Becoming successful is not a random occurrence. Being prepared is key when opportunities arise; this was also true for Honda, a business that revolutionized the motorcycle industry. Introduces gearless four-stroke scooters to the market. The company is captivated by the incredible growth. The majority of participants were suspicious of the community’s decision to jump on the bandwagon and usher in a new era in the car industry as the scooter market crashed and burned, but eventually, businesses caught on. Because of the lackluster reception it received, Bajaj Automobiles—the pioneer in the scooter industry in India—decided to put it out of business. Honda iActiva eventually became just another generic scooter brand. Rivals benchmarked Honda Motors’ marketing strategies when they snatched on those strands and turned the mystery into a gold mine. The version of gearless scooters that has been extremely successful. Activa is now the best-selling two-wheeler globally, surpassing even the legendary Splendor in terms of sales. The complaint seeks to shed light on Honda’s plans by investigating the causes behind the company’s meteoric rise.
How HONDA ACTIVA Became the Worlds Best Selling Scooter
Consumer preference shifted from scooters to motorcycles, putting the scooter manufacturer in a tough spot after they had positioned themselves as the official mode of transportation for the Indian middle class. The idea that motorbikes will eventually rule the market and that scooters will occupy a supporting role began to take root. Bajaj Auto‘s announcement that it will be leaving the scooter industry to concentrate only on motorcycles effectively clinched the deal. With an explicit agreement with its former partner Hero Moto Corp, Honda launched its wholly-owned company in 1999 with the sole intention of concentrating on the autonomous scooter market and delaying the production of competing motorcycle goods until a much later date. After the joint venture dissolved in 2010–2011, the two companies were free to compete in their own markets, albeit with distinct areas of expertise. Hero Group became the biggest two-wheeler producer in the world, dominating the motorcycle category. In the four-stroke automated scooter business, Honda Motorcycle & Scooter India Pvt. Ltd. (HSMI) became the leader, with Activa sharing a lion’s share of the market, and capturing over 60% of the market.
Activa is as dominant in the scooter sector as Hero Splendor is in the motorbike market. Through its gender posture, Activa was able to redefine the way the industry perceived the scooter business and tap into an entirely new market.
Scooters’ market share increased from 11% in 2009 to 30% in just a decade, and they show no signs of slowing down. Scooters dominated the minds of the Indian middle class for a long time, but when technology improved, motorcycles became the preferred mode of transportation for the country’s youth, leaving a noticeable gap. Scooters were more in line with the idea that mobility was defined by one’s personality, whereas motorcycles represented the mobility of the people.
Scooters were more popular than motorcycles because of the increasing number of working women who valued convenience more than speed. Scooters also scored points for their excellent fuel economy, which was a selling advantage for buyers in both urban and rural areas. Customers thought Activa was a simple product.
It may be utilized with relative ease by every member of the family for local tides. Gearless scooters didn’t do well at first, but they started to catch on in subsequent years. Others were captivated by Activa’s success and entered the scooter sector as well. These included TVS, HeroMotoCorp, Yamaha, Piaggio, and Suzuki.
Compared to 1,224,379 units sold in 2011–12, HMSI’s scooter sales exploded to 3,189,102 units by the end of 2016–17 (SLAM). During the same period, sales of TVS scooters increased from 496,892 units in 2011–12 to 826,291 units.
In 2017–18, Hero Moto Corp.’s sales increased from 414,389 to 789,974 units, a nearly 100% increase (SIAM).
Sales of two-wheelers, of which scooters are a major part, surpassed the astonishing 20 million unit milestone, according to a SIAM report. In comparison to the same period in 2017, sales of two-wheelers increased by 14.80 percent in April–March of 2018.
Market Share of Two-Wheelers Across India in Financial Year 2023, by Leading Manufacturers
Striking Positively Rural Market Unexpectedly
The demand for scooters in rural areas has exceeded all expectations, challenging the concept that they would only be popular in metros and big towns due to the small wheels and poor road conditions in India. Tuff Up Tube, a unique feature given by Honda, is a double-layered tube with a sealant that prevents tire punctures. This is one reason why demand from the rural market increased. This allowed them to address the issue of poor road conditions and high maintenance costs for two-wheelers, which were concerns of their rural clients.
The fact that Honda didn’t dabble in anything else than scooters was a major contributor to their meteoric climb to fame.
While the rest of the car industry was busy diversifying its offerings in 1990, Honda was bound by a contract with the Hero group to avoid the motorcycle business and instead concentrate on improving the scooter market. The foundational principles of modern scooterization were the driving force behind their dealer partnerships, design refinement, attempts to appeal to products with unisex appeal, etc. The gradual incorporation of scooters into ASEAN culture also helped their case gain traction.
Honda was so encouraged by the early success of Activa that it released two more scooter models, the DIO, and the Eterno, in a very short period. It didn’t take long for Honda to make its dominance in scooter production and send a message that it meant business in the scooter industry. Honda resurrected the scooter market and captured over half of the share by year’s end 2005.
FAQs
Is Honda a Japanese company?
Honda Motorcycle & Scooter India, Pvt. Ltd., abbreviated as HMSI, is the wholly owned Indian subsidiary of Honda Motor Company, Limited, Japan.
Which is the best-selling scooter in India?
The Honda Activa stands as a top contender among scooter sales in India, owing to its unmatched convenience, efficiency, and practical design. These qualities are the driving forces behind its widespread popularity.
How many HMSI scooters were sold in 2016-2017?
Compared to 1,224,379 units sold in 2011–12, HMSI’s scooter sales exploded to 3,189,102 units by the end of 2016–17 (SLAM). During the same period, sales of TVS scooters increased from 496,892 units in 2011–12 to 826,291 units.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byFord.
Ford Motor Company (often referred to as Ford) is an American multinational automotive manufacturer based in Dearborn, Michigan. Henry Ford created the company, which was formed on June 16, 1903. The Ford brand offers autos and commercial vehicles, whereas the Lincoln premium brand sells luxury cars.
Based on 2015 car production, Ford is the second-largest U.S. automaker, GM being the first. As per 2017 data by OICA, Ford is the fifth-largest automaker in the world, led by Toyota, Volkswagen, Hyundai, and GM. As published by carlogs.org, Ford Motor is the World’s fourth-largest car company on the basis based on 2020 revenue. Ford’s Revenue is projected to reach $140.80 billion in 2023. With an annual growth rate (CAGR 2023-2027) of 1.86%, the projected market volume is $151.60 billion by 2027.
The firm became public in 1956, although the Ford family retains 40% voting rights through special Class B shares.
Ford Motor Company is an American automaker that designs, manufactures, distributes, and serves a wide range of Ford trucks, SUVs, automobiles, and Lincoln luxury vehicles.
Automotive, Mobility and Ford Credit are the company’s three segments.
The Automotive division is responsible for designing, producing, distributing, and maintaining Ford and Lincoln cars, as well as their components and accessories. Ford Mobility is a wing dedicated to innovation in the automobile sector. Ford Mobility is working in the field of designing emerging mobility services and also invests in new innovative ventures in the automobile sector. Ford mobility is also working to develop autonomous vehicles. While Ford Credit division provides automobile financing and leasing services.
Ford also holds ownership in Argo AI, a developer of autonomous driving systems, and Spin, a micro-mobility service provider.
Ford – Industry
Before the coronavirus crisis threw the globe into chaos, the automobile sector had been on an upward trend throughout 2018 and had just begun a period of stagnation in 2019. Between March and May 2020, global car sales fell by almost 15% worldwide. China was the first market to recover from the crisis, with car sales remaining at pre-pandemic levels for months after the outbreak. Electric vehicles, autonomous driving, and mobility services are expected to continue to fuel the industry, resulting in an overall rebound in the coming quarters.
Ford Motor Company – Founder
In 1903, Henry Ford established the Ford Motor Company.
Founder of Ford – Henry Ford
Henry Ford
Henry Ford was born on July 30, 1863, in Springwells Township, Wayne County, Michigan to Mary and William Ford. While Henry was just 12, he had his own small self-built machine shop where he spent much of his time experimenting with machines. He was just 15 when he built his first steam engine.
Henry started his career as a machinist’s apprentice in the shops of James F. Flower and Brothers in Detroit(a city in the US). In July 1891, Henry joined as an engineer at the Edison Illuminating Company of Detroit and became the chief engineer of the company in 1893. During his stint at the Edison Illuminating Company, Henry ford also developed a deep friendship with Thomas Edison.
Henry Ford’s automobile manufacturing journey began in the winter of 1893 when he built a modest one-cylinder gasoline model inspired by his interest in internal combustion engines. On a wooden table in the kitchen of the Ford house at 58 Bagley Avenue in Detroit, the first Ford engine flickered to life. His first vehicle, which was a frame-mounted with four bicycle wheels, was powered by a later version of that engine. The Quadricycle, Ford’s first automobile, was built in June 1896.
Henry Ford resigned from Edison Illuminating Company in August 1899, to start his venture. In 1899, he created the Detroit Automobile Company, which became bankrupt just within 18 months of its inception.
