Industry Profile: Indian automobile industry is one of the largest and most competitive in the World. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, creates 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in the Two-wheeler market and is the leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company Profile: Hero MotoCorp is the World’s single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to set up Hero Honda Motors Limited in 1984.
The product portfolio of the company includes Karizma ZMR, Karizma, Xtreme Sports, Xtreme, Hunk, Impulse, Achiever, Ignitor, Glamour Programmed FI, Glamour, Super Splendor, Passion XPRO, iSmart 110, Passion PRO, Passion PRO TR, Splendor iSmart, Splendor PRO Classic, Splendor PRO, Splendor+, HF Deluxe ECO, HF Deluxe, HF Dawn, Duet, Maestro Edge, Maestro, and Pleasure. Its manufacturing plants are in Dharuhera, Haryana; Gurgaon, Haryana; Haridwar, Uttarakhand; Neemrana, Rajasthan; and Villa Rica, Colombia. Its research and development center is located in Jaipur, Rajasthan. In addition, it has a Global Parts Centre for manufacturing and supplying the parts to local and global markets in Neemrana, Rajasthan.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=78 /]
Future Prospects: Being leader of the Two-wheeler market in India, even among global peers. It is wrong to say that they will perform well. They are performing. That’s why they are the leader in the Indian market. Having reached an unassailable pole position in the Indian two-wheeler market, Hero Honda is constantly working towards consolidating its place in the marketplace. GST and Demonetization were a significant hit for the company, but now the company is coming out of it. 2018 is expected to be a good year for the company.
