Automobile

industry
2
Chapter 1
introduction

Chepter Name

Chapter 1 Industry scenario

Chapter 2 Company profile
Chapter 3 Financ department
Chapter 4 Marketing department
Chapter 5 Human resources department
Chapter 6 Production department
Chapter 7 Other departments
Chapter 8 Conclusion

3
Summary

I Rushika Vaghasiya am a student of fifth semester in shree j.d.gabani commerce college & shree
swami atmanand saraswati college of management , surat.

I here at completion of my summer training report on the topic of “ department studies undertaken at
kotak mahindra bank .”

This report is prepared with the help of secondary data.

Secondary data are collected from the particular website this report is including 8 chapters .

The first chapter covers the industrial scenario , which contains some basic information about history of
the sector ,swot analysis , global perspective , GDP , major players in the sector.

The second chapter is company practical it is including point to point details about name & location of
the company , brief history , name of founders , vision & mission statement , SWOT analysis of the
company etc.

The third chapter is finance department explains previous data on income statement , ratio analysis ,
company’s accounting procedures and CSR etc.

The fourth chapter is marketing department . tis department provides information about list of
product , number of customer , PLC , promotional tools , CRM practices , etc.

The fifth chapter covers the human resources department of study.in these recruitment & selection
process , training methodology , performance appraisal process , wages & salary etc.

4
The sixth chapter is operations department in this department Core Service , Supplementary Services ,
Role of Employees , Equipment used , Distribution Channel Used , Service Process / Blueprint , Quality
Maintenance , Specific Operations policies , Service Pricing , Physical Evidences used .

In Bibliography includes the details of the source of the information which help to prepare this report.

In last chapter of annexure it includes p & l account and balance sheet.

1894 , 26-year-year old Vaclav clement, who was a bookseller in mlada Boleslav , kingdom of

bohemia was unable to obtain spare parts to repair his german bicycle.

In 1898, after moving to their newly built factory , the pair bought a Werner “motocyclette”.to

design a safer machine with its structure around the engine, the pair wrote to German ingnition

specialist Robert Bosch for advice on a different electromagnetic system.

Their new salvia motorcycle its debut in 1899, and the company became the first motorcycle

factory in central Europe.

By 1905, the firm was manufacturing automobiles, making it the second- oldest car manufacturer

5
in the Czech lands after Tatra.The company, with an area of 7,800 square meters [0.78 ha], had a

workforce of 320 and used 170 special machine tools, power-driven by 100 horsepower [75 kw]

of steam power.

Concept cars

• Vision IN (2020)

• Vision GT (2019)

• Vision iV (2019)

• Vision RS (2018)

• Vision X (2018)

• Vision E EU (2017)

• Vision S (2016)

• Vision C (2013)

• MissionL (2011)

• Vision D (2011)

• Fabia Super (2007)

• Joyster (2006)

• Yeti II (2006)

• Roomster (2003)

• Tudor (2002)

• Fabia Paris Edition (2002)

• Ahoj (2002)

• Felicia Golden Prague (1998)

• 783 Favorite Coupé (1987)

6
• Škoda 110 Super Sport (1971)

• Škoda 1100 GT (1968)

• Škoda 720 (1967–1972)

• Škoda F3 (1964)

• Škoda 1100 Type 968 (1958)

• Škoda 973 Babeta (1949)

1920s

• Laurin & Klement MS/540/545 (1920–23)

• Laurin & Klement Škoda 545 (1924–27)

• Škoda 422 (1929–32)

• Škoda 430 (1929–36)

• Škoda 645 (1929–34)

• Škoda 860 (1929–32)

THREE MAJOR TRENDS & CHALLENGES FOR THE

AUTOMOTIVE INDUSTRY IN 2021
• Semiconductor shortage puts pressure on automotive such chai

• fuel economy standards in flux.

The paper highlight the challenges faced by indian automobile industry in domestic and globle

market.

KEYWORDS : Automobile,Accessories, International Trade, Exports, Imports.

7
• GLOBAL PERSPECTIVES IN AUTOMOTIVE
INDUSTRY
1. INTERNATIONAL MARKET

In Europe, the restructuring process is characterized by the shift east with the new EU member states is
central and East Europe (CEE) acting as

the Westerns pressure valve against a background of stagnating sales, rising raw material costs,
increased compassion from Asian automakers and

falling new car prices. CEE gives automakers access to less costly labour and new customer, and it allows
new entrants, such as Hyundai and Kia,

to compete without legacy costs. The net effect has been a rebalancing of automaker footprints in the
region with western Europe losing 1.5 million

in capacity since 2000, while CEE countries will have added 1.8 million units of capacity by 2009. While
mature OEMs gradually come to grips

with the market-specific challenges presented to them, multifarious strategic challenges weigh just as
heavily before emerging market investment

are considered. Strategic challenges emanate from two sources –legislation or competition-and both add
costs to competing in markets Where better

performance will originate only by increasing market share or reducing costs. Such constraints include
increasing fuel economy or C02 objectives,

recycling, initiatives, changing consumer tastes, vehicle content escalation, premium brand growth, rising
commodity prices and globalized

supply chain management, among others.

Figure 1. Global perspective

Once automakers meet these mature market challenges, the next stage is to compete effectively in the
worlds growth markets. From 2007 to 2015,

8
emerging markets are expected to represent 18 times the estimated growth in light vehicle assembly as
mature markets in the same period. PwC

forests that 95 percent of light vehicle growth will originate from emerging markets. Among these
markets, the BRIC (Brazil, Russia, India, and

China ) countries are most eminent in the growth stakes, with more than 58 percent of forecasted growth
from 2007 to 2015 stemming from them.

Of the BRIC countries, PwC expects China and India to lead the growth in light vehicle output as OEMs
look to sate the demands of a combined

population of more than 2 billion people, with the less populous-but still strategically important-Russia
and Brazil expected to grow less rapidly.