Leaving the firm paved the door to his achievement. “Failure is merely the opportunity to begin again, this time more intelligently,” remarked Henry Ford. With this guiding concept in mind, he tried again and established what is today known as the Ford Motor Company in 1903. He also revolutionized the automobile business by introducing the then-unheard-of ‘assembly line’ for his vehicle manufacture. Ford grew to be one of the world’s most successful and lucrative businesses that even managed to survive the Great Depression of 1930.
Ford is also the world’s largest family-controlled company, which has been controlled by the Ford family for over 110 years. Volvo, Land Rover, Jaguar, Aston Martin, and Mercury were previously part of Ford’s premium portfolio. These brands were sold to other firms over time, and Mercury was eventually phased out.
Ford – Mission and Vision
Ford’s mission statement says, “to make people’s lives better by making mobility accessible and affordable.”
This mission statement emphasizes the movement of people, which is a fundamental function of vehicles and the transportation industry. The fact that Ford places such a high value on mobility reveals the company’s social mission. The firm strives to make people’s transportation more efficient as one of the largest participants in the international market.
Ford – Slogan, Tagline, and Logo
Ford’s Company Logo
Ford’s first slogan that was used by the company in 1914 was “Ford: The Universal Car.” Over the years Ford has tried to appeal to its customers across the world through various slogans. Some popular slogans by the company are –
Go Further
All-New Focus Drive One.
Everything We Do is Driven By You
Built Ford tough!
Ford has a better idea
Better Ideas. Driven by you
Built for the road ahead.
Have you driven a Ford lately
Quality is Job one
There’s a Ford in your Future.
If you haven’t looked at Ford lately, look again.
Build for life in Canada
Ford. Designed for living. Engineered to last.
The Best Never Rest.
Answer the call to any adventure.
‘Built Ford Proud’ is Ford’s latest slogan.
Ford – Business Model and Revenue Model
Ford’s operations are divided into three categories: “Automotive,” which is by far the largest, “Ford Credit,” and “Mobility.”
The majority of Ford’s revenue comes from producing and selling automobiles to consumers. Electric vehicles and self-driving automobiles are two areas where the firm wants to increase its capabilities. Ford also makes money through its leasing and financial divisions, which provide automobile loans and lease agreements to customers.
Ford Credit is a Ford service that supplies dealerships and consumers with a variety of automobile finance options. These solutions enable dealerships to buy new inventory and expand existing capabilities, as well as provide clients with finance for car purchases and leases without having to leave Ford’s business environment. In the United States, Canada, and Europe, Ford Credit is offered.
Ford’s Mobility business is primarily the company’s research and development division for self-driving cars and the software that goes with them. This segment generates no revenue because the company has yet to sell any of these cars.
Don Bunker, Pmp, Csm – Project Management Consultant
Aakash Puntambekar – Product Development Engineer
Aarik Kimberlin – Process Coach
Aaron Anderson – Parts Specialist
Aaron Bresky – Product Development
Aaron Brunke – Product Engineering Designer
Aaron Estelle – STA Engineer
Ford – Sponsorships
Ford Center in downtown Evansville, Indiana, and Ford Field in downtown Detroit are two major sports facilities sponsored by Ford In the USA.
Ford also sponsors many events across the globe. Ford is a major sponsor of Sky media channel’s coverage of Premier League football. Ford also sponsored the UEFA Champions League for 20 years, before ending the sponsorship in 2014.
In recent times, automobile demand in important countries such as North America and Europe, as well as China, has fallen short of expectations. These excesses have boosted prices for automakers that have ramped up their capabilities to match projected future growth, as Ford explains in its annual report. In China, for example, surplus capacity in the car sector reached 78% in 2018. According to Ford, surplus capacity will average 47 million vehicles until 2024.
The rush by automakers to tap into the enormous Chinese market has heightened competitiveness in the sector. This, along with declining demand and the growth of Chinese automakers like Chery Automobile Co. and BYD Auto Co., has put pressure on firms like Ford to maintain high prices.
The development of startups like BYD and Tesla (TSLA) has fueled demand for hybrids and electric vehicles, increasing competition and putting pressure on traditional automakers to make their vehicles more efficient and technologically advanced.
Ford – Investments
Date
Organization Name
Round
Amount
May 2, 2022
Cavnue
Series A
$130M
Sept 22, 2021
Redwood Materials
Private Equity Round
$50M
Jul 23, 2021
Rivian
Private Equity Round
$2.5B
May 3, 2021
Solid Power
Series B
$130M
Oct 13, 2020
Solid Power
Series A
$28M
Jun 19, 2020
Motorq
Series A
$7.3M
Apr 2, 2020
Phantom AI
Series A
$22M
Dec 23, 2019
Rivian
Private Equity Round
$1.3B
Oct 29, 2019
Cellink
Series B
$22.5M
Apr 24, 2019
Rivian
Corporate Round
$500M
Nov 7, 2018
SAIPS
Corporate Round
$12.5M
Mar 19, 2018
Desktop Metal
Series D
$65M
Ford – Growth
Year
Amount
Percentage Increase/Decrease from last year
2022
$151.736B
+12.72%
2021
$136.433B
+4.63%
2020
$127.144B
-18.45%
2019
$155.9B
-2.77%
2018
$160.338B
+2.27%
Ford – Competitors
General Motors Company (GM), Honda Motor Company (HMC), Toyota Motor (TM), Daimler (DDAIF), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) are Ford’s main competitors.
In 2022, Ford Motor Company received two awards, and 6 awards in 2021. Ford Motor Company took home the awards for Best Engineering Team 2022 and Best Global Culture 2022.
Other recent awards are as follows:
Best Company for Diversity 2021
Best CEO 2021
Best Company Culture 2021
Best Company Happiness 2021
Best Leadership Teams 2021
Best CEOs for Diversity 2021
Car of the Year 2019 – Finland
Car of the Year 2019 – Croatia
Belgian Family Car of the Year (two price categories) – Belgium
Irish Car of the Year awards: Small/Compact Car of the Year – Ireland
Autobild Golden Wheels Award: Best Compact car – Bulgaria
BusinessCar Awards: Best Lower-Medium Car – U.K.
Parkers New Car Awards 2019: Best Small Family Car – U.K.
2018 Scottish Car of the Year Awards: Best Family Car – Scotland
Auto Zeitung Auto Trophy 2018: Compact category winner – Germany
Great Austrian Automobile Prize: Start category winner – Austria
In the face of an auto sector destabilized by increased rivalry, uncertainty, and technological innovation, Ford has launched a “global redesign” to become more nimble and less bureaucratic. According to Ford CEO Jim Hackett, this revamps promises to save $14 billion in expenses by 2024.
Cutbacks Ford eliminated about 3,000 of its paid workforce in the U.S., Canada, and India. The company was looking to lay off as many as 8,000 positions in a move to shift its focus to electric vehicles. Ford promotes the layoffs as part of its new, creative approach, but others view them as a last-ditch cost-cutting move.
Ford stated in January 2021 that it would devote 90% of its worldwide capital allocation through 2023 to a shift to trucks, SUVs, and commercial vehicles. This means that Ford will phase out sedans and other compact automobiles during the next four years.
Self-driving cars Ford is expanding its investment in self-driving cars, as shown by its Mobility business unit. This is undoubtedly a forward-thinking move on Ford’s side, but breakthrough autonomous cars are unlikely to arrive fast enough to provide the benefit Ford requires. Ford is developing its first fully self-driving car, with a cost of $2.7 billion.
Electric and Hybrid Vehicles Ford announced intentions to invest $11 billion in electric vehicles in January 2018, much above its prior aim of $4.5 billion. By 2022, the firm hoped to have 40 electric cars on the road thanks to this investment. The rest would be plug-in hybrids, with 16 being entirely electric.
Ford has established itself as the second electric vehicle company in the US after Tesla. Since the Mustang Mach-E model debuted in late 2020, Ford has produced 150,000 of them. It intends to build 600,000 by 2023 and over 2 million EVs annually by 2026.
Conclusion
Ford is a well-established American automotive company known for producing a wide range of vehicles, including cars, trucks, and SUVs. With a history of innovation and a commitment to quality and durability, Ford has built a loyal customer base and remains a major player in the global automotive industry.
FAQs
What does Ford do?
Ford Motor Company is an American automaker that designs, manufactures, distributes, and serves a wide range of Ford trucks, SUVs, automobiles, and Lincoln luxury vehicles.
When was Ford founded?
In 1903 Henry Ford, an American automobile manufacturer established the Ford Motor Company.
Who founded Ford?
Henry Ford established the Ford Motor Company in 1903.
Which companies does Ford compete with?
General Motors Company (GM), Honda Motor Company (HMC), Toyota Motor (TM), Daimler (DDAIF), Tesla Motors (TSLA), Navistar International (NAV), and Spartan Motors (SPAR) are Ford’s main competitors.
Ford company belongs to which country?
Ford is an American based in Dearborn, Michigan, U.S.
A company that was founded nine years ago, in 2014, and named in the honor of Nikola Tesla, Nikola Corporation, was, ostensibly, in the business of manufacturing heavy-duty commercial battery electric vehicles, fuel cell energy vehicles, and energy solutions.
