Auto mobile two wheel

industry
By aneesha

introduction
Indian Two-Wheeler Market is noticing a continuous
upsurge in demand and thus resulting in growing
production and sales volume.
This owes a lot to the launching of new attractive models
at affordable prices, design innovations made from
youths perspective and latest technology Utilised in
manufacturing of vehicle
The sale of two-wheeler products has increased
substantially. The sales volumes in the two-wheeler
sector shot up from 15 percent to 24 percent between
2008-09 and 2013-14.

 Indian Two-Wheeler Industry is the largest in the

world as far as the volume of production and sales
are concerned. India is the biggest two-wheeler
market on this planet.

The growth in Indian Automobile Industry owed the

most to a steep upsurge witnessed in the twowheeler segment in 2014.
The 'Make in India' campaign of the Government of
India is also going to attract more foreign investment
into Indian Two-Wheeler Industry creating further
growth opportunities in the coming years.

Growth factors
Relatively Low Cost of Two-Wheelers
in India.
Steep Fall in Fuel (especially petrol)
Prices.
Reduced Excise Duty.
High Interest Rates on Passenger
Cars and LCVs.

Porters 5 force analysis

1. Threats of new entrants:
. Entry barriers are high.
. Huge investments
. Capital investment is very huge in
two wheeler industry.
. Well established players are already
exsisting
. Industry is consolidated

2.Threats of substitute:
Faces direct competition from the
automobile sector.
Substitute products for two wheel
industry are bus,car other public
transport.
Reasons for choosing substitute may
relative quality of substitutes is high.
Threats of substitute is high.

3.Rivalry among competitors:

Price quality of products plays an
important role for rivalry among
competitors.
Each company in industry changes
the model on going basis to show
differentiation in their competitors.
Rivalry among sellers are high.

4.Bargaining power of suppliers:

Since they charge their model on
going basis they create good
relationship between their suppliers.
Some have bargaining power such as
steel ,batteries ,tubes etc.
Bargaining power of suppliers are
low.

5.Bargaining power of buyers:

There are 5-6 big popular brands of
two wheelers are available .
Now a days people go to unique
brands because of good service they
provide after purchase.
Bargaining power of buyers are high.

Market players
1. hero:
. Hero motocorp ltd is formerly hero
honda .
. In 2001, the company achieved the
coverted position of being the largest
two wheeler manufacturing company in
india.
. Capacity utilization is 98%
. Net profit of hero motocorp is 9%

 Products of hero two wheeler are:

Passion x pro
Maestro
Impulse
Pleasure
Splendor
HF-deluxe

 The past strategy is focus on

economy segment with splendor and
passion being flagship product.
Impact is largest selling 2 wheeler in
world and started losing due to
market evolution.
Current strategy is fully utilize the
domination in the economy segment.
Having bigger presence in the
premium segment.

2. Bajaj motors:
Bajaj motors limited was
incorporated in 1986 and started its
commercial production in 1989.
Bajaj motors was started as
machining unit with backward
integration in forgings of auto
components.

 Products of bajaj are:

Bajaj platina
Bajaj discover
Bajaj xcd
Bajaj pulsar
Bajaj avenger

 Past strategy is full reliance on

scooter segment.
Impact was lost out after entry of
motorcycles in market
Current strategy is target the youth
with sporty bikes.

3.tvs:
Tvs motor company is the third
largest two wheeler manufacturer in
india and one among the top ten in
world.
Annual turnover of more than USD I
billion in 2008-2009, and is the
flagship company of the USD 4 billion
tvs group.

Products of tvs are :

Apache RTR 180
Flame DS125
Flame
Tvs jive
Star city
sports

 Past strategy is focus on rural/semi

urban popolation.
Impact
-did poorly in urban areas
-started losing due to population
migration and increase in purchasing
power.
current strategy is to maintain
dominance in rural/semi urban
population.

 Government initiatives:
Indian government encourages foreign
investment in automobile sector and allow
100% FDI under the automatic route. It is
fully delicensed industry , freely allowing
imports of automotive components.
Government has made successive policy
changes that allow for stronger growth in
automotive sector .

1. Automotive mission man:

the plan has been prepared to accelerate and
lustain growth in the automotive sector
during the period 2006-2016.
It aims to make india global automotive
sector.
This will involve doubling the contribution of
automotive sector by taking turnover to USD
145billion and provide employment to 25
milliom people .

2.National automotive testing and f&d

infrastructure project:
This is a USD400 million initiative of
government of india and various state
government .
Aimed at creating a state of art
,dedicated testing validation and R&D
infrastructure across the country.