Domestic sales volume by segments, 2010-13 Million units

Mopeds Scooter/Scooterette Motor cycles

Domestic 2W sales Overview

Segment wise market shares, 2010-13 CAGR, 2010-13 Percent 14 13.5 0.8 13.8 0.8 2.9 (21%) 12
Others Suzuki TVS Hero HMSI

Percent
TVS

100% =

100

100

100

100

11.8 0.7 9.4 0.6 1.5 2.1

2.6

26

100% =

100 10 14
5

20

51

100 11 8 21 17 43

100 11 16
6

100 11 19
6

19

15

48

49

7.3 (78%)

9.0

10.1

10.1 (73%)

11

Others

TVS

HMSI

Bajaj

Hero

100% =

100 24 58 6

5 7

100 7 27 7

100 6 8 25 56 12

100 6 24 12 53 2013 YTD

55
11

2010

11

12

2013

2010

Motorcycles have been the mainstay of 2W market (73% by volume) Scooter segment is driving growth of 2W market in India

Hero continues to hold dominant position in motorcycle segment, but loosing share to HMSI HMSI is the leading player in scooter segment; Hero registering healthy market share gain

Indian two wheeler industry

Total sales volume - 13.3 million units (2010-11) Indias increasing per capita disposable income and growth in exports is playing a major role in the rise and competitiveness of the industry. Export route offers strong growth opportunities to auto majors because of Indias low-cost manufacturing capabilities Reliable quality act as a hedge against the vagaries of domestic sales (possible due to credit crunch)

Two wheeler exports from India reported a CAGR of 25% over the period 2005-06 to 2010-11 (1.5 million units in 2010-11). BAL is the largest exporter, followed by TVS. Together, BAL and TVS accounted for 79% of all two wheeler exports from India in 2010-11

Installed capacity comparison

6 5 4 3 2

High unutilized capacity

Very Low capacity

1
0 Bajaj Auto TVS Hero Honda Honda Motorcycles & Scooters 2010-11 Yamaha Suzuki Mahindra 2 wheelers

2009-10

2011-12*

(in million units) Bajaj Auto

2009-10 3.9

2010-11 4.5

2011-12* 5

TVS
Hero Honda Honda Motorcycles & Scooters Yamaha Suzuki Mahindra 2 wheelers

2.4
5.4 1.6 0.6 0.3 -

2.8
5.6 2 N.A. NA 0.5

3
5.7 2.2 1.1 0.5 0.5

Exports Market (units sold)

1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Bajaj Auto TVS Hero Honda 2006-07 2007-08 Honda Motorcycles & Scooters 2008-09 2009-10 Yamaha 2010-11 Others Total

Low despite high domestic share because Honda JV(till 2010). Now export aggressive

M&M present here. Very little export orientation

Bajaj Auto TVS Hero Honda Honda Motorcycles & Scooters Yamaha Others Total two wheelers

2006-07 2,98,769 1,03,013 97,645 24,065 61,395 34,251 6,19,138

2007-08 4,82,026 1,37,012 90,571 35,442 61,352 13,444 8,19,847

2008-09 6,33,463 1,93,320 81,193 53,807 38,537 3,854 10,04,174

2009-10 7,26,189 1,65,414 97,699 79,504 65,123 6,255 11,40,184

2010-11 9,72,437 2,29,132 1,33,063 1,04,237 95,529 5,192 15,39,590

Being Specific!!
Indian Luxury bike segment to grow three fold by 2017- tech sci research During the past one year, while the mass motorcycle market in the country has registered degrowth, we have clocked 15-20 per cent growth in the premium and high-end motorcycle segment- Amit nandi (VP Bajaj Auto) Pune based DSK Motowheels, which sells Hyosungs superbikes, sold over 150 Aquila Pro 650cc super bike priced Rs 4.99 lakh in less than two months of its launch

Its a Go Go Go!
Already Vroooming the market
Kawasaki Ninja 250R launched in last August and priced Rs 3 lakh sold 2,500 units Ninja 650 costing Rs 5 lakh, launched two years ago, had sold 500 units. Bajaj planning to launch KTM Duke 390 priced 4.99 lakhs by the end of quarter Harley-Davidson Street 500 confirmed to be launched in India

References
SIAM IBEF Report on Automobile market ICRA two wheeler Industry Report - 2011