The Indian automotive industry consists of five segments:commercial vehicles; multi-utility vehicles & passenger cars;two-wheelers; three-wheelers; and tractors. With 7,822,963units sold in the domestic market and 753,591 units exportedduring the first nine months of FY2007, the industry (excludingtractors) marked a growth of 43% over the correspondingprevious. The two-wheeler sales have witnessed a spectaculargrowth trend since the mid nineties.India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has gotspectacular growth in the last few years. Indian two-wheelerindustry had a small beginning in the early 50's. TheAutomobile Products of India (API) started manufacturingscooters in the country.Bikes are a major segment of Indian two wheeler industry, theother two being scooters and mopeds. Indian companies areamong the largest two-wheeler manufacturers in the world.Hero Honda and Bajaj Auto are two of the Indian companiesthat top the list of world companies manufacturing two-wheelers.The two-wheeler market was opened to foreign companies inthe mid 1980s. The openness of Indian market to foreigncompanies lead to the arrival of new models of two-wheelersinto India. Easy availability of loans from the banks, relativelylow rate of interest and the discount of prices offered by thedealers and manufacturers lead to the increasing demand fortwo-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry.