian motorcycles market are Hero Honda CBZ,
Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star
City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle brands into
economy, executive, and premium segments, Bajaj stands as the leader in the economy
segment, Hero Honda leads in the executive segment, and there is a competition in the
premium segment between Hero Honda and Bajaj.
The following are the main factors that affect two-wheeler Growth in India:
• Increase in credit and financing for auto vehicles - Two-wheeler loans and financing
has been on the rise.
• Increase in consumer's salary - Due to opportunities offered by multinationals the

disposable incomes of salaried individuals have increase manifold.
• Constant petrol prices - Today, the government of India has been working on reducing
subsidies on kerosene and diesel which will keep petrol prices at more or less the
same level.
• Delay in initiation of Mass Transport System - Probably a future threat to the two-
wheeler market, the implementation of the mass transport system has been delayed.
However, the two-wheeler market in India is a fast growing market due to its technological
advancements in product manufacturing and emphasis on design innovation.
Socialistic Pattern of Growth
India by and large followed a socialist system till the later part of 1980s.The government
focused on development through heavy, long gestation, capital intensive projects like steel
manufacturing. The quality of the finished good and customer feedback were not given much
priority. As a result the country missed a golden opportunity to accelerate to a faster growth
trajectory by at least 2 decades.
Stability in the Market
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The Indian automobile industry has come a long way since independence. From being an
importer of automobiles to a manufacturer. From having minimum foreign collaborations to
joint ventures. This attribute cannot be considered as a weakness, but as sharing of best
practices. This phenomenon can be compared to the business collaboration in the outsourcing
industry.
World Automobile Sector - Current Scenario and Future Prospects
A Hailed as the Industry of Industries by management specialist Peter Drucker, the

automobile industry has come a long way since its origin in 1890s as a horseless carriage,
emerging as the market leader in manufacturing activities and providing employment. With
the markets initially concentrated in North America, Europe and Japan, the 1990s saw the
developing markets of BRIC countries emerging as key demand driver in this sector. The
current financial turmoil has not left the auto industry unscathed. Collapse of US housing
industry, spiralling inflation and credit crunch has led to rising raw material prices and
expensive fuel prices which have had a direct impact on the industry.
A look into the automobile sector throws some interesting facts wherein Japan has surpassed
the one time leader US in the total production of vehicles. China and Germany occupy the
3rd and 4th position. Brisk export business by companies like Toyota and Honda has finally
broken the monopoly of the likes of General Motors, Ford and Chrysler. India too is making
its foray into the automobile market with the main attraction being the cost advantage that
India provides over other market players. The three major players in the Indian market are
Maruti Suzuki, Tata Motors and Mahindra Renault. The Detroit three General Motor
Corporation, Ford Motors Corporation and Chrysler LLC was the face of US automobile
industry for decades together. But with increased competition from Japan this picture has
taken a shift. Fuel-price concerns, declining home values, difficulties in the credit market,
stock market fluctuations, and consumers’ shaky confidence in the economy are expected to
negatively influence U.S. vehicle sales this year.
Automobile industry rules the roost in the European market with it being the main contributor
to GDP. Europe is the largest passenger car manufacturer in the world catering to almost 32.2
percent of passenger car production. The focus of this market is to produce fuel efficient
vehicles with more emphasis on passenger and environment safety. Riding on a wave of low
interest rates and a booming economy, India made its mark in the automobile sector in 2004,
with sales figures exceeding more than 1 million in the passenger car segment. Hero Honda
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was the market leader with a share of 45%, followed by Bajaj Motor and TVS Motors. India
is the 10th largest manufacturer of automobiles as of 2007. The growth can be attributed to
factors like increased disposable income and relaxation of government norms and policies
attracting investments.
Although the automobile industry has grown by leaps and bounds not all is rosy as it seems.
The current credit crisis, coupled with shift in consumer preference, high raw material cost,
slackening auto export in countries like China, India and Brazil has led to serious slackening
in growth and impacted the world economy as a whole. This global slowdown has impacted
the auto manufacturers and has also severely hampered research and development. Stringent
environment regulations have also forced the auto makers to look for newer technologies to
develop fuel efficient cars.
In order to sustain growth and reap benefits the road ahead for the auto industry is to invest in
research and development of alternate fuel and hybrid technology growth. Building cost
effective and fuel efficient vehicles is the order of the day. Shifting focus from big cars to
small cars segment and concentrating on emerging markets to provide cost effective solutions
would help the industry retain its growth momentum and provide livelihood to major chunk
of the world population.
2.3.1 Two Wheeler Statistics in India:
The automobile industry in general and two wheeler industry in particular has shown a
tremendous growth over the recent years. According to the Society of Indian automobile
Manufactures (SIAM) the industry has grown by 16% in the year 2003/2004.Two Wheeler
segment as a whole during the year 2004/05 grew by over 15%.This growth has been due to
the Government's initiative on rural roads and better connectivity with major towns and
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cities, improved agricultural performance, upward trend of purchasing power in the hands of
rural people. The two wheeler industry was able to achieve the record performance of
crossing 6 million two wheelers with exact sales standing at 6,208,860 during the year 2004-
05.
Though the metal bodied geared scooters have fallen out of favour of the Indian two-wheeler
user their upward trend in growth has been due to rise in the sales of scooterettes and Motor
scooters. Bajaj Auto has been able to sell 152,936 units in the year 2004/2005 of two
wheelers which don't include motorcycles. They have shown a negative trend in the two
wheeler segment other than the motorcycles. This goes on to show that Bajaj Auto has lost its
supremacy in the scooter and moped segment as they have shifted focus to motorcycles.
It has been more than 50 years now that bikes have been ruling the Indian automobile sector.
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 - the super bike
in India of all times, from the Royal Enfield Company of UK were received and assembled at
Chennai. Since then, bikes in India have been flourishing as a two wheelers segment, and
Indian bikes gaining on popularity all across the world.
Talking of bikes cc, bikes having four-stroke engines are thought to be more fuel efficient
motorbikes. They are the main reason for the growth of motorbikes in India as a segment.
Indian bikes market share is about 81.5% of the total two wheeler market in India. Three-
fourth of the total exports in the two wheeler automobile industry is made in the motorcycle
segment. Exports are made mainly to South East Asian and SAARC nations.
India is the manufacturer of some of the best bikes in the world. Hero Honda, Kinetic Motor,
TVS Motor, LML India are some of iconic bike manufacturers in India. There are cheap
motorcycles that comprise the commuter bikes segment, as well luxury bikes like sports bike
in India for the new age bikers. Ever year, a series of latest bike launch keep the sector
buzzing. Kawasaki Ninja, Bajaj Pulsar 135 LS, and Honda Unicorn Dazzler are some of the
latest motorcycle models that have made news in the recent past. Besides, there are also a
number of new bikes in India that are awaiting a launch in the near future.
Purchasing capacity of average Indians has increased spectacularly in the last few years. This
has encouraged significant growth in Indian two-wheeler industry. The exponential growth of
the industry can be ascribed to factors such as higher disposable income resulting in more
financial capacity and availability of cheap consumer financing. Over the years, the market
dynamics of the industry has also changed. Majority of the customers now go for scooters
and mopeds.
17 | P a g e
Bikes are the major segment of Indian two wheeler industry, the other two being scooter and
mopeds. Indian two wheeler companies are among the biggest two wheeler manufacturers in
the world. Hero Honda is the numero uno bike manufacturer in the world with Bajaj India
gives it a close chase.
In terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2005
with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for
around 77.5% of the total vehicles sold in the period mentioned.
Chart 2.1 - Segmental Growth of

the Indian Two Wheeler Industry
After facing its worst recession during the early 1990s, the industry bounced back with a 25%
increase in volume sales in FY1995. However, the momentum could not be sustained and
sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic
slowdown in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales
(volume) growth rate declining to 3% that year. However, sales picked up thereafter mainly
on the strength of an increase in the disposable income of middle-income salaried people
(following the implementation of the Fifth Pay Commission's recommendations), higher
access to relatively inexpensive financing, and increasing availability of fuel efficient two-
wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales
declined marginally in FY2001. This was followed by a revival in sales growth for the
industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the
scooter and moped segments faced de-growth. FY2003 also witnessed a healthy growth in
overall two-wheeler sales led by higher growth in motorcycles even as the sales of scooters
and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was
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led by growth in motorcycles even as the scooters segment posted healthy growth while the
mopeds continued to decline. Figure 1 presents the variations across various product sub-
segments of the two-wheeler industry between FY1995 and FY2004.
Scooter Motorcycle Moped
Price*(Rs. as in
> 22,000 > 30,000 > 12,000
January 2005)
2-stroke, 4-
Stroke Mainly 4-stroke 2-stroke
stroke
Engine Capacity
90-150 100, 125, > 125 50, 60
(cc)
Ignition
Kick/Electronic Kick/Electronic Kick/Electronic
Engine Power (bhp) 6.5-9 7-8 and above 2-3
Weight (kg) 90-100 > 100 60-70
Fuel Efficiency
50-75 50-80+ 70-80
(kms per litre)
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Table 2.1 – Sub-segments of two wheeler Industry (1995-2004)
2.3.2 Demand Drivers
The demand for two-wheelers has been influenced by a number of factors over the past five
years. The key demand drivers for the growth of the two-wheeler industry are as follows:
▪ Inadequate public transportation system, especially in the semi-urban and rural areas;
▪ Increased availability of cheap consumer financing in the past 3-4 years;
▪ Increasing availability of fuel-efficient and low-maintenance models;
▪ Increasing urbanisation, which creates a need for personal transportation;
▪ Changes in the demographic profile;
▪ Difference between two-wheeler and passenger car prices, which makes two-wheelers
the entry-level vehicle;
▪ Steady increase in per capita income over the past five years; and
▪ Increasing number of models with different features to satisfy diverse consumer
needs.
While the demand drivers listed here operate at the broad level, segmental demand is
influenced by segment-specific factors.
2.3.3 Market Characteristics

Demand
Segmental Classification and Characteristics
The three main product segments in the two-wheeler category are scooters, motorcycles and
mopeds. However, in response to evolving demographics and various other factors, other sub
segments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first
two emerged as a response to demographic changes, the introduction of 4-stroke scooters has
followed the imposition of stringent pollution control norms in the early 2000. Besides, these
prominent sub-segments, product groups within these sub-segments have gained importance
in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc.
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The characteristics of each of the three broad segments are discussed in Table2.2. The Indian
two-wheeler industry has undergone a significant change over the past 10 years with the
preference changing from scooters and mopeds to motorcycles. The scooters segment was the
largest till FY1998, accounting for around 42% of the two-wheeler sales (motorcycles and
mopeds accounted for 37% and 21 % of the market respectively, that year). However, the
motorcycles segment that had witnessed high growth (since FY1994) became larger than the
scooter segment in terms of market share for the first time in FY1999. Between FY1996 and
9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler
industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and
5%, respectively.
Scooter Motorcycle Moped

Price*(Rs. as in January
> 22,000 > 30,000 > 12,000
2005)
2-stroke, 4-
Stroke Mainly 4-stroke 2-stroke
stroke
Engine Capacity (cc) 90-150 100, 125, > 125 50, 60
Ignition Kick/Electronic Kick/Electronic Kick/Electronic
Engine Power (bhp) 6.5-9 7-8 and above 2-3
Weight (kg) 90-100 > 100 60-70
Fuel Efficiency (kms
50-75 50-80+ 70-80
per litre)
Load Carrying High Highest Low
Table 2.2 – Characteristics – Compiled by INGRES
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Chart – 2.2 Trends in Segmental Share
While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a healthy
growth of 20%, indicating a clear shift in consumer preference. This shift, which continues,
has been prompted by two major factors: change in the country's demographic profile, and
technological advancements.
Over the past 10-15 years the demographic profile of the typical two-wheeler customer has
changed. The customer is likely to be salaried and in the first job. With a younger audience,
the attributes that are sought of a two-wheeler have also changed. Following the opening up
of the economy and the increasing exposure levels of this new target audience, power and
styling are now as important as comfort and utility.
The marketing pitch of scooters has typically emphasised reliability, price, comfort and utility
across various applications. Motorcycles, on the other hand, have been traditionally
positioned as vehicles of power and style, which are rugged and more durable. These features
have now been complemented by the availability of new designs and technological
innovations. Moreover, higher mileage offered by the executive and entry-level models has
also attracted interest of two-wheeler customer. Given this market positioning of scooters and
motorcycles, it is not surprising that the new set of customers has preferred motorcycles to
scooters. With better ground clearance, larger wheels and better suspension offered by
motorcycles, they are well positioned to capture the rising demand in rural areas where these
characteristics matter most.
Scooters are perceived to be family vehicles, which offer more functional value such as
broader seat, bigger storage space and easier ride. However, with the second-hand car market
developing, a preference for used cars to new two-wheelers among vehicle buyers cannot be
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ruled out. Nevertheless, the past few years have witnessed a shift in preference towards
gearless scooters (that are popular among women) within the scooters segment. Motorcycles,
offer higher fuel efficiency, greater acceleration and more environment-friendliness. Given
the declining difference in prices of scooters and motorcycles in the past few years, the
preference has shifted towards motorcycles. Besides a change in demographic profile,
technology and reduction in the price difference between motorcycles and scooters, another
factor that has weighed in favour of motorcycles is the high re-sale value they offer. Thus, the
customer is willing to pay an up-front premium while purchasing a motorcycle in exchange
for lower maintenance and a relatively higher resale value.
2.4 Companies targeting high end bikes Market:
2.4.1 - Key players in the Two-wheeler Industry:
Picture 2.2 Major Players
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After facing its worst recession during the early 1990s, the two-wheeler industry bounced
back with a 25% increase in volume sales in February 1995. The scooters are considered as
family vehicles. There are many two-wheeler manufacturers in India. Major players in the 2-
wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS
Motor Company Ltd (TVS).
The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL),
Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha),
Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle &
Scooter India (P) Ltd (HMSI).
BAJAJ MOTORS:
Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the
name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading
corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license
from the Government of India to manufacture two- and three-wheelers vehicles in 1959.
HERO HONDA:
Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero
Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company, and
created the world's single largest two wheeler company and also one of the most successful
joint ventures worldwide. During the 80s, Hero Honda became the first company in India,
Over 19 million Hero Honda two wheelers running on Indian roads today.
TVS Motors is the third largest company in the two-wheeler industry with a market share of
16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler
industry. When the company opted out of the collaboration with Suzuki in 2002, many
believed that TVS was headed towards extinction. But the company proved the doomsayers
wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally
incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of
Japan, TVS was one of the leaders in two-wheeler industry.
YAMAHA INDIA:
Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in
India since 1955 and providing latest technology in India from last two decades. Yamaha
Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor
corporation, Japan.
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Honda motors of Japan is not a new name in the two wheeler scenario in the country, they
were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted
ways after problems arose over issues like introduction of new models, advertising
expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of
Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero
Honda which in a couple of decades or so have gone on to become the single largest
motorcycle company in the world. Though Honda has come on its own on the Indian market
yet it will be providing technological support to Hero Honda for the next ten years. Thus
presenting a unique situation in which the company will be in direct competition with the
company which it has been associated for nearly two decades. Honda Motorcycles and
Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered
the Indian market with Honda Unicorn in 2004.
DUCATI INDIA:
The 2007 MotoGP World Champion manufacturer’s entry to the young and exponentially
growing Indian market was announced by Ducati CEO Gabriele Del Torchio during a
meeting with representatives of the international press at the Oberoi Hotel in New Delhi. The
vast opportunities offered by the Indian market have led Ducati to begin a long-term
partnership agreement with Precision Motor India Private Limited as the exclusive importer
of Ducati motorcycles in India. Precision Motor India is an established company which
represents prestigious brands in India; including Porsche, Audi, Fendi and Dolce&Gabbana.
The Ducati brand, which is synonymous with racing success, innovative technology, and the
highest quality standards, is a perfect addition to the premium brands Precision Motor India
currently represents. The partnership promises to strengthen significantly over time thanks to
a marketing plan that provides for gradual penetration of the Indian market.
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Market share of tw o w heeler automobile
sector
Hero Honda
35.60% 27.50% Bajaj M otors
T VS M otors
Yamaha
M otors
Honda M otors
Others
9.50% 16%
4% 7%
Chart – 2.3 – Market Share of Major Players
2.5 Objectives of the Study:
There has been an increase in sales of High end bikes in India. The High end Bike industry is
growing at Very good speed, Growth in this sector is being propelled by Better roads and
growing motor sports passion has helped the superbike market to grow in India. Also,
increase in disposable income, reduction in import duties. Most of the companies see more
potential in the Indian superbike market than the China as Indian market has a sale of 1000
bikes per year for brands like Ducati, Suzuki and Yamaha. Growth in sales for most of high
end bike makers is thought to be the most opportune place for the growth and establishment
of the high end bikes brand. To find out and understand the Consumers Perception towards
High end bikes, to understand Growing trend of high end bikes in India, to identify the
factors which will lead to sale of a High end bike identify the factors which make people
26 | P a g e
chose a particular brand, also to understand how domestic players are competing with foreign
entrants like Yamaha, Suzuki, Ducati, etc.
CHAPTER 3
TRENDS & Factors
3.1 Key Trends Shaping Bikes Market
All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML, TYS, HMSI and others,
have increased their manufacturing capacities in the recent past. The total capacity of these
players stood at 7.8 million units per annum as against total market sales of 3.8 million units
in FY2002. Most of the players have either expanded capacity, or converted their existing
capacities for scooters and mopeds into those for manufacturing motorcycles. The move has
been prompted by the rapid growth reported by the motorcycles segment since FY1995.
