Two-wheelers

Motorized two-wheelers like scooters, small capacity motorcycles and mopeds are very popular a mode of transport due to their fuel efficiency and ease of use in congested traffic. The number of two-wheelers sold is several times that of cars. There were 4.75 crore (47.5 million) powered twowheelers in India in 2003 compared with just 86 lakh (8.6 million) cars. Yamaha, Harley Davidson, Hero Honda, Honda, TVS Motors, Bajaj Auto and Mahindra 2wheeler are the largest two-wheeler companies in terms of market-share.[57] Royal Enfield, an iconic brand name in the country, manufactures different variants of the British Bullet motorcycle which is a classic motorcycle that is still in production. Manufacture of scooters in India started when Automobile Products of India (API), set up at Mumbai and incorporated in 1949, began assembling Innocenti-built Lambretta scooters in India post independence. They eventually acquired licence for the Li150 series model, of which they began full-fledged production from the early sixties onwards. In 1972, Scooters India Ltd (SIL), a state-run enterprise based in Lucknow, Uttar Pradesh, bought the entire manufacturing rights of the last Innocenti Lambretta model. API has infrastructural facilities at Mumbai, Aurangabad, andChennai but has been non-operational since 2002. SIL stopped producing scooters in 1998. Motorcycles and scooters can be rented in many cities. Wearing protective headgear is mandatory for both the rider and the pillion-rider in most cities.

Automobiles
The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 18 million vehicles (including 2 wheeled and 4 wheeled) and exports more than 2.3 million every year. It is the world's second largest manufacturer of motorcycles; there are eight key players in the Indian markets that produced 13.8 million units in 2010-11. At present the dominant products of the automobile industry are Two Wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people. The Indian two-wheeler industry has come a long way since its humble beginning in 1948 when Bajaj Auto started importing and selling Vespa Scooters in India. Since then, the

customer preferences have changed in favour of motorcycles and gearless scooters that score higher on technology, fuel economy and aesthetic appeal, at the expense of metalbodied geared scooters and mopeds. These changes in customer preferences have had an impact on the fortunes of the players. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged. With an expanding market and entry of new players over the last few years, the Indian two wheeler industry is now approaching a stage of maturity. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two wheelers produced and the sales of two-wheelers respectively. There are many two-wheeler manufacturers in India. The major players in the 2-wheeler industry are Hero Honda, Bajaj Auto Ltd (Bajaj Auto), TVS Motor Company Ltd (TVS) and Honda Motorcycle & Scooter India, Private Limited (HMSI) accounting for over 93% of the sale in the domestic two wheeler market. It is noteworthy that motorbikes segments share is just below 80% of the total 2W market in India which is dominated by Hero Honda with a market share of 59%. Scooter segments market share is about 18% which is led by Honda Motorcycle & Scooter India, Private Limited (HMSI) with a market share of 43%.Threefourth of the total exports in the two wheeler automobile industry are made in the motorcycle segment. Exports are made mainly to South East Asian and SAARC nations. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. However, further investment in new technologies will help the players to be more competitive. Currently, Indias increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Consumers are very important for the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in

demand of cars. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India.

Automobile Production
Type of Vehicle 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Passenger Vehicles [18]

1,209,876

1,309,300

1,545,223

1,777,583

1,838,697

Commercial Vehicles [18] 353,703

391,083

519,982

549,006

417,126

Three Wheelers [18]

374,445

434,423

556,126

500,660

501,030

Two Wheelers [18]

6,529,829

7,608,697

8,466,666

8,026,681

8,418,626

Total. [edit]Automobile Type of Vehicle

8,467,853

9,743,503

11,087,997

10,853,930

11,175,479

Sales
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Passenger Vehicles [18]

1,061,572

1,143,076

1,379,979

1,549,882

1,551,880

Commercial Vehicles [18] 318,430

351,041

467,765

490,494

384,122

Three Wheelers [18]

307,862

359,920

403,910

364,781

349,719

Two Wheelers [18]