2. EUROPEAN UNION OUTLOOK

9
Despite a short period of contraction from 2000 to 2003, western Europe has enjoyed considerable
stability since the late 1990s, with sales hovering

around the 14.5 million mark in the mid-2000s. A Lack of dynamic growth is a feature of a mostly mature
market such as Western Europe, where

replacement cycles and the prevailing economic situation drive demand. Economic growth in countries
such as Poland, the Czech Republic,

Hungary and Slovakia, as well as Romania ( joined 2007 ), has spurred a boom in sales volumes. The
star performer has been Romania, where sales

rose more than 25 percent in 2007-08, thanks to the improving economic situation and the rollout of the
Dacia Logan-exactly the type of low-cost

car designd to boost sales in emerging markets. Poland also seems to be reaching its potential, with
sales increasing almost 23 percent year-on-year

and totaling 293,000 in 2007.

10
Figure 2. European regions assembly 2000 vs. 2010 (million units )

In western Europe, a mosaic of factors influences the new car market. In Germany, the impact of the 3
percent increase in WATT continues to hold

the German market back, so that despite a high average vehicle pare age and increasingly positive
economic news, sales in 2007 were down almost

10 percent from 2006. Of the other big-fi be markets, spain also has moved into the negative, as the
countries construction-driven economic boom

ended and consumer confidence declines. Italy, France and the UK posted above- average year –on-year
growth for 2007, with Italy, in particular,

performing well (up 7 percent ), thanks in raft of new vehicle introductions from domestic OEM Fiat. The
UK (up 2.5 percent ) and France (up 3.2

percent ) also posted positive figures; however , increasing disquiet about the general economic situation
– stubbornly high unemployment figures

11
in France, the increased cost of credit in the UK, and the rising cost of living in almost all markets the
picture for 2008 will not be so rosy.

• SWOT ANALYSIS OF AUTOMOBILE INDUSTRY

Automobiles like cars, bikes and public transport systems are one of the most important building blocks
for society. Cars can be status symbol, they

can be necessary transport, they can be for sport and whatnot. So what are the strengths, weaknesses,
opportunities and threats in the automobile

industry?

Strengths in SWOT analysis of automobile industry

1) Evolving industry: Automobiles represent freedom and economic growth. Automobiles allow people to
live, work and travel in

ways that were unimaginable a century ago. Automobiles provides access to markets, to doctors, to jobs.

2) Continuous product innovation & technological advancement: With the advent of E-vehicles &
alternative fuel such as shell gas,

CNG and others, Automobile companies are increasing R & D expenditure to drive the next phase of
growth through use of

renewable sources of energy which may be solar, wind etc.

3) Growth shifting to Asian markets: Although American & European market is the pulse of this industry,
but the focus is shifting to

developing markets like China, India & other Asian nations because of the rise in disposable income,
changing lifestyle 7 stable

economic conditions.

4) Increase in demand of luxury commercial vehicles : Companies like VOLVO, Daimler/Chrysler, Bharat
benz are betting high &

are targeting the developing nations due to increase in demand of luxury public transportation systems.

12
5) Manufacturing facilities in Asian nations to control cost : In order to control cost & to manage shrinking
margins automobile

companies like Harley, Volvo, Bharat benz etc. are building their manufacturing facilities in developing
nations like India, China

because these nations have cheap workforce, are high in resources & are nearer to developed economics.
These are classic

conditions of an emerging market

• Weaknesses in the SWOT analysis of automobile industry:

1) Cars recalled : Controversies relating to recalling vehicles on account of some technical dis-functionality
or non-abidance to govt.

led rules is becoming very common.

2) Bargaining power of consumers : Over the last 3-4 decades the automobile market has shifted from
demand to supply market.

Availability of large number of variants, stiff competition between them, and long list of alternatives to
choose from has given

power to customers to choose whatever they like.

3) Growth rate of automobile industry : is the hands of the govt. due to regulations like excise duty, no
entry of outside vehicles in

the state, decreasing number of validity of registration period & volatility in the fuel prices. These factors
always affect the growth

of the industry.

Opportunities in the SWOT analysis of Automobile industry

1) Introducing fuel-efficient vehicles : Optimization of fuel driven combustion engines and cost efficiency
programs are good

opportunities for the automobile market. Emerging markets will be the main growth drivers for a long
time to come, and hence

13
fuel efficient cars are the need of the hour.

2) Strategic Alliances : Making strategic alliances can be a smart strategy for automobile companies. By
using specialized capabilities

& partnering with other companies, they can differentiate their offerings.

3) Market expansion : Entering new markets like Asian & BRIC nations will result in upsurge in demand
of vehicles. After these

markets, other markets, other markets are likely to emerge soon.

4) OEM priorities : Given the increase in electronic content, OEMs need to collaborate with suppliers and
experts outside the

traditional auto industry. Accomplishing this will require changes in the way OEMs function. OEMs will be
looking to their top

suppliers to co-invest in new global platforms & this will be the driving force in the future.

❖ Threats in the SWOT analysis of Automobile industry

1) Intense competition : Presence of such a large number of players in the Automobile industry results
into extensive competition, every

company eating into others share leaving little scope for new players.

2) Volatility in the fuel prices : At least for the passenger segment fluctuations in the fuel prices remains
the determining factor for its

growth. Also govt. regulations relating the use of alternative fuels like CNG. Shell gas is also affecting
the inventories.

3) Sluggish Economy : Macroeconomic uncertainty, Recession, un-employment etc. are the economic
factors with will daunt the

automobile industry for a long period of time.

4) High Fixed cost and investment in R & D : Due to the fact that mature markets are already
overcrowded, industry is shifting towards

14
emerging markets by building facilities, R & D centers in these markets. But the ROI out of these decisions
is yet to be capitalized.