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HHML increased the capacity of its plants from 1.8 million units in FY2003 to 2.25 million
in FY2004 and has been able to achieve 92% capacity utilisation. In light of the increase in
demand for motorcycles, the company plans to set up a new plant. Since its entry in the
Indian market during FY2002, HMSI has aggressively expanded its capacity.
Niche markets also witnessing intense competition:
A significant trend witnessed over the past five years is the inclination of consumers towards
products with superior features and styling. Better awareness about international models has
raised expectations of consumers on some key attributes, especially quality, styling, and
performance. High competitive intensity has prompted players to launch vehicles with
improved attributes at a price less than the competitive models.
In an effort to satisfy the distinct needs of consumers, producers are identifying emerging
consumer preferences and developing new models. For instance, in the motorcycles segment,
motorcycles with engine capacity over 150cc, is a segment that has witnessed significant new
product launches and hence, become more competitive. The indigenously launched Pulsar
150 had met with success on its launch and thereafter, a host of models have been launched in
this segment by various players. While Bajaj Auto launched the Pulsars (150 and 180 cc)
with digital twin spark technology (DTSi) that offers a powerful engine and fuel efficiency of
125 cc models, model launches by other players include LML's Graptor/Beamer, HMSI's
Unicorn besides the HHML's CBZ (improved version launched in 2003-04) and TVS' Fiero
F2. Moreover, in the recent past, the motorcycle segment has witnessed launch of vehicles
with higher engine capacity (higher than 150cc) and power (higher than 15bhp). These
include models such as Bajaj Auto Eliminator and Royal Enfield's Thunderbird followed by
HHML's Karizma. Besides these, KEL has launched premium segment motorcycles GF 170
and GF Laser besides launching products from the portfolio of its technology partner
(Hyosung's Aquila and Comet 250). The products in this segment cater for style conscious
consumers. Quite a few players are developing models combining features such as higher
engine capacity" optimum mix of power and performance, and superior styling. However, the
extent of shift to these products would depend on the positioning of such products in terms of
price.
In the scooters segment, the market for plastic-bodied variomatic scooters continues to
witness growth in the scenario of overall decline in scooter volumes. Higher volumes and
growth are especially true for certain scooter models, such as Honda Activa, that brought in
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new technology (besides variomatic transmission) to further differentiate themselves. Thus,
the need to differentiate and create a niche has led to companies strengthening their research
and development (R&D) capabilities and reducing the development time for new models.
Increasing focus on exports
For the first nine months of FY2005, two-wheeler exports increased by 37% over the
corresponding previous, led mainly by motorcycles even as exports of other two-wheelers
were healthy. While motorcycle exports increased by 40%, scooter and moped exports
increased by 29% and 27% respectively.
Motorcycle exports by Bajaj Auto, HHML and TVS have reported a robust growth in
FY2005 and are expected to increase further in the medium term.
Purchasing capacity of average Indians has increased spectacularly in the last few years. This
has encouraged significant growth in Indian two-wheeler industry. The exponential growth of
the industry can be ascribed to factors such as higher disposable income resulting in more
financial capacity and availability of cheap consumer financing. Over the years, the market
dynamics of the industry has also changed. Majority of the customers now go for scooters
and mopeds.
Bikes are the major segment of Indian two wheeler industry, the other two being scooter and
mopeds. Indian two wheeler companies are among the biggest two wheeler manufacturers in
the world. Hero Honda is the numero uno bike manufacturer in the world with Bajaj India
gives it a close chase.
Factors Driving Companies to target Indian Market:
Factor conditions in India’s comparatively cheaper and skill workforce can be effectively
utilised to setup large Low –cost production bases, huge investments from the companies for
capacity expansion, R&D etc. Government’s liberalized policy regime, automatic approval
for up to 100% FDI. The customs duty on inputs and raw materials has been reduced from 20
per cent to 15 per cent. Firm’s strategy, structure and rivalry in a large number of domestic as
well as multi-national players, highly competitive industry is also another factor which is
driving companies to invest in this sector and many companies are focussing on high end
bikes. Related and supporting industries strong industry associations are promoting the
industry’s interests and well established components in the industry are supporting OEMs.
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Demand conditions and high demand of consumers are also responsible for rapid growth in
this industry. Rapid urbanisation, increases literacy and rising per capita income, have caused
rapid growth and changes demand patterns.
The production of two wheelers in India increased from 6.53 million vehicles in 2006 to 9.53
million vehicles in 2009. The domestic sales have been increasing at a CAGR of 14.3 per
cent for the past 4 years. Motorcycles constituted 79.5 per cent of the domestic sales of two
wheelers in India and have been growing at nearly 24 per cent CAGR. In the scooter
segment, overall domestic sales grew by 1.3 per cent CAGR, driven primarily by ungeared
scooters and scooters with automatic gears. The sales of mopeds have declined at a CAGR of
15.9 per cent for the past four years.
The motorcycle segment clearly drives the growth of the two wheeler segment in India. The
two wheeler segment is being shaped by changing demographics and lifestyles. An increasing
number of working women and greater affluence among college goers have led to an increase
in demand for ungeared/auto geared scooters. As with the case of passenger vehicles, there is
a rising demand for higher-end models that combine style and performance in this segment as
well. In motorcycles, for example, models with higher engine capacities (200cc - 225cc or
above) are proving very popular. The Union Budget 2010 has brought in a slew of price rises
in the Indian bike industry, which is deemed beneficial by the industry experts. Even the
government claims that the post-budget price hike is going to bring long term benefits for the
industry. All things considered, the budget has done nothing to bring a smile on current or
future car owners. Post-budget, fuel prices shot up and the other thing that has shot up along
with it is the pressure on the Union Government to reduce the fuel prices.
But Finance Minister, Pranab Mukherjee, is not someone who gives in to the pressure of
Opposition or his own allies, for that matter. Prime Minister Manmohan Singh has said that
the general price hike has been brought about keeping in view the long-term benefits of the
country. He also said that populist policies, if persisted with for a long time, will lead to
erosion of the investment climate, our capacity to create new jobs, and of our ability to invest
in flagship programmes for the poor people. Manmohan Singh also said that the hike in fuel
prices would not add-up to the already-high inflation.
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CHAPTER 4
Research Methodology
4.1 - Need & Significance
There has been an increase in sales of High end bikes in India. The High end Bike industry is
growing at Very good speed, Growth in this sector is being propelled by Better roads and
growing motor sports passion has helped the superbike market to grow in India. Also,
increase in disposable income, reduction in import duties. Most of the companies see more
potential in the Indian superbike market than the China as Indian market has a sale of 1000
bikes per year for brands like Ducati, Suzuki and Yamaha. Growth in sales for most of high
31 | P a g e
end bike makers is thought to be the most opportune place for the growth and establishment
of the high end bikes brand.
4.2 - Research Objective:
To find out and understand the Consumers Perception towards High end bikes in India, and to
understand the growing trend of high end bikes in India. Also, to identify the factors which
lead to sale of a High end bike in India now and in coming future and to identify the factors
which make people chose a particular brand. The High end Bike industry is growing at Very
good speed, Growth in this sector is being propelled by Better roads and growing motor
sports passion has helped the superbike market to grow in India. Also, increase in disposable
income, reduction in import duties. Most of the companies see more potential in the Indian
superbike market than the China.
4.3 - Sampling Procedure:
Simple Random / Convenient
Sampling initially a rough draft will be prepared keeping in mind the objective of the
research. A pilot study will be done in order to know the accuracy of the questionnaire. The
final questionnaire will be arrived only after certain important changes will be done. Thus our
sampling will come out to be judgmental and convenient.
4.4 - Limitations of the Study:
The research is restricted to Mumbai city and which does not necessarily depict the whole
population of India.
4.5 - Primary Data Collection:
Primary Data was collected through a questionnaire which was hosted on websites and many
other social networking sites. The Questionnaire covered patterns like consumers preference
towards high end bikes. The questionnaire consisted of close ended questions and open ended
questions which were targeted on knowing the impact of Customer Experience, preference,
demand etc.
The questionnaire was secret and the respondent did not know that he was answering a
questionnaire. The quiz was created to attract as many respondents as I could without
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spamming the respondent with the questionnaire. The questionnaire was filled purely on
permission basis with respondent himself showing interest in playing the quiz. This was done
to get a candid response from the respondent and not affecting his views.
4.5.1 – Tools Used:

We have used questionnaires as our main tool to help us understand our topic “Future of high
end bikes in India”.
CHAPTER 5
Data Analysis and Data Interpretation
Q.1) when you think of a sports bike which bike comes to your mind first?
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Cumulative
Frequency Percent Valid Percent Percent
Valid Hayabusa 8 19.5 20.0 20.0
karizma ZMR 7 17.1 17.5 37.5
Pulsar 200 5 12.2 12.5 50.0
Pulsar 220 6 14.6 15.0 65.0
Others 14 34.1 35.0 100.0
Total 40 97.6 100.0
Missing System 1 2.4
Total 41 100.0
Table 5.1 Primary Response about

sports bike
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Chart 5.1 Primary Response about sports bike
Interpretation: In the first question when we asked our respondents which sports bike comes
to your mind first when you think of it? Majority of people replied by giving different
answers, for example they said Suzuki Hayabusa, Karizma, Pulsar etc. These are there
primary response in terms of sports bike which is positioned at the top of their mind.
Q.2) Which Brand’s sports bike you own?
Cumulative
Valid Pulsar 200 10 24.4 25.0 25.0
Pulsar 220 7 17.1 17.5 42.5
karizma 13 31.7 32.5 75.0
Karizma ZMR 8 19.5 20.0 95.0
Others 2 4.9 5.0 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.2 Brand of Sports Bike
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Chart 5.2 Brand of Sports Bike
Owned
Interpretation: In the above question when we asked respondents about which brand’s
sports bike you own? Majority of the people replied by saying that they own Indian
manufactured bike, while there were very few people who own branded bike which is made
by a Indian company in collaboration with foreign manufacturer.
Q.3) what is the engine capacity of your bike?
Cumulative
Valid 200cc-225cc 30 73.2 75.0 75.0
225cc-250cc 8 19.5 20.0 95.0
250cc-300cc 1 2.4 2.5 97.5
300cc-Above 1 2.4 2.5 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.3 Engine

Capacity
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Chart 5.3 Engine
Capacity
Interpretation: When we asked people in the above question that, what is the capacity of
your bike or power of your bike’s engine? Majority of people said that their bike’s power is
between 200cc to 225cc, while there were 8 respondents replied that their bike’s engine lies
between 225cc to 250cc and there were only 2 respondents said their bike lies in the range of
25cc to 300cc when it comes to power.
Q.4) what influences you to own a sports bike?
Cumulative
Valid Speed 4 9.8 10.0 10.0
Passion and Pride 9 22.0 22.5 32.5
Looks and power 8 19.5 20.0 52.5
Others 19 46.3 47.5 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.4 Influence to own

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sports bike
Chart 5.4 Influence to own
sports bike
Interpretation: In the above question we have asked people about what is that factor which
influences them to own a powerful bike or sports bike? In the above chart we can observe
that people have given various answers, some respondents said they own it for the sake of
speed, some said for power, passion, looks, and pride while others gave various different
reasons.
Q.5) How satisfied are you with your bike?
N Valid 40
Missing 1
Mean 2.10
Std. Error of Mean .178
Median 2.00
Mode 2
Std. Deviation 1.128
Variance 1.272
Skewness 1.037
Std. Error of Skewness .374
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Table 5.5 Satisfaction with
own Bike
Cumulative
Valid Very Satisfied 14 34.1 35.0 35.0
Quite Satisfied 15 36.6 37.5 72.5
Niether satisfied nor 6 14.6 15.0 87.5

dissatisfied
Quite Dissatisfied 3 7.3 7.5 95.0
Very Dissatisfied 2 4.9 5.0 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.6 Satisfaction with own

Bike
Chart 5.5 (Bar) Satisfaction with
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Cumulative
Valid Very Satisfied 14 34.1 35.0 35.0
Quite Satisfied 15 36.6 37.5 72.5
Niether satisfied nor 6 14.6 15.0 87.5

dissatisfied
Quite Dissatisfied 3 7.3 7.5 95.0
Very Dissatisfied 2 4.9 5.0 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.7 Satisfaction with own Bike
Chart 5.6 (Pie) Satisfaction with

own Bike
Interpretation: In the above question we asked people about their satisfaction level about
their own bike, in that case of satisfaction majority replied that they are happy with their
current bike while there were very few said that they are unhappy or very dissatisfied with
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their current bike. You can observe that in pie chart and in bar graph also there is majority of
people saying that they are happy with the bike they own currently.
Q.6) which comes first for you?
Cumulative
Valid Maintenance 16 39.0 40.0 40.0
Performance 24 58.5 60.0 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.8
Priority
Chart 5.7
Priority
Interpretation: In the above question we asked respondents, what is the priority when it
comes to maintenance and performance? 24 respondents said they consider performance first
while 16 said they prefer maintenance first. So after looking at pie chart you can observe that
majority of respondents think that performance comes first and it is most important compare
to maintenance.
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Q.7) when you want to purchase a bike, please rate the following parameters for below
features which are according to you, most important on the scale of 1 – 5 where 1 being the
least preferable and 5 being the highest preferable option
Outer Looks Rate

Colour of the bike
Shape and size of the bike
Head & Tail lights
Wheels and tyres
Extra features
Ho: There is no significance difference in reason for purchase of bike due to shape and size
of the bike across age group.
Ha: there is a significance difference in reason for purchase of bike due to shape and size of
the bike across age group.
N Mean Std. Deviation Variance Skewness
Statistic Statistic Std. Error Statistic Statistic Statistic Std. Error
Colour of bike(Outer looks) 40 3.47 .164 1.037 1.076 -.365 .374
Shape and Size(outer looks) 40 3.70 .135 .853 .728 -.407 .374
Head and Tail(outer looks) 40 3.12 .197 1.244 1.548 .004 .374
Wheels and Tyres(outer 40 3.27 .143 .905 .820 .065 .374

looks)
Extra Features(outer looks) 40 3.55 .164 1.037 1.074 -.140 .374
Valid N (listwise) 40
Table 5.9 Outer
Shape and Size(outer looks)
Less Important Indifferent Important Very Important Total
Age 18-25 4 8 0 0 12
26-30 0 2 7 0 9
31-35 0 0 12 0 12
36-40 0 0 1 6 7
Total 4 10 20 6 40
42 | P a g e
Table 5.10 Outer Looks – Crosstab
Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 65.905a 9 .000
Likelihood Ratio 66.085 9 .000
Linear-by-Linear Association 30.230 1 .000
N of Valid Cases 40
Table 5.11 Outer Looks – Chi-square

- Age
Interpretation: We can observe that respondents from higher age group have given more
importance to Shape and Size of the bike which comes under outer looks, hence we reject
Null hypothesis and accept Alternate hypothesis i.e. there is a significant difference in reason
for purchase of bike due to shape and size of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to shape and size
of the bike across Income group
Ha: there is a significance difference in reason for purchase of bike due to shape and size of
the bike across Income group
43 | P a g e
Cases
Valid Missing Total
N Percent N Percent N Percent
Income * Colour of bike(Outer 40 97.6% 1 2.4% 41 100.0%

looks)
Income * Shape and 40 97.6% 1 2.4% 41 100.0%

Size(outer looks)
Income * Head and Tail(outer 40 97.6% 1 2.4% 41 100.0%

looks)
Income * Wheels and 40 97.6% 1 2.4% 41 100.0%

Tyres(outer looks)
Income * Extra 40 97.6% 1 2.4% 41 100.0%

Features(outer looks)
Table 5.12 Outer Looks -
Shape and Size(outer looks)
Income 50,000-1,00,000 4 10 18 0 32
1,01,000-1,50,000 0 0 2 2 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 1
Total 4 10 20 6 40
Table 5.13 Outer Looks – Crosstab with

Income
Asymp. Sig. (2-
Value df sided)
N of Valid Cases 40
Table 5.14 Outer Looks – Chi-square -
Handling Rate
Brakes
Instrument panel
Steering
Gears
Accelerator 44 | P a g e
Ho: There is no significance difference in reason for purchase of bike due to Gears of the
bike across age group.
Ha: there is a significance difference in reason for purchase of bike due to Gears of the bike
across age group.
Brakes(Handling) 40 3.35 .166 1.051 1.105 .210 .374
Intrument Panel(Handling) 40 3.25 .182 1.149 1.321 .227 .374
Steering(Handling) 40 3.27 .164 1.037 1.076 .279 .374
Gears(Handling) 40 3.40 .175 1.105 1.221 -.034 .374
Accelarator(Handling) 40 3.25 .159 1.006 1.013 .417 .374
Table 5.15
Handling
Gears(Handling)
Least Important Less Important Indifferent Important Very Important Total
Age 18-25 1 8 3 0 0 12
26-30 0 0 9 0 0 9
31-35 0 0 1 10 1 12
36-40 0 0 0 0 7 7
Total 1 8 13 10 8 40
Table 5.16 Handling – Crosstab

- Age
Asymp. Sig. (2-

Value df sided)

45 | P a g e
N of Valid Cases 40
Table 5.17 Handling – Chi-square -
Interpretation: We can observe that respondents from lower age group have given more
importance to Gears of the bike which comes under Handling, hence we reject Null
hypothesis and accept Alternate hypothesis i.e. there is a significant difference in reason for
purchase of bike due to gears of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to Gears of the
bike across Income group.
Ha: there is a significance difference in reason for purchase of bike due to Gears of the bike
across Income group.
Gears(Handling)
Least Important Less Important Indifferent Important Very Important Total
Income 50,000-1,00,000 1 8 13 10 0 32
1,01,000-1,50,000 0 0 0 0 4 4
1,51,000-2,00,000 0 0 0 0 3 3
2,01,000-2,50,000 0 0 0 0 1 1
Total 1 8 13 10 8 40
Table 5.18 Handling – Crosstab -