6,209,765

7,052,391

7,872,334

7,249,278

7,437,670

Type of Vehicle

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

Total [edit]Automobile Type of Vehicle

7,897,629

8,906,428

10,123,988

9,654,435

9,723,391

Exports
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Passenger Vehicles [18]

166,402

175,572

198,452

218,401

335,739

Commercial Vehicles [18] 29,940

40,600

49,537

58,994

42,673

Three Wheelers [18]

66,795

76,881

143,896

141,225

148,074

Two Wheelers [18]

366,407

513,169

619,644

819,713

1,004,174

Total

629,544

806,222

1,011,529

1,238,333

1,530,660

Total Number of Vehicle Registrations in India from 2001 to 2008

2001

54,991

38,556

2002

58,924

41,581

2003

67,007

47,519

2004

72,718

51,922

2005

80,045

57,417

2006

88,068

63,487

2007

96,808

70,141

2008

106,591

77,588

Geographical Segmentation:State-wise motor vehicles registration in India from 2001 - 2008

States\Year

Andhra Pradesh 1111

4,389

5,002

5,720

6,446

7,232

8,042

8,989

States\Year

2001 (in '000)

2002 (in '000)

2003 (in '000)

2004 (in '000)

2005 (in '000)

2006 (in '000)

2007 (in '000)

2008 (in '000)

Arunachal Pradesh

21

21

21

21

21

21

21

21

Assam

542

596

657

727

798

883

973

1,086

Bihar

949

1,024

1,121

751

726

694

647

593

Chhattisgarh

857

948

1,076

1,216

1,367

1,536

1,726

1,939

Goa

341

366

397

436

483

537

585

638

Gujarat

5,576

6,008

6,508

7,087

7,892

8,785

9,633

10,543

Haryana

1,949

2,122

2,279

2,548

2,883

3,267

3,689

4,164

Himachal Pradesh

217

244

269

289

329

375

421

480

Jammu & Kashmir

330

364

399

439

493

556

628

719

Jharkhand

909

984

1,101

1,217

1,341

1,479

1,630

1,796

Karnataka

3,537

3,636

3,738

3,977

4,338

4,717

5,036

5,360

Kerala

2,112

2,315

2,552

2,792

3,180

3,612

4,034

4,564

States\Year

2001 (in '000)

2002 (in '000)

2003 (in '000)

2004 (in '000)

2005 (in '000)

2006 (in '000)

2007 (in '000)

2008 (in '000)

Madhya Pradesh 3,095

3,173

3,459

3,804

4,119

4,442

4,710

4,968

Maharashtra

6,760

7,414

8,134

8,969

10,055

11,281

12,477

13,817

Manipur

77

90

97

106

114

123

134

145

Meghalaya

62

67

73

73

78

84

89

95

Mizoram

31

34

37

42

48

54

61

70

Nagaland

160

177

162

172

186

201

215

230

Orissa

1,096

1,215

1,359

1,525

1,717

1,936

2,159

2,417

Punjab

2,910

3,103

3,308

3,529

3,859

4,225

4,571

4,992

Rajasthan

2,943

3,197

3,487

3,834

4,285

4,791

5,281

5,815

Sikkim

12

13

15

17

19

21

23

25

Tamil Nadu

5,162

5,658

8,005

8,575

10,085

11,901

13,860

16,207

Tripura

50

57

66

76

85

95

105

117

Uttarakhand

364

406

457

516

580

651

732

822

States\Year

2001 (in '000)

2002 (in '000)

2003 (in '000)

2004 (in '000)

2005 (in '000)

2006 (in '000)

2007 (in '000)

2008 (in '000)

