Automobile: Two-Wheeler Industry In India

Presented By-Siddharth AgarwalSiddharth Mishra

Introduction• India is the second largest producer of two

wheeler in the world.• The Indian two-wheeler has a size over

100,000 million.• The Motorcycle market captures about 81.5%

of two wheelers in inda.• It stands next to Japan in producing Two-

wheelers in the world.

Evolution• The two-wheeler industry has been in

existence in the country since 1955. • Bajaj started making scooters from 1959

onwards.• The major set of reforms was launched in the

year 1991 as many new industry entered in Indian market.

Players

Hero Motocorp

The Company was Incorporated On 19th Jaunuary, 1984 as Joint Venture with honda In New delhi.Hero MotoCorp Limited is the World's single largest two-wheeler motorcycle companyThe company has three manufacturing facilities namely Dharuhera, Gurgaon at Haryana and Haridwar at Uttarakhand. In the year 1985, the company commenced their commercial production at Dharuhera plant in Haryana and introduced their first motorcycle, CD 100 in the market.

• In the year 1997, the company inaugurated their second manufacturing facility at Gurgaon in Haryana.

• In the year 1999, they launched Hero Honda CBZ, the first 150cc motorcycle in the Indian two wheeler industry.

• In the year 2003 the company has launched Hero Honda Karizma, the industry's first 223cc motorcycle.

• During the year 2007-08, the company commissioned their third plant at Haridwar in Uttarakhand.

• During the year 2010-11, they introduced the New Hunk, Super Splendor and Splendor Pro, Also they breached a landmark 5 million figure sales In a year.

Sales ReportProduct Name

Product Code Year

Sales Quantity Sales

Share Of Product (in %)

Motor Cycles-Two Wheelers 87110000 2011 54,02,444.00 19,374.99 1818.63

Motor Cycles-Two Wheelers 87110000 2010 46,00,130.00 15,718.45 14.75411098

Motor Cycles-Two Wheelers 87110000 2009 37,22,000.00 12,719.77 11.93940231

Motor Cycles-Two Wheelers 87110000 2008 33,37,142.00 11,353.48 10.65693525

Motor Cycles-Two Wheelers 87110000 2007 33,36,756.00 10,913.08 10.24355413

Motor Cycles-Two Wheelers 87110000 2006 30,00,751.00 9,604.17 9.014946769

Motor Cycles-Two Wheelers 87110000 2005 26,21,400.00 8,234.03 7.728865914

Motor Cycles-Two Wheelers 87110000 2004 20,70,147.00 6,468.67 6.07181211

Motor Cycles-Two Wheelers 87110000 2003 16,77,535.00 4,862.90 4.564557337

Motor Cycles-Two Wheelers 87110000 2002 14,25,302.00 4,262.00 4.000523015

Motor Cycles-Two Wheelers 87110000 2001 10,29,510.00 3,024.53 2.838972754

1,06,536.07 100.00%

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 20010

5000

10000

15000

20000

25000

YearSales

TVS Company• TVS Motor Company Ltd is the third largest two-wheeler manufacturer in

India.• The company is having their manufacturing plants at Hosur in Tamilnadu,

Mysore in Karnataka and Solan in Himachal Pradesh. • In 1992, they launched two modes of motor cycles namely, Samurai and

Shogun and in 1993, they launched TVS Scooty which capture the market rapidly.

• During the year 2002-03, the new stylish TVS Scooty Pep and the upgraded version of Fiero was launched in the market.

• During the year 2003-04, the company launched new products such as TVS Centra, New Victor GL, Fiero F2 & Fx and Scooty Pep. During the year 2004-05, they launched new products such as TVS Star, New Victor GLX, New Victor GX and Scooty Pep 'Splash' series.

• During the year 2006-07, , the company launched multiple new products and variants such as, StaR City ES, StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP

• During the year 2007-08, the company launched various new products and variants such as TVS Flame, Apache RTR, StaR Sport, StaR City 110 cc, Scooty TeenZ Electric, TVS Tru4 Oil. In March 2008, the company launched their three wheeler, TVS King.