Income
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40 46 | P a g e
Table 5.19 Handling – Chi-square -
Income
Interpretation: We can observe that respondents from lower income group have given more
importance to Gears of the bike which comes under Handling, hence we reject Null
purchase of bike due to gears of the bike across Income group.
General Features Rate

Seat design & comfort
Height of the bike
Overall length of the bike
Size of the fuel tank
Safety Guards
Ho: There is no significance difference in reason for purchase of bike due to Seat Design and
Comfort of the bike across age group.
Ha: there is a significance difference in reason for purchase of bike due to Seat Design and
Comfort of the bike across age group.
Seat Design and 40 3.57 .182 1.152 1.328 -.034 .374

Comfort(general features)
Height(general features) 40 3.27 .186 1.176 1.384 .326 .374
Overall length of the 40 3.35 .170 1.075 1.156 .281 .374

bike(general features)
Size of the fuel tank(general 40 3.47 .179 1.132 1.281 -.047 .374
features)
Safety Guards(general 40 3.45 .189 1.197 1.433 .077 .374

features)
Table 5.20 General

Features
47 | P a g e
Seat Design and Comfort(general features)
Age 18-25 9 3 0 0 12
26-30 0 8 1 0 9
31-35 0 0 7 5 12
36-40 0 0 0 7 7
Total 9 11 8 12 40
Table 5.21 General Features – Cross

tab - Age
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40
Table 5.22 General Features – Chi-

square - Age
48 | P a g e
importance to seat design and comfort of the bike which comes under general features, hence
we reject Null hypothesis and accept Alternate hypothesis i.e. there is a significance
difference in reason for purchase of bike due to seat design and comfort of the bike across
age group.
Ho: There is no significance difference in reason for purchase of bike due to Seat Design and
Comfort of the bike across income group.
Ha: there is a significance difference in reason for purchase of bike due to Seat Design and
Comfort of the bike across income group.
Seat Design and Comfort(general features)
Income 50,000-1,00,000 9 11 8 4 32
1,01,000-1,50,000 0 0 0 4 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 1
Total 9 11 8 12 40
Table 5.23 General features – Crosstab
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40
Table 5.24 General Features – Chi-square -

Income
importance to seat design and comfort of the bike which comes under general features, hence
we reject Null hypothesis and accept Alternate hypothesis i.e. there is a significant difference
in reason for purchase of bike due to seat design and comfort of the bike across income
group.
49 | P a g e
Ho: There is no significance difference in reason for purchase of bike due to Pick - up of the
Ha: there is a significance difference in reason for purchase of bike due to Pick – up of the
PERFORMANCE of BIKE Rate

Average
Pick up
Maintenance
Engine Capacity
Averge(POB) 40 3.10 .195 1.236 1.528 -.027 .374
Pickup(POB) 40 3.50 .168 1.062 1.128 -.068 .374
maintenance(POB) 40 3.30 .140 .883 .779 -.174 .374
Engine Capacity(POB) 40 3.35 .170 1.075 1.156 .150 .374
Table 5.25 Performance of
Pickup(POB)
Age 18-25 9 3 0 0 12
26-30 0 7 2 0 9
31-35 0 0 11 1 12
36-40 0 0 0 7 7
Total 9 10 13 8 40
50 | P a g e
Table 5.26 Performance of Bike –
Crosstab - Age
Table 5.27 Performance of Bike – Chi-

square -Age
importance to pick-up of the bike which comes under general features, hence we reject Null
purchase of bike due to pick-up of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to Pick - up of the
bike across income group.
Ha: There is a significance difference in reason for purchase of bike due to Pick-up of the
Pickup(POB)
Income 50,000-1,00,000 9 10 13 0 32
1,01,000-1,50,000 0 0 0 4 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 1
Asymp. Sig. (2-
Total 9 10 13 8 40
Value df sided)
Pearson Chi-Square 82.588a 9

Table 5.28.000
Performance of Bike –
Likelihood Ratio 79.634 9 Crosstab Income
.000
Value df Asymp. Sig. (2-
sided)
N of Valid Cases 40
N of Valid Cases 40
51 | P a g e
Table 5.29 Performance of Bike – Chi-
square -Income
importance to pick-up of the bike which comes under performance of the bike, hence we
reject Null hypothesis and accept Alternate hypothesis i.e. there is a significant difference in
reason for purchase of bike due to pick-up of the bike across income group.
Q.8) Rate your own bike on the following parameters for below features which are according
to you, most important on the scale of 1 – 5 where 1 being the least preferable and 5 being the
highest preferable option
Outer Looks Rate

Colour of the bike
Head & Tail lights
Wheels and tyres
Extra features
Ho: There is no significance difference in reason for purchase of bike due to wheels and tyres
Ha: There is a significance difference in reason for purchase of bike due to wheels and tyres
52 | P a g e
OWN_Colour of bike(Outer 40 3.40 .167 1.057 1.118 -.203 .374

looks)
OWN_shape and size(outer 40 3.17 .171 1.083 1.174 .398 .374

looks)
OWN_head and tail 40 3.47 .189 1.198 1.435 .015 .374

light(outer looks)
OWN_Wheel and tyres(outer 40 3.62 .171 1.079 1.163 -.212 .374

looks)
Own_Extra Features(outer 40 3.45 .172 1.085 1.177 .008 .374

looks)
Valid N (list wise) 40
Table 5.30 Own - Outer

Looks
OWN_Wheel and tyres(outer looks)
Age 18-25 8 4 0 0 12
26-30 0 5 4 0 9
31-35 0 0 9 3 12
36-40 0 0 0 7 7
Total 8 9 13 10 40
Table 5.31 Own Outer Looks – Crosstab

with Age
53 | P a g e
Asymp. Sig. (2-
Value df sided)
N of Valid Cases 40
Table 5.32 Own Outer Looks – Chi-

square - Age
Interpretation: We can observe that respondents from middle age group have given more
importance to wheels and tyres of the bike which comes under outer looks, hence we reject
for purchase of bike due to wheels and tyres of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to wheels and tyres
of the bike across income group.
Ha: There is a significance difference in reason for purchase of bike due to wheels and tyres
of the bike across income group.
OWN_Wheel and tyres(outer looks)
Income 50,000-1,00,000 8 9 13 2 32
1,01,000-1,50,000 0 0 0 4 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 1
Total 8 9 13 10 40
Table 5.33 Own Outer Looks - Crosstab -
54 | P a g e
Asymp. Sig. (2-
Value df sided)
N of Valid Cases 40
Table 5.34 Own Outer Looks – Chi-

square Income
importance to wheels and tyres of the bike which comes under outer looks, hence we reject
for purchase of bike due to wheels and tyres of the bike across income group.
Handling Rate
Brakes
Instrument panel
Steering
Gears
Accelerator
Ho: There is no significance difference in reason for purchase of bike due to brakes of the
Ha: There is a significance difference in reason for purchase of bike due to brakes of the bike
across age group.
OWN_Brakes(Handling) 40 3.50 .175 1.109 1.231 -.059 .374
OWN_instrument 40 3.37 .192 1.213 1.471 .126 .374

Panel(Handling)
OWN_Streeing(Handling) 40 3.27 .164 1.037 1.076 .279 .374
OWN_Gears(Handling) 40 3.47 .179 1.132 1.281 .065 .374
OWN_Accelarator(Handling) 40 3.35 .166 1.051 1.105 .210 .374
Table 5.35 Own

Handling 55 | P a g e
OWN_Brakes(Handling)
Age 18-25 10 2 0 0 12
26-30 0 7 2 0 9
31-35 0 0 10 2 12
36-40 0 0 0 7 7
Total 10 9 12 9 40
Table 5.36 Handling –

Crosstab - Age
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40
Table 5.37 Own Handling – Chi-

square - Age
Interpretation: We can observe that respondents from Middle age group have given more
importance to brakes of the bike which comes under handling, hence we reject Null
purchase of bike due to brakes of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to brakes of the
Ha: There is a significance difference in reason for purchase of bike due to brakes of the bike
across income group.
OWN_Brakes(Handling)
Income 50,000-1,00,000 10 9 12 1 32
1,01,000-1,50,000 0 0 0 4 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 56 | P a g1 e
Total 10 9 12 9 40
Table 5.38 Own - Handling – Crosstab -

Asymp. Sig. (2-
Value df sided)
N of Valid Cases 40
Table 5.39 Own Handling – Chi-square

- Income
importance to brakes of the bike which comes under handling, hence we reject Null
purchase of bike due to brakes of the bike across income group.
GENERAL Features Rate

Height of the bike
Safety Guards
Ho: There is no significance difference in reason for purchase of bike due to size of the fuel
tank of the bike across age group.
Ha: There is a significance difference in reason for purchase of bike due to size of the fuel
tank of the bike across age group.
57 | P a g e
OWN_Seat Design(GF) 40 3.40 .175 1.105 1.221 .207 .374
OWN_height of the bike(GF) 40 3.35 .162 1.027 1.054 .128 .374
OWN_Overall lenght(GF) 40 3.30 .180 1.137 1.292 .249 .374
OWN_Size of the Fuel 40 3.50 .179 1.132 1.282 .000 .374