Uttar Pradesh

4,921

5,171

5,928

6,460

7,271

8,144

8,970

9,919

West Bengal

1,690

1,690

2,366

2,548

2,816

3,138

3,464

3,833

Andaman & Nicobar Islands

25

28

28

28

31

34

38

42

Chandigarh

386

386

562

586

629

677

732

799

Dadra & Nagar Haveli

13

13

31

35

43

54

67

86

Daman & Diu

37

41

44

48

55

63

71

79

Delhi

3,635

3,699

3,971

4,237

4,544

4,868

5,166

5,469

Lakshadweep

Pondicherry

252

270

293

313

359

418

495

552

India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers. The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies lead to the arrival of new models of two-wheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry. Kinetic Honda was introduced in the Indian market during the mid 80s. The main feature of Kinetic Honda is its ease of use. This helped the youngsters and the women to buy scooters. Key players in the Two-wheeler Industry : After facing its worst recession during the early 1990s, the two-wheeler industry bounced back with a 25% increase in volume sales in February 1995. The scooters are considered as family vehicles. There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS). The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI). Types of Two-wheelers in India : There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and Scooterettes/Mopeds.

Motorcycles in India : Bikes comprise a major segment of Indian two wheeler industry.
Company : Bajaj Auto Ltd * * * * * * * * Bajaj Avenger Bajaj CT 100 Bajaj Platina Bajaj Discover DTSi Bajaj Pulsar DTSi Bajaj Wave Bajaj Wind 125 Sonic DTSi Company : HERO HONDA * * * * * * * * * * * Hero Hero Hero Hero Hero Hero Hero Hero Hero Hero Hero Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda Achiever CD Dawn CD Deluxe Glamour Glamour-Fi Karizma Passion Plus Pleasure Super Splendor Splendor NXG CBZ X-Treme Company : Yamaha Motor India

Company : Kinetic Motor Company Company : TVS MOTOR * Kinetic Aquila * Kinetic Boss * TVS Apache * Kinetic Challenger * TVS Centra * Kinetic Comet * TVS Fiero * Kinetic GF * TVS Star * Kinetic Stryker * TVS Victor * Kinetic Velocity

* Yamaha CruxS * Yamaha G5 * Yamaha Gladiator

Scooters in India : The scooter and the scooterette share in the Indian two wheeler market is 13.4%. The main models available in India are Bajaj Chetak, Honda Eterno, Kinetic Blaze, LML NV SPL and LML Select II. Scooterettes/Mopeds : TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50. TVS also launched India's first indigenous scooterette: Scooty in 1994. This segment has about one-fourth share in the Indian two wheeler industry. The major models available in India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi, Hero Honda Pleasure, Kinetic Kine, Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range, Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.

Two-Wheelers: Comparative Characteristics

Scooter Price*(Rs. as in January 2005) Stroke Engine Capacity (cc) Ignition Engine Power (bhp) Weight (kg) Fuel Efficiency (kms per litre) Load Carrying *Ex-showroom Mumbai Compiled by INGRES > 22,000 2-stroke, 4-stroke 90-150 Kick/Electronic 6.5-9 90-100 50-75 High

Motorcycle > 30,000 Mainly 4-stroke 100, 125, > 125 Kick/Electronic 7-8 and above > 100 50-80+ Highest

Moped > 12,000 2-stroke 50, 60 Kick/Electronic 2-3 60-70 70-80 Low

Manufacturers As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Figure 3 Shares of Two-Wheeler Manufacturers in Industry Sales (FY2000-9MFY2005)

Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to emerge as the market leader. TVS, on the other hand, witnessed an overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it changed its product mix but has declined since then.

Company-wise two-wheeler exports (FY2000-9MFY2005) FY2000 Bajaj Auto HHML HMSI TVS Yamaha Others Total Source: SIAM 14924 10061 0 7265 15197 35790 83237 FY2001 16112 10324 0 6621 20446 57635 111138 FY2002 28527 13023 1293 7765 20321 32752 103681 FY2003 53366 21165 10916 9636 45546 39053 179682 FY2004 90210 39254 31414 28093 32906 42792 264669 CAGR (FY2000-04) 56.8 40.5 n.a 40.2 21.3 4.6 33.5 9MFY2005 87225 43441 27734 36666 27539 33773 256378