Challenges faced by Automobile Industries in India

Major challenges faced by the automobile industry in India :

• Drawing talent - As the automobile manufacturing industry continues transforming; manufacturers will
require continuing attracting

the top and the brightest talent in order to acclimatize to the times.

• Overloading - Like all companies automobile manufacturing come across with ups and downs.
Overcapacity is the issue that happens

when a producer has already invested the resources such as payroll and materials into constructing a
definite quantity, only to find out

later that they do not require producing as much as they had planned for.

• Globalization - Enhanced global competition implies that lower market prices for several vehicles: once
again , most solutions call for

enhanced efficiency in order to offset a minor margin of income.

• Sustainability - Consumers are more and more worried about sustainability. Manufacturers,
consequently, must struggle to generate

more Eco-friendly cars and to be more competent in manufacturing.

• Urbanization - A t present consumers have a dissimilar set of criteria for their cars, numerous of which
are relevant to urbanization.

They comprise smaller vehicles, better maneuverability, and enhanced fuel mileage.

Contribution of the auto sector to Indias GDP :

India is expected to emerge as the worlds third-latest passenger vehicle market by 2021. The government
and the automotive sector, want to

increase the contribution of the automotive sector to approximately 12% , a 5% increase from what it is
today.

15
It took India around seven years to increase annual production to four million vehicles from three million.
However , with the advance in

industrialization, it is expected that India can ramp up vehicle production to five million units a year,
within the next three to five years. Indias

rural and urban landscapes are changing , and this in turn can prove to be a boost to the automotive
sector.

Rapid urbanization in India is driving people towards the cities. Smaller towns are also becoming hubs
of economic activity. This means that

India will have over 500 million people living in the cities by 2030. Rising incomes and opportunities will
result in over 60 million households

entering the consuming class. A vast majority of these households will purchase a two wheeler or a car,
and this trend will play a key role in

Source : World Economic Outlook, April 2019, IMF

16
EMDE = Emerging market & developing economies

ASEAN-5 = composed of 5 countries; Indonesia, Malaysia, Philippines, Thailand, Vietnam.

17
Overview of Automobile industry
The Indian automobile industry is going through a technological change where each firm is

engaged in changing is processes and technologies to sustain the competitve advantage and

provide customer with the optimized product and services.

Starting from two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles

and the luxury vehicles, the indian automobile industry has achieved tremendous amount of

success in the recent years.

Major players

1. Tata Motors Ltd.

2. Maruti Suzuki India Ltd.

3. Mahindra & Mahindra Ltd.

4. Hero Motocross Ltd.

5. Bajaj Auto Ltd.

6. Ashok Leyland Ltd.

7. TVS motor company Ltd.

8. Eicher Motor company Ltd.

9. Force Motors Ltd.

10. SML ISUZU Ltd.

18
 Chapter: 2
Company profile

19
❖ Introduction
Honda is an Japanese public multinational conglomerate manufacturer of automobiles , motorcycle and

power equipment , headquartered in minato, Tokyo , japan

• History:
Honda is world’s largest motorcycle manufacturers since 1959. Reaching

a production of 400 million by the end of 2019

• Producing more than 14 million internal combustion engines each year

• Honda was first Japanise automobile manufacturers to release a dedicated luxury brand , 1986

• In 2013 , Honda invested about 5.7% of its release in research and development also in 2013

20
Honda became the first Japanise automaker to be a net exporter from the united states.

❖ Overall working of the sector

• The fifth gen honda city gets 10 voice enabled features. It also gets four new Honda

connect features: fule log analysis , cost of maintenance

• Battery health status : tell car’s systems to check for issues with the bettery

• Indirect tyre deflation status: owner can check if any of the tyres have gone flat

• Fuel status : owner can check fuel status of the car

❖ Challenges faced by that sector in India

❖ Some of the models like Honda city were highly preferred by the upper middle – class

India customer .

❖ However , Honda India started facing heavy competition from other foreign players in

the market like Volkswagen and Hyundai.

❖ It’s best performing models like Honda city and honda civic lost their market leadership

status

❖ Understand the challenges faced by companies due to the macro environment factors

that are beyond their control.

❖ Appreciate the importance of modifying the strategies of a company depey upon the

prevailing market conditions.

❖ Analyze the strategies that market share from market leader.

21
❖ Discuss and debate whether the steps taken by Honda India to meet the new challenges

helped it in improving its performance In the Indian market

❖ Explore the strategies that should be followed by Honda India to consolidate its position

in the small car segment of the India automobile market.

❖ SWOT analysis
• Strengths

1. in engine manufacturing – company’s core product

2.Competenceortfolio

3.Dominance in motorcycle and engine industries leading to a high brand awareness

4.Strong position in Asia’s motorcycle markets

• Weaknesses

1.Dependence on North America to generate most of the revenue

2.Low investments in research and development (R&D) leading to innovative products

• Opportunities

1. Increasing government regulations

2. Improving U.S. economy

3. Increasingncy of new model releases

4. Low fuel prices are increasing the demand for pickup trucks and SUVs

• Threats

22
1. Compilation

2. Japanese Yen exchange rates

3.Natural disasters

Strengths

1. Competence in engine manufacturing – company’s core product

All Honda’s businesses are built around the engines – its core product. The company’s first engines
were

built for motorcycles and power equipment, but were later produced for cars and marine vehicles.

Honda is the world’s largest engine manufacturer, which produced over 27 million units of engines for

automotive, motorcycle, marine, and power equipment products, in 2015.

The company has lots of experience in manufacturing quality and well-performing engines. Its engines

are praised for their durability, easiness to start, quietness, fuel efficiency and reliability. According to

Reliability Index,Honda’s car engines are some the most reliable in the industry.

Engines are the key to motor products and the company’s competence in manufacturing engines is a

competitive advantage few rivals can match.