Tank(GF)
OWN_Safety Guards(GF) 40 3.45 .179 1.131 1.279 .130 .374
Table 5.40 Own General

Features
OWN_Size of the Fuel Tank(GF)
Age 18-25 4 1 3 4 12
26-30 2 3 3 1 9
31-35 2 5 1 4 12
36-40 2 1 3 1 7
Total 10 10 10 10 40
Table 5.41 Own General Features – Cross

tab - Age
58 | P a g e
Asymp. Sig. (2-
Value df sided)
Linear-by-Linear Association .017 1 .898
N of Valid Cases 40
Table 5.42 own General Features – Chi-
Interpretation: We can observe that respondents from all age group have given equal
importance to size of the fuel tank of the bike which comes under general features, hence we
accept Null hypothesis and reject Alternate hypothesis i.e. there is no significant difference in
reason for purchase of bike due to size of the fuel tank of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to size of the fuel
tank of the bike across income group.
Ha: There is a significance difference in reason for purchase of bike due to size of the fuel
tank of the bike across income group.
OWN_Size of the Fuel Tank(GF)
Income 50,000-1,00,000 8 9 7 8 32
1,01,000-1,50,000 0 0 2 2 4
1,51,000-2,00,000 2 0 1 0 3
2,01,000-2,50,000 0 1 0 0 1
Total 10 10 10 10 40
Table 5.43 own General Features – Chi-square-

Income
Asymp. Sig. (2-
Value df sided)
Linear-by-Linear Association .235 1 .628
59 | P a g e
Asymp. Sig. (2-
Value df sided)
N of Valid Cases 40
Table 5.44 Own General Features – Chi-

square - Income
Interpretation: We can observe that respondents from all income group have given equal
importance to size of the fuel tank of the bike which comes under general features, hence we
accept Null hypothesis and reject Alternate hypothesis i.e. there is no significant difference in
reason for purchase of bike due to size of the fuel tank of the bike across income group.

Average
Pick up
Maintenance
Engine Capacity
Ho: There is no significance difference in reason for purchase of bike due to Maintenance of
Ha: There is a significance difference in reason for purchase of bike due to Maintenance of
60 | P a g e
OWN_Average(POB) 40 3.38 .185 1.170 1.369 .115 .374
OWN_Pickup(POB) 40 3.08 .173 1.095 1.199 .585 .374
OWN_Maintenance(POB) 40 3.42 .175 1.107 1.225 .020 .374
OWN_Engine capacity(POB) 40 3.10 .142 .900 .810 .240 .374
Table 5.45 Own Performance

of Bike
OWN_Maintenance(POB)
Age 18-25 11 1 0 0 12
26-30 0 8 1 0 9
31-35 0 0 11 1 12
36-40 0 0 0 7 7
Total 11 9 12 8 40
Table 5.46 Own Performance of Bike –

Crosstab - Age
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40
Table 5.47 Performance of Bike –
Interpretation: We can observe that respondents from Middle age group have given more
importance to maintenance of the bike which comes under performance of bike, hence we
61 | P a g e
reason for purchase of bike due to maintenance of the bike across age group.
Ho: There is no significance difference in reason for purchase of bike due to Maintenance of
the bike across income group.
Ha: There is a significance difference in reason for purchase of bike due to Maintenance of
the bike across income group.
OWN_Maintenance(POB)
Income 50,000-1,00,000 11 9 12 0 32
1,01,000-1,50,000 0 0 0 4 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 1
Total 11 9 12 8 40
Table 5.48 Own Performance of Bike –

Crosstab - Income
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40
Table 5.49 Own Performance of Bike - Chi-

importance to maintenance of the bike which comes under performance of bike, hence we
reason for purchase of bike due to maintenance of the bike across income group.
Q.9) what are your expectations from future sport bikes? Give ratings on the following
parameters for below features which are according to you, most important on the scale of 1 –
5 where 1 being the least preferable and 5 being the highest preferable option.
Future Bikes Rate
62 | P a g e
Quality of the product
Brand Image
Safety an extra features
Sales Service
Dimensions
Status Symbol
Looks
Ho: There is no significance difference in reason for purchase of future high end bikes due to
Brand image of the bike across age group.
Ha: There is a significance difference in reason for purchase of future high end bikes due to
Brand Image of the bike across age group.
63 | P a g e
Quality(Future Bikes) 40 3.40 .182 1.150 1.323 .098 .374
Brand Image(Future Bikes) 40 3.42 .175 1.107 1.225 .140 .374
Safety and Extra 40 3.23 .145 .920 .846 .357 .374

Features(Future Bikes)
Sales Service(Future Bikes) 40 2.97 .141 .891 .794 .508 .374
Dimension(Future Bikes) 40 3.25 .167 1.056 1.115 .292 .374
Status Symbol(Future Bikes) 40 3.22 .162 1.025 1.051 .122 .374
Looks(Future Bikes) 40 3.35 .158 1.001 1.003 .033 .374
Table 5.50 Future
Brand Image(Future Bikes)
Age 18-25 10 2 0 0 12
26-30 0 9 0 0 9
31-35 0 1 9 2 12
36-40 0 0 0 7 7
Total 10 12 9 9 40
Table 5.51 Future Bike -

Crosstab - Age
Asymp. Sig. (2-
Value df sided)
N of Valid Cases 40
Table 5.52 Future Bikes – chi-

square - Age
importance to brand image of the bike which comes under Future bikes, hence we reject Null
64 | P a g e
purchase of bike due to brand image of the bike across age group.
Ho: There is no significance difference in reason for purchase of future high end bikes due to
Brand image of the bike across income group.
Ha: There is a significance difference in reason for purchase of future high end bikes due to
Brand Image group.
Brand Image(Future Bikes)
Income 50,000-1,00,000 10 12 9 1 32
1,01,000-1,50,000 0 0 0 4 4
1,51,000-2,00,000 0 0 0 3 3
2,01,000-2,50,000 0 0 0 1 1
Total 10 12 9 9 40
Table 5.53 Future Bikes - Crosstab -
Asymp. Sig. (2-

Value df sided)
N of Valid Cases 40
Table 5.54 Future Bike – chi-square
- Income
importance to brand image of the bike which comes under Future bikes, hence we reject Null
purchase of bike due to brand image of the bike across income group.
65 | P a g e
Q.10) will you recommend your Bike to others?
Cumulative
Valid Definitely Not 2 4.9 5.0 5.0
Probably Not 3 7.3 7.5 12.5
Probably 11 26.8 27.5 40.0
Definitely 24 58.5 60.0 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.55 Recommendation of

Bike
Chart 5.8 Recommendation of
Interpretation: In the above question we asked respondents that if someone takes your
opinion about your bike than will you recommend your bike to others or not, in reply
66 | P a g e
majority of people replied that they will recommend their bike to others and there were 4 to 5
people who said they will not recommend their bike to others.
Q.11) what is the price of your Current bike? (In Rupees Lac)
Cumulative
Valid 70,000-1,00,000 38 92.7 95.0 95.0
1,51,000-Above 2 4.9 5.0 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.56 Price of
Chart 5.8 Price of Current
Interpretation: In the above question we asked respondents about the price of their current
bike and we asked them to rate their bike in the given range. Most of the respondent’s bike
ranges between 70 thousand to 1 lac, while there were only two respondents replied that their
bike ranges between 1.50 thousand and above.
67 | P a g e
Q.11) how much are you willing to pay if you get all the desired features in future bikes? (In
Rupees Lac)
Cumulative
Valid 1,00,000-1,25,000 2 4.9 5.0 5.0
1.26,000-1,50,000 13 31.7 32.5 37.5
1,51,000-2,00,000 12 29.3 30.0 67.5
2,00,000-Above 13 31.7 32.5 100.0
Total 40 97.6 100.0
Total 41 100.0
Table 5.57 Future Desire

