METHODOLOGY Secondary data Journals Websites Objectives of the Study The Impact of economic reforms on Indian Two wheeler industry. The Current situation and also the future of Two wheeler industry in India. Effect of Recession on two wheeler manufacturers. The feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable and sturdy steed: the two wheeler.
•The history of the two wheelers in India dates back to the year 1955. •The 350 cc 'Bullet' manufactured by the Royal Enfield Company of United Kingdom was the first batch of motorcycles in India. •Enfield Bullet had a close competition with another sturdy bike named Rajdoot •The segment of motorcycles in India went through a tremendous change in the two wheeler market. •The main cause of the growth in the Two wheelers in India segment is the fuel efficient 4 stroke engine. The first scooters in India were the Lambretta models manufactured by the Italian Innocenti Company in 1975. Very effective in the urban set-up, as they could cleverly tackle the congested roads and streets. The company sold the enterprise to the Government of India in 1975 and the Scooters India Limited was established. This company introduced its first product known as the Vijai Super. New companies emerged such as Bajaj Auto, LML Vespa(now changed to LML) and the public was offered with a wide array of options. Bajaj Chetak, till today it remains one of the most successful brand to come out of the Bajaj stable. Today newer models of two-wheeler are entering the market everyday, slowly pushing these names down the memory lane. However names like Chetak, Rajdoot and Bullet will always find a mention in the history of two-wheelers in the country. Factors for the growth of two wheelers in India Difference between two-wheeler and passenger car prices The average family income has increased The finance have become easier to access The reduction in taxes and duties Introduction of international standards in India The economic and fuel-efficient engines The teenager and the youth using more and more motorcycles Top two wheeler manufacturers in India India's largest and the world's 4th largest two- wheeler maker Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited It is based in Pune, Maharashtra with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal The company is headed by Rahul Bajaj who is worth more than US$1.5 billion. Models Bajaj Avenger Bajaj CT 100 Bajaj Discover Bajaj Platina Bajaj Pulsar DTSi Bajaj Pulsar 200CC Bajaj Wind 125 Sonic DTSi • Established in 1911 by Sri T.V. Sundaram Iyenger. TVS Motor Company's first launch was 50 cc Moped TVS 50 in August 1980. First Indian company to introduce 100 cc Indo- Japanese Motorcycles in India in 1984. Also the first Indian company to launch indigenous scooterette in India in 1994. The manufacturing unit of TVS Motor is located at Hosur and Mysore. Models Centra Star Fiero F2 Star City Fiero FX Star DLX Max 100/R Suzuki Fiero Samurai Victor GLX Scooty Victor GX Scooty Pep XL Super Spectra XL Super HD Started production in January 2001. Its based in Japan with its headquarters in Tokyo. Manufacturing operations in 32 countries. Big players in the manufacturing of two wheelers across the world. Models Unicorn Eterno Dio Honda Activa Kinetic has launched India's first motoscooter in the form of Kinetic Blaze Kinetic 'Luna‘ in 1972 usured in the era of mopeds into the country Kinetic has three manufacturing facilities located at Goregaon Bhima, Ahmednagar and Pithampur Kinetic motor began in 1984 with collaboration with Honda motor of Japan. Kinetic motor positioned itself as a leading exporter of two wheelers to destinations like USA, Canada, Latin America, Europe, West Asia and South Asia. Models Blaze Kinetic King 100 Kinetic 4S Velocity Kinetic HondaDX, ZX Stryker Marvel Gf Laser Kinetic K4 100 Boss Kine Aquila On January 19th 1984 Hero Honda Motor Limited (HHML) was incorporated. Leader in the Indian market with maximum sales. Leader in the Indian market with maximum sales. Models Ambition Passion CBZ Passion Plus CD 100 SS Splendor CD Dawn Splendor + CD 100 Deluxe Street Dix Dawn Super Splendor ES Glamour Electric start Super Splendor KS Karizma It came to india in 1949 with the launch of 350 cc Bullet . In 1955 the Enfield India Company was formed In 1994, March Eicher Group acquired Enfield India