: Sales Revenue Annual Annual Rs. Crore Rs. Crore Sales two wheelers(U) Mar01 46827.84 7485.93 Mar02 48896.27 9009.74 Mar03 51607.3 10549.08 Mar04 71463.02 13641.1 Mar- 87602.04 16223.33 16 05 Mar06 101174.48 17991.12 Mar07 124860.7 21359.17 Sales Year Automobile

Mar08 140541.96 24744.06 Mar09 146825.07 26283.25 Mar10 177529.92 30096.82 Source: CMIE

Two Wheeler Companies in India and their Plans

The two-wheeler market in India is buzzing with demand and manufacturers need to do their best to keep up with it. The news carries a very pleasant note for the industry though there is a negative implication for customers as well as two wheeler manufacturers in India have decided to keep away from offering any freebies or discounts during this festival season. This is also caused by the fact that not only is there an increase in demand, there is also a shortage of components in the market. However, the above does not mean that two-wheeler manufacturers are sitting back and enjoying the ride. The competition is fierce and everyone is here to get the biggest chunk from the pie. Today we take a look at the biggest companies and their plans. Hero Honda - New Splendour and New Variants coming up The market leader in India, Hero Honda recently introduced Super Splendour priced at Rs. 45, 950. The new face lifted model comes with additional features like electric start, new decals, alloy wheels, redesigned speedometer, grab handle and side indicators. Splendour is already the companys best seller and accounts for 20 percent market share in its segment of the 125cc engine. It sells about 75 lakh units per annum and the current variant will be phased out soon with the launch of this new variant. Now the Hero Honda Group is again in the news as four major funds are competing to acquire Hondas share in the joint venture. Honda has been trying to set up its independent unit in India which would compete with Hero Group and has hence decided to sell its share. Hero Group and Honda each hold 26 percent share in the company and sources have cited that Hero Group may eventually buy out entire 26 percent share by Honda through a special purpose vehicle instrument incorporated in Singapore. Hero Hondas Vice President, Anil Dua has further stated that the company has planned a slew of exciting launches during the festive season which will keep up the excitement in the market. Hero Honda has planned new variants of its models Hero Honda Hunk, CBZ and Passion. Yamaha aggressive growth plans

Yamaha is one of the most aggressive players in the two wheeler market and it has lined up massive expansion plans for the Indian market where it still needs to grab its fair share. It sold 58.5 lakh units worldwide of which only 2.2 Lakh units were sold in India. Now it intends to sell more than 10 lakh units annually in India by expanding its network into rural and semi-urban cities of the country. It recently announced its product line-up for 2011 where it will also introduce supersports bikes in the country. The new products would include 1000cc Yamaha R1 and the mean looking bike Yamaha V-Max that comes with raven black paint job and chrome finishes. The new Yamaha R1 also gets new body graphics, red wine paint and new head lamp cluster. Both the models are expected to be commercially available in India by April 2011. Yamaha recently launched three new models in the market including Yamaha SZ, SZ-X and YBR-125. The launch of Yamaha SZ in 150cc segment has challenged the supremacy of Bajaj Pulsar in this segment, and it has driven into direct competition with Honda Unicorn, TVS Victor and Bajaj Pulsar. The new Yamaha SZ is powered by 153cc, 4-stroke air cooled engine with a perfect blend of style and performance. In order to tap the Tier II and Tier III cities of India, Yamaha intends to bring more stylish and better looking models under affordable range and better fuel efficiency. Yamaha SZ which was recently launched with an affordable price tag of Rs. 52,000 displays Yamahas commitment to cater to the demands of popular segment. Bajaj Auto Entering the premium segment Bajaj Auto has recently created a stir in the market with the launch of new variant of Bajaj Discover 150cc. It fiercely competes with Yamaha models, and priced relatively low at Rs. 46,000 it also claims to offer the best mileage promising it to be the best buy in its segment. Bajaj already rules the popular segment similar to Hero Honda and now its major concerns lie in the premium segment. During the 2008 downturn, it had acquired a stake in Austrian bike company KTM and the company is now planning to launch new models in the 1000cc segment. It is coming up with Duke 125 naked bike as its upcoming and most flashy launch. The bike will be priced at Rs. One lakh and above. The new bike has a stated mission as enhancing the lifestyle of young riders passionate about pure riding fun, making a style statement and enjoying state-ofthe-art technology in a superb new bike. Mahindra Two Wheelers expanding into Bikes Mahindra and Mahindra is expanding its foothold in the Indian auto market by leaps and bounds. It already dominates the SUV segment in the four-wheeler market. In the two-wheeler segment, it has already launched its gearless scooters. Now the company has introduced its bikes in the 125cc and 300cc segment. The new Mahindra bikes were recently launched under the names Stallio and Mojo. The Mojo, Indias fastest bike, will have a liquid cooled, 4-stroke, 300cc engine which will produce around 25bhp. It rides on inverted telescopic forks and gets discs both up front and rear. The Mojo has been tested on race tracks of Vallelunga in Italy and the ad has been shot on those race tracks. The ad carries the summation as Tested in Italy, Coming

