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2 Wheeler Industry - Powerpack
2 Wheeler Industry - Powerpack
Revenue of the Indian two-wheelers industry to have grown to Rs 755 billion in 2014-
Overall growth was mainly driven by a 7.9 per cent CAGR in motorcycle sales as well
as a strong 25.2 per cent CAGR in the scooters segment during the same period.
Source: SIAM
Hero Moto corps market share has been decreasing steadily while HMSIs share
has increased significantly.
Source: SIAM
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HMSI and TVS Motors gained market share in the recent years..
Between 2009-10 and 2014-15, HMSI's market share doubled from 12.7 per cent to 26.6 per
cent with a robust sales growth of 26.6 per cent CAGR.
Over the past 2-3 years, strong sales from model launches in the executive and premium
motorcycles subsegments as well as healthy growth in the scooters segment have helped HMSI
consolidate its position.
TVS Motors surpassed Bajaj in 2014-15 to become the third-largest player in the domestic twowheelers industry as new model launches in the scooters segment increased its market share to
13.2 per cent.
Bajaj Auto continued to lose its market share and descended to the fourth position in 2014-15.
Over 2009-10 to 2014-15, its market share dropped from 19.1 per cent to 11.1 per cent, mainly
owing to its absence in the scooters segment and poor product-mix in the motorcycles
segment.
Foreign players such as India Yamaha Motors Pvt Ltd and Suzuki Motorcycles India are still
struggling to garner a substantial market share.
Over the past 2-3 years, Royal Enfield has started gaining market share on account of an
increase in capacity and distribution ramp-up in the premium motorcycles segment.
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Segmental Analysis
when launched), whereas the executive (with a launch price of Rs 45,000-65,000) and
premium sub-segments (with a launch price higher than Rs. 65,000) consist of higher-end
motorcycles.
Between 2009-10 and 2014-15, the economy sub-category has held 18-20 per cent share in
the motorcycles segment and grew at a CAGR of 6.8 per cent.
As of 2014-15, the executive sub-segment dominated sales with a share of 62 per cent.
The share of the premium motorcycles has also increased up to 18 per cent in 2014-15 from
14.2 per cent in 2008-09.
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Hero Moto Corp has 53% share whereas Bajaj Auto has 16.5% share in the
motorcycle segment.
MOTORCYCLES: PLAYERWISE MARKET SHARE
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has almost doubled to 28.2 per cent in 2014-15 from 15.6 per cent in
2009-10.
In 2014-15, domestic scooter sales grew robustly by 25.1 per cent,
HMSI is the market leader in the scooters segment with about 55%
share followed by TVS Motors and Hero Moto Corp.
SCOOTERS: PLAYERWISE MARKET SHARE
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TVS is the only player in the mopeds as other players have exited.
MOPEDS : MARKET SHARE
Moped sales increased at a CAGR of 5.8 per cent during 2009-10 to 2014-15,
contributing 4.7 per cent to domestic two-wheeler sales in 2014-15.
Demand for mopeds mainly comes from small businessmen, shopkeepers and
farmers in rural and semi-urban areas.
In recent years, sales have also been driven by an improvement in supply - in
order to widen their reach across regions.
Over the last few years, Kinetic Engineering, Majestic Auto and Kinetic Motors
In 2012-13, growth in moped sales slowed sharply to 1.5 per cent as rural
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Raw material costs constitutes more than 70% for the 2-wheeler
companies.
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CAPACITY UTILIZATION
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Capacity utilization of the industry has come down since the high of
2011-12.
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Source: Industry
During 2010-11 and 2011-12, demand recorded a healthy CAGR of 20%, which
boosted the utilisation rate to 90%.
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FUTURE OUTLOOK
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Over the next five years, domestic two wheeler sales to record 8-10% CAGR.
The payout of the 7th Pay Commission is expected to boost two wheeler sales
over 2016-18.
Scooters - the fastest growing segment is likely to record 14-16% CAGR.
Here, manufacturers focus on urban markets, expansion in distribution
network in semi-urban and rural areas, model launches and better product
positioning would drive up volumes.
Motorcycle sales are likely to register 6-8% CAGR, backed by robust rural
sales.
Mopeds, which account for 5% of domestic two wheeler sales, are expected to
grow at 4-6% CAGR.