Two Wheeler Industry

(100cc - 150cc two wheelers)

 Introduction

India is the second largest producer of two wheelers in the

world. The country stands next to China and Japan in terms of
production and sales respectively.
Majority of Indian especially youngsters prefer bike rather
than car.
Capturing a large segment in two wheeler industry bike and
scooter cover a major segment.
Indian two-wheeler industry had a small beginning in the
early 50's.
 Major Players
Companies Products
Hero Motocorp Glamour, Passion, Splendor Plus,
Hunk

Honda Unicorn, Shine, Twister, Activa, Dio,

Aviator

Bajaj Auto Ltd. Discover, Pulsar, Platina, Avenger

TVS Motors Ltd. Victor, Flame, Jive, Star city, Spot,

Wego, Scooty pep, Scooty streak
Yamaha Motor India Crux, YBR 110, SS 125, Majesty, Vino,
(P) Ltd. Zuma
 Company wise 2-wheeler Market Share
Hero 44%

Honda 24%

Bajaj 14%

TVS 12%

Yamaha 4%

Others 2%

Others : Suzuki, Mahindra, Piaggio

Data Source : SIAM (Society of Indian Automobile Manufacturers), CIRSIL, Other Industry sources
 Annual 2 Wheeler Production in India

16.9
15.5 15.7
13.3
10.5
8.4

FY 09 FY 10 FY 11 FY 12 FY 13 FY 14
(figures in million units)

Data Source : SIAM (Society of Indian Automobile Manufacturers), CIRSIL, Other Industry sources
 Annual 2 Wheeler Sales in India

13.4 14.8
2013 - 2014
2012 - 2013
2011 - 2012

(figures in million units) 13.7

Data Source : SIAM (Society of Indian Automobile Manufacturers), CIRSIL, Other Industry sources
PEST Analysis
 Political
Indian government auto policy aimed at
promoting an integrated, phase and
conductive growth of the Indian Automobile
industry.
Allow automatic approval for foreign
investment, with no minimum investment
criteria.
Assist development of vehicles propelled
by alternate energy sources.
 Economic
Low cost labour coupled with local availability of raw
material like steel, aluminium and natural rubber has
placed India amongst the low cost producing centers
of two wheelers.
Many auto finance company laid easy installment
rules with less interest rate it makes more segment
people to go for it.
 Social
In numerous cultures, motorcycles are the
primary means of transport.
Two wheelers gives a great advantage to the
specified designation where other cannot
enter.
Indian customers are highly discerning,
educated and well informed. They are price
sensitive and put a lot of emphasis on value
for money.
 Technological

Two wheeler construction is the engineering,

manufacturing, and assembly of components
and systems for two wheelers which result in
performance, cost and aesthetics desired by
the designers.
Best fuel economy of transport.
New innovations.
Porters 5 Force Analysis
 THREAT OF NEW ENTRANTS
Entry barriers are high.
Huge investment
Capital investment is very huge in two wheeler industry.
The biggest challenge is setting up sales & service center,
which is very hard for a new entrant.
Well established players are already existing.
Industry is consolidated.

Threat of new entrance is Very low.

 THREAT OF SUBSTITUTE

Faces direct competition from the automobile sector.

Substitute products for two wheeler industries are:
Bus, Auto, Cars and other public transports.
Reasons for choosing substitutes may:
Relative quality of substitutes is higher.
Switching costs is lower.

Threat of substitute is High.

 RIVALRY AMONG COMPETITORS

Price, Quality of the products plays an important role for

rivalry among competitors.
Methods adopted to attract customers - Discounts, availability
of loans, low rate of interest and long-term warranties to
attract customers.
Each company in industry change the model on going basis to
show differentiation in their competitors.

Rivalry among sellers are High.

BARGAINING POWER OF SUPPLIERS
Since they change their model on going basis they create
good relationship between their suppliers.
Some of the components in two wheeler industry sellers have
bargaining power:
Steel
Batteries
Tyres & Tube etc.
The automobile supply business is quite fragmented.

Bargaining power of suppliers are Low.

 BARGAINING POWER OF BUYERS

There are 5 to 6 big popular brands of two- wheelers are

available.

Nowadays people go to unique brands because of good

service they provide after purchase.

Bargaining power of buyers are High.

Thank You