to India Mahindra Motorcycles Yet another Mahindra 125cc bike Cevalo is on the cards and is expected to foray in the Indian market by 2012. TVS Motors Upgrades across the board TVS Motors is Indias third largest two-wheeler manufacturer and is a very major player especially in the urban markets. TVS intends to introduce a new revamped Scooty in the coming months with better looks and style, and a new TVS Scooty hybrid is also expected in the Indian market. TVS Apache RTS 180 ABS equipped with electronic-hydraulic control unit and patented speed technology is the next forthcoming attraction. TVS Neo and TVS Apache 220 and 250 are also on cards for future launche, and the TVS Centra is the new 100cc bike which is also expected to foray into the market next year. Royal Enfield back in the limelight Royal Enfield bikes have been in the Indian market since 1950s and have always been admired by the connoisseurs. Indian customers have renewed their interest in these high priced possessions since past few years led by an economy which has maintained a robust growth. The Royal Enfield company currently has Bullet Classic 350, Bullet Classic 500, Bullet Machismo, Bullet Electra and Thunderbird Twinspark in the Indian market. The next in queue is the Royal Enfield Bullet 500 Military powered by the same fuel-injected, 500cc single cylinder air-cooled bike, which generates 28hp of power. Other models to be introduced in the Indian market are Royal Enfield G5 Classic and Bullet 500 Deluxe. Suzuki Suzuki has been vying to gain a larger market share in the country along with Yamaha. In the popular segment it already has models like Suzuki Slingshot and Suzuki GS150R while in the gearless scooter segment it sells successful models like Access 100cc gearless scooter. In the luxury bikes segment Suzuki is coming up with models like Suzuki GSX-R1000 powered by 4-stroke, 4-cylinder, liquid-cooled, DOHC engine with a bore of 74.5mm and a stroke of 57.3mm, resulting in 12.8:1 compression ratio. The bikes comes with Electronic Ignition (Transistorized) mated with 6-speed constant mesh. Yet another 2011 launch is its Suzuki Bandit 1250S powered with 4-stroke, 4cylinder, liquid-cooled, DOHC engine with 1255 cm 3 (cc) displacement.

Conclusion The Indian economy has gained good momentum in past few years and automobile industry has enjoyed healthy sales especially since past two years. This festive season of 2010 nearly every two-wheeler manufacturer is expecting a double digit growth compared to last year. Although there will be a wide range of launches during festive season in all segments, of course the main focus shall remain on 100cc to 125cc bikes which account for maximum sales in the country.

Abstract Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in India since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This high figure itself is suggestive of the importance of the sector. This is the main reason for us to consider innovations in the two wheeler sector. In order to produce a comprehensive report, we have made use of both primary and secondary research. In the secondary research, a literature review has been done entailing the various innovations in the twowheeler sector and a comparative analysis of the two main players in the Indian market. A questionnaire based primary research has been carried out to provide insights into the psyche of the consumer