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Presented by:
Diksha
Aditi
Heena
Palak
Shweta
Introduction
The Automobile Sector
1942- Hindustan Motors manufactured the first
automobile in India.
The automobile industry in India is world’s fourth
largest, with the country currently being the world's 4th
largest manufacturer of cars and 7th largest
manufacturer of commercial vehicles in 2018
The sector that employs 37 million people (direct and
indirect), contributes 7.5% to the country's GDP .
Source:https://www.symboinsurance.com/blogs/car-insurance/evolution-automobile-
industry-india/
https://www.ibef.org/industry/automobiles-presentation
MAJOR EVENTS
Source: https://www.symboinsurance.com/blogs/car-
insurance/evolution-automobile-industry-india/
Source: https://www.fintapp.com/blog/two-
wheeler-industry-analysis-research-report/
The Two-Wheeler Industry
Evolution
1955 – 350 cc bullet in Indian Army.
1955-1970 - Royal Enfield 350 cc, Lambretta by Automobile
Products of India (API), Vespa by Bajaj Auto Limited, Yezdi
(250 cc) by Ideal Jewa Pvt. Limited and Rajdoot (175 cc) by
Escorts Ltd.
Luna by Kinetic Engineering, Vijai by Scooters India Ltd.,
Priya by Maharastra Scooters Ltd., Hero Majestic by Majestic
Auto Ltd. and TVS 50 cc by Sundaram Clayton Ltd
Segments
1. Motorcycles
2. Scooters
3. Mopeds
Source: http://www.spareaze.com/two-wheeler-industry-india/
https://www.linkedin.com/pulse/indian-two-wheeler-industry-its-evolution-sameer-malhotra-1
Key Events
Two-wheelers accounted for 81 per
cent of domestic demand in 2018-
19.
Sources: https://www.ibef.org/industry/automobiles-presentation
http://content.indiainfoline.com/wc/archives/sect/attw/ch02.html
Factors affecting the two-wheeler
industry
• Low penetration level to drive the growth in two-wheeler
industry
• Improvement in discretionary spending and urbanization
to drive premiumization
• Improvement in rural india to drive demand for
motorcycles especially for entry level segment
• Recent correction in commodity prices may help in
improving margins
• Regulatory concerns impacting the industry growth
Source: https://www.hdfcbank.com/assets/pdf/privatebanking/Sector-Update-Auto-
Two-Wheeler-Industry-Jan-2019.pdf
Market Share
Sources: https://auto.economictimes.indiatimes.com/news/two-
wheelers/motorcycles/top-10-two-wheeler-makers-in-fy19-bajaj-reports-
double-digit-market-share/68808620
Statistics
Source: https://www.hdfcbank.com/assets/pdf/privatebanking/Sector-
Update-Auto-Two-Wheeler-Industry-Jan-2019.pdf
Source: https://www.statista.com/statistics/318023/two-wheeler-sales-
in-india/
Market Structure
Bargaining Power of
Bargaining Power of Competitive
Buyers: High
Suppliers: Low Rivalry:
High
Threat of new
Entrants:
Low
THREAT OF NEW ENTRANTS
• Entry barriers are high.
• Huge investment
• Capital investment is very huge in two wheelerindustry.
• The biggest challenge is setting up sales & servicecenter,
which is very hard for a newentrant.
• Well established players are already existing.
• Industry is consolidated.