After presenting several vehicle concepts between the years 2016 and 2020, leading with a natural gas-fuelled turbine-electric semi-truck, it went public on 4th June 2020. Nikola Corporation also went ahead and delivered its first two battery-electric trucks in December 2021, known as Nikola Tre. However, by September 2021, the Securities and Exchange Commission and the Department of Justice had already launched an investigation into allegations of security fraud by its founder and former CEO Trevor Milton. It was at this time, that the unraveling began.
Trevor Milton founded Nikola Corporation in Salt Lake City, Utah in the year 2014 and announced that 5000 Nikola One hydrogen-powered glider trucks would be built by 2016. They were to be built by Fitzgerald Glider Kits in Tennessee. By the year 2019, Nikola had acquired 389 acres of land in Coolidge, Arizona for a total of USD 23 million. The company announced that the factory construction work was slotted to begin by 2020, truck construction a year later, in 2021, and by 2023, Nikola would be fabricating 35000 to 50000 trucks per year.
By March 2020, Nikola Corporation and VectoIQ Acquisition Corporation, announced a merger that resulted in the combined company, NKLA, being listed on the NASDAQ exchange. The Nikola stock began trading on 4th June 2020, a day after the merger was officially completed. Within the space of one week, Nikola shares doubled as the investor’s interest heightened leading to a continuation of betting on the growing potential of electric transport. This was followed by the company beginning to take order reservations for the truck, even though customers had as yet not even seen a prototype.
The growth continued and by August 2020, Nikola Corporation reached a valuation of USD 13 billion. On September 8, 2020, Nikola Corporation entered into another strategic partnership with GM (General Motors). The partnership stated that GM would acquire an 11% stake in Nikola and also nominate one member to Nikola’s board. Consequently, GM would also begin the production of Badger and supply fuel cells and batteries to Nikola, globally. Unsurprisingly, this resulted in Nikola’s stock increased by 50% as the announcement was received with enthusiasm.
Unraveling The Fraud
It all began with the short-seller firm, Hindenburg Research releasing a report on 10th September 2020 that outright accused the company’s founder Trevor Milton of perpetrating ‘an intricate fraud’. Trouble mounted when this report was confirmed by Financial Times and Research Enquirer that showed a Nikola One rolling down a slope using the natural force of gravity instead of onboard propulsion. In response to these claims, Nikola stock fell by 10% and the GM stock took a hit of 4%. Within a couple of days, by September 12th, Nikola stock witnessed a sharp drop of 36%.
As outraged as Nikola was with these claims and threatening legal action against Hindenburg, its troubles were far from over. These claims had interested the US Attorney’s Office for the Southern District of New York. September 14th saw reports stating that the Securities and Exchange Commission had begun investigating allegations of fraud against Nikola Corporation, followed by the Department of Justice beginning its investigations a day later.
Within a week, by September 21, Trevor Milton resigned from his designations as Executive Chairman and Founder while the share price of Nikola continued to drop surrounded by news of the allegations. This was quickly followed by unraveling partnerships and further share price fall.
Nikola Motors Fraud
BP (British Petroleum Company PLC) canceled a potential partnership that would have developed hydrogen refueling stations for Nikola’s EV trucks. November 2020 saw GM backing away from the proposed deal to buy an equity stake in Nikola Corporation as well as canceling the production of the Badger electric pick-up truck. A month later, another announced partnership with Republic Services was terminated. This partnership was in formation to jointly develop zero-emissions garbage trucks.
How Nikola Surged Ahead
By February 2021, Nikola rallied a little and publicly canceled Powersports unit and its plans to produce them. However, they stated that by the fourth quarter of the year, their intention was to produce between 50 and 100 Nikola Tre Vehicles. In June of the same year, Nikola Corporation invested USD 50 million in a new hydrogen factory to produce fuel for semi-truck fuel stations. The effort was to be spearheaded by Wabash Valley Resources. A month later, by July there was an announcement to add five new class 8 truck dealers in Arizona, Texas, Colorado, California, New Mexico, Delaware, Florida, Maryland, and Virginia.
Who Is Trevor Milton
Trevor Milton – Founder Nikola Motors
Trevor Milton was born in Utah and is one of five siblings. He pursued a career in sales and marketing after opting to drop out of Utah Valley University. Milton’s career included various businesses that began with his first venture, an alarm sales company called St. George Security and Alarm. He exited the business for USD 300,000. He immediately launched an online classified advertisement website that sold used cars. However, the company failed and eventually closed. He launched dHybrid Inc., which was in the business of retrofitting commercial trucks with engines that could run on natural gas. It ran into trouble with an investor that resulted in the company closing down. He then launched dHybrid Systems which, according to his claim, was purchased by Worthington Industries. It was after this, that Milton founded Nikola.
Following the allegations and investigations into him, Milton surrendered himself and pled not guilty to all charges leveled against him. However, in June 2022, Milton was charged with additional wire fraud, and by October 2022, was found guilty of one count of securities fraud and two counts of wire fraud.
Conclusion
In July 2021, when Trevor Milton was indicted, Nikola Corporation said – “We remain committed to our previously announced milestones and timelines are focused on delivering Nicola Tre-battery electric trucks later this year from the company’s manufacturing facilities.”
A little over a year later, by August 2022, Nikola announced the acquisition of the battery company, Romeo Power. The process was completed by October 2022. It remains to be seen how the company executes the upcoming opportunities.
FAQs
What is the Nikola Motors fraud scandal?
The Nikola Motors fraud scandal involves accusations that the electric truck maker, Nikola Corporation, misled investors and the public about its technological capabilities, and achievements. Nikola denied the allegations and launched its own investigation.
What was the role of founder Trevor Milton in the fraud scandal?
Founder Trevor Milton was accused of making false statements to investors in the Nikola Motors fraud scandal. He resigned after the allegations emerged.
What actions did Nikola Motors take to address the fraud allegations?
After the fraud allegations were made, the company denied the accusations and launched its own investigation into the matter. The company’s Board of Directors formed a special committee to oversee the investigation.
What is the impact of the fraud allegations on Nikola Motors’ stock prices?
The fraud allegations caused a significant drop in Nikola Motors’ stock price. While the stock price has since recovered somewhat, it remains below its peak levels from earlier in 2020.
This is a name that needs no introduction. Harley-Davidson Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin in USA. It is one of the world’s largest motorcycle manufacturers and a brand with a loyal following. The iconic brand is famous for the chopper motorcycle style with manufacturing factories spread over York-Pennsylvania, Milwaukee-Wisconsin, Manaus-Brazil, Bawal-India, and Pluak Daeng-Thailand. Not only does the company market its products globally, but it also licenses and markets merchandise like apparel, home décor, ornaments, accessories, toys, scale models of its motorcycles, and video games based on its motorcycle line under the Harley-Davidson brand.
The first motor-bicycle was built by 20-year-old William S. Harley along with his friend Arthur Davidson by using the northside Milwaukee machine shop which was located at the home of their friend Henry Melk. The finished bike in 1903 did not have the power to climb hills without pedal assistance and the makers wrote off their first attempt as a learning curve.
Their second attempt was successful with a bike that featured a bigger engine and loop-frame design as it marked their path to future designs of motorcycles. This prototype of the new loop-frame Harley-Davidson was functional by September 8, 1904. It, then, competed in a Milwaukee motorcycle race and was placed fourth.
By January 1905, Harley-Davidson placed small advertisements in the Automobile and Cycle Trade Journal. These advertisements offered bare engines for do-it-yourself projects. The business did well and by April of the same year, the company was producing a limited stock of completed motorcycles.
Within a year, by 1906, Harley and the Davidson brothers built their first single-storey, wooden structure factory on Chestnut Street and produced 50 motorcycles. Chestnut Street was later renamed Juneau Avenue, which also serves as the current location for the Harley-Davidson Corporate Headquarters.
History of Harley Davidson Motorcycle
By 1907, the company expanded its factory and increased its annual motorcycle production to 150 motorcycles. It was also the year that the company was officially incorporated. The company began selling its bikes to police departments as well.
Over the next few years, Harley-Davidson continued making improvements to the engine and the bike design and by the year 1914, Harley-Davidson was pulling ahead of Indian-dominated motorcycle racing and also increased their bike production numbers to 16,284 machines.
World War I proved to be a major sales push for the company as the military demanded motorcycles as the US entered WWI in 1917. It purchased more than 20,000 motorcycles from the company. To recruit more domestic customers for its motorcycles, the company launched a line of bicycles in the same year but discontinued it in 1923 due to disappointing sales. However, by the year 1920, Harley-Davidson had grown to be the largest motorcycle manufacturer in the world with dealers in 67 countries. They were producing a whopping 28,189 machines annually.
A few years later, The Great Depression began which negatively impacted the company and its sales dropped from 21,000 machines in 1929 to 3703 machines in 1933. It emerged from the Great Depression scathed but alive and was only one of the two American motorcycle manufacturers that survived. It again rose to its former prominence as it reproduced a large number of machines for the US army during World War II. Harley-Davidson received two Army-Navy ‘E’ Awards, in 1943 and 1945 respectively, for ‘Excellence in Production’. It also resumed civilian production of large V-twin motorcycles that were successful on racetracks and with private buyers.