2. Diversified product portfolio

Honda operates 4 different divisions:

Motorcycle business (12.3% revenue)

Automobile business (72.8% revenue)

Power product and other business (2.3% revenue)

Financial Services (12.6% revenue)

23
Honda offers many products to consumers including engines, cars, motorcycles, jets, robots,
generators,

lawnmowers, water pumps, as well as many other power equipment products. While the cars generate

the most revenue for Honda, its overall product portfolio is fairly diversified, when compared to

Volkswagen, Toyota, General Motors, or Briggs and Stratton (in an engine industry).

Figure 1. Percentage of Sales Revenue by Business

Honda’s revenue breakdown by business segment. Honda earns 72.8% of its revenue through

automotive business.

Source: Honda’s Financial Report

3. Dominance in motorcycle and engine industries leading to a high brand

awareness

Honda is a huge company dominating in most of the markets it operates in, including engines and The
company is the leading manufacturer of small, general purpose engines for commercial, rental

industry, and consumer applications. Honda is also the leading global manufacturer of motorcycles

having 22.1% of the total market share in the first half of 2016. Company’s dominance in both of these

markets have increased its brand recognition and reputation.

According to Interbrand and Forbes, Honda is the 21st and 23rd most valuable brand in the world,
worth

US$22.1 billion and US$25.2 billion, respectively. Brand value is closely related to brand awareness and

its reputation and only few other companies, such as Toyota, BMW and Mercedes-Benz, can compare

with Honda in terms of a brand value.

4. Strong position in Asia’s motorcycle markets

Motorcycle business generates 12.3% of total Honda’s sales and is the third largest revenue group for

24
the company. The company has sold 17,592 units of motorcycles and all-terrain vehicles in 2016 alone

and captured 22.1% of the world’s motorcycle market in the first half of 2016.

Asia is the main geographic segment for Honda’s motorcycle business, where the company has sold

million units or over 88.7% of its total motorcycles, generating ¥1,107.6 billion in revenue.

Asia-Pacific region, which includes such countries as China, India, Vietnam, Thailand, the Philippines,

Malaysia, Indonesia, Australia and Japan, is the largest motorcycle region in the world and Honda’s

strong position in it is a powerful competitive advantage.

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Company Background
Key Facts

Name Honda Motor Company, Ltd.

Founded September 24, 1948

Logo

Honda SWOT analysis logo

Industries served Automotive, Aviation, Robotics, Finance

Geographic areas served Worldwide (more than 100 countries)

Headquarters Minato-ku, Tokyo, Japan

Current CEO Takahiro Hachigo

Revenue JPY ¥14,601.1 billion (2016) 9.6% increase over JPY ¥13,328.1 billion (2015)

Profit JPY ¥406,358 billion (2016) 27.6% increase over JPY ¥561,098 billion (2015)

25
Employees 208,399 (2016)

Main Competitors Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor

Company, General Motors Company, Nissan Motor Company, Hyundai Motor Company, Tata Motors,

Ltd., Toyota Motor Corporation, Volkswagen AG and many other automotive companies.

Honda Motor Company (further Honda or Company) is a Japanese motorcycle, automobile, aircraft and

engine manufacture. The Company was founded in 1948 by Soichiro Honda, as an automotive parts

manufacturer. Honda later moved to manufacturing motorcycles and has become the world’s largest

motorcycles manufacturer in 1959.[2]

In 1962, Honda started manufacturing automobiles and was the first company to launch a dedicated

luxury brand, Acura, in 1986. The Company is now the 8th largest auto manufacturer in the world.

Over the years, the Company has ventured into many industries and is now manufacturing jets and

robots.

Honda always highlighted that its core business is engines and all the products the company has

ventured in is built around them. Company has been growing significantly over the past few years,

mainly due to its automobile business.

You can find more information about the business in its official website or article.

❖ Major players in this sector

• Toshiaki Mikoshiba

Chairman & Head-External Affairs

Honda Motor Co., Ltd.

• Toshihiro Mibe

26
President, CEO & Representative Director

Honda R&D Co., Ltd., Honda Motor Co., Ltd.

• Seiji Kuraishi

COO, Representative Director, VP & GM-Automobile

Honda Motor Co., Ltd.

• Kohei Takeuchi

Senior MD, Head-Finance & Administration

Honda Motor Co., Ltd., American Honda Finance Corp.

• Yoshi Yamane

Senior Managing Director & Risk Management Officer

Honda Motor Co., Ltd.

• Masahiro Yoshida

Director

Honda Motor Co., Ltd.

• Takahiro Hachigo

President, CEO, Representative Director, Head-R&D

Honda Motor Co., Ltd.

• Takanobu Ito

Director

Honda Motor Co., Ltd.

• Masafumi Suzuki

Director

Honda Motor Co., Ltd.

27
• Hiroko Koide

Independent Outside Director

J-Oil Mills, Inc., Honda Motor Co., Ltd., J. FRONT RETAILING Co., Ltd., Mitsubishi Electric Corp.

• Kunihiko Sakai

Independent Outside Director

Honda Motor Co., Ltd.

• Hideo Takaura

Independent Outside Director

Tokyo Electric Power Co. Holdings, Inc., Honda Motor Co., Ltd.

• Mayumi Tamura

Independent Outside Director

Shimizu Corp., Honda Motor Co., Ltd. ❖

Interesting Honda facts that can help you

1. Honda originally manufactured motorized bicycles

During the post-war period, Soichiro Honda and a team of twelve men created engines to attach to

bikes. Honda Motor Company became the world’s largest motorcycle manufacturer in 1964.

2. Many Hondas are produced in the U.S.

Honda is a Japanese company, but not everyone realizes that Honda has several manufacturing
facilities

in America.

28
3. The Honda Accord was the first foreign vehicle manufactured in the U.S.

The 1982 model was produced in Honda’s Marysville, Ohio plant.

