Two Wheelers

The Two wheeler manufacturers in India, at present are enjoying good times. The growth of the two wheelers sector was noteworthy in the past few
years. In the period 2007 - 08 the total number of the two wheelers and three wheelers produced in India was around 9 million, which was a growth
of 11.41 %. In the same period the motorcycle exports from India was 340,283 units, while export of other two wheelers grew 13.1%.
Two Wheelers Manufacturers - Growth Factors
General income levels have increased as more young people get employed.
Government has lowered the taxes, excise, and other duties.
Latest two wheelers are fitted with fuel-efficient engines.
Young generation prefers two wheelers as their first vehicle as public transport system is not able to cope with demands and comfort
requirements.
Options of financing has become easier and user friendly.
Current trend of two wheeler sales:

Two-wheelers: Monthly domestic sales trend (units)

Month

2006-07

Apr

605,181

568,803

616,038

May

669,407

603,841

647,358

Jun

631,687

564,971

601,941

Jul

557,466

503,356

599,369

Aug

572,883

543,504

620,927

Sep

778,865

679,766

Oct

818,537

793,420

Nov

674,692

665,181

Dec

592,247

545,484

Jan

677,390

605,455

Feb

631,514

542,578

Mar

640,338

630,976

7,850,207

7,247,335

Total

2007-087

2008-09

Source: CRISIL Research
The overall domestic two-wheeler industry continued its upward ride, recording growth of 14.2 per cent in August 2008 vis-à-vis a decline of 5.1 per
cent (y-o-y) in August 2007. The low base aided the domestic two-wheeler industry to grow by 10.8 per cent (y-o-y) during April 2008 to August
2008 as against the 8.3 per cent (y-o-y) decline during April 2007 to August 2007. Despite the tight finance conditions and reduction in loan to value
ratio for certain models, increasing cash sales of certain motorcycle models, in rural and semi-urban areas, has led to recovery in the overall
domestic
two-wheeler
industry.
The overall exports of the two-wheeler segment registered a growth of 20.5 per cent in August 2008 (y-o-y) on the back of 22.2 per cent (y-o-y)
growth in exports of the motorcycles segment.

214 - 35.6 35.683 32.487 5.627 162.052 11.256 -7.838 24.1 122.Two-wheelers: Segment wise sales (domestic) (nos) Aug-08 Aug-07 Y-o-Y growth (per cent) Y-t-D 2008-09 Y-t-D 2007-08 485.030 -76.524 19.074.002 23.877 9.365 - 5.9 Royal Enfield (Unit of Eicher Ltd) 3.8 464.033 - - 617.438 542.097 2.2 179.294 418.396.474 11.937 45.644 -2.829 15.461 91.3 TVS Motor Company Ltd 36.5 1.911 32.2 27.752 221.887 121.536 1.1 96.946 15.683 30.122 3.521 13.778.2 7.343 -26.044 - 1.378 10.165 0.763 10.7 Kinetic Motor Company Ltd - 1.860 37.7 19.012 17.6 49.848 11.752 34.431.2 Yamaha Motor India Pvt Ltd 11.541 28.172.2 - 2.6 4.552 13.8 3.171.863 201.2 Hero Honda Motors Ltd 284.283 -18.3 177.172 2.202 - - 32.9 2.7 618.073 3.855 2.158 5.9 Bajaj Auto Ltd 116. Y-o-Y: Year-on-Year Source: CRISIL Research Y-o-Y growth (per cent) .423 24.309 6.9 266.034 -70.6 Kinetic Engineering Ltd - 127 - - 218 - Kinetic Motor Company Ltd - 127 - 238 1.697 1.847 -59.108 51.7 106.635 435.021 114.549 -59 23.914 5.8 1.6 Suzuki Motorcycle India Pvt Ltd 3.369 -3.654 98.365 13.7 Company M Cycle Honda Motorcycle & Scooter India (Pvt) Ltd Moped TVS Motor Company Ltd Scooter Bajaj Auto Ltd Kinetic Motor Company Ltd TVS Motor Company Ltd Suzuki Motorcycle India Pvt Ltd Total Y-t-D: Year-to-Date.820 20.125 4.718 -59.439 33.974 10.1 203.164 6.921 2.2 Honda Motorcycle & Scooter India (Pvt) Ltd 53.655 617.092 36.1 Hero Honda Motors Ltd 12.290 13.321 258.8 52.283 22.138 -0.114 171.5 Majestic Auto Ltd - 388 - - 3.4 16.

665 -60.087 80.946 344.280 5.712 Honda Motorcycle & Scooter India (Pvt) Ltd Bajaj Auto Ltd TVS Motor Company Ltd Y-o-Y: Year-on-year Source: CRISIL Research Y-o-Y growth (per cent) Y-o-Y growth (per cent) .763 -39.695 68.963 75.890 59.512 14905 24.025 8.006 50.2 285.953 May 53.075 Sep 55.3 Suzuki Motorcycle India Pvt Ltd 44 44 0 88 133 - 18.466 67.6 34.075 76.247 39.732 Feb 45.895 65.4 17.087 Dec 50.363 Jan 40.4 998 1.083 12.847 Source: CRISIL Research Two-wheelers: Exports by company Y-t-D 2008-09 Y-t-D 2007-08 27.9 Total 91.252 Total 619.109 65.075 20.138 819.6 73.550 Mar 51.6 8.283 89.6 Company Aug-08 Aug-07 58.162 77.Export: Two-wheelers: Monthly export trend Month (Units) 2006-07 2007-08 2008-09 Apr 47.2 Kinetic Engineering Ltd - - - - 300 - Kinetic Motor Company Ltd - 849 - 1.087 - Royal Enfield (Unit of Eicher Ltd) 262 209 25.520 35.542 -35.5 Yamaha Motor India Pvt Ltd 2.076 204.027 Aug 53.5 431.991 85.6 18.647 46.116 Hero Honda Motors Ltd 8.249 Jun 58.663 76.950 57.460 3.900 29.506 88.737 Nov 46.017 25.616 -59.054 Jul 63.109 Oct 51.392 49.635 2.956 -4 3.677 74.981 59.350 70.940 23.2 Majestic Auto Ltd - 270 - - 4.419 48.

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