The company evolved and by 1970, it become a lifestyle brand that sold jackets, vests, T-shirts, and various memorabilia to commemorate the Harley-Davidson lifestyle. By the 1980s, people were economically progressing after a long financial hiatus that led to soaring sales for the company.
A Screenshot from the Harley Davidson Website
The Recent History
The decade of the 1980s proved to be immensely profitable for the company. The group that consisted of Harley-Davidson motorcycle owners grew to 90,000 members and the company registered a profit of approximately USD 3 million in 1984. This number rose by another USD 1.5 million within a few short years. Harley Davidson continued on its growth trajectory right into the 21st century. By the year 2006, it reported aprofit of approximately USD 1 billion as its core owners’ group reached middle age and the stock price of the company peaked. However, it was also the last successful year of the company.
The Fall
The iconic company that had survived and grown through two world wars and The Great Depression fell victim to the economic recession of 2007 and it struggled with sales and stock prices plummeting between 2007 and 2009. This abruptly stopped the company’s new efforts to market its product to a younger and new audience that included women and children.
To survive this newest threat of the economic downturn, it reverted to producing bikes that its existing customer base wanted, resulting in loud, chopper styles and bulky motorbikes.
Harley Davidson – Total Worldwide Retail Sales
What they failed to take into account was that their current core customer base was aging and the brand had missed its chance of evolving with the times. By 2008, the average age of a Harley-Davidson owner was 50 years and the younger generation did not identify with the company’s bike styles or ethos. This was in addition to the high price point of the motorbike which made it unaffordable for the younger generation that did not have such high disposable incomes. The third strike against the brand was that its image was associated with middle-aged men and father figures.
Conclusion
The iconic company that, at one time, was at its peak and the leading manufacturer of motorbikes across the world, has failed to recover post the 2007 recession. Although its sales are better, it has not been able to capture its pre-recession numbers. The main issue is that their bikes do not attract the millennials at all. Today, a company that has survived multiple ownership arrangements, subsidiary arrangements, intense global competition, and periods of economic health and product quality is struggling for survival. Only time will tell if the company will succeed in reversing its fortunes.
Harley-Davidson motorcycles are built to with sturdy construction and innovative engines. Many parts are also easily replaceable, allowing riders to keep their bikes in top shape without needing to replace the entire machine.
What was the first Harley Davidson model ever produced?
The first Harley-Davidson motorcycle was built in 1903 and was named the Harley-Davidson Model 1.
Does Harley-Davidson sell lifestyle products?
Yes, Harley-Davidson sells lifestyle products like jackets, vests, T-shirts, and various memorabilia like home décor, ornaments, accessories, toys, and video games based on its motorcycle line.
What is the most popular Harley?
Some of the most popular Harley-Davidson models include the Sportster, Dyna, and Softail.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Powerland.
The increment in pollution due to the use of vehicles is increasing concerns. To overcome this, India is looking forward to introducing electric vehicles safely on the road. With the same concern, the introduction of electric ATVs is positively revolutionizing the sustainable mobility industry worldwide.
A young entrepreneur from Goa, Tej Naik has successfully introduced electric ATVs not only in India but worldwide through the startup named Powerland. However, the first product of Powerland was not an electric ATV but a diesel-powered Agro Tractor Vehicle.
Continue ahead to know more about Powerland details including its business model, revenue model, startup story, logo and tagline, and other similar details.
Powerland is an Indian-grown ATV-producing firm made with the goal of providing sustainable mobility for farmers and sports lovers. The firm was started in 2014 by Tej Naik, a Cardiff university passed out.
Powerland is a made-in-India product focusing on In-wheel-technology. The firm started out with limited capital and was the reason for the innovative mind of its founder Tej Naik. The firm Powerland stands out from other ATV-producing units due to its focus on electric ATVs whereas other firms have their focus shifted to fueled ATVs.
The firm has 90% of its market distributed to the world in major countries like the USA, Europe, and South America. To have a better understanding of the firm Powerland, let us start with its industry details.
Powerland – Industry
The all-terrain vehicle market is currently $4.3 billion as of 2022, growing at 2.7% with 70% of revenues coming from the US market with ATVs primarily used in agriculture for dual benefits of trucks and tractors. Having a width of 1.2 meters helps in maneuverability and off-roading abilities.
The global all terrain vehicle business is presently dominated by companies such as POLARIS Industries, HONDA, CAN-AM, CFMOTO, KAWASAKI, and YAMAHA. In India, only Polaris Industries is currently a dominant player. However, all the major players are currently focusing on petrol ATVs and UTVs.
The electric ATV market is USD 707 million growing at a much faster pace of CAGR 20.7% with a projected reach of USD 3.8 billion by 2030. Powerland has the advantage of being the early mover in the electric ATV space in India and the world market to target the niche segment.
The use of ATVs is gaining popularity and investors are looking towards the ATV industry due to multiple reasons. One of the biggest concerns with the fueled ATVs was the new emission guidelines and regulations being implemented by multiple countries. This lead to the focus on the electric vehicle industry and gave it much surge.
Powerland – Founders and Team
Mr. Tej Naik with Mr. Narayan Naik – The Founders of Powerland
The company was co-founded by a son and Father named Mr. Tej Naik and Mr. Narayan Naik. The company is also supported by a dynamic team of 25 young brains.
Mr. Tej Naik (Managing Director)
Born and raised in a business family in Goa, Mr. Tej Naik has always been an innovator with a curiosity to create new products. Being a post-graduate with an MBA degree from Cardiff University, UK, Tej interned with AMEC Group in China before starting Powerland in India in the year 2014.
With over 10 years of experience in operations and management with a specialization in lean operations, for over 8 years, the young entrepreneur has enabled Powerland’s three-fold growth in global markets.
His goal is to make India- the largest exporter of Electric ATVs and make Goa the manufacturing hub for electric ATV Tractors also known as electric quad bikes in Europe. As a passionate car enthusiast, Tej has won several awards for his passion for cars and has also won National Amaron Karting Championship in 2007. He currently serves as a managing director of Powerland ATV.
Narayan Naik (Co-founder)
Mr. Narayan Naik has experience of 30+ years of in setting up and running manufacturing businesses. During the Portuguese era in Goa, Mr. Narayan Naik’s family was in the business of import of Peugeot cars – something that developed his interest in cars from his childhood.
After obtaining a graduate degree, he took his passion to a professional level by getting into a business of restoration and sales of imported vehicles. After this, he decided to explore business prospects in other industries such as fishing nets and ropes.
In 2019, he ventured again into fishnet manufacturing by starting Granfisher Nets Pvt. Ltd., employing over 100 people. But his love for automobiles and dream of entering the automotive space was revived by his son by founding Powerland, where Mr. Narayan is now a co-founder and a guiding light.
Amit Santra (Technical Director)
Amit Santra – Technical Director of Powerland
With a strong desire to contribute to the future of transportation, Mr. Amit Santra has always believed in progress through passion. Receiving Mr. Narayan Naik as a mentor illuminated a whole new perspective on Automobile Industry for him.
Holding a Master’s Degree in Automotive Technology he played an important role in the commencement of the electric ATV project of Powerland. He is a technology expert who puts ideas into action and also plays a pivotal role in new business development and talent building.
Sri Surya (Production head)
Mr. Surya Bhramaji – Production Head of Powerland
A rock-solid personality who always stays calm and solves critical problems in the most chaotic situations. Having a bachelor’s degree in Mechanical Engineering, Mr. Surya Bhramaji plays an important role as an integration engineer In the production of vehicles. His end-to-end understanding of the product and ability to improvise the system makes him unstoppable at Powerland.
Powerland is an ATV (All Terrain Vehicles) tractor manufacturing unit based in Goa that can be used for agriculture, defense, adventure sports, etc. It was originally founded by Mr. Tej Naik who got support from his father Mr. Narayan Naik.
Basically, he was a passionate fan of automobiles with a dream of entering the automotive space in 2000. However, he was unable to accomplish the dream due to cost issues.
He originally wanted to import high-quality ATVs from other nations to India in order to help Indian farmers. The whole process of importing and making it available to Indian farmers was quite costly which applied the break to Mr. Narayan Naik’s dream.
The young founder of Powerland returned to India in 2014 after completing his bachelor’s degree from Cardiff University, Wales. He had an innovative mind from the start and was true to his passion for automobiles just like his father. With his experience and passion, he decided to pursue his father’s dream into a reality.
In order to make the process practical with less costly, he decided to manufacture the products locally. The brand was incorporated in 2014 and entered the market in 2017 with its first road-legal diesel tractor.
And within three years of incorporation, it was able to sell 150 units successfully. The brand also has a pre-order of 300 units for its model “Tachyon”, which is going to be released in 2023.
By starting Powerland, he has not only completed his father’s dream but has also stayed true to the vision of Made in India by Indian Prime Minister, Mr. Narendra Modi.