4. Honda makes more than cars and motorcycles

Honda is involved in the manufacturing of other products like watercraft, ATVs, aircraft, mountain
bikes,

lawn equipment, and solar cells. They even created a humanoid robot called ASIMO.

5. Honda has its own airport

It’s located in Japan near its main plant.

6. Honda is a major exporter of soybeans

They began shipping soybeans from the U.S. to Japan in 1986 because the crop was plentiful in Ohio,

Japan had a market for it, and they wanted to invest in the state they were operating in.

7. Honda dominates the Indy 500

Honda-built engines have won more Indy 500 races than any other manufacturer.

8. Honda makes a private jet aircraft

The HA-420 HondaJet is powered by Honda engines.

9. Honda is the largest engine manufacturer in the world

The company makes over 14 million engines a year.

10. The Honda Gold Wing motorcycle has been in production for over 40 years

29
The first Gold Wing was manufactured in 1974.

11. The Honda Civic was Honda’s answer to the 1973 oil crisis

The first Civic got 40mpg on the highway.

12. Honda made the first four-wheel drive car

It was the 1987 Honda Prelude.

13. Joe drove his 1997 Honda Accord over one million miles

Joe Cicero of Maine reached one million miles in 2011 on the original engine and transmission. Honda

gave him a parade and a new 2012 Accord.

From 1997 to 2006, every Honda CR-V had a folding plastic picnic table under the cargo area.

15. The Honda Acura is the first Japanese automotive luxury brand

The first Acura was released in America in 1986.

16. The first car mass-marketed by Honda was the S600

It was available as a convertible and fastback coupe.

17. Kelley Blue Book thinks they’re a good buy

Up 2016, Kelley Blue Book awarded the “Best Buy of the Year” to the 2016 Honda Civic, CR-V, Pilot,
and

Odyssey, in their respective classes.

30
❖ Global Perspective
• Main Products

Motorcycles, automobiles, and power products

• Number of Associates

Honda group companies: 430 domestic and overseas affiliated companies (as of March 31, 2021)

• Honda group companies

Consolidated financial results (for the fiscal year ended March 31, 2021)

• Consolidated financial results

Status of shares (as of March 31, 2021)

• Status of shares

Worldwide unit sales for the fiscal year ended March 31, 2021

(Automobiles: retail, motorcycles and power products: wholesale)

31
32
Chapter 3 :
finance
department

Ratios and their interpretation

Current ratio

33
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.

Current ratio = current assets

Current liabilities

= 598.94

790

= 0.76

Quick ratio

34
In finance, the quick ratio, also known as the acid-test ratio is atype of liquidity ratio, which
measures the ability of a company to use its near cash or quick assets to extinguish or retire its
current liabilities immediatelary

Quick ratio = current assets - inventory

Current liabilities

=598.94 – 160.49

790.97

0.55

Net profit ratio

Profit margin, net margin, net profit margin or net profit ratio is a measure of profitability. It is
calculated by finding the net profit as a percentage of the revenue.

Net profit ratio = net profit after tax

Net sales

= 3301.67

35
 796.80

= 4.14

Debt equity ratio

The debt-to-equity (D/E) ratio is used to evaluate a company's financial

leverage and is calculated by dividing a company's total liabilities by its
shareholder equity. The D/E ratio is an important metric used in corporate
finance

Debt equity ratio = total debt

Total equity

= 2.05

10.14

= 0.202

Iterest coverage ratio

The interest coverage ratio is a debt and profitability ratio used to determine how easily a
company can pay interest on its outstanding debt. The interest coverage ratio is calculated by
dividing a company's earnings before interest and taxes (EBIT) by its interest expense during a
given period.

36
Interest coverage ratio = earning before interest and test

Interest expenses

= 66.14

20.26

= 3.26

Fixed turnover ratio

Fixed-asset turnover is the ratio of sales to the value of fixed assets. It indicates how well the
business is using its fixed assets to generate sales.

Fixed turnover ratio = net Sales

Fixed assets

= 796.80

93.76

Inventory turnover ratio = net Sales

Average inventory

= 796.8

37
Accounting procedure

were prepared in accordance with the accounting standards notified under the Companies (Accounting
Standard) Rules, 2006 (as amended), Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014 and other relevant provisions of the Act. These financial statements
are the first financial statements of the Company under Ind AS. Refer note 35 for an explanation of
how the transition from previous GAAP to Ind AS has affected the Company''s financial position,
financial performance and cash flows. (ii) Historical cost convention The financial statements have been
prepared on a historical cost basis, except for the following: - certain financial assets and liabilities that
are measured at fair value; and - defined benefit plans - plan assets measured at fair value ii) Current -
non-current classification All assets and liabilities are classified into current and non-current as per the
Company''s normal operating cycle and other criteria as set out in the Schedule III to the Companies
Act, 2013. Assets An asset is classified as current when it satisfies any of the following criteria: (a) it is
expected to be realized in, or is intended for sale or consumption in, the company''s normal operating
cycle; (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within 12
months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets
include the current portion of non-current financial assets. All other assets are classified as non-current.

CSR and expense

Under the scheme, senior manager, vice-president and permanent workmen can get a
maximum amount of ₹72 lakh, Manager can get ₹67 lakh, Deputy Manager (₹48 lakh),
Assistant Manager (₹36 lakh), Senior Executive (₹31 lakh), Executive (₹27 lakh) and
Assistant Executive (₹15 lakh).

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The company is also offering ₹5 lakh extra for the first 400 employees who opt for the
scheme.

According to the communication sent to employees at the Manesar facility, the Indian auto
industry was passing through challenging times as sales have dropped due to COVID-19 and
resultant downturn in the economy.

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Chapter : 4
Production
dpartment

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All Honda Bikes

•Honda CB650R.

•Honda CBR650R.

