2-Wh Business (Domestic)

S. Sridhar

CEO – 2Wh

1st August 2009

Agenda

• Industry Trend

• Industry Insights

• Segment Trends

August 3, 2009 BAJAJ AUTO - 2 Wh 2

• Segment Trends

• BAL Performance

Industry TrendIndustry Trend

Industry Trend

Category Trends - Volumes - Domestic

3396409

3898751

4725996

57498675826678

6586443

5826793

6640000

6224000

4,000,000

5,000,000

6,000,000

7,000,000

August 3, 2009 BAJAJ AUTO - 2 Wh 4

2537061

3396409

1032809

378,690409,193 412,728 530,009

659,266 747,523 878829791676

1161356

1733147

1396895

0

1,000,000

2,000,000

3,000,000

99-00 00-01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10

Mopeds Scooters (G) Scooters(UG) Motorcycles Step Thrus Series6

Motorcycle Industry – Month wise ForecastDomestic Motorcycle Industry - Monthwise

600000

750000

August 3, 2009 BAJAJ AUTO - 2 Wh 5

300000

450000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2006-07 Dom 2008-09 Dom Estimated 2010

Industry InsightsIndustry Insights

Industry Insights

• Vehicle Penetration

• Population Strata

• Age

August 3, 2009 BAJAJ AUTO - 2 Wh 7

• Occupation

• Household Income

• Repeat Vs First Time

All India Penetration

Overall Penetration

16.1

13Motorcycle

August 3, 2009 BAJAJ AUTO - 2 Wh 8

26.5

23.7

0 5 10 15 20 25 30

2-Wh

2008 2006

Penetration – Motorcycles – (Population Strata)

Motorcycle - Penetration

33.3

28.4

10.1

30.9

27.7

22.0

8.2

Other 1 million+ cities

1-10 lakh cities

Towns

Rural areas

August 3, 2009 BAJAJ AUTO - 2 Wh 9

16.1

22.9

36.8

13.0

18.8

30.9

0.0 10.0 20.0 30.0 40.0

All India

Top 7 metro cities

Other 1 million+ cities

2008 2006

% Contribution By Population Strata

25

30

35

40

1 million+

cities

1-10 lakh

cities

Rural areas

August 3, 2009 BAJAJ AUTO - 2 Wh 10

5

10

15

20

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

cities

Towns

BAL: Metro Vs. Rural M/C

Metro Vs. Rural MS% 2008 MS%

Metro Cities 31%

August 3, 2009 BAJAJ AUTO - 2 Wh 11

Rural 22%

Difference 9%

Discussion Rural Vs. Urban : BAL StrategyBAL Strategy

Penetration by Age

Penetration - By Age - M/C

13.7

15.8

18.5

20.5

17.9

12.0

12.6

14.8

15.6

15.6

31 - 35 years

36 - 40 years

41 - 45 years

46 - 50 years

50+ years

August 3, 2009 BAJAJ AUTO - 2 Wh 13

16.1

7.5

11.6

13.7

13.0

5.9

9.2

0.0 10.0 20.0 30.0

All India

Upto 25 years

26 - 30 years

31 - 35 years

2008 2006

Contribution By age

35

45Over 20 up to 30 years

Over 30 up to 40 years

August 3, 2009 BAJAJ AUTO - 2 Wh 14

5

15

25

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Up to 20 years

Over 40 years

BAL: Below 20 Vs. Above 40 – M/C

2008 MS%

Below 20 35%

Above 40 24%

August 3, 2009 BAJAJ AUTO - 2 Wh 15

Above 40 24%

Difference 11%

Penetration by Occupation

Penetration - By Occupation - M/C

9.2

13.9

28.7

4.0

3.0

6.9

10.5

24.3

4.5

1.9

Skilled Worker

Farmer

Retired

Not Mentioned

Others

August 3, 2009 BAJAJ AUTO - 2 Wh 16

16.1

36.0

36.2

9.2

13.0

29.8

28.4

0.0 10.0 20.0 30.0 40.0

All India

Self Employed/ Business/Trade

Employed Govt/Company/Firm

Skilled Worker

2008 2006

Contribution by Occupation

30

35

40

45

50

55

Govt./public/private

company

employees

Self employed

August 3, 2009 BAJAJ AUTO - 2 Wh 17

5

10

15

20

25

30

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Students

Farmers

Penetration By Income

Penetration - By Household Income - M/C

42.9

53.4

59.8

60.0

Rs.8001 to Rs.16000

Rs.16001 to Rs.25000

Rs.25001 to Rs.50000

Over Rs.50000

August 3, 2009 BAJAJ AUTO - 2 Wh 18

16.1

2.3

21.1

0 10 20 30 40 50 60 70

All India

Upto Rs.5000

Rs.5001 to Rs.8000

2008

50

60

70

80

90

Repeat Vs. New Buyer

First Time buyers

August 3, 2009 BAJAJ AUTO - 2 Wh 19

0

10

20

30

40

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Replacement

Buyers

Segment AnalysisSegment Analysis

Motorcycle Segments – Major Brands

• Entry (Commuter Standard)

