Two Wheeler Market free essay sample

The Indian two wheeler market has a size of over Rs 100,000 million. The Indian two wheeler segment contributes the largest volumes amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub-segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e. g. scooterettes and step thru’s. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well-known Japanese firms earlier. But most of the companies are now planning 100% subsidiaries in India. In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2000-01. We will write a custom essay sample on Two Wheeler Market or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The Euro emission norms led the existing players in the two stroke segment to install catalytic converters. The current share of the leading three companies is shown in the pie chart. And this clearly shows that hero Honda is the current market leader with a 49% market share. Hero Honda has been an early entrant in the 4 stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company helped garner a larger market chunk of the 4-stroke market as compared to Bajaj Auto. A shifting consumer preference towards motorcycles also enabled the fast growth of the company in the last few years. Hero Honda motorcycle sales jumped 40. 6% in April at 135,961 units from 96,672 units it sold in the corresponding month last year. The change in product mix in favor of higher value products has resulted in improved realization for the company the growing popularity of the passion model appears to be the key factor behind improvement in unit realization. Taking into account the recent trend in performance, the company appears well positioned to retain its top position in the motorcycle market and also sustain the recent rate of growth. Bajaj auto ltd is the second biggest manufacturer of motorcycles. The companies recent indigenous launch in 4-stroke segment viz; the 150 / 180 cc pulsar which has practically snatched the market share of the bikes like Hero Honda CBZ, Suzuki Fiero, Lml adreno etc, and it appears that pulsar would rule this segment till the time there are some new launches in this segment by other manufacturers, for bajaj pulsar has been the major contributor for the rise in its motorcycle sales along with its other popular models such as boxer, caliber croma etc. ell coming to the third largest share holder in the motorcycle segment which is the tvs motors, which has emerged as a ‘victor’ after the Suzuki break up, riding high on the success, of it’s motorbike by the same name. Tvs victor is the first indigenously produced motorcycle from tvs motors. Infact with a six week waiting period, even six months after its launch, tvs motors plans to double its production capacity. The mo torcycle market can be further segmented on the basis of the price tags which are the economy, executive and the premium segments.