Company and its name was changed to Royal Enfield Motors Ltd The manufacturing of Royal Enfield is located at Tiruvottiyur in Chennai. Models Bullet 350 Machismo A350 Bullet 500 Machismo Standard Bullet ElectraS Tarus Bullet Electra 5S Thunderbird Lightening 535 In November 1995 Yamaha Motor Corporation entered into a 50:50 joint venture with the Escorts group In August 2001 Yamaha Motor India Pvt. Ltd. (YMI) was incorporated as a 100% subsidiary of Yamaha Motors Corporation. YMI's manufacturing facilities comprises of 2 state- of-art plants at Faridabad (Haryana) and Surajpur (UP). The infrastructure at both the plants supports production of motorcycles for the domestic as well as overseas market Models Crux Libero Crux r Libero lx Enticer Rx 135 Fazer Rx-z G5 Ybx-125 Yd-125 Global players Harley Davidson Honda Kawasaki Ducati Yamaha Suzuki BMW 2003 - 2007 US Heavyweight New Registrations Share
SALES Overall the industry sales of two-wheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006. Annual sales of motorcycles in India expected to cross the 10 million mark by 2010. The share of motorcycles have increased over the years. . The two-wheelers have penetrated 7% of rural house hold and 24% of urban markets, thus it leaves an immense scope for the market to grow. Segmental market share The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY1998. The motorcycles segment that had witnessed high growth became larger than the scooter segment in terms of market share for the first time in FY1999. The motorcycles segment rise more than double its share of the two-wheeler industry. Scooters are perceived to be family vehicles. Scooter sales declined sharply 2001, and motorcycle sales reported a healthy growth. The past few years have witnessed a shift in preference towards gearless scooters (that are popular among women) within the scooters segment. Motorcycles, offer higher fuel efficiency, greater acceleration and more environment-friendliness. Trends in Segmental Share in Industry Sales (FY1996-9MFY2005) Shares of two wheeler manufacturers in industry sales Hero Honda sales went up 4.31% for September 2007 with sales of 314,537 units against 301,577 units sold last year. In contrast Bajaj Auto’s sales slid by 23% in September - selling 232,496 units against 300,141 last year. TVS sales fell 29% against last year - selling 115,091 units. Hero Honda and Bajaj Auto carve up about 80% of the Indian motorcycle market. The segment itself has an 85% of the overall two- wheeler market. In the economy segment Bajaj is the leader with 46% of the market share with CT100 being the largest selling bike in this segment. Hero Honda leads the executive segment with 67% market share with splendor and passion leading the market in this segment. In premium segment there is a competition between Hero Honda and Bajaj. Shares of Two-Wheeler Manufacturers in Industry Sales (FY2000-9MFY2005) TRENDS IN THE TWO- WHEELER INDUSTRY Companies raising capacity to meet the growing demand Niche markets also witnessing intense competition Increasing focus on exports 2000 2001 2002 2003 2004 CAGR 9MFY 2000-04 2005 Scooter 20,188 25,625 28332 30116 53148 27.4 44832
Total 83237 111138 103681 179682 264669 33.5 256378
Effect of recession on two wheeler business The global meltdown has impacted the sale of motorbike High interest rates Reluctance of banks to offer two-wheeler loans Larger-than-usual sum of down payment FUTURE The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period reached 8.63 million units, The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12, more than double of the current production level. The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared with 10.78 million in 2006-07. India is likely to export 1.39 million two- wheelers in 2011-12 compared with 590,000 in 2006-07. Total investment for new capacity generation in two-wheeler segment is likely to be more than $2.2 billion (INR10, 000 crore). Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers. FINDINGS Two wheeler business in India is on the path of development. Recession has affected the industry up to an extend but not as much as compared to other industry. 1 lakh car may be a threat for the market. India is one of the biggest markets in the two wheeler business. Scope of global players to enter the market.