Two wheeler industry in

India

Presented by:-
Mansur ali
 Roadmap
• Introduction
• History
• Advantage India
• Usage pattern
• Major players
• Market share
 Introduction
• India, is the second largest producer of two-
wheelers in the world.

• The Indian two wheeler market has a size of

over Rs100,000 million.

• The segment can be broadly categorized into

scooters, motorcycles and mopeds.

• The motorcycle market share is about 81.5% of

the total two wheeler market in India.
 CNTD…

• It stands next only to Japan and China in

terms of the number of two-wheelers
produced and domestic sales respectively.
 History of Two-wheeler
Industry
• The Automobile Products of India (API)
started manufacturing scooters in the
country.
• Bajaj started manufacturing scooters from
1959 onwards.
• Until the mid 80’s, there were only three
major motorcycle manufacturers in India
namely Rajdoot, Escorts, and Enfield.
 CNTD…
• 1950-58 API and Enfield.

• 1960-79 LML Vespa, Bajaj, Enfield

bullet, Jawa and Rajdoot.

• 1980-89 Hero Honda, TVS Suzuki

and Kinetic Honda
 Advantage India
Sales of motor cycles in India is likely to touch the 10
million mark by 2010 !

Registered two-wheelers 27.9 mn and still growing.

Growth in exports and domestic sales are 24.34% and

11.92% respectively.

Middle class expanding by 30 - 40 million every year

 Advantage India
Increased consumer embrace of financial products and
Upward migration of household income levels

Growing working population and Increased access to credit

Fleet composition of all vehicles
Three Wheelers
Two Wheelers 4%
71% (2.37 million)
(42 million)
Cars, Jeeps and
Taxies
13%
(7.69 million)

Buses 1%
(0.59 million)

Two wheelers Goods Vehicles

5%
Cars,Jeeps & Taxies (2.96 million)
Goods Vehicles
Others
Three wheelers (Tractors, Trailors
Buses and miscellaneous)
6%
Others (Tractors, (3.55 million)
Trailors &
miscellaneous)
Usage Pattern in India
Is Quite different from other countries

Initial cost and fuel economy are highest priority.

Low maintenance costs are desired.

Small entrepreneurs and farmers conduct their

business carrying loads.
Very limited usage for sports bike.

Indians prefer the two wheelers because of their

small manageable size, low maintenance, and
pricing and easy loan repayments.
 Two wheeler fleet composition in India
>250 cc <75 cc
125 - 250 cc 0.5% 11%
14.9%
<75 cc
75 - 125 cc
75 - 125 cc
73.7%
125 - 250 cc

>250 cc

In India,85% of vehicles are having engine capacity less than

125 cc, whereas in Europe (35%), Japan (31%) and US (7%).
 Major Players
• Hero honda
• Bajaj Auto
• TVS
• Yamaha
• Honda
 Other Players
• Kanda motors
• Mahindra two wheelers
• LML
• Suzuki
Market Share
 Bajaj Auto
1)Established in 1945.

2)Started production of scooters in 1961 and

became first two wheeler manufacturing
company of India.

3) Bajaj Auto, is ranked as the world's fourth

largest two and three- wheeler manufacturer.

4) Bajaj Auto is India’s largest exporter of two

wheelers.
 Bajaj Auto(cntd)
5) During 2008-09, the company exported
772,519 two and three-wheelers recording a
growth of 25 percent over 2007-08.

6) Exports now constitute 37 per cent in volume

terms and 35 per cent IN value of net sales.
 Popular models
• Bajaj Avenger DTS-I
• Bajaj Pulsar DTS-I
• Bajaj Pulsar 220
• Bajaj Discover DTS-I
• Bajaj XCD
1)The Company was Incorporated on 19th
January,1984 at New Delhi as a joint venture.

2)Today Hero Honda is the largest two-wheeler

manufacturer in the world producing more than 3 million
units of two-wheeler per year.

3) The company's most popular model is the

Hero Honda Splendor, which is the world's largest-
selling motorcycle.
4)Over 19 million Hero Honda two wheelers are on
Indian roads today.

5)Hero Honda CD-100 is the first four stroke

motorcycle to be introduced in India in 100cc range.

6) During the fiscal year 2008-09, the company has

sold 3.28 million bikes.
* Hero Honda Splendor

* Hero Honda Glamour

* Hero Honda Karizma

* Hero Honda Passion Plus

* Hero Honda Pleasure

* Hero Honda CBZ X-Treme

 TVS Motors

 TVS Apache
 TVS Centra
 TVS Star
 TVS Victor
 TVS Star City Sport
 TVS Apache RTR FI
 Yamaha Motor India
 Yamaha CruxS
 Yamaha G5
 Yamaha Gladiator
 Yamaha FZ 16
 Yamaha R15
 Yamaha Fazer
 Regulatory Bodies
• Automotive Research Association of India
( ARAI )
• Society of Indian Automobile
Manufacturers (SIAM)
• Automotive Components Manufacturers
Association (ACMA)
 Future Challenges and Plans

• Sustaining the growth rate.

• Need for innovation – low cost/ hybrid vehicles.
• Upgrading Indian two-wheeler products.
• Taking the products to the global market.
• Capturing Indian as well as global market.
 Suggestions
• Encourage exports.
• Provide various two-wheeler financing
schemes among manufacturers.
• Open R&D centers.
• Pressurize government to reduce taxes
and duties.
• Collaborate with global players.
 conclusion
The outlook for India’s automotive sector is highly
promising.In view of current growth trends and prospect
of continuous economic growth of over 5 per cent, all
segments of the auto industry are likely to see continued
growth.
Large infrastructure development projects underway in
India combined with favorable government policies will
also drive automotive growth in the next few years.