•Honda Navi. Rs 41.50 - 41.50 K **Ex-showroom Price New Delhi.

•Honda Cliq. Rs 42.50 - 43.00 K **Ex-showroom Price New Delhi.

•Honda Activa i. Rs 50.01 - 50.01 K **Ex-showroom Price New Delhi.

•Honda Activa 5G. Rs 52.46 - 54.33 K **Ex-showroom Price New Delhi.

•Honda Livo. ...

•Honda Dio.

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Specific distribution
channel:

NEW DELHI: Honda Motor is looking at harnessing the distribution

network and customer base of its two-wheeler business to push car

sales in India, as the Japanese company seeks to double its share in

an automobile market dominated by Maruti Suzuki and Hyundai

Motor.

In major markets globally, the Japanese automaker manages two-

and four-wheeler businesses under one company. In India, where

Honda entered in association with different partners —SIEL for cars

and the Hero Group for twowheelers — it has separate units to

handle the two. Shinji Aoyama, who held the reins at Honda

Motorcycle & Scooter India (HMSI) at the time when Honda and

Hero ended their joint venture in 2010, is currently the chief officer

(Asia & Oceania) at the parent and the man behind the latest move.

The aim is to reach the double-digit mark in the Indian market share

in the next five years, Aoyama told ET. In the April-June quarter,

Honda's share was a mere 5.3% in the Indian passenger car market,

where Maruti sold one in every two units. It was the fifth largest

manufacturer during the three-month period, behind Maruti,

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Hyundai, Mahindra & Mahindra and Tata Motors.

Two-wheeler sales at HMSI increased 10.3% to 4.73 million units in

FY17. The target is to add a million customers in FY18. Honda Cars'

volumes, declined 18% to 1,57,313 units in FY17. It rose 21% to

38,562 units between April-June 2017. With sales of 57,984 units,

flagship City accounted for more than two-thirds of the sales last

fiscal. Compact cars Jazz, Amaze and WR-V brought in another 72,305

units.

PLC (product life cycle)

❖ Introduction Stage

FY2001-02 to FY2006-07

The time period from FY2001-02 to FY2006-07 can be said as the

introduction phase of the Moto scooter segment of Honda. During this

period the segment suffered from various problems like Low Average,

Sophisticated Design of Engine.

❖ Growth Stage

FY2007-08 to FY20017-18

The growth stage started from FY2007 and stretched to the current

time. As it is uncertain that it maturing or not for the total sector’s

decline. In this period of HMSI opened their new plants in Rajasthan,

Karnataka, and Gujarat respectively to support the growth in demand.

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Also introduced Honda Eco Technology (HET) which solved the

problems it faced in the introduction stage i.e. of Low average.

It also changed the body models of specific vehicles which have existed

for a lot of years like Activa and Aviator. And also added new features

like disc brake o aviator and provided a new engine of 125cc

displacement to Activa to provide more power. And finally, the sales

touched their peak in FY 2017 i.e. 4,010,980 units of ATSC.

This growth was achieved by taking the Scooterisation of India concept

very seriously now I think it’s easy to find an ATSC vehicle in everyone’s

house and business. The product is designed in such a way that it suits

multi demographic factors.

❖ Maturity Stage

A slight decline can be seen after the highest sales record in FY2018.

But registering it as the Maturity will not be justice keeping the current

performance of overall automobile sector in view, it may be said as the

maturity only for the reason of its existence in the market v.i.z. about 2

Decades and more.

Market segmentation
Common definition market, which means economic that’s approach customers in

terms of people to find a goods or services they want, while segmentation is

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processes dividing specific part into many parts of some things. Market

segmentation is mean an organization target its product, services, or ideas only to

specific groups of consumers rather than to everybody, even if it means that other

consumers who don’t belong to this target market aren’t attracted to it, for

example is ASIMO might be suitable for housewife to do household works. Honda

company has been targeted three major part of market segmentation that is

include demographic, behavioral, and psychographic segmentation.

Demographic segmentation is based on age, income, family size and socio-

economic status, etc. this segmentation identify the type and assume that

consumer with similar demographic will exhibit similar characteristics

purchasing patterns, motivation, and interest. Which when it comes to market

place for machine like robot, it might depend on the functions and use. There are

a vast variety of market segments for this type product. He could be useful in the

medical industry as an assistant or manufacturing with dangerous product trials.

Along with this, ASIMO could be a companion for an elderly individual or a family

helper for a busy household. As ASIMO abilities…

Promotion tools used

The promotional strategy of the company uses various

new techniques to promote its brand; it does aggressive

marketing on TV as it advertises to a large audience. It

has released ads with different themes to attract

customers. It has also released an advertisement

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showcasing the Honda founder’s dream of producing

high-quality cars. Here is the image of the ad:

The Power of Dreams Ad by Honda’s beliefs in giving high-end technology

products, for the determination to bring them to market.

Various other campaigns initiated by Honda are as follows:

• Honda creates various innovative campaigns to attract its customers

and engage with them, here is one of the successful and oldest

campaigns done by them which hit the sales of honda by 90,000 in

The campaign name is “You meet the nicest people on Honda”, this campaign

showcased that the motorcycles were made for the common man.

❖ “Precious as a gold” campaign by Honda is one of the recent ad

campaigns. Here is the image of the ad:

❖ Social media marketing helps companies to advertise their product to

reach a huge market as social media is one of the major platforms in

today’s time.

❖ esome of the marketing tactics of Honda during the festive

season and current market trends & how they tried to portray their

brand: alone.

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 Price Strategy of Honda company
The price strategy implemented by Honda is acknowledged as it keeps in

mind their main target segment is the middle-income group thus, their

pricing strategy also goes according to that. They provide a wide range of

products with an affordable pricing strategy. They have also built huge

manufacturing hubs in developing countries and export bikes in developed

countries where the cost of production is higher. It also provides sports bikes

and luxury bikes which are priced at the higher end. Also, one of the

penetration pricing strategies initiated by honda is that they set

artificially low prices to gain market share and once that is achieved

they increase their price.

