Table of content

1. Introduction
1.1 Historical background
1.1.1 1.1.2 Global scenario Domestic scenario

1.2 1.3

Current scenario Industry Environment
1.3.1 1.3.2 Task environment General environment

2. Industry analysis
2.1 2.2 2.3 Structure Players Market analysis
2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 Market size Market segment Demand driver Import & export Govt. policies Auto component industry SWOT analysis Selected major players 4. Summary .2 3.1 3.1 Criteria of choosing 3.1.6 3.1.5 3.7 Market share Market size Domestic sales Profitability Market capital Investment Growth rate 3.1. Major players 3.3 3.

have there loyal customer as ever. travel. bajaj TVS etc. The 2 wheeler automobile industry is one of the most dynamic and fast growing industries in the world . It employs million of people and generate revenue in billions of dollars world wild . Bajaj Auto Limted etc. from racing bikes to road street bikes.INTRODUCTION Two wheeler automobile industry worldwide has evolved over a period of more than two centuries. changing forever the way people live. .major automobile corporations around the world are Hero Honda Motors Ltd. Indian 2 wheeler automobile market is not far behind . It offers 2 wheelers ranging from luxury bikes to multi-utility . modern two wheeler industry has covered a long distance. TVS Motor Company Limited. 2 wheeler automobiles revolutionized the future of the world. A number of international brands have developed robust clientele in India such as Harley Davidson but domestic manfactures such as Hero Honda. and do business.

Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry. Until 1958. . With a view to this. the first batch of bullet 350cc from Royal Enfield company were received and assembled it in Chennai. The agreement expired in 1971. This industry. it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. promises to become top of the world industry in the upcoming years and the industry experts are hopeful that it will touch. inefficiency in the public transportation system etc. In 1955. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. Government wants sturdy motorbike for its army and police to patrol which can run on rugged border highways. rising demand for personal transport. In 1948.The Indian 2 wheeler automobile industry is the 2nd largest in the world. API and Enfield were the sole producers. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. in 1960. Historical background Global scenario Domestic scenario India is the second largest manufacturer and producer of two-wheelers in the world.

It helped to the scooter owners with providing ease of ride. These two players initially started with assembly of CKD kits. and later on progressed to indigenous manufacturing. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. the scooter segment has consistently lost its part of the market share in the two wheeler market. This resulted in a . gaining a top slot. which grew at a rate of nearly 25% CAGR in the last five years.In the initial stages.then the only producer of four stroke bikes (100cc category). The industry saw a sudden growth in the 80s. this trend was reversed with the introduction of scooterettes. resulting in Hero Honda . TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. The industry witnessed a steady growth of 14% leading to a peak volume of 1. Jawa and the Rajdoot were two-stroke bikes. And the then market leaders . Ideal Jawa and Escorts. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles. the entire automobile industry saw a drastic fall in demand. towards buying scooters. with only three manufacturers viz Enfield. the scooter segment was dominated by API. demand swelled. In 1990. In the 90s. While Enfield bullet was a four-stroke bike. the only new player that has lasted till today is LML. Although various government and private enterprises entered the fray for scooters. In line with this. who were earlier inclined towards moped purchases. The industry had a smooth ride in the 50s.9mn vehicles in 1990. The first Japanese motorcycles were introduced in the early eighties.were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes. The two-wheeler market was opened to foreign competition in the mid-80s. The motorcycles segment was no different. it was later overtaken by Bajaj Auto. The entry of Kinetic Honda in mid-eighties with a variometric scooter.Escorts and Enfield . 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. This helped in inducing youngsters and working women.

all the major producers suffered from recession in FY93 and FY94. Indian two wheeler industry is contributing great in the growth of Indian economy. Major players of market are fulfilling demand of both.) entered on its own in India. high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing.4mn vehicles. as government allowed entry of foreign players with 100% foreign investment. Hero Honda showed a marginal decline in 1992. It is the world's largest manufacturer and seller of three-wheelers. Now a days. Honda Motors the Japanese major andtechnology partner of Hero group (Hero Honda Motors Ltd. Current scenario So. . Greaves Ltd and Scooters India Ater This witnessed major structural changes in the two-wheeler industry. resulting in a production loss of 0. College students boys prefer bikes and college girls prefer to scooties. due to new entrants coupled with the recession in the industry resulted in companies either reporting losses or a fall in profits. At present the demand of scooters has totally gone down. India is one of the very few countries manufacturing three-wheelers in the world. as such Indian 2 wheeler auto mobile industry came under progress and now a days it has become great industry in India. In a period of 5 years (2000-01 to 2004-05). Barring Hero Honda. The reasons for recession in the sector were the incessant rise in fuel prices. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%.decline of 15% in 1991 and 8% in 1992. the rest is shared by Bajaj Tempo. Suzuki Motors the technology partner of TVS group also joined the bandwagon. Factors like increased production in 1992.

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