& Price
Chart 5.9 Future Desire &

Price
Interpretation: In the above question we asked respondents that according their desire in
future bike what should be the price of future bike by giving them a range to choose from,
68 | P a g e
there is an equality in their answers that most of them are ready to pay the price more than
their current bike’s price.
CHAPTER 6
Suggestions and Recommendations
Summary of Analysis
• Most of the people when asked about first preference about the sports bikes they
replied by stating various high end bike models but the models that they stated most
of them were manufactured by International manufacturers. There was a signal that
people want to use more powerful bikes and quality bikes but something is restricting
that.
• There is clear indication that in future international manufacturers will focus mainly
on India, infact companies like Ducati, Yamaha, Suzuki, Kawasaki and more are
already focussing on Indian roads which contains lots of heat and demand.
• It is observed throughout the study that people want to use more powerful bikes but
may be because of money factor or problems from government in implementing
excise and custom duty these bike lovers are facing problems, because of which
Indian companies are taking advantage of it and most of the respondents are using
Indian manufactured bikes.
• Most of the people are using bike whose capacity range is between 200cc to 300cc.
Most of the respondents replied that the various factors that influence them are need
for speed, Power and looks, passion and pride, etc. Most of the respondents are quite
satisfied with their current bike and very less number of people are dissatisfied with
their current bike. When it comes to priority many people think that performance is
more important than maintenance.
• In the later part of the project when it comes to purchase decision of a sports bike
majority felt that in term of outer looks, shape and size of the bike plays a important
role. While in handling majority gave preference to gears, when it comes to general
features majority gave Importance to seat design and comfort across age group and
across income group. Pickup is the choice made by many respondents when they are
69 | P a g e
asked about performance of the bike. Similarly different choices made by people
when they are asked to rate their bikes for the same features.
• In future high end bikes people will prefer Brand image, and second they want quality
product from bike makers. Brand name will have lots of importance in future bikes in
India.
70 | P a g e
Recommendations
• Companies must offer varied models of bikes so as to provide options to the customer
• Companies must try and come up with technological advanced product so as to gain
advantage in future market.
• Companies should mainly focus on its Brand Image and Quality of the product.
• Norms related to the automobile industry and High end bike market should be made
more flexible.
• Major players of Indian origin must focus on new and advanced technology so as to
come up with advanced bikes and also to give tough competition International or
foreign bike manufacturers, otherwise outside entrants will capture all the possible
market.
• People in India prefer low range bikes and also high end bike so bike should be made
according to the need and demand of the consumer and companies should focus more
to analyze and and understand the growing demand and need of the consumer, so that
it will be easy for them to understand their behaviour and buying pattern in India.
71 | P a g e
CHAPTER 7
Conclusion
People say the highly efficient Indian bike market is hard to digest stylish, powerful bikes of
Ducati, Kawasaki Ninja etc because of its high fuel consumption, Yet stylish bike market is
increasing and facing a robust growth due to increase in youths that’s have high earning,
increase in income level, availability of stylish bikes, change in preference’s, good roads,
developing infrastructure’s. But it is highly uncertain that power bikes can repeat the success
of highly fuel efficient, great resale value of existing bikes and it becomes the bike of Indian
middle class family who are the main consumer of bikes or it limits high class rich family
accessories.
The impact of these developments is reflected in a change in market share, a divergent trend
in share price and the sharp swing in the price-earnings multiple. The year ended March 2002
may not have been particularly good for the stock market, but not so for two-wheeler stocks.
The market's affinity for two-wheeler stocks - Bajaj Auto, Hero Honda and TVS Motor is
explained by the robust demand for motorcycles. Suzuki, the global major, which recently
severed its ties with TVS Motor Company, has now decided to set-up manufacturing facilities
in the country. Apart from international companies, there is growing competitive pressure
from existing domestic producers as well. Bajaj and Kinetic, whose presence hitherto was
confined to the scooter market, have now entered the motorcycle segment. As a result, the
battle for market share is set to intensify further. Attractive growth rates in the motorcycle
segment, has intensified competitive activity in the past two years. With product
configurations across players converging, effective sales and marketing skills will likely
determine future success. It is believed that there will be continuity of market growth, a
gradual move up in the value change and a tight leash on costs by industry leaders to
effectively counter sporadic price-led competition.
72 | P a g e
Motorcycles embody the best features of a two-wheeler such as fuel efficiency, ruggedness
and greater product differentiation. Our population profile (skewed towards the youth) and a
rising service class tilts the balance in favour of motorcycles. Currently all the major players
in the industry- Hero Honda, Bajaj Auto and Yamaha Motors have nearly equal scores in all
the competitive positions, with the rest of the players lagging behind in the run. Hero Honda
had been the first company in the Indian market to have envisaged the motorcycle market as
an opportunity market and invested wholeheartedly in it. Due to its superior and reliable
products and excellent services reached the number 1 position. It has placed most of its bikes
in the early stages in the Utility segment appealing to the masses. Its product positioning has
also been very good, which has also attracted other players in the market and driven growth
in the sector. But Hero Honda has surely held the first mover advantage. Bajaj on the other
hand, has been the second mover in the segment. Realizing the potential of the motorcycle
segment it started looking into it and due to its focus and continued efforts and ability to
understand the market has been able to give Hero Honda a run for its money. It has provided
the consumers cheaper and more fuel efficient bikes, increased product lines and above all
has now taken a substantial market in the Premium segment.
Other players in the market are following suit to both Hero Honda and Bajaj Auto. Ducati
Motors and Yamaha have been forced to tow the line and upgrade their products from two-
stroke to four-stroke bikes in line with the emission norms specified. They could not analyze
the market potential by themselves, thus lag behind.
Bajaj Auto has been the faster of the two since it has come to terms with the motorcycle
market potential. Its new product launches are an example to this fact as it is launching a
product in all the three segments to garner more volume base and customer loyalty by
providing customers products that provide an alternative as well as value for money. Exports
now constitute about 4% of total two-wheeler sales. This is expected to increase to 12% in
FY 2005. Kawasaki, Bajaj’s technical partner, has decided to outsource its sub-200cc
motorcycle requirements from Bajaj. This can be the singular reason for concern for the other
players in the market. Only Yamaha Motors has the financial muscle and product range to
compete with the three giants Hero Honda, Bajaj and TVS Motors. It has the technical know-
how and good products in international arena. It has to understand the Indian market and the
Indian customer in order to have a good product mix in India. It is expected that Yamaha to
make a place for itself in the industry in the next three to four years by setting up its own
subsidiary in India or through a collaboration with one of the Indian company. In regards to
73 | P a g e
Ducati Motors, it has to launch products in all the three segments to build in from here. It
cannot rely on a single product to see it through this intense competition. Its ability to launch
new reliable and quality products has decreased due to an end in its technical collaboration
with Suzuki. I feel in the next two years there will be a change in the segmentation of the
market with newly defined segments in terms of price and engine capacity. All the three
segments will move in an upward direction in terms of engine capacity.
The outlook for India’s automotive sector is highly promising. In view of current growth
trends and prospect of continuous economic growth of over 6 per cent, all segments of the
auto industry are likely to see continued growth. Large infrastructure development projects
underway in India combined with favourable government policies will also drive automotive
growth in the next few years.
74 | P a g e
ANNEXURE
Table Listings
TABLES CHAPTERS Page No

CHAPTER 2
Table 2.1 Sub-segments of two wheeler Industry 15
Table 2.2 Characteristics – Compiled by INGRES 16
CHAPTER 5
Table 5.1 Primary Response about sports bike 26
Table 5.2 Brand of Sports Bike Owned 28
Table 5.3 Engine Capacity 29
Table 5.4 Influence to own sports bike 30
Table 5.5 Satisfaction with own Bike 31
Table 5.6 Satisfaction with own Bike 31
Table5.7 Satisfaction with own Bike 33
Table 5.8 Priority 34
Table 5.9 Outer Looks 35
Table 5.10 Outer Looks – Crosstab with Age 35
Table 5.11 Outer Looks – Chi-square – Age 36
Table 5.12 Outer Looks – Income 36
Table 5.13 Outer Looks – Crosstab with Income 37
Table 5.14 Outer Looks – Chi-square – Income 37
Table 5.15 Handling 37
Table 5.16 Handling – Crosstab – Age 38
Table 5.17 Handling – Chi-square – Age 39
Table 5.18 Handling – Crosstab – Income 40
Table 5.19 Handling – Chi-square – Income 40
Table 5.20 General Features 41
Table 5.21 General Features – Cross tab – Age 42
Table 5.22 General Features – Chi-square – Age 42
Table 5.23 General features – Crosstab – Income 43
Table 5.24 General Features – Chi-square – Income 43
Table 5.25 Performance of Bike 44
Table 5.26 Performance of Bike – Crosstab – Age 45
Table 5.27 Performance of Bike – Chi-square – Age 45
Table 5.28 Performance of Bike – Crosstab 46
Table 5.29 Performance of Bike – Chi-square – Income 46
75 | P a g e
Table 5.30 Own - Outer Looks 47
Table 5.31 Own Outer Looks – Crosstab with Age 48
Table 5.32 Own Outer Looks – Chi-square – Age 48
Table 5.33 Own Outer Looks - Crosstab – Income 49
Table 5.34 Own Outer Looks – Chi-square Income 49
Table 5.35 Own Handling 50
Table 5.36 Handling – Crosstab – Age 51
Table 5.37 Own Handling – Chi-square – Age 51
Table 5.38 Own - Handling – Crosstab – Income 52
Table 5.39 Own Handling – Chi-square – Income 52
Table 5.40 Own General Features 53
Table 5.41 Own General Features – Cross tab – Age 53
Table 5.42 Own General Features – Chi-square- Age 54
Table 5.43 own General Features – Chi-square- Income 55
Table 5.44 Own General Features – Chi-square – Income 55
Table 5.45 Own Performance of Bike 56
Table 5.46 Own Performance of Bike – Crosstab – Age 56
Table 5.47 Performance of Bike – Chi-square –Age 57
Table 5.48 Own Performance of Bike – Crosstab – Income 57
Table 5.49 Own Performance of Bike -Chi-square – Income 58
Table 5.50 Future Bikes Descriptive 60
Table 5.51 Future Bike - Crosstab – Age 60
Table 5.52 Future Bikes – chi-square – Age 61
Table 5.53 Future bike – Crosstab – Income 62
Table 5.54 Future Bike – chi-square – Income 62
Table 5.55 Recommendation of Bike 63
Table 5.56 Price of Current Bike 64
Table 5.57 Future Desire & Price 65
76 | P a g e
Picture Listing
Page
PICTURES CHAPTERS
No
CHAPTER 2
Picture 3.1 Picture 1.1 Speedometers 5
Picture 3.2 Picture 2.2 Major Players 18
Charts Listings
Page
CHARTS CHAPTERS
No
CHAPTER 2
Chart 2.1 Segmental Growth of the Indian Two Wheeler Industry 14
Chart 2.2 Trends in Segmental Share 17
Chart 2.3 Market Share of Major Players 20
CHAPTER 5
Chart 5.1 Primary Response about sports bike 27
Chart 5.2 Brand of Sports Bike Owned 28
Chart 5.3 Engine Capacity 29
Chart 5.4 Influence to own sports 30
Chart 5.5 Satisfaction with own Bike (Bar) 32
Chart 5.6 Satisfaction with own Bike (Pie) 33
Chart 5.7 Priority 34
Chart 5.8 Recommendation of Bike 62
Chart 5.9 Price of Current Bike 63
Chart 5.10 Future Desire & Price 64
77 | P a g e
QUESTIONNAIRE
Name: _____________________________ Age: ________________________________
Gender: ____________________________ Date: _______________________________
Qualification: _______________________ Profession:___________________________
Income: ____________________________ Email ID:____________________________
1. When you think of a sports bike which bike comes to your mind first?
Ans:____________________________________________________________________
___________________________________________________________________________
__________________________________________________
2. Which other sports bikes come to your mind?
Ans:
___________________________________________________________________________
_______________________________________________________________________
3. Manufacturer and Brand of your bike is?
a) Indian or
b) Foreign made
4. Which Brand’s sports bike you own?

