2-wheeler industry in india

8/6/2019 2-Wheeler Industry in India

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Two-Wheeler Industry in India

Presented by:

Nisha Arora

Ahmed Raza

Sandeep Show

Md. Shamim AnwarRajeev Kumar Mishra

S. Praveen Reddy


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Roadmap

Overview

Market Segmentation

Major Players

Government Initiatives

Technological AdvancementProduction & sales trend

Herfindahl Index

Michael Porters Analysis

Issues & Concerns

Growth Drivers

Outlook


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Overview

India is the 2nd largest producer of two wheelers

Automobile industry contributes 4% to GDP

Contributes 76% to Automobile Industry in volumeterms

Registered the growth rate of 26.55% in Apr-Feb 2011

Exports recorded growth of 59.3% during Apr-Feb 2011in terms of volume

Hero Honda, Bajaj Auto and TVS Motor are the leadingplayers

Market Penetration-92 vehicle per 1000 people Potential to emerge as a key contributor to Indian

economy


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Market Segmentation

Motorcycle segment75 125cc125 250ccGreater than 250cc

Scooter segmentLess-than-75cc75-125ccGreater than 125cc

Mopeds

Electric TWs

Source:SIAM

Segment-wise Market Share(2010-11)

16.25%

4.36%

3.39%

76%

Passenger Vehicle

Commercial Vehicle

2-wheeler

3-wheeler


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Major Players in 2-wheeler Industry

Source:SIAM

Hero Honda Do inates

45%

20%

15%

13%

2%5%

Hero Honda Motors Ltd

Bajaj Auto Ltd

TVS Motor Company Ltd

Honda Motorcycle &

Scooter India (Pvt) Ltd

Suzuki Motorcycle India

Pvt Ltd

thers


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Governments Initiati

ves

Automotive Mission Plan (AMP) 2006-2016

Automobile Industry was delicensed in July 1991

Import of components is freely allowed 100% Foreign Direct Investment

National Automotive Testing and R&D InfrastructureProject (NATRiP)

Automobile exports are being promoted through the

Focus Market Scheme (FMS) and the Focus ProductScheme (FPS)


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Increase export revenueto $ 35 billion by 2016 from

$ 4.1 billion

On 29.01.07, the Prime Minister released Automobile

Plan 2006 -2016 to give a road map to Indian

Automobile Industry

Indian Automotive Industry

Increase turnover to$145 billion by 2016

from $ 35 billion

Provide employment toadditional 25 million peopby 2016

AMP 2016

By 2016, the Automotive sector is expected to contribute

10% of the countrys GDP and 30~35% of the Industry

Government of India

SIAMACMA


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Advanced Technologies

DTSi

ABS

Fuel Injection

Digital meters

Engine Locking


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Sales seen moderation during 2010-11

The demand determinantsof the industry are factorslike affordability, productinnovation, infrastructure

and price of fuel, risingincome

Domestic demand to growat a CAGR of 9-10% by2015

Exports to maintain stronggrowth momentum in nextfive years

Consistent Increase in Production

-0.1

0

0.1

0.2

0.3

20 04 -0 5 2 00 5-0 6 2 00 6-0 7 2 00 7-0 8 2 00 8-0 9 2 00 9- 10 2 01 0-1 1

Finacial Year

G

rowth(%)

Growth in Sales

-0.1

0

0.1

0.2

0.3

2 00 4- 05 2 005 -06 2 00 6-0 7 2 00 7- 08 2 00 8-0 9 2 00 9- 10 2 01 0-1 1

Financial Year

Growth(%)

Source: SIAM


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Michael Porters Analysis

Inter-firm rivalryHIGH)

Bargaining power ofBuyers HIGH)

Threat of SubstitutesMODERATE)

Threat of potentialEntrants MODERATE)

Bargaining power ofSupplier LOW)

Standard products usedin manufacturingPromotional strategies

Availability of PublictransportAvailability of 4 wheelerin affordable range

Capital InvestmentDifferentiation in promot-ion & product strategySkilled labour & goodR&D

Availability of popularbrandsFull info. about cost &

productsConsciousness amongbuyers

Availability ofsuppliers

Low Switching cost


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Issues & oncerns

Environmental & safety concerns:- Implementation ofemission standards

Lack of distribution network

Rising input cost

Rise in fuel prices

Increasing interest rates

Fluctuation in foreign exchange rates for exports

Withdrawal of DEPB scheme for exporters w.e.f Jun 2011


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Outlook

Two-wheeler (TW) sales to accelerate at a CAGR of 11-12% till FY15

Rural penetration to drive growth in the TW domesticdemand

Revival in economic buoyancy to push TW demand

Replacement demand increasing at a higher pace

Motorcycle segment is expected to grow at a CAGR of 8-9%in next five years

Scooter to outpace industry growth

Mopeds to remain niche segment Investments of around Rs.9-10 billion expected in the next

two to three years

Exports to grow at CGAR 20% till FY15


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Thank youThank you

2-wheeler industry in india

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