INDIAN TWO WHEELER INDUSTRY

The domestic two-wheeler industry has witnessed strong growth scenario in FY10 and FY11. Rising income levels, lower dependence on finance and lower penetration levels in rural markets were key drivers for this growth. CARE Research foresees the Industry to sustain economic slowdown owing to higher rural demand and less dependence on financing. CARE Researchs report on The Indian Two-Wheeler Industry gives valuable insight of the industry encompassing its evolution in India, its characteristics, demand drivers, Government regulations, commentary on industry players and competition and the trends in domestic sales and exports. The trends are analysed in depth for various vehicle segments, namely motorcycles, scooters, mopeds and electric two-wheelers, further subclassified based on the engine capacity. Various segments and sub-segments are appropriately associated with the relevant products and companies for enhancing the understanding of the competitive scenario in the industry. The cost analysis presented in the report will help the reader identify the critical cost items and their trends. The company section in the report provides detailed profiles of the top three players in the industry, including information on their financial and operational parameters. The report presents CARE Researchs forecasts of domestic as well as export sales for each of the next five years till FY16, separately for all the segments. CARE Research has developed a robust model for forecasting domestic sales. It takes into account the cost of owning a two-wheeler, age demographics and income distribution of the populace. It also attempts to quantitatively adjust for qualitative factors like current economic scenario and outlook, consumer confidence level and persuasive sales techniques of dealers and vehicle financers.
Bajaj Auto Ltd Hero Honda TVS Motor Company Ltd OUTLOOK SECTION Executive Summary Outlook on Domestic Market Outlook on Profitability

Indian Tyre Industry

INDEX

INDUSTRY BASICS Evolution of the Industry Industry Segments Demand Cost Analysis Credit Profile Export Regulatory scenario

COMPANY SECTION

ANNEXURES Player wise motorcycles domestic sales Player wise motorcycles exports Player wise mopeds domestic sales Player wise mopeds export Player wise scooter domestic sales Player wise scooter export Sub-segment wise domestic sales

AUGUST 2010

Credit Analysis & REsearch Ltd. (CARE), promoted in 1993 by some of the leading Indian banks and financial institutions including Industrial Development Bank of India (IDBI), Canara Bank and others is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types of debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE Ratings methodologies are in line with the best international practices. CARE Ratings has completed over 7075 rating assignments having aggregate value of about Rs.20,988 billion (as at December 31, 2009), since its inception in April 1993. CARE is recognized by Securities and Exchange Board of India (SEBI), Government of India (GoI) and Reserve Bank of India (RBI). CARE Research & Information Services (CARE Research) is an independent division of CARE. CARE Research services a variety of business research needs with credible, high quality research and analysis on various facets of the Indian Economy and Industries. Publications include Industry Reports, Debt Market Review, Budget Analysis and other policy impact analysis and special commentaries on topical issues. CARE Research offers both subscription based reports as also customized reports on request. The reports by CARE Research provide insightful data and analysis on various industry sectors and CAREs outlook on the same. The Subscription to the report on Indian Commercial Vehicle Industry, March 2010 by CARE Research includes monthly updates on the industry from date of subscription. To view a detailed index of content and synopsis of the report you can visit at http://www.careratings.com/content/ResourceCenter/IndustryReport.aspx For any queries regarding the content & scope of the report kindly reach us at careresearch@careratings.com To place an order, please contact: Ms. Revati Kasture revati.kasture@careratings.com Head - CARE Research careresearch@careratings.com (B) : +91-22-6754 3456 (D) : +91-22-6754 346

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AUGUST 2010