Introduction• India, is the second largest producer of two-wheelers in the world.• The Indian two wheeler market has a size of over Rs100,000 million.• The segment can be broadly categorized into scooters, motorcycles and mopeds.• The motorcycle market share is about 81.5% of the total two wheeler market in India.
CNTD…• It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively.
History of Two-wheeler Industry• The Automobile Products of India (API) started manufacturing scooters in the country.• Bajaj started manufacturing scooters from 1959 onwards.• Until the mid 80’s, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield.
CNTD…• 1950-58 API and Enfield.• 1960-79 LML Vespa, Bajaj, Enfield bullet, Jawa and Rajdoot.• 1980-89 Hero Honda, TVS Suzuki and Kinetic Honda
Advantage India Sales of motor cycles in India is likely to touch the 10 million mark by 2010 ! Registered two-wheelers 27.9 mn and still growing. Growth in exports and domestic sales are 24.34% and11.92% respectively. Middle class expanding by 30 - 40 million every year
Advantage India Increased consumer embrace of financial products and Upward migration of household income levelsGrowing working population and Increased access to credit
Fleet composition of all Three Wheelers Two Wheelers 4% vehicles 71% (42 million) (2.37 million) Cars, Jeeps and Taxies 13% (7.69 million) Buses 1% (0.59 million)Two wheelers Goods Vehicles 5%Cars,Jeeps & Taxies (2.96 million)Goods Vehicles OthersThree wheelers (Tractors, TrailorsBuses and miscellaneous) 6%Others (Tractors, (3.55 million)Trailors &miscellaneous)
Usage Pattern in IndiaIs Quite different from other countries Initial cost and fuel economy are highest priority. Low maintenance costs are desired. Small entrepreneurs and farmers conduct their business carrying loads.
Very limited usage for sports bike.Indians prefer the two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayments.
Two wheeler fleet composition in India >250 cc <75 cc 125 - 250 cc 0.5% 11% 14.9% <75 cc 75 - 125 cc 75 - 125 cc 73.7% 125 - 250 cc >250 ccIn India,85% of vehicles are having engine capacity less than125 cc, whereas in Europe (35%), Japan (31%) and US (7%).
Major Players• Hero honda• Bajaj Auto• TVS• Yamaha• Honda
Other Players• Kanda motors• Mahindra two wheelers• LML• Suzuki
Bajaj Auto1)Established in 1945.2)Started production of scooters in 1961 and became first two wheeler manufacturing company of India.3) Bajaj Auto, is ranked as the worlds fourth largest two and three- wheeler manufacturer.4) Bajaj Auto is India’s largest exporter of two wheelers.
Bajaj Auto(cntd)5) During 2008-09, the company exported772,519 two and three-wheelers recording agrowth of 25 percent over 2007-08.6) Exports now constitute 37 per cent in volumeterms and 35 per cent IN value of net sales.
1)The Company was Incorporated on 19thJanuary,1984 at New Delhi as a joint venture.2)Today Hero Honda is the largest two-wheelermanufacturer in the world producing more than 3 millionunits of two-wheeler per year.3) The companys most popular model is theHero Honda Splendor, which is the worlds largest-selling motorcycle.
4)Over 19 million Hero Honda two wheelers are on Indian roads today.5)Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range.6) During the fiscal year 2008-09, the company has sold 3.28 million bikes.
TVS Motors TVS Apache TVS Centra TVS Star TVS Victor TVS Star City Sport TVS Apache RTR FI
Yamaha Motor India Yamaha CruxS Yamaha G5 Yamaha Gladiator Yamaha FZ 16 Yamaha R15 Yamaha Fazer
Regulatory Bodies• Automotive Research Association of India ( ARAI )• Society of Indian Automobile Manufacturers (SIAM)• Automotive Components Manufacturers Association (ACMA)
Future Challenges and Plans• Sustaining the growth rate.• Need for innovation – low cost/ hybrid vehicles.• Upgrading Indian two-wheeler products.• Taking the products to the global market.• Capturing Indian as well as global market.
Suggestions• Encourage exports.• Provide various two-wheeler financing schemes among manufacturers.• Open R&D centers.• Pressurize government to reduce taxes and duties.• Collaborate with global players.
conclusionThe outlook for India’s automotive sector is highlypromising.In view of current growth trends and prospectof continuous economic growth of over 5 per cent, allsegments of the auto industry are likely to see continuedgrowth.Large infrastructure development projects underway inIndia combined with favorable government policies willalso drive automotive growth in the next few years.