Two Wheelers

The Two wheeler manufacturers in India, at present are enjoying good times. The growth of the two wheelers sector was noteworthy in the past few
years. In the period 2007 - 08 the total number of the two wheelers and three wheelers produced in India was around 9 million, which was a growth
of 11.41 %. In the same period the motorcycle exports from India was 340,283 units, while export of other two wheelers grew 13.1%.

Two Wheelers Manufacturers - Growth Factors

General income levels have increased as more young people get employed.

Government has lowered the taxes, excise, and other duties.

Latest two wheelers are fitted with fuel-efficient engines.

Young generation prefers two wheelers as their first vehicle as public transport system is not able to cope with demands and comfort
requirements.

Options of financing has become easier and user friendly.

Current trend of two wheeler sales:

Two-wheelers: Monthly domestic sales trend (units)

Month 2006-07 2007-087 2008-09

Apr 605,181 568,803 616,038

May 669,407 603,841 647,358

Jun 631,687 564,971 601,941

Jul 557,466 503,356 599,369

Aug 572,883 543,504 620,927

Sep 778,865 679,766

Oct 818,537 793,420

Nov 674,692 665,181

Dec 592,247 545,484

Jan 677,390 605,455

Feb 631,514 542,578

Mar 640,338 630,976

Total 7,850,207 7,247,335

Source: CRISIL Research

The overall domestic two-wheeler industry continued its upward ride, recording growth of 14.2 per cent in August 2008 vis-à-vis a decline of 5.1 per
cent (y-o-y) in August 2007. The low base aided the domestic two-wheeler industry to grow by 10.8 per cent (y-o-y) during April 2008 to August
2008 as against the 8.3 per cent (y-o-y) decline during April 2007 to August 2007. Despite the tight finance conditions and reduction in loan to value
ratio for certain models, increasing cash sales of certain motorcycle models, in rural and semi-urban areas, has led to recovery in the overall
domestic two-wheeler industry.

The overall exports of the two-wheeler segment registered a growth of 20.5 per cent in August 2008 (y-o-y) on the back of 22.2 per cent (y-o-y)
growth in exports of the motorcycles segment.
Two-wheelers: Segment wise sales (domestic)

Y-o-Y growth Y-t-D Y-t-D Y-o-Y growth

(nos) Company Aug-08 Aug-07
(per cent) 2008-09 2007-08 (per cent)

M Cycle 485,294 418,829 15.9 2,431,172 2,172,474 11.9

Bajaj Auto Ltd 116,887 121,369 -3.7 618,655 617,165 0.2

Hero Honda Motors Ltd 284,752 221,541 28.5 1,396,697 1,171,524 19.2

Honda Motorcycle & Scooter India (Pvt) Ltd 27,820 20,752 34.1 122,654 98,423 24.6

Kinetic Engineering Ltd - 127 - - 218 -

Kinetic Motor Company Ltd - 127 - 238 1,030 -76.9

Royal Enfield (Unit of Eicher Ltd) 3,855 2,911 32.4 16,290 13,283 22.6

Suzuki Motorcycle India Pvt Ltd 3,914 5,343 -26.7 19,838 24,283 -18.3

TVS Motor Company Ltd 36,092 36,138 -0.1 203,863 201,536 1.2

Yamaha Motor India Pvt Ltd 11,974 10,521 13.8 52,937 45,012 17.6

Moped 35,683 32,378 10.2 179,114 171,125 4.7

Kinetic Motor Company Ltd - 1,044 - 1,487 5,034 -70.5

Majestic Auto Ltd - 388 - - 3,214 -

TVS Motor Company Ltd 35,683 30,946 15.3 177,627 162,877 9.1

Scooter 96,461 91,158 5.8 464,635 435,164 6.8

Bajaj Auto Ltd 1,097 2,718 -59.6 4,848 11,847 -59.1

Hero Honda Motors Ltd 12,052 11,309 6.6 49,860 37,439 33.2

Honda Motorcycle & Scooter India (Pvt) Ltd 53,108 51,122 3.9 266,321 258,073 3.2

Kinetic Motor Company Ltd - 2,365 - 5,552 13,549 -59

TVS Motor Company Ltd 23,002 23,644 -2.7 106,021 114,256 -7.2

Suzuki Motorcycle India Pvt Ltd 7,202 - - 32,033 - -

Total 617,438 542,365 13.8 3,074,921 2,778,763 10.7

Y-t-D: Year-to-Date; Y-o-Y: Year-on-Year

Source: CRISIL Research

Export:

Two-wheelers: Monthly export trend

Month (Units) 2006-07 2007-08 2008-09

Apr 47,950 57,991 85,953

May 53,109 65,162 77,249

Jun 58,350 70,283 89,054

Jul 63,677 74,506 88,027

Aug 53,075 76,075

Sep 55,895 65,109

Oct 51,466 67,737

Nov 46,890 59,087

Dec 50,695 68,363

Jan 40,981 59,732

Feb 45,087 80,550

Mar 51,963 75,252

Total 619,138 819,847

Source: CRISIL Research

Two-wheelers: Exports by company

Y-o-Y growth Y-t-D Y-t-D Y-o-Y growth

Company Aug-08 Aug-07
(per cent) 2008-09 2007-08 (per cent)

Bajaj Auto Ltd 58,647 46,116 27.2 285,076 204,247 39.6

Hero Honda Motors Ltd 8,712 8,025 8.6 34,520 35,956 -4

Honda Motorcycle & Scooter India (Pvt) Ltd 3,635 2,940 23.6 18,512 14905 24.2

Kinetic Engineering Ltd - - - - 300 -

Kinetic Motor Company Ltd - 849 - 1,460 3,665 -60.2

Majestic Auto Ltd - 270 - - 4,087 -

Royal Enfield (Unit of Eicher Ltd) 262 209 25.4 998 1,542 -35.3

Suzuki Motorcycle India Pvt Ltd 44 44 0 88 133 -

TVS Motor Company Ltd 18,083 12,006 50.6 73,392 49,419 48.5

Yamaha Motor India Pvt Ltd 2,280 5,616 -59.4 17,900 29,763 -39.9

Total 91,663 76,075 20.5 431,946 344,017 25.6

Y-o-Y: Year-on-year

Source: CRISIL Research