Table of content

1. Introduction
1.1 Historical background
1.1.1 Global scenario
1.1.2 Domestic scenario

1.2 Current scenario

1.3 Industry Environment
1.3.1 Task environment
1.3.2 General environment

2. Industry analysis
2.1 Structure
2.2 Players
2.3 Market analysis
2.3.1 Market size
2.3.2 Market segment
2.3.3 Demand driver
2.3.4 Import & export
2.3.5 Govt. policies
2.3.6 Auto component industry
2.3.7 SWOT analysis
3. Major players
3.1 Criteria of choosing
3.1.1 Market share
3.1.2 Market size
3.1.3 Domestic sales
3.1.4 Profitability
3.1.5 Market capital
3.1.6 Investment
3.1.7 Growth rate

3.2 Selected major players

4. Summary
INTRODUCTION
Two wheeler automobile industry worldwide has evolved over a period of more than two
centuries. modern two wheeler industry has covered a long distance. 2 wheeler automobiles
revolutionized the future of the world, changing forever the way people live, travel, and do
business. The 2 wheeler automobile industry is one of the most dynamic and fast growing
industries in the world . It employs million of people and generate revenue in billions of dollars
world wild .major automobile corporations around the world are Hero Honda Motors Ltd, TVS
Motor Company Limited, Bajaj Auto Limted etc.

Indian 2 wheeler automobile market is not far behind . It offers 2 wheelers ranging from luxury
bikes to multi-utility , from racing bikes to road street bikes. A number of international brands
have developed robust clientele in India such as Harley Davidson but domestic manfactures
such as Hero Honda, bajaj TVS etc. have there loyal customer as ever.
The Indian 2 wheeler automobile industry is the 2nd largest in the world. This industry,
promises to become top of the world industry in the upcoming years and the industry experts
are hopeful that it will touch.

Historical background

Global scenario

Domestic scenario

India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers produced
and domestic sales respectively. This distinction was achieved due to variety of reasons
like restrictive policy followed by the Government of India towards the passenger car
industry, rising demand for personal transport, inefficiency in the public transportation
system etc.
The Indian two-wheeler industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country. Until
1958, API and Enfield were the sole producers. In 1955, Government wants sturdy motorbike
for its army and police to patrol which can run on rugged border highways. With a view to this,
the first batch of bullet 350cc from Royal Enfield company were received and assembled it in
Chennai.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers.
Finally, in 1960, it set up a shop to manufacture them in technical collaboration with
Piaggio of Italy. The agreement expired in 1971.
In the initial stages, the scooter segment was dominated by API, it was later overtaken by
Bajaj Auto. Although various government and private enterprises entered the fray for
scooters, the only new player that has lasted till today is LML.
The motorcycles segment was no different, with only three manufacturers viz Enfield,
Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the
Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by
Enfield 350cc bikes and Escorts 175cc bike.
The two-wheeler market was opened to foreign competition in the mid-80s. And the then
market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc
bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low
power bikes, demand swelled, resulting in Hero Honda - then the only producer of four
stroke bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles
respectively. These two players initially started with assembly of CKD kits, and later on
progressed to indigenous manufacturing. In the 90s the major growth for motorcycle
segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25%
CAGR in the last five years.
The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth
in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of
1.9mn vehicles in 1990.
The entry of Kinetic Honda in mid-eighties with a variometric scooter. It helped to the scooter
owners with providing ease of ride. This helped in inducing youngsters and
working women, towards buying scooters, who were earlier inclined towards moped
purchases. In the 90s, this trend was reversed with the introduction of scooterettes. In line
with this, the scooter segment has consistently lost its part of the market share in the two
wheeler market.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant rise in general price level and
credit crunch in consumer financing. Factors like increased production in 1992, due to
new entrants coupled with the recession in the industry resulted in companies either
reporting losses or a fall in profits.
India is one of the very few countries manufacturing three-wheelers in the world. It is the
world's largest manufacturer and seller of three-wheelers. Bajaj Auto commands a
monopoly in the domestic market with a market share of above 80%, the rest is shared by
Bajaj Tempo, Greaves Ltd and Scooters India
Ater This witnessed major structural changes in the two-wheeler industry, as government
allowed entry of foreign players with 100% foreign investment. Honda Motors – the Japanese
major andtechnology partner of Hero group (Hero Honda Motors Ltd.) entered on its own in
India. Suzuki Motors – the technology partner of TVS group also joined the bandwagon. In a
period of 5 years (2000-01 to 2004-05),

Current scenario

So, as such Indian 2 wheeler auto mobile industry came under progress and now a days it has become
great industry in India. At present the demand of scooters has totally gone down. College students boys
prefer bikes and college girls prefer to scooties. Major players of market are fulfilling demand of both.
Now a days, Indian two wheeler industry is contributing great in the growth of Indian economy.