Powerland – Mission and Vision
Revolutionizing mobility to live and love life to the fullest!
Powerland is on a constant mission to offer products and services that help you live and love your life the best way you can.
Their team focuses highly on revolutionizing technology to create products that would help you bring inner joy and explore nature, have fun beyond imagination, and add convenience to your daily life – All without harming the environment.
Powerland – Logo and Tagline
Powerland – Logo
Powerland’s bull represents a symbol of strength and a strong work ethic. It is an animal that has come to the aid of farmers and humans mankind for hundreds of years in agriculture. The leaves signify wheat in the form of a wraith to honor the bull.
The tagline of Powerland is “We start where the road ends”.
Apart from its literal meaning which focuses on the off-roading aspect, this tagline has a figurative meaning which speaks of how they always find opportunities in challenges and dead ends.
The ATV segment is a niche segment, something that not everyone in India is aware of. However, internationally, it’s more than a 4-billion-dollar market. Innovating and going against the tide is the only way to stand out from competitors and stay ahead in the game.
The ATV industry leaders are currently focused on selling gasoline ATVs. That’s one of the reasons Powerland was successful in introducing an electric ATV tractor, a strategy that turned out to work wonders for them. The strategy did not just help them compete better but was also good for mother earth and was preferred by the customers.
The problems faced by the fuel ATV industry are converted into Powerland’s strength areas.
Powerland works on multiple business models such as Direct to consumers(D2C), business-to-government (B2G), and business-to-business (B2B). The prime Target Group followed by the Powerland business model consists of two different markets, the domestic market, and the International market.
Domestic markets mainly consist of D2C and B2G. In India company directly sells to the customers and the government. For international markets, other than D2C we also sell to distributors and dealers (B2B) who then sell to their end consumers.
D2C
D2C targets mostly High net-worth individuals, large farm owners, foresters, etc. It also includes companies that need ATVs for their factories, property management eg.
Mahindra Teqo for solar farms, Reliance Industries, TNG group for oil exploration. Also, it includes sectors like Hotels & resorts, such as ITC resorts, Holiday In resorts, ATV trail rentals, Powersports/ Adventure sports/ Sports enthusiasts, and Eco-tourism.
B2G
Defense and other government departments such as lifeguards, military, law enforcement, public works, parks management, and fire & rescue. Supplied to DRDO, Andaman military base camp, and Anti-terrorist squad Uttar Pradesh are included in this category.
B2B – Dealers/Distributors
Currently, Powerland has already appointed distributors in Europe, the UK, North America, Norway, Brazil, And other South American countries. The company has already exported to over 12 countries. The company plans to have a distributor in major countries and have both online & offline presence in all countries.
Powerland – Products and Services
Powerland’s Product
The Powerland 900d Diesel ATV tractor came with a 20 hp 4×4 power terrain and was targeted at farmers. Soon Powerland ATVs became a choice of many, not just in the farming sector but also in the forests and adventure sports space.
The company managed to sell 150 units in the 1st 3 yrs. But the team felt they needed to develop a product not just for India but for the world market with better refinement and performance.
Also, on a personal front, the team was comprised of environmentally conscious members who knew the importance of switching to an environmentally friendly product.
Electrification
In 2019 the team took a decision towards a long-term vision of a sustainable future and decided to develop a product that not only catered to India but the world market. And, that’s how Powerland’s Xplore, an Electric ATV which is one of the fastest in terms of performance in the world was born.
Powerland is launching its new model “TACHYON” in early 2023. This electric ATV is designed considering the customer preferences of being silent, lower maintenance costs, and better performance. TACHYON is currently being certified for European markets.
The team at Powerland is trying to make a small contribution to the environment, by introducing electric ATV tractors for utility and pleasure that could be majorly used in farms and be charged on solar helping in bringing down the overall emission rate.
Product Technology Specification
1. Power
Their electric ATV is equipped with their own patented in-wheel motor technology, that is, each of its wheels has direct-drive hub motors, one on each wheel. This helps the vehicle achieve up to 50 hp peak power, double that of all the competitors which use the traditional architecture of a single electric motor and gearbox.
2. Minimum Noise, Maximum Efficiency
The direct drive motors, unlike the motors with gearboxes, eliminate transmission humming noise, making Powerland electric ATV the quietest. This lets users enjoy stealth trips in the wild without affecting the wildlife or having undisturbed conversations with their fellow riders. Not just that, the direct-drive motors also eliminate transmission power losses making the vehicle 90% efficient.
3. Reduced Emissions
Off-road fuel vehicles, due to their performance requirement, can emit up to 50 CO(g/kwh) which can be extremely harmful to the operator of the machine and people around it.
Being electric gives Powerland ATV the option of being charged with renewable energy, completely eliminating fossil fuel use. Their vehicles, therefore, eliminate the risk of health issues and increase the safety and productivity of the operators.
4. Price & Package
Powerland offers the best performance at an economical price. Their vehicles are competitively priced at 20-30% lower than other electric competitors while offering higher battery capacity and giving longer range.
5. Save Costs
The in-wheel motor technology eliminates the need for numerous mechanical components, thus, helping buyers save on maintenance costs. The running cost is 1/5th of a gasoline ATV.
6. Best Control
The hub motors with their regenerative braking technology, not just help the owner extend its battery range but also act as a hill descent control, providing better control while riding.
7. Speed
Powerland’s ATV is one of the fastest electric ATV tractors in the world with an acceleration of 0-60 kmph in less than 4 seconds.
8. Attachments
Powerland offers utility attachments for farms and industrial applications making it a one-stop solution for all. The vehicles and their attachments which are fully electric, completely eliminate the use of fossil fuel.
Powerland – Growth
Powerland has actually spent less than 1% of its revenue on marketing. The 1st 100 vehicles were purely sold through word of mouth and the internet. Our 1st order of 5 vehicles was sold to SAE Baja who installed confidence in us.
Today some of our prominent customers include the Russian-based TNG group for oil exploration, Anti-terrorist Squad (U.P), the Defence research development organization (DRDO), Reliance Industries, ITC HOTELS, and Mahindra TeQ.
In 2019-2020 Powerland decided to Innovate by going electric and going against the tide, this helped it in standing out from its competitors. Being the 1st mowers helped us in gathering a lot of interest globally.
Today the company has managed to export to over 12 countries and is building a distribution network in Europe, the USA, South America, and the UK. All of this was achieved purely with the help of the internet and social media platforms such as Instagram, Youtube, and Facebook
Powerland – Fundings
Powerland has managed to raise a pre-series A round of funding of USD 1.2 million in equity and debt from its German partner, ILAFA Vertriebs GmbH, for 18% equity to scale up its production and maintain its world-class quality standards.
ILAFA comes from the Mecca of Automobiles and is located in southern Germany. It has been operating for over 60 years in the agricultural, gardening, and forestry sector with its presence in Germany, Austria, and Switzerland with over 100 dealership networks & service providers.
Powerland – Competitors
The only competitor presently in the electric ATV space globally is Polaris Ranger Electric UTV, Eco Chargers Quads from the UK, DRR, and Daymak from North America.
Powerland – Future Plans
Powerland is a company manufacturing all-terrain electric vehicles. Currently, it is manufacturing one of the fastest electric ATV tractors in the world. The current manufacturing facility is at Goa’s Verna Industrial Estate.
Initially, the company imported 75% of its components, currently, Powerland has already indigenized 60% of its electric ATVs with an aim of 80% localization in the next 2 years.
Powerland currently is on target for 4x growth this year. Powerland already has bagged 300 units of advance orders. Powerland is in talks with defense for using their electric ATVs in areas with difficult terrains for logistics and patrolling.
The government of Goa signed a Letter of Intent (LOI) with Powerland for setting up a factory to manufacture 10000 units per annum and employ over 500 people in the state. Powerland will be raising Series-A funding in 2023- 2024 to further build a world-class factory and scale up its production.
Powerland is an ATV manufacturing firm focusing on providing environment-friendly ATVs to the world. The firm was incorporated in 2014 and entered the market in 2017 first. From there the road to revolutionizing the automotive industry begin. The above article covers the complete information about Powerland from its startup story to its future plans.
FAQs
How much does an ATV cost in India?
The starting price for an ATV in India is around 90,000 rupees. Prices can move up to lakhs and more depending upon the model and brand of an ATV.
What is the best brand of electric ATV?
Some of the best brands of ATVs are Polaris, Powerland, Eco-charger, DRR, etc.
What is the full form of ATV?
The full form of ATV is All Terrain Vehicle. It is also referred to as a Light Utility Vehicle (LUV).
Are ATVs road legal in India?
Not all ATVs are are approved for road in India. Powerland was the 1st company to launch diesel ATVs as tractors in India and make them road legal in 2017. The current ATV brands include Powerland and Polaris which have registered their ATVs as agricultural tractor vehicles making it legal for Indian roads.
The concern for the environment had led people to increase their interest in electric vehicles. Not only this, but the cost of fuel can also decrease as all it needs are electric-drive components. As per reports, the worth of the electric vehicles market would be INR 475 Billion by 2025.