• The company won the Team Tech 2007 Award of Excellence for Integrated use of Advanced Computer Aided Engineering Technologies in product development.

• During the year 2009-10, the company launched TVS JIVE and TVS Wego in the market. They also launched a four stroke three-wheeler with superior features. They commenced export of TVS Apache to Brazil.

• In October 2010, the company won the SAP ACE Award for Consumer Excellence 2010 in 'Best Run Award in Automotive' category

• . In March 2011, the company introduced ABS (Anti-lock Braking System) in their premium segment motorcycle TVS Apache RTR 180, giving the bike formidable stopping power and superior braking control that compliments its high performance capability.

Sales Report(Rs in Crs)

Product Name Product Code Year Production Sales Quantity Sales Share of product (In %)

Motor Cycles 87110000 2011 8,50,848.00 8,32,567.00 2,748.88 13.1714612

Motor Cycles 87110000 2010 6,36,751.00 6,37,895.00 2,046.23 9.804661914

Motor Cycles 87110000 2009 6,34,918.00 6,44,385.00 1,899.72 0.000910265

Motor Cycles 87110000 2008 5,97,757.00 6,10,455.00 1,706.54 8.177012233

Motor Cycles 87110000 2007 9,33,620.00 9,22,936.00 2,513.78 12.04496221

Motor Cycles 87110000 2006 8,12,109.00 8,05,740.00 2,053.27 9.838394593

Motor Cycles 87110000 2005 6,72,773.00 6,79,099.00 1,845.66 8.843615971

Motor Cycles 87110000 2004 7,03,724.00 7,06,558.00 1,940.05 9.295892615

Motor Cycles 87110000 2003 7,40,030.00 7,18,447.00 1,952.94 9.357656

Motor Cycles 87110000 2002 4,54,393.00 4,50,497.00 1,188.69 5.695695777

Motor Cycles 87110000 2001 3,57,693.00 3,54,517.00 974.21 4.667999044

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 20010

500

1000

1500

2000

2500

3000

YearSales

Bajaj Auto Ltd.•Bajaj Auto Ltd is one of the leading two wheeler manufacturers in India. The company is well known for their R&D,product development and low-cost manufacturing skills. •The company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile Bajaj Auto Ltd with the name Bajaj Investment & Holding Ltd. The company received the certificate of commencement of business on May 7, 2007. •In April 9, 2007, the company inaugurated their green field plant at Pantnagar in Uttarakhand. The plant produced over 275,000 vehicles. •During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative production of over 2 million Pulsar.

• During the year 2009-1, The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS and Discover DTS-si in the market.

• During the year 2010-11, the company launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and Discover 125 in the market.

• The company plans to maintain the capacity of two and three-wheelers at the current level of 5,040,000 numbers per annum during the year ending 31 March 2012.

Sales ReportProduct Name Year Total Sale Percentage Sale

Two Wheeler 2001 37,45,516 5.488129003

Two Wheeler 2002 43,18,531 6.327741019

Two Wheeler 2003 50,53,562 7.404747485

Two Wheeler 2004 43,16,777 6.325170965

Two Wheeler 2005 52,17,996 7.645684916

Two Wheeler 2006 62,00,749 9.085666815

Two Wheeler 2007 70,99,551 10.40263925

Two Wheeler 2008 65,44,482 9.589322665

Two Wheeler 2009 68,06,114 9.972679769

Two Wheeler 2010 84,44,243 12.3729534

Two Wheeler 2011 1,05,00,073 15.38526472

6,82,47,594 100

1 2 3 4 5 6 7 8 9 10 110

2000000

4000000

6000000

8000000

10000000

12000000

YearTotal Sale

Market Share

39.80%

24.40%

3.80%

8.50%

17.70%

5.80%

Hero MotocorpBajajYamahaHondaTVSOthers

Market Automobile 2 Wheeler market belongs to

oligopoly market as automobile industry consist of small number of large firms which dominates the whole Indian automobile market. Because of the limited number of firms the completion is also tends to be high. The number of firms decides the future of the company, as less the completion is, the company has the chance to grow more in the market.

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