The Transformation of Indian Two Wheeler Market

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Information about The Transformation of Indian Two Wheeler Market
Business & Mgmt

Published on March 8, 2014

Author: shaswatimohapatra35



Case Study on World Business Environment Group -5 Section-”B”


Protagonist: “Indian consumers”

Brief Description: • India is the second largest two wheeler market in the world. • It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of twowheelers respectively. • The two-wheeler industry has been in existence in the country since 1955. • Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50's.

• In the mid 80's, Kinetic introduced a gearless scooter in collaboration with Honda. • The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now Prime Minister of India. • Today, the industry has the largest share in Indian automobile industry. • The shift in demand pattern for two wheelers was caused by socio-economic & demographic changes thar the nation has undergone.

• The deliscensing and liberlisation of foreign investment policy also helped in transformation of Indian two wheeler market. • Technological, socio-economic & demographic triggered a competitive environment for the twowheeler market players. • This in return changed the consumer attitude, economic position, consumer migration from one product category to another serving the same.

Market share of Two wheeler market:

Sales volume of Indian Two wheeler market:

TWO-WHEELER (TW) MARKET - Demand structure of TW in last decade

Lesson Learnt: • From the above case study we have learnt that how a consumer can create different environmental factors for a firm to survive in any market or in any country which in return will lead to country’s structural growth viceversa.

Conclusion: • To conclude that every firm should help a country structural & quantitative growth by satisfying the customers need putting emphasize on technological advancement of the product like Suzuki, Honda has done in order to increase the market share also by meeting the need which in return gave a strong competition to Bajaj, which helped later to grow its market share by maintaining their cost, introducing innovative products, capturing domestic market by granting them loan facility from various banks.

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