The coming decade is anticipated to be the ultimate decade for the future of electric cars in India. With battery amounts reportedly falling up to 73%, electric-powered vehicles are anticipated to be as reasonably priced as gas-powered vehicles within the foreseeable future. The International Energy Agency cites that there would be 70 million electric vehicles by 2025. Till 2026, the EV market is scheduled to grow at a CAGR of 36%.
Nations such as the UK, France, Norway, and India are about to undertake e-mobility on a bigger scale. India has loads to the advantage of the massive adoption of e-mobility. Under the Make In India program, the production of e-cars and their related additives is anticipated to increase the percentage of production in India’s GDP by up to 25% by 2022. On the monetary front, large-scale adoption of electrical cars is projected to assist save $60 billion on oil imports by 2030.
In this article, we will talk about the future of Electric Vehicles in India. So, let’s get started.
Current Situation of the Electric Vehicle Market in India
Currently, 84% of India’s oil name is fulfilled through imports. The price of gas might also additionally need to fall, assisting an electric-powered car owner can save as much as Rs20,000 for each 5,000km traversed. Finally, electrification will lessen vehicular emissions, a key contributor to air pollutants which reasons an average of 3% GDP loss each year.
The electric vehicles industry in India debts for 22% of the country’s overall production output and is the sixth-biggest industry in the world. Reports suggest that EVs can play an essential position in growing the percentage of production in India’s GDP from 15% (currently) to 25% through the year 2022.
Indian Electric Vehicle Market by Vehicle Type
Future of Electric Vehicles in India
Globally, the cost for lithium-ion batteries is approximately $250/kWh, this amounts approximately to Rs5.7 lakh in battery charges alone. Currently, lithium-ion batteries account for 50% of the price of an electric-powered car, making them costly as compared to conventional automobiles.
Safety of the batteries from explosion act as a spanner for Li-ion batteries. A predominant hurdle for EVs in India is charging, or the shortage of charging stations can also be considered, thereby making them impractical or tons less possible for lengthy distance drives. Furthermore, some EVs aren’t as speedy as traditional gas-powered motors.
Most purchasers in India might purchase an electric-powered car by 2022, however majority of them additionally trust that it may also now no longer be available till 2025. Consumers in India are searching for a decreased amount for EVs than purchasers in different nations, with the worldwide common tipping amount for EVs being $36,000 (around Rs27 lakh). Castrol took over 1,000 purchasers, fleet managers and enterprise professionals throughout India.
At a critical juncture, while all nations are engaged in liberating Mother Earth from the claws of carbon emissions, and CO2, India can play a leadership position by switching over to EV mobility to make the country a greener and cleaner ecology.
Impact of COVID-19 on the Electric Vehicle Industry
During the pendency of COVID-19, we watched how the surroundings progressed due to the fact of lesser emissions from petrol and diesel-run motors and industries in India. In many cities, the smog absolutely vanished. In many components of India, people should even view remote mountains that were now no longer possible for them to look for years due to the fact of the atmospheric stumbling blocks created due to the emission of the smoke from fossil-gas run motors. By switching over to clean-inexperienced electricity run EVs, we will make skies crystal clear, permitting us to study remote places. EVs keep the critical thing to everlasting answers of a better, cleanser India for the sustainability of its populace.
Range is the key factor here ie.15km on average, whilst a city taxi also can additionally do 300km daily. In an excellent world, we might have a smaller battery percentage and definitely need to recharge periodically. In practice, taxi and fleet motors can earn money overnight, or even personal customers can also additionally have limits on charging options, without fast charging.
An infrastructure for fast charging an EV calls for a remarkable deal of extra strength than 15 amp sockets, which may provide approximately 3 kW of strength, so 35 kWh takes nearly 12 hours. Unlike the US, maximum Indians don’t have a private garage. Hence, full-size and company-agnostic public charging infrastructure will become a key coverage choice.
Indians are famously price-conscious. This is why clients love diesel cars, notwithstanding their better MRP and pollutants relative to their petrol counterparts. The value of EVs is based upon power price, which varies significantly. At Rs7/kWh (kilowatt-hour) of strength, they value approximately Rs1.1/km This saves clients riding 5,000km steadily over Rs20,000 annually, and ensures a remarkable deal. With the Make In India initiative, there is a chance we will see an increase in the making of EVs.
The capture is the advance value. EVs are expensive, ordinarily due to the battery. A single kWh of power is sufficient to head approximately 6 km, so a 200km “complete tank” variety calls for approximately 35 kWh of battery. Today’s charges for lithium-ion batteries are approximately $250/kWh globally, which involves Rs5.7 lakh in battery prices, with the exception of import duties. Even with an eight-year lifespan and a 12% interest rate, justifying the battery prices on steady with kilometre economic savings. However, whilst battery charges fall to $100/kWh, as projected some years out, EVs can emerge as a recreation changer.
Conclusion
The electric vehicle market will definitely see a surge in the coming years. With the concern for the environment and the surging price of fuel, the need for electric vehicles has increased and will do the same in the future. If proper infrastructure is provided and if it becomes affordable and has access to every consumer group, the EV market might become one of the biggest industries in the country.
FAQs
Who is leading the Electric Vehicles sector in India?
Tata Motors is currently leading the EV sector in India.
Is EV will be successful in India?
Electric vehicles will grow at a CAGR of 36% till 2026.
Are electric cars faster than petrol cars?
Electric cars can accelerate faster than petrol cars but they lack the top speed.
Volkswagen is a very familiar name for all automobile enthusiasts across the world. This German motor vehicle manufacturer has fared on the path of success and popularity due to its uncompromising quality and commitment. It was founded on 28 May 1937, by the German Labour Front and is headquartered in Wolfsburg, Germany.
Going by the factual pieces of evidence it can be seen that the Volkswagen group has played a significant role in making cars a product of the middle-class by being a very elitist possession, especially during the second world war. However, it is important to note that Volkswagen is not just a single popular brand. They in fact own many other brands as well. This article will look into the various companies that are owned by the Volkswagen group
It is an independent automotive software company under the Volkswagen Group that consolidates and expands the software competencies of the firm. With a goal to make the best use of technology to benefit the automotive industry, this company is on its way to developing more sustainable automotive services. It was established in 2020.
Volkwagen Group Components
Volkswagen Group Components Logo
This company was founded in 2019 as a part of Volkswagen group strategy 2030. They aspire to improve the potential and viability of component activities through cross-brand management. They are divided into new business areas that are known as Engine & Foundry, Gearbox & Electric Drive, Battery Cell & Battery System, Charge & Energy, Chassis and Seats. Today, they manage over 75,000 people across the globe.
Volkswagen Financial Services
Volkswagen Financial Services Logo
It was founded in the year 1949 and since then has been performing well even during the Covid 19 pandemic. They focus on finding better services with regard to the digital spaces. Their primary focus area revolves around dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. They are represented in over 48 markets across the globe.
MOIA
MOIA Logo
MOIA is a company under Volkswagen that focuses on offering mobility services to city dwellers. It was founded in December 2016 and since then has been working towards its primary goal of recruiting the nuances of mobility amongst the people in urban areas. They develop on-demand services including ride pooling. With the Volkswagen group, they are able to thrive under an experienced company while having exposure to a startup culture.
SEAT
Seat Logo
Seat is the first car manufacturing company in Spain and was founded on 9 May 1950. Since then they have been demonstrated evidence that stands as a testament to the robust technology and industrial competence that the firm maintains consistently. Today the company has marked its presence in more than 75 countries employing over 15,000 people. They sell vehicles under two brands namely SEAT and CUPRA.
Skoda
Skoda Logo
Skoda is a Czech Republic company that was founded in 1895 by Vaclav Laurin and Vaclav Klement. It is one of the oldest car manufacturers in the world that is functional even today. For the last 30 years, Skoda auto has been a very important part of the Volkswagen group. Skoda has also not forgotten their commitment to creating a sustainable environment like all other brands under Volkswagen. They are driven by the exporters of a well-construed sustainability advisory board.
Scania
Scania Logo
The Swedish brand was founded in 1891 by Philip Wersen and Surahammarsbruk, which is a centuries-old ironworks. Over the years, they ran into many financial difficulties before they became the general agent for Volkswagen in Sweden. By 2008, Volkswagen owned over 68% of the voting rights and 37.73% of share capital. By 2014, Scania was wholly owned by the Volkswagen Group. The company has grown so much under Volkswagen that in 2020, Scania released its fully electric truck to become one of the topmost companies in the commercial vehicle industry.
Ducati
Ducati Logo
Headquartered in Bologna, Italy, Ducati has never failed to impress motorbike lovers. It was founded by Antonio Cavalieri in the year 1926. Ducati was taken over by Volkswagen in 2012 for $1.2 billion. Through Ducati, Volkswagen has been able to maintain a stronghold in the motorcycle industry as well.
Porsche
Porsche Logo
This popular brand that is known for its premium qualities was founded by Ferdinand Porsche in 1931. It is said that the Beetle designs by Volkswagen were influenced by Porsche. Although the companies agreed to merge in August 2009, it was only towards the end of 2015 that Volkswagen had the majority shareholding in Porsche.