Sales force management

Salesforce.com, the market and technology leader in on-demand business

services, has announced that Honda Australia Motorcycles & Power Equipment

Pty Ltd (Honda MPE) has selected salesforce.com to manage all its customer,

sales and marketing information.

Honda MPE Australia is one of the 35,300 companies of all sizes, industries and

geographies that comprised the salesforce.com customer base as of July 31,

2007. Revenue and subscribers will be recognised as the service is delivered.

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In operation since 1991, Honda MPE imports motorcycles, power equipment and

outboard engines and assembles lawnmowers and brushcutters.

With annual sales in excess of 200,000 units representing over $350million of

turnover, Honda estimates that it has more than 1 million Honda products

currently in active use in Australia. .

Honda MPE will use Salesforce to better communicate with its Australian

customers, as well as automatically track and manage marketing campaigns.

With this insight, Honda will be able to target marketing campaigns like never

before.

According to Craig Bassett, IT Manager at Honda MPE Honda wasn’t looking for

an on-demand solution, but chose one after discovering how cost effective and

easy to use Salesforce would be.

“That we don’t need to worry about managing the system on-premise is also a

huge advantage,” Bassett says. “It frees up our IT staff because they don’t need

to worry about software upgrades, disaster recovery or extra security.”

With Salesforce, Honda MPE wants to drive top and bottom line growth by

evolving its marketing campaigns to a new level. As such, Honda MPE will

implement a two-phase business strategy.

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Phase one: Cleanse data to target marketing campaigns for growth

Honda MPE has a database of approximately one million contacts, but only

around 250,000 of those are qualified.

Of the remaining 750,000, Honda MPE has little insight into details like their age,

gender, occupation, customer purchase history, or even if the customer still owns

a Honda MPE product.

Bassett had run direct mail and email marketing campaigns in the past, but was

not sure he had targeted the right demographic, and had no way to measure the

campaign’s success.

“We had used another system as our contact database, which was more than

seven years old and too basic to give us the customer detail we needed,” he

says.

“It didn’t have a marketing function, which is an area of the business we wanted

to improve. Most data was out of date, and as a result the response rates on our

marketing campaigns were low.”

“With Salesforce we’ll be able to clean up the data and validate each contact,”

Bassett says.

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Honda MPE will transfer all customer data over to Salesforce, and qualify every

contact in the process. Once contacts are transferred, Honda MPE will be able to:

– Automatically record every customer touch point to keep records up to date;

– Track customer satisfaction levels and identify gaps in service delivery to take

customer service to a new level;

– Track customer complaints for prompt follow-up;

– Update customer information online anywhere, anytime, so updates are

immediately available for marketing and customer service departments;

– Understand and profile customers based on spend history to offer more

tailored levels of service based on the type of customer;

– Integrate with other departments including Honda Australia Rider Training,

Honda MPE’s motorcycle training division, and Honda Riders Club Australia,

Honda MPE’s nxational members association, to leverage cross-department sales

opportunities;

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Chapter : 5
human resources
management

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Recruitment and selection processes
Online apply

Honda By Rosenthal is committed to hiring highly talented workers. Show

them how you could contribute to their team by crafting a professional

INTERVIEW

During the interview, you may be asked some unusual questions. Don’t be

too surprised. Many times questions are asked simply to see how you react.

Preparing in advance can help cool your nerves on the interview day. Make

sure to do your research on Honda By Rosenthal and the New And Used Car

Dealers industry.

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ONLINE PRE-EMPLOYMENT EVALUATION

Many employers use pre-employment assessments to ensure that they are

finding the candidate that best fits the open position. Depending on the open

position you may be asked to take an aptitude test, personality test, or

situational judgement test. It is important that you prepare in advance for

these exams.

❖ Number of employees

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❖ Performance appraisal
❖ process

PERFORMANCE MANAGEMENT SYSTEM

Performance management system that are directly tied to an

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organization

reward system provide a powerful incentives for employee to

work diligently

and creatively towards achieving organizational objectives .

when properly

design and implemented performance management system not

only let

employee know how well they are presently performing but

also clearfy

what needs to be done to improve performance

UNDERSTANDING PERFORMANCE

Performance refers to the degree of accomplish the tasks that

Make

DETERMINANTS OF PERFORMANCE

ob performance is the net effect on the employee’s efforts as modified

by

the abilities and role (tasks) perceptions thus, the performance is the

given

situation can be viewed as resulting from the interrelationship among

the

efforts abilities and the role perception effort which result from being

motivated, refers to the amount of energy (physical and /or mental)

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individual uses in performing a task. Abilities are the personal

characters

used in performing a job. Abilities usually do not fluctuate widely over

a short

period of time. Role (tasks) perception refers to the direction in which

individual believe they should channel their effort on their jobs. The

activists

and the believers people believe are necessary in the performing of

their jobs

and define their role perception.

❖ Wages and salary administration

The average Honda Motorcycle & Scooter India salary ranges from

approximately ₹7,73,159 per year for an Executive Assistant to

₹20,21,514 per year for an Assistant Manager. ... The highest-

paying job at Honda Motorcycle & Scooter India is an Assistant

Manager with a salary of ₹20,21,514 per year

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Chepter :6
operations
department

Row material use

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Honda procure and supply raw materials such as light metals, steel, plastics, resin

and Platinum Group Metals (PGM). While responding to the transformations taking

place in the car manufacturing industry, such as motorization and light weighting,

honda offer high quality services that go beyond the domains of the trading company

to create diverse value, by taking on the business of manufacturing, including steel

processing and molten aluminum.

