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RESEARCH GUIDE PRESENTED BY

Dr ANITHA S VIMAL MOHAN P


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

US 2007 2006 2005 2004 2003


market
share
Harley 49.4% 50% 49.6% 50.2% 50.3%
Davidson

Honda 14.2 15.1 16.6 18.7 18.4

Suzuki 12.5 12.9 12.4 10.2 9.8

Yamaha 9.2 8.6 8.9 8.7 8.5

Kawasaki 7.2 6.8 6.5 6.4 6.7


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

Motorcycle 35,295 41,339 56,880 126122 187287 51.4 188807

Moped 27,754 44,174 18,971 23330 24234 -3.3 22739

Total 83,237 111,138 104183 179568 264669 33.5 256378


2000 2001 2002 2003 2004 CAGR  9MFY
  2000- 2005
04
Bajaj
14924 16112 28527 53366 90210 56.8 87225
Auto

HHML 10061 10324 13023 21165 39254 40.5 43441

HMSI 0 0 1293 10916 31414 n.a 27734

TVS 7265 6621 7765 9636 28093 40.2 36666

Yamaha 15197 20446 20321 45546 32906 21.3 27539

Others 35790 57635 32752 39053 42792 4.6 33773

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.

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