The 3 Wheeler Industry in India is dominated by a few major players. Bajaj Auto leads the market with a 54% share, followed by Piaggio at 23% and TVS at 10%. According to a Porter's Five Forces analysis, the threat of new entry is low due to high capital requirements and distribution costs. Buyers have high bargaining power due to low switching costs and available substitutes. Suppliers also have high bargaining power over price and quality. Substitutes like mini cars pose a high threat. Finally, competitive rivalry is high as the main competitors are similarly sized and continually innovating technologies. The industry is also influenced by political, economic, social and technological factors in the PEST analysis.

1. 3 Wheeler Industry
in India
Presented by:-
Jeffin Joy
1st sem. MBA

2. Automobile Sector
2 types:-
Passenger Vehicle
Goods Vehicle
(source:- Autobei Consulting Group)

4. 54%
23%
Market Share
10%
7%
4%
2%
60%
50%
40%
30%
20%
10%
0%
Bajaj Auto Piaggio TVS Mahindra Atul Auto Others
(Source:- www.currentweek.com)

5. PORTER’S FIVE FORCES MODEL

6. The threat of entry:
• Possibilities of new entries to the industry
is LOW.
• Strong Customer Loyalty to the existing
brands.
• Higher Capital investment, High stock and
bigger warehouse facility and
maintenance.
• Owning a wide distribution network is
important and is very costly.

7. Bargaining power of buyers:
• Availability of existing substitute products.
• Low switching cost and switching is simple.
• Bargaining power: HIGH

8. Bargaining power of suppliers:
• Their ability to dictate supply, price,
quality and the cost of switching to a new
supplier.
• Strength of distribution channel.
• Bargaining power: HIGH

9. The threat of substitutes:
• Customers switch to alternatives depends
upon whether the substitute provides a
higher perceived benefit or value.
• Mini cars.
• 4 wheeler goods vehicles.
• Other public transportation vehicles.
• Threat of substitutes: HIGH

10. Competitive rivalry:
• Organizations with similar products aimed
at the same customer group.
• The main competitors are very much
balanced, with roughly in equal size.
• New technology.
• Competitive rivality: HIGH

11. PEST Analysis…
Political:-
Organizations are influenced by
government policies.
Economic:-
Organizations have to operate in
conditions of boom and bust.

12. Social:-
Organizations culture has a direct
influence by culture of the society that
operates. Lifestyle changes due to increase
income have resulted in consumer needs.
Technology:-
The level and focus on technology
affects the organization. Development of
automated assembly line has increased
productivity and efficiency.

13. Thank You…