Audi
Audi Logo
This famous automobile brand became an important part of Volkswagen in 1965. It has been offering premium vehicles since its inception in 1909. Today Audi cars have become a measure of the quality of life and place their owners in a certain class of society.
Lamborghini
Lamborghini Logo
Lamborghini was founded by Ferruccio Lamborghini in the year 1963. Since the founding of this Italian company, it has been a competition to Ferrari due to its uncompromising design and quality. The firm shot to fame within a few years. However, due to financial burdens, Lamborghini had to shut down in 1973. After several changes of ownership Volkswagen finally took over the firm in the year 1998. Through the deliverance of unique hybrid technologies, they have generated billions in the automobile industry today with no turning back since the acquisition.
Bentley
Bentley Logo
Bentley was founded in 1919 and Crewe of United Kingdom. Today Bentley is an end to end net carbon neutral company which adds to the unmistakable reputation of the firm. They have been a part of the Volkswagen group since 1998.
It is a subsidiary of the Volkswagen group that was founded in the year 1998. This luxury brand of hyper sports cars is based in Molsheim, France. Today strong brands like Porsche and Rimac have agreed to formulate a joint venture with Bugatti wherein they will produce hypercar models. Right now the two hypercar models that are planned are the Bugatti Chiron and the all-electric Rimac Nevera.
Traton
Traton Logo
Under the umbrella of Volkswagen, Traton has emerged as one of the largest commercial vehicle manufacturers across the globe. Recently they merged with Navistar which has further elevated the prospects of the firm. They aim to become the leading brand in the field of commercial vehicles by giving importance to sustainability and digitalisation.
MAN
MAN Logo
The MAN Truck and Buses are two of the most popular additions of this brand under Volkswagen. However, to focus on the global plans for the premium end of the market, MAN trucks exited the Indian markets 2 years ago.
IAV
IAV Logo
Volkswagen AG and IAV is an auto parts maker that has created standards to follow for latecomers. Volkswagen owns more than 50% of its stake in IAV. It was founded in Berlin in 1983 by Dr Hermann Appel. Over the years they have developed electric vehicle rechargers that are built into the road for which they have submitted patents.
Renk
Renk Logo
It was a subsidiary of MAN since 1923. As Volkswagen acquired MAN in 2011, Renk became a direct subsidiary of Volkswagen. However, the latter happened in 2019. Renk is a remarkable automotive company that is into the manufacturing of engines for trucks, ships and combat defence vehicles.
WirelessCar
WirelessCar Logo
In 2018 Volkswagen group acquired a 75% of stake in WirelessCar which was owned by Volvo information technology AB. it will help the parent company to further extend its mission of improving connectivity. This Swedish telematics specialist is expected to accentuate the growth of the digital ecosystem and thereby provide extensive connectivity for vehicle generations to come. It is expected that WirelessCar technology will ensure a stable and safe exchange of data between various platforms.
From being one of the pioneers in bringing cars into the midst of middle-class households, Volkswagen continues to be the baton bearer of various other important milestones since then. Today, Volkwagen’s electric vehicles are the most frequently delivered passenger car across the world.
Through digitalisation, they have transformed the present and future of the company. They have brought in relevant software updates through which the company have been able to remain customer friendly.
Inadvertently, these efforts have helped them remain focused on their goals to be the best in the industry. The zeal of Volkswagen to not only focus on the present but also invest intelligently in the future is something that has to be appreciated and looked up to.
FAQs
What subsidiaries does Volkswagen own?
Bugatti, Traton, MAN, IAV, Renk, WirelessCar, Lamborgini, Porsche, Ducati, Scania, Skoda, Audi, Seat, and MOIA are some of the subsidiaries of Volkswagen.
Is Bugatti Owned by Volkswagen?
Yes, Volkswagen acquired Bugatti in 1998 for $50 million in an all-stock deal.
When it comes to automotive manufacturing, Maruti Suzuki India Limited has caught all the fame. Although today, the automobile industry has developed immensely. But the charm and popularity of Maruti Suzuki haven’t failed!
The company is a subsidiary of Japan’s Suzuki Motor Corporation. In India, Maruti Suzuki is considered the largest manufacturer of passenger cars. In fact, it’s Maruti Suzuki who is credited for the revolution of the ushered automobile industry in the country.
Maruti Suzuki begins its journey with the legendary Maruti 800 and today, the company has come up with around 16 car models along with more than 15 variants. Maruti Suzuki manufactures a broad range of passengers as well as luxurious cars like Alto 800 to Ciaz.
Maruti Suzuki offers the facility of car financing and pre-owned sales of the car fleet management. Its factories are established in Gurgaon and Manesar, Haryana, and the art R&D center in Rohtak. Maruti Suzuki is very promising and remarkable with its products and services. In this article, we will be discussing the business model and strategies of Maruti Suzuki. Let’s begin!
Why Maruti suzuki cars are so popular? | Maruti Suzuki Business Strategy
About Maruti Suzuki
Maruti Suzuki was formerly known as the Maruti Udyog Limited, India, and functioned through a joint endeavor between the government of India and Japan’s Suzuki Motor Corporation, signed in 1981.
Maruti Suzuki is widely famous as the largest company in the automobile industry. The company is headquartered in New Delhi and was founded in 1981 by the government of India.
Later in 2003, the automobile manufacturer- Maruti Suzuki was sold to the Suzuki Motor Corporation and functioned as its subsidiary. The Suzuki Motor Corporation owns the capital of 56.2% in the Maruti Suzuki company. Alongside, the company has a market share worth 53% in the market of the Indian passenger car.
The company launched its first product– Maruti 800 and resulted in 13 months of record production. The chairman of this prominent automobile manufacturing company is R.C. Bhargava and Kenichi Ayukawa is the managing director and CEO.
Where does Maruti Suzuki operate?
Maruti Suzuki India Limited is the most prominent automobile manufacturer across India. The company is a subsidiary of Japan’s Suzuki Motor Corporation. The automobiles manufactured by Maruti Suzuki are used by almost every third individual in India.
Key Products of Maruti Suzuki
Maruti Suzuki offers a great range of cars such as the Maruti 800, the first-ever Maruti car; Alto 800, Alto K10 as the entry-level cars while Swift, Wagon R, Ritz as the stylish hatchback.
Maruti Suzuki India Limited puts its entire focus towards the young aged people. Its target audience is generally around 30 to 35 years old. Half of the Nexa customers belong to the age group of 30 years.
The business model of Maruti Suzuki Limited India is based on its wide range of cars and customer services. The automotive company has recently shifted to the digital platform due to the marketing crisis that occurred from the covid-19 pandemic.
To keep up with its competitors, Maruti Suzuki opted for the digital world for better content marketing and more customer engagement. The digital platforms have become a very crucial part of Maruti Suzuki’s Business Model. Around one-fourth of its total marketing budget went off to the delicacy of digital media.
Maruti Suzuki manufactures its automobiles based on the requirements and facilities of the middle class as well as the upper-class section. That’s why the company produces a broad range of its products at affordable rates and features.
Maruti Suzuki follows a certain model to cope with the difference between online marketing and the dealership experiences of the customers. The company has brought around 900 dealerships to the online platforms through India’s largest Dealer Digitization Program by the company. With the developing digital technologies, Maruti Suzuki has been earning a great sum of deals and customer support.
Maruti Suzuki is considered India’s largest automobile manufacturer with around 50% of the total market share. The company earns way more profit when compared to Korea’s Hyundai, its biggest market rival. The automobile manufacturers do not provide a clear figure of the company’s profit on each deal but they do declare the net profit earned by the company.
According to the calculated data, Maruti Suzuki has sold more than 7.5 million automobiles in India, to date. And around 500,000 units have been sent mostly to European countries. The company’s profit includes the money generated through the sales of spare parts of the automobile. However, the profit differs based on the car’s size, features, and model. The larger cars are expected to bring more profit to the company’s account.
From the latest calculated data, Maruti Suzuki has its revenue worth Rs. 16,997.9 crore along with a profit of Rs. 1,391 crores.
Conclusion
Maruti Suzuki is one of the most prominent automobile manufacturers across India. The company has had an incredible journey since 1983 when it launched its first car- Maruti 800. The company offers a great range of cars with amazing features.
Maruti Suzuki follows a very strong and remarkable business model and now, with digital media, Maruti Suzuki is growing even more. The company has a long run ahead. Stay tuned for more updates!
FAQs
What is the revenue of Maruti Suzuki?
The revenue of Maruti Suzuki is 78,994 crores INR in 2020.
Who is the CEO of Maruti Suzuki?
The CEO of Maruti Suzuki is Kenichi Ayukawa.
When was Maruti started?
Maruti was founded by the Government of India in 1982.
What are the most sold models of Maruti Suzuki?
Most sold car models of Maruti Suzuki are:
Maruti Suzuki Alto 800
Maruti Suzuki WagonR
Maruti Suzuki Baleno
Maruti Suzuki Celerio
Maruti Suzuki Swift Dzire
Maruti Suzuki Ignis
What is Nexa?
