You are on page 1of 25

PAWAN CHAVAN -07

PRANIT SHETYE-56
AMEYA RAIKAR-43
SAYALI DEVASTHALI-10
PRAGYA JALAN-20
AUTOMOBILE INDUSTRY
TWO WHEELER SECTOR
THE INDIAN AUTOMOBILE INDUSTRY IS MANUFACTURING OVER 11 MILLION VECHICLES AND
EXPORTING ABOUT 1.5 MILLION EVERY YEAR.

THE DOMINANT PRODUCTS OF THE INDUSTRY ARE TWO WHEELERS WITH A MARKET SHARE
OF OVER 56% AND PASSENGER CARS WITH A MARKET SHARE OF ABOUT 37% COMMERCIAL
VEHICLES AND THREE WHEELERS SHARE ABOUT 7% OF MARKET BETWEEN THEM.

ABOUT 91% OF VECHICLES SOLD ARE USED BY HOUSEHOLDS AND ONLY ABOUT 9% FOR
COMMERCIAL PURPOSES

THE INDUSTRY HAS ATTAINED A TURNOVER OF MORE THAN USD 35 BILLION AND PROVIDES
DIRECT AND INDIRECT EMPLOYMENT TO OVER 13 MILLION PEOPLE
AUTOMOBILE INDUSTRY
SEGMENTWISE MARET SHARE:
56%
37%
7%
Sales
TWO WHEELER
COMMERCIAL VEHICLE
PASSENGER VEHICLES & THREE
WHEELER
INDIA, IS SECOND LARGEST PRODUCER OF TWO WHEELERS IN WORLD,IN LAST FEW YEARS,THE
INDIAN 2WHEELER HAS SEEN A SPECTACULAR GROWTH,THE COUNTRY STANDS NEXT TO CHINA
AND JAPAN FOR PRODUCTION AND SALES.

MAJORITY OF INDIANS, ESPECIALLY THE YOUNGSTERS PREFER MOTORBIKES RATHER THAN CARS.

LARGE VARIETY OF TWO WHEELER ARE AVAILABLE IN THE MARKET,KNOWN FOR THEIR LATEST
TECHNOLOGY AND ENHANCED IN LARGE.

INDIAN BIKES AND MOPEDS REPRESENT STYLE AND CLASS FOR BOTH MEN AND WOMEN IN
INDIA.


INTRODUCTION OF TWO WHEELER INDUSTRY
THE HILDEBRAND & WOLFMULLER WAS THE WORLDS FIRST
PRODUCTION MOTORCYCLE

MANUFACTURER : HILDEBRAND & WOLFMULLER.
PRODUCTION :1894-1897
ENGINE :1,489 CC TWO-CYLINDER WATERCOOLED
FOURSTROCK, SURFACE CARBORETOR
TOP SPEED : 28 MPH (45 KM/H)
WEIGHT :50 KG
FIRST MOTORCYCLE
INDIAN TWO WHEELER INDUSTRY IS AS OLD AS 53 YEARS.

BAJAJ AUTO BEGAN TRADING IN IMPORTED VESPA SCOOTERS IN 1948.

UNTIL THE MID 80S, THERE WERE ONLY THREE MAJOR MOTORCYCLE MANUFACTURERS
IN INDIA NAMELY RAJDOOT, ESCORTS,AND ENFIELD.

TWO WHEELER MARKET WAS OPENED TO FOREIGN MANUFACTURERS IN THE MID 80S.

IN 1984, HERO GROUP ENTERED THE MARKET IN JOINT VENTURE WITH JAPANS HONDA
GROUP.

In 1990, the entire automobile industry saw a drastic fall in demand. Barring Hero Honda,
all the major producers suffered from recession in FY93 and FY94.

Hero Honda showed a marginal decline in 1992.


INDIAN TWO WHEELER AUTOMOBILE HISTORY
Rajdot
VESPA
ROYAL ENFIELD CRUSADAR
Benefits of two wheeler:
Two wheelers are the most popular and highly sought out medium of
transport in India.The trend of two wheelers is due to its:




However, few Indian bike enthusiastic prefer high performance
imported bikes. Some of the most popular high speed bikes are Suzuki
Hayabusa, Kawasaki Ninja, Harley Davidson, Yamaha R1 etc.
Economical
price
Low
maintenance
Fuel efficient
Manageable
size
The automotive regulations in India are governed by the Ministry of Shipping, Road
Transport & Highways (MoSRT&H) which is the nodal ministry for regulation of the
automotive sector in India.
Along with MoSRT&H, ministries such as Ministry of Environment & Forests and
Ministry of Petroleum & Natural Gas also have a vital role in the formulation of
automotive regulations and standards in India.

The principal instrument governing the automotive sector in India is the Motor
Vehicles Act, 1988 (MVA) along with the Central Motor Vehicles Rules 1989
(CMVR).
The Act governs emission norms and safety standards in India and consolidates the
law pertaining to motor vehicles.
The CMVR provide the rules that explain the MVA in detail.

Automotive Regulations In India
Indian government encourages foreign investment in automobile sector and allows 100% FDI under the
automatic route. It is fully delicensed industry, freely allowing imports of automotive components.

The excise duty on small cars, motorcycles, scooters and commercial vehicles has been reduced from 12% to
8% by government.

Government have made successive policy changes that allows for stronger growth in the automotive sector.
Major among this are:
1.Automotive mission plan: The plan has been prepared to accelerate and sustain growth in the automotive
sector during the period of 2006-16.It aims to make India a global automotive hub. This will contribute to
India GDP and will create an employment. It will also help to increase exports.

2.National automotive testing and R&D infrastructure project: This is an USD 400 million initiative of
Government of India and various state government. It is aimed at creating a state of art, dedicated testing,
validation and R&D infrastructure across the country.
Government Initiatives
CONTRIBUTION TO GDP
TWO WHEELER SECTOR CONTRIBUTES TO 6% OF INDIA GDP
PERCENTAGE
TWO WHEELER OTHER
The Indian automobile industry is the tenth largest in the world.
It has an annual production of approximately 2 million units.
There has been a sustained growth in the automotive sector of India
following the economic reforms of 1991 which opened up 100 percent
Foreign Direct Investment in this sector.
The industry has been growing annually at 20 per cent. India is set to
be a key player in the automotive sector.

Revenue & Profitability
Household Income
Petrol price
Monsoons (Affects Rural
income, food inflation )
Decreasing prices in
4-wheeler Market.
Infrastructure, public
transport.
Cost and availability of raw
materials
Increased no. of players in
the industry
Capital sourcing
Promotion, Distribution
and Penetration
Factors Affecting Demand: Factors Affecting Supply:
PLAYERS
India has produced more than 11.9 Million Motorcycles in
FY 12-13. Hero MotoCorp, Bajaj, Honda, TVS and
Yamaha companies stands in top 5 In terms of market
share, followed by Royal Enfield, Mahindra & Mahindra,
Suzuki etc.
India has produced more than 3.0 Million Scooters in FY
12-13. Honda, Hero MotoCorp, TVS, Suzuki and Yamaha
companies stands in top 5 In terms of market share,
followed by Mahindra & Mahindra, Piaggio etc.
MARKET SHARE OF TWO WHEELER AUTOMOBILE INDUSTRY
0
10
20
30
40
50
60
70
Heromotocorp Honda Bajaj
Unit sold
2011-12 2012-13
Sales Comparison
FOUNDER: DR.BRIJMOHANLAL
MUNJAL.
ESTABLISHED: 1956
HEADQUATERS: NEW
DELHI(DHARUHERA)
REVENUE: 241.66
Billon(US$3.9billon)
RECENT LAUNCH: Maestro,
Karizma R, ZMR, Xtreme,
Pleasure, Splendor Pro,
Splendor iSmart, HF Deluxe.

HERO MOTOCORP
FOUNDER: SOICHIRO HONDA.

ESTABLISHED:1948

HEADQUATERS:TOKOYO
(JAPAN)

REVENUE: 104 Billion USD

RECENT LAUNCES:DREAM
YUGA,DIO,SHINE.
HONDA MOTOR
COMPANY
FOUNDER: JAMNALAL BAJAJ
ESTABLISHED:1942-47
HEADQUATERS:MAHARASHTRA &
UTTRANCHAL
REVENUE:4.24MILLION
EXPORT-1.55MILLION
RECENT
LAUNCHES:PULSAR200(NS),KTM,
DISCOVER
BAJAJ AUTO LTD
Weakness

Low thrust marketing.

Over dependence on 2 key players.

Low in exports.

Opportunities

Technically driven management adds value to
conventional processes and products.

Globally tuned organization open for foreign
collaborations.
Threats
Foreign players.

Slow growth in domestic auto sales.

Government policies.

SWOT
Strength
Skilled low cost manpower.

Machines of International standards.

Total in-house manufacturing and testing with
the latest precision instruments.



Corporate Social Responsibility
Suzuki Motor Corp aims to sell million units in next 3 years.

Eicher Motors plans to invest Rs 600 crore in two years to ramp up production capacity of
its motorcycle division Royal Enfield.

After Harley Davidson, U.S based UM Global to enter Indian market, assemble sports bikes
in India.

Kinetic Engineering Limited, the minority stakeholder in Mahindra Two Wheelers, sold its
10.36 per cent stake in the company to Samena Capital.

Hero MotoCorp to use Turkey for entering European Market , started its operations in
Turkey.



Recent Happenings In Industry.
New Hero Splendor iSmart launched

7.8 PS 100cc 4-stroke engine as the regular
Splendor, but boasts of one major
technological feature that has never been
seen in the two-wheeler market ever before,
a technology they call i3S.
Bajaj have announced the arrival of a new and
upgraded version of their city rider, the Discover
125. The new Discover sits on a set of redesigned
alloys, and has a refreshed look which includes
body graphics, a touched up headlamp unit and a
few other visual tweaks.
Bajaj launch new Discover 125
NEW LAUNCHINGS
Vespa S officially launched Harley-Davidson launch SuperLow 1200T
THANKYOU