• Mid

– Commuter Deluxe

August 3, 2009 BAJAJ AUTO - 2 Wh 21

– Light Sports

• Premium (Sports)

Segment Volumes

Segment Volumes

207173 206817200005

234721

286517271616

305284

373933

200000

300000

400000

August 3, 2009 BAJAJ AUTO - 2 Wh 22

172275

148655

118743

98030

200005

3516646041

58148 62800 60710

84702

0

100000

200000

04-05 05-06 06-07 07-08 08-09 09-10

Entry MID Premium

Segment Share

Segment Share

42% 42%

38%

49% 48%

52%

56%

63%

67%

40%

50%

60%

70%

80%

August 3, 2009 BAJAJ AUTO - 2 Wh 23

38%

31%

24%

18%

9% 9% 11%13% 13%

15%

0%

10%

20%

30%

04-05 05-06 06-07 07-08 08-09 09-10

Entry MID Premium

Entry Segment

PlatinaCD Deluxe

August 3, 2009 BAJAJ AUTO - 2 Wh 24

TVS Star

Entry Volume and MS%

BAL Entry

7469378135

81245

57065

4516939% 38%38%

38%

44%

45000

60000

75000

90000

40%

50%

August 3, 2009 BAJAJ AUTO - 2 Wh 25

39% 38%38%

0

15000

30000

04-05 05-06 06-07 07-08 08-09

30%

Volume BAL MS

MID Segment

XCD

135

Passion

August 3, 2009 BAJAJ AUTO - 2 Wh 26

Discover DTS-Si Splendor

Discover DTS-Si

• Long distance Bike (100

Km/day)

– Durability

– Comfort

– Mileage

August 3, 2009 BAJAJ AUTO - 2 Wh 27

– Mileage

• Discover, The Brand

• Rs. 40000 Ex-showroom

MID Volume and MS%

BAL Mid MS%

35969

56131

48148

32375

20%18%

15%45000

60000

75000

20%

30%

August 3, 2009 BAJAJ AUTO - 2 Wh 28

12868

32375

11%6%

0

15000

30000

04-05 05-06 06-07 07-08 08-09

0%

10%

Volume BAL MS

Premium SegmentPulsar FZ - S

August 3, 2009 BAJAJ AUTO - 2 Wh 29

HunkApache

Premium Volume and MS%

BAL Premium MS%

65%

47%

54%

72%71%

45000

60000

75000

90000

40%

60%

80%

August 3, 2009 BAJAJ AUTO - 2 Wh 30

23181

3146535865

3237328825

0

15000

30000

04-05 05-06 06-07 07-08 08-09

0%

20%

Volume BAL MS

Pulsar Performance Analysis

BRAND FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09

PULSAR 150 20736 28634 30528 21965 19602

PULSAR 180 745 1324 4064 6557 6049

PULSAR 220 0 0 5 791 499

PULSAR 200 0 0 225 2700 1912

TOTAL PULSARS 21480 29958 34822 32014 28061

August 3, 2009 BAJAJ AUTO - 2 Wh 31

TOTAL PULSARS 21480 29958 34822 32014 28061

Share of 180 and above

Volume of 180 cc + 745 1324 4294 10049 8459

Share 3.47% 4.42% 12.33% 31.39% 30.15%

Premium Industry 35166 43663 55568 59500 61541

Pulsar MS% 61% 69% 63% 54% 46%

Overall MS% Performance

BAL MS%

32%

22%

29%30%30%

25%

20%

30%

40%

August 3, 2009 BAJAJ AUTO - 2 Wh 32

0%

10%

20%

04-05 05-06 06-07 07-08 08-09 09-10

Performance Summary

Scenario - 1 08-09 09-10 Growth

BAL Volume 106369 140633 32.2%

Industry 485568 556665 14.6%

MS% 21.9% 25.3%

August 3, 2009 BAJAJ AUTO - 2 Wh 33

Scenario - 2 08-09 09-10 Growth

BAL Volume 106369 130000 22.2%

Industry 485568 519558 7.0%

MS% 21.9% 25.0%

Thank YouThank You