Ans:
_______________________________________________________________________
5. What is the engine capacity of your bike?

A) 200cc – 225cc
B) 225cc – 250cc
78 | P a g e
C) 250cc – 300cc
D) 300cc above
6. What influences you to own a sports bike?

Ans:_______________________________________________________________________
___________________________________________________________________________
7. How satisfied are you with your bike?
A) Very satisfied
B) Quite satisfied
C) Neither satisfied nor dissatisfied
D) Quite dissatisfied
E) Very dissatisfied
8. Which comes first for you?

A) Maintenance
B) Performance
9. When you want to purchase a bike, please rate the following parameters for below
features which are according to you, most important on the scale of 1 – 5 where 1
being the least preferable and 5 being the highest preferable option
Outer Looks Rate

Colour of the bike
Head & Tail lights
Wheels and tyres
Extra features
Handling Rate
Brakes
Instrument panel
Steering
Gears
Accelerator
79 | P a g e
General Features Rate
Height of the bike
Safety Guards

Average
Pick up
Maintenance
Engine Capacity
10. Rate your bike on the following parameters for below features which are according to
you, most important on the scale of 1 – 5 where 1 being the least preferable and 5 being the
highest preferable option
Outer Looks Rate

Colour of the bike
Head & Tail lights
Wheels and tyres
Extra features
Handling Rate
Brakes
Instrument panel
Steering
Gears
Accelerator
GENERAL Features Rate

Height of the bike
80 | P a g e
Safety Guards

Average
Pick up
Maintenance
Engine Capacity
11. What are your expectations from future sport bikes? Give ratings on the following
parameters for below features which are according to you, most important on the scale
of 1 – 5 where 1 being the least preferable and 5 being the highest preferable option
Future Bikes Rate

Quality of the product
Brand Image
Safety an extra features
Sales Service
Dimensions
Status Symbol
Looks
12. Will you recommend your Bike to others?
Definitely Not Probably Not Probably Definitely
13. What is the price of your Current bike?(In Rupees Lac)

1) 0.70 – 1 2) 1.01-1.25 3) 1.26 – 1.5 4) 1.51 - Above
14. How much are you willing to pay if you get all the desired features in future bikes?(In
Rupees Lac)
(1) 1 – 1.25 2) 1.26 – 1.5 3) 1.51 – 2 4) 2.01 - Above
81 | P a g e
BIBLIOGRAPHY
• Consumer behaviour towards High end bikes in India - DR. K. MALLIKARJUNA

REDDY
• Stylish and High End Bikes in India – Sandeep Shrivastav
• Two- Wheeler Growth Prospect in India - CRISIL
• The Evolution and Structure of the Two-wheeler Industry in India – Sunila George
(IIM Bangaluru)
• India: A Target-Rich Environment - CRITERIUM
82 | P a g e
WEBLIOGRAPHY
• http://blog.jpmotocycles.com/labels/Indian-bike-industry.html
• http://www.bharatbook.com/detail.asp?id=100764&rt=Research-report-on-Indian-
Two-Wheeler-Industry.html
• http://bikes.whereincity.com//advertising-articles/indian-bike-industry-future-
585434.html
• http://news.outlookindia.com/item/ good response for high end bikes in India
• http://wheelindustry.blogspot.com/2009/06/indian-auto-bike-market-best-and-not-so-
best.html
• http://hubpages.com/hub/yamaha-launching-indias-first-sports-bike
• http://ezinearticles.com/?Upcoming-New-Bikes-in-India&id=3847191
• http://blog.unieffort.com/2008/10/30/emerging-trends-in-automobile-industry-
imperatives-to-3pl-service-providers/
• http://ezinearticles.com/?Bike-Market-in-India&id=4108324
• http://www.surfindia.com/automobile/motorcycle-models.html
• http://ezinearticles.com/?Introducing-5-Promotional-Gifts-Ideas-For-Promoting-Car-
Dealerships&id=3940723
• http://en.wikipedia.org/wiki/Sport_bike
• www.scribd.com
• www.google.com
83 | P a g e

Future of High End Bikes

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Future of High End Bikes

1.1.2 - Evolution of Two-wheeler Industry in India:

 Hero Honda motors ltd.

1.2 INDIA - Rising Aspirations:

1.3 Bikes in India – Rising Figures:

BIKES MARKET – INDIA

2.1 Bikes Market – An Overview:

Two-wheeler segment is one of the most important components of the automobile

Hero Honda Motors Limited was established in 1984, as a joint venture

Yamaha Motor Corporation is the auto mobile company of Japan

2.2 Current Status of Indian Automotive Industry:

2.3 Size and Growth of high end Bikes in Indian Market:

• Increase in consumer's salary - Due to opportunities offered by multinationals the

Socialistic Pattern of Growth

Stability in the Market

World Automobile Sector - Current Scenario and Future Prospects

A Hailed as the Industry of Industries by management specialist Peter Drucker, the

2.3.1 Two Wheeler Statistics in India:

Chart 2.1 - Segmental Growth of

Scooter Motorcycle Moped

Engine Power (bhp) 6.5-9 7-8 and above 2-3

Weight (kg) 90-100 > 100 60-70

2.3.3 Market Characteristics

Scooter Motorcycle Moped

Table 2.2 – Characteristics – Compiled by INGRES

2.4 Companies targeting high end bikes Market:

2.4.1 - Key players in the Two-wheeler Industry:

Picture 2.2 Major Players

35.60% 27.50% Bajaj M otors

Chart – 2.3 – Market Share of Major Players

2.5 Objectives of the Study:

TRENDS & Factors

3.1 Key Trends Shaping Bikes Market

Niche markets also witnessing intense competition:

Increasing focus on exports

Factors Driving Companies to target Indian Market:

4.1 - Need & Significance

4.2 - Research Objective:

4.3 - Sampling Procedure:

Simple Random / Convenient

4.4 - Limitations of the Study:

4.5 - Primary Data Collection:

4.5.1 – Tools Used:

Valid Hayabusa 8 19.5 20.0 20.0

karizma ZMR 7 17.1 17.5 37.5

Pulsar 200 5 12.2 12.5 50.0

Pulsar 220 6 14.6 15.0 65.0

Others 14 34.1 35.0 100.0

Total 40 97.6 100.0

Missing System 1 2.4

Table 5.1 Primary Response about

Q.2) Which Brand’s sports bike you own?

Valid Pulsar 200 10 24.4 25.0 25.0

Pulsar 220 7 17.1 17.5 42.5

karizma 13 31.7 32.5 75.0

Karizma ZMR 8 19.5 20.0 95.0

Others 2 4.9 5.0 100.0

Total 40 97.6 100.0

Missing System 1 2.4

Table 5.2 Brand of Sports Bike

Q.3) what is the engine capacity of your bike?

Valid 200cc-225cc 30 73.2 75.0 75.0