• India is the second largest two wheeler market in the
• It stands next only to China and Japan in terms of the
number of two-wheelers produced and the sales of twowheelers respectively.
• The two-wheeler industry has been in existence in the
country since 1955.
• Bajaj auto began trading in imported Vespa Scooters in
1948. Meanwhile Automobile Products of India (API)
commenced production of scooters in the country in the
• In the mid 80's, Kinetic introduced a gearless
scooter in collaboration with Honda.
• The two-wheeler industry in India has grown
rapidly in the country since the announcement of
the process of liberalization in 1991 by the then
finance minister Dr. Manmohan Singh, now Prime
Minister of India.
• Today, the industry has the largest share in Indian
• The shift in demand pattern for two wheelers was
caused by socio-economic & demographic changes
thar the nation has undergone.
• The deliscensing and liberlisation of foreign
investment policy also helped in transformation
of Indian two wheeler market.
• Technological, socio-economic & demographic
triggered a competitive environment for the twowheeler market players.
• This in return changed the consumer attitude,
economic position, consumer migration from
one product category to another serving the
TWO-WHEELER (TW) MARKET
- Demand structure of TW in last decade
• From the above case study we have learnt that
how a consumer can create different
environmental factors for a firm to survive in
any market or in any country which in return
will lead to country’s structural growth viceversa.
• To conclude that every firm should help a
country structural & quantitative growth by
satisfying the customers need putting emphasize
on technological advancement of the product
like Suzuki, Honda has done in order to increase
the market share also by meeting the need which
in return gave a strong competition to Bajaj,
which helped later to grow its market share by
maintaining their cost, introducing innovative
products, capturing domestic market by granting
them loan facility from various banks.