NEXA is Maruti Suzuki’s premium sales channel for Maruti Suzuki premium & luxury Sedan and Hatchback cars in India.
An opinion shared by Siddharth Chaturvedi, Founder and MD, Boys and Machines.
Buckle up to start your journey in building a business from scratch. The culture of start-ups is very central and flows directly from the founder. A comparatively smaller team set to achieve the same goals and align to make a difference in a sector of their choice. The startup trend in India is not a new thing. The purpose has diverted but the business values and beliefs remains the same. Corporate practice in India grew after the dotcom years at the turn of the century.
Coming specific to the automotive sector, the pre-owned car market has been unorganized for decades. Cars used to sell through word of mouth and the buyer was about 50% unsure of quality or value he is getting out of the deal. We all relied on the known mechanic to check out the car before nodding on the deal. It was high time to organize this gold mine of a market to cut down middleman and provide value to customers with the right quality at the right price.
Having the right state of mind and believing in yourself are the pillars to make big things come alive. Patience is one of the strong foundations that propels the power of compounding in action. Sometimes, you become overwhelmed when things may not work out at the start.
While starting Boys and Machines, it was always a challenge to strike a fine balance between keeping your expenses low for longer sustainability and to hire the best possible team to ensure the back bone of the organisation is solid. At the end of the day the biggest reason for failure of an organisation is either higher expenses or a weak team to deliver steady results and manage the load. As our business model uses rented properties, it was painstaking to figure out the right showroom locations at reasonable prices. The process of choosing the right locations for your business can become lengthy and you have to make many decisions along the way that can either make or break the new organization tight on cash. Hiring the right people for different departments is even tougher. Because you have limited resources and the decisions become heavy. It is the team that builds the organization and the strain to get the team right needs patience and determination.
At the beginning days, we were into a lot of planning. We gave impeccable attention to detail on every little task and that gave us the confidence that things might work out. The planning phase is very important to gain confidence. When you put your thoughts on paper and do research, confidence flows! A team that understands your vision and are ready to give the sweat to make to convert that vision into a mission and materialize it, confidence builds up. These two aspects can help you not to lose patience while starting up your organization.
Now, it can happen that the results you are actually getting is away from projected expectations. And believe me, you will never be satisfied as your hunger to grow also increases with rising sales. We strive to grow every day as a team and the only game plan that we have is to give our 100% as a team every day and face, tackle, and over-come challenges that show up. Hard work beats talent when talent doesn’t work hard.
When running a competitive high-stake business like luxury pre-owned cars, keeping patience is of prime importance. Losing patience just results in narrowing your mind which makes it difficult to find solution. The higher the stakes the more patience you need to have as it gives you a stable mind to assess the situations and come out of them.
Business is all about keeping an open mindset and work with your eyes and ears open. Grab opportunities and tackle difficult situations. One tip is to don’t get overwhelmed on either sides of the spectrum. When the business is not materializing as expected, put down your head, figure out what is going wrong and work out solutions. When the business is booming, keeping your heads straight focus on maintaining the momentum. Let the power of compounding do its work. You just need to ensure you are doing the right things at the right time.
To all the newbie entrepreneurs who are ready to take the challenge of starting-up and making a difference, be patient your time has come. You are already set out to achieve great things when you made the decision of starting-up. Get your home-work done by doing a thorough research on the business you are planning to scale. A very good practice that gives you good knowledge is to work under someone who is into same industry to understand the things which you would have to face once you start your own venture. The work will help you understand the business better and you can learn things that can multiply results.
Secondly, keep your expenses minimal. You may churn out some cash right from the start but the cash outflow should be minimum to maximize re-investment opportunity. Again, the compound effect works well! Let it do the hard work for you. You just want to ensure that the business has enough cash when required.
And last but not the least, give your 100% to the venture you are set out to start-up. Hard work is a necessary and everyone should go through the struggle phase. This will make you strong and give confidence to make better decisions when the time comes and huge resources are at stake. All the very best!
With over 1.3 Billion people, India is the second most populated country in the world and when there are so many people, almost everything is larger than life here. So naturally, it is not a surprise that India is the fifth largest automobile market in the world in terms of sales. Brands like Maruti Suzuki, Hyundai, Tata Motors are already a hit in this country and are making heads turns of their customers with their amazing automobiles.
While some brands experience immense success in the country, some of them got exposed to failure as well. In this industry, some automakers failed to make a place in the fifth-largest automobile market in the world. This article will talk about all those automakers that failed to set their foot in India and the reason behind it. So without any further ado, let’s get started.
“Car designers are just going to have to come up with an automobile that outlasts the payments.”
Why Automakers are Struggling to Succeed in India?
Two brands that can set their name on the top automakers’ list with their powerful performance in the country are Honda and Hyundai. It wouldn’t be wrong to say that they are ruling the Indian market.
On the other hand, there are some of the automakers who are struggling in our country to lay their foundation. Some of the reasons for this are listed down below:
Increasing fuel price is said to be one reason.
It is also revealed that some concessional GST rate was not allowed by the Government.
One of the reasons is also the higher road taxes.
India is a price-sensitive market and people mostly focus on small cars here, for their needs. A company has to be very precise about this.
Planning of the products by the automakers was poor and naturally, they were not able to adapt to the market.
Another reason is some of the companies are not able to judge the growth of India’s automobile market.
India is a country where a single company dominates more than a quarter of its sales. Maruti Suzuki and Hyundai are the top two companies that dominate the automobile industry. There are some global known brands who failed to set their foot in India and we are here to discuss them.
Harley Davidson
Harley Davidson
The legendary American Cruiser bike was not able to set up its brand in the Indian market. It is said that in 10 years, Harley Davidson was able to sell a little more than 27,000 units in the country. While its competitor Royal Enfield sells double the number of bikes every month. Some of the reason for this is down below:
Not the Right Market
India is a country that is considered one of the biggest two-wheeler markets in the world, but it is not a market for big bikes. In India, over 90% of two-wheelers are small motorcycles and scooters as they are easy to maintain as well.
Expensive Offerings
Another vital reason has to be the price; the most affordable bike from this brand costs somewhat 4.7 Lakh. That kind of pricing is extremely high for the people living in a country like India.
Tough Competitors
Royal Enfield proved to be a better companion for the Indian customers over Harley Davidson, in terms of price, lighter in weight, and easier to maintain.
High Repair Cost
India’s roads are somehow filled with potholes and Harley Davidson bikes are quite expensive to repair if it is damaged by potholes.
General Motors
Chevrolet by General Motors
This American multinational automotive manufacturing company is considered as one of the best and biggest manufacturers in the country but unfortunately, it was not able to establish its power in India. When General Motors first came to India, it was able to sell quite a decent number of cars but with time, the average popularity started declining. So, General Motors 2017 decided to close its operation in India. Some of the reasons that it failed in India are:
Failed Business Strategy
The management of a company is one of the most important factors for its survival. As per reports, decisions regarding the company took a lot of time which resulted in not being able to reach a proper strategy for the business at a time.
Weak Dealership Networks
The dealership networks of General Motors were quite weak. The customers’ main issue was with the dealerships as they were not that confident regarding the products of GM.
Bad Resale Value
GM launched over 20 different models in 20 years and also withdrew 10 of them. Naturally, the change of the model lineup affected the resale value badly, and the customer service was also not up to the mark.
Fierce Competitors
General Motors’ technology was not that modern. Reports said that there are cars that barely pass the emission tests. Other brands focused on updating the technology of their car and were quite fierce competitors for GM.
Failed to Attract the Right Audience
GM never introduced top models that are famous in other countries in India. Naturally, it was not able to attract the attention of people in India.
Ford
Ford
Probably one of the biggest shocks the Indian automobile market got when Ford decided to stop making cars in India. The products were well made and were affordable to buy as well. Still, it failed to crack the Indian market, and the reasons are down below:
Sudden Rise in the Price Factor
The sudden rise in the price factor of Ford is one of the reasons, the company lost its place in the Indian market, the maintenance cost started rising of the new models. This high ownership cost became a problem for the customers; which also resulted in decreased sales.
Not Concentrated on the Right Models
Ford didn’t concentrate on SUV when it started getting momentum. Thus it misses out on a great opportunity to use the model to encourage the brand in the Indian market.
Wrong Investment Decisions
The cost structure is another problem, Ford invested where it was not needed, for example, they invested in world-class factories. It was not able to meet the expectations of its potential customers.
Lack of Proper Marketing
Ford slugged in making its brand big in India, while other brands like Hyundai worked 24/7. This is one of the reasons, plus the aggression that was needed for marketing, was missing in Ford’s startegy.
The Automobile market in India is a huge one, one needs to concentrate on various structures to make their brand a successful one in the country. The automakers that failed in this country are a big lesson for those automakers that wanted to make the 5th largest automobile market a hub for their brand.
FAQs
Which Indian car companies are closing?
Ford, General Motors, Fiat, and Harley had exited the Indian automotive market.
Which car company stopped making cars in India?
Ford India closed its operation in 2021 due to huge mounting losses.
Sarika Anand
