The 2&3 Wheeler industry comes under Consumer Cyclical group. It’s a Non-commodity type industry.

Industry Strengths

Availability of finance at cheap rates and through banks and private NBFCs.
Availability of world class technology and skilled manpower for R&D, designing and management of facilities.
Availability of cheap world class components, locally produced and imported.

Industry Weakness

Impacted by high interest rates and high fuel cost.
Huge competition from MNCs in all segment of the industry.
Impacted by weakening rupee which makes imports expensive and royalty payments high

Growth Drivers

Rapid urbanization and industrialization.
Growing middle class disposable income leading to purchase of two-wheelers, passenger cars, SUV etcs.
Development of road infrastructure.
Rapid growth of organized retailing which has lead to a demand for light and heavy commercial vechicles.
Governments support for agriculture sector and rural India.

Hero MotoCorp is the world’s largest two-wheeler company (in volume terms). It has a production capacity of 7.65 mn two wheelers.

The Company manufactures and sells motorized two wheelers up to 350 cubic centimeters (cc) engine capacity, spare parts and related services.

Its manufacturing plants are located in Dharuhera, Haryana; Gurgaon, Haryana; Haridwar, Uttarakhand; Neemrana, Rajasthan, and Villa Rica, Colombia.

Its research and development center is located in Jaipur, Rajasthan. It has a Global Parts Centre for manufacturing and supplying the parts at local and global markets at Neemrana, Rajasthan.

Segments and Products

The company offers over 20 products comprising 100 cubic centimeters (CC), 110CC, 125CC, 150CC, 225CC and scooter category.

Its products include Super Splendor, Passion XPRO, iSmart 110, Passion PRO, Passion PRO TR, SplendoriSmart, Splendor PRO Classic, Karizma ZMR, Karizma, Xtreme Sports, Xtreme, Hunk, Impulse, Achiever, Ignitor, Glamour Programmed FI, Glamour, Splendor PRO, Splendor+, HF Deluxe ECO, HF Deluxe, HF Dawn, Duet, Maestro Edge, Maestro and Pleasure.