In they Business, they themselves the supply of more than 10,000 different parts to

customers. Honda offer just-in-time(JIT) services using our own warehouses and other

systems.

In the Equipment, Die and mold Business, Honda offer total services to support our

customers in diverse ways. This includes procurement and arrangement of installation

of equipment, dies and molds at production sites such as car manufacturing plants,

and performing post-commissioning maintenance.

❖ Turnover:
For the fiscal year 2018, Honda reported earnings of US$9.534 billion, with an

annual revenue of US$138.250 billion, an increase of 6.2% over the previous fiscal

cycle. Honda's shares traded at over $32 per share, and its market capitalization

was valued at US$50.4 billion in October 2018.

❖ Plant location
Committed to Make in India, first production facility at Manesar

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(Haryana) started operations in 2001. A decade later in 2011,

Honda expanded to its 2nd plant at Tapukara (Dist. Alwar,

Rajasthan) with 1.2 million units' annual production capacity

❖ Layout used
“In addition, the integrated nature of the production facility is also very similar to that of other
Honda facilities, where all aspects of assembly and finishing, as well as final quality checks, are
conducted in a single facility,” adds Fujino. “By maintaining an integrated assembly environment,
any issue that is identified during the assembly process can be immediately identified and
rectified by the appropriate assembly associates from anywhere within the facility.”

The production team is involved in setting up each workstation and they are working together to
establish a productive and ergonomic work environment for the assembly processes. “Technicians
assist with setting up the areas and simplifying the work instructions,” explains Fujino. “Integrated
teams also are developing integrated assembly tools that have all the required materials and
support equipment on the production tooling.

“Ongoing, there will be integrated work teams that will continue to identify quality and
continuous improvement items to further reduce waste,” adds Fujino. “These teams will be
responsible for identifying and implementing actions to resolve issues and further increase
efficiency and performance.”

❖ Product produced
Honda manufactures a range of power products, including general-purpose
engines, generators, water pumps, lawn mowers, riding mowers, grass
cutters, brush cutters, tillers, snow blowers, outboard marine engines, power
carriers, sprayers and pressure washers. Honda offers cogeneration units.

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 ❖ Machine/equipment used
joint project was established by Saitama Factory (currently Wako Plant) and
Hamamatsu Factory in June 1956, in order that Honda might develop a high-
precision machining table for use in the manufacture of multiple models. The team
developed the Honda Universal Machine, or HUM. As opposed to conventional
machining tables, which offered much less flexibility and could not be used to
process modular components of different specifications, the HUM delivered multiple-
specification processing capability with its replaceable processing units. Each of
these comprised a multiple-axis blade section - also called a ganged head - and
jigs, which could be changed in modular fashion. With that, Honda’s innovative new
machine achieved a superior degree of accuracy, plus a remarkable setup time of
just five minutes. Honda made a total of six HUMs, and these units amply
demonstrated their capabilities in the production of the 1957 Dream C70 and 1958
Benly C90

❖ Quality maintenance
The company started its India innings with a portfolio of premium offerings priced upwards of Rs 7 lakh
comprising sedans like City and Civic and premium sports utility vehicle CR-V. He says, "At that point,
we were established as a premium brand because of this portfolio. Since then our product range has
changed significantly." He is quick to add, "Premiumness has nothing to do with the kind of prices one
is selling its cars at - it is about the space a brand occupies in the mind of a consumer. We were a
premium brand then and we are premium even today. What's different about Honda today is that we
want to touch the lives of more customers," he adds. And this notion of premiumness rests on the three
pillars of durability, quality and reliability. The ownership experience, which depends largely on
efficiency of its dealerships, is also an integral part of the company's premium positioning in the auto
market

it was a real balancing act for the company to enter the value (small car) segment without
compromising its premium

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 ❖ Services provided
you're looking to purchase or lease a Honda or Acura product, Honda Financial
Services and Acura Financial Services can help. Browse special lease and finance
offers, estimate payments and even get credit pre-approval if you apply online. Current
customers can learn how to pay bills online and over the phone, sign up for online
account access or sign up to make payments automatically. And it's always a good idea
to learn about your future financial options if you're approaching the end of your
financial contract.

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Chapter : 7 other
department

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Research and development department :

Honda R&D began in 1960 with the separation of the research and development
division from Honda. With the goal of realizing Honda’s corporate philosophy of
bringing joy to as many people as possible through its products, Honda R&D was
established as an independent entity. Honda R&D’s corporate culture is imbued with
respect for the individual, emphasizing a research and development system that
enables the talents of each engineer to flourish in the pursuit of our ultimate
objective of bringing originality and innovation to the technologies and products that
it develops.

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Chapter : 8
conclusion

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Expanding to full operations , Honda production capacity has jumped 30% year on year to 2.8 million
per annum in FY 12- 13.On February 17 2016, Honda enograted the “World’s largest only scooter
plant" at Vithalapur Gujarat with annual capacity of 1.2 million units. The new plant will employ
approximately 3000 people within first 2 years of commercial production. • Honda’s third plant at
Narsapura Industrial Area near Bengaluru, Karnataka is equipped to manufacture 1.2 million units.
Utilizing production technologies refined at Manesar & Tapukara plants as starting point, the 3rd plant
is employed with state-of-the-art manufacturing, automation and environment friendly technologies to
deliver quality products. • Growth: Starting FY’16-17 on high note, Honda 2Wheelers India set the pace
of industry in the first quarter with a stellar 22% growth, compared to 14% growth of domestic
industry. Honda’s performance stood out as it reinforced its position as both the Highest market share
gainer and Highest volume gainer of the Industry ).

Links
http://www.goodreturns.in

Https://in.linkdin.com

Https://global.honda

Https://www.sideshare.net

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Https://www.honda2wheerensindia.com

Https://global.honda

Https://en.m.wikipedia.org

Https://www.slideshare.net

Https://www.hondatrading.com

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