two wheeler market (1)
-
Upload
leslie-menezes -
Category
Documents
-
view
31 -
download
2
Transcript of two wheeler market (1)
TWO WHEELER MARKET
AGENDA
• Growth Trends In Two Wheeler Industry• Segment Wise Change In Domestic Market• Player Wise Scenario• Growth Trends In Domestic Motor Cycle• Player Wise Sales Review• Economy Segment Player Wise Domestic Share• Growth Of Two Wheeler Industry And Scooters• Executive Sub Segment• Trends In Cost Structure• Localization Gaining Strength
GROWTH TRENDS IN TWO WHEELER INDUSTRY
1 2 3 4 5 60
5
10
15
20
25
30
35
40
13.6
34.3
29
0
7.3
17.9
26 25.6
13.9
2.96.5
8.1
growth in exports growth in domestic sales
Two wheeler industry
•Revenue- 755b•Sales Volume -18m Units•7.9% CAGR- Motorcycle•25.2% CAGR - Scooters
SEGMENT WISE CHANGE IN DOMESTIC MARKET
2013-14 2014-150
20
40
60
80
100
120
140
160
MOTORCYCLES MOPEDS SCOOTER
70.8 67.1
4.94.7
24.3 28.2
Motor cycles dominate 2 wheelers industry – 2/3 total market shareScooter - gender biased positioningMopeds - demand decreased from Tamilnadu and Andhra
PLAYER WISE SCENARIO
2013-14 2014-150%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
OTHERSTVS MOTORBAJAJ AUTOHMSIHERO MOTO CROP
41.3 40.2
24 26.6
14.2 11.1
11.8 13.20.7 0.9
Hero- dominate market share - poor product portfolio, lack of new modelHMSI – second position – model launches in executive and premium motor cycles TVS surpassed Bajaj – absence of scooter segment , poor product mix
GROWTH TRENDS IN DOMESTIC MOTOR CYCLE SALES
1 2 3 4 5 60
5
10
15
20
25
30
25.8
22.9
11.7
0.1
3.92.5
2625.6
13.9
2.9
7.3 8
GROWTH OF MOTORCYCLE SEGMENT
GROWTH OF TWO WHEELER INDUSTRY
Domestic motor cycle sales (67% of total 2 wheeler industry)Grew 2.5% against industry 8%Weak sales in rural areas – 46%CAGR - Exports – 15.3% , domestic – 7.9% , total motor cycle – 9%
2010-11 2012-13 2014-150%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1.2 2.1 4.83.1 3
3.27.311.8
16.475.5
6.226.8 24.4
16.5
54.6 53.2 52.9
PLAYER WISE SALES REVIEW
others Yamaha Motorw HMSI TVS Motors Bajaj Motors Hero MotoCorp
Hero lead the segment ( competition from HMSI) Bajaj lost its market (despite launching new models and variants) TVS lost 3rd position to HMSI- lack of wide range and poor sales volume
ECONOMY SEGMENTPLAYER WISE DOMESTIC SHARE
Bajaj Auto.Ltd Hero Moto corp Ltd T.V.S Motor Company Indian Yamaha Motor Pvt.Ltd0
10
20
30
40
50
60
70
24.7
46.4
27.2
1.6
24.9
53.2
20.2
1.7
25.1
57.8
15.8
1.3
2010-11 2012-13 2014-15
Hero leads in economy segment 18-20% share in motor cycle segment Demand- semi-urban areas and rural
Others
Hero MotoCorp
Bajaj Auto
HMSI
0 10 20 30 40 50 60 70
0.8
66.5
21.2
9.2
1.3
62.6
20.2
14.6
2.2
66.3
8.4
5
EXECUTIVE SUB-SEGMENT
2014-15 2012-13 2010-11
Hero leads in executive sub- segment too. (splendor and pleasure)HMSI- market share 15% - (dream yuga, dream neo)Bajaj lost (8.4%) ,
Bajaj auto ltd Hero Moto Corp ltd India Yamaha Motor pvt.ltd TVS Motor Company Ltd0
10
20
30
40
50
60
48.2
20.4
10.9 8.7
40.6
16 14.1
7.4
35.9
8.2
16.2
10.3
PREMIUM SUB SEGMENTPLAYER WISE DOMESTIC MARKET SHARE
2010-11 2012-13 2014-15
Bajaj loses market share but maintains Leadership – 36% Market ShareBajaj Re-launched Pulsar Range18.5% To Domestic Motorcycles Sales VolumeRoyal Enfield- Second Largest Player – 16.2% ( sales growth 45% CAGR)TVS- APACHE
GROWTH OF TWO WHEELER INDUSTRY AND SCOOTERS
2009-10 2010-11 2011-12 2012-13 2013-14 2014-150
5
10
15
20
25
30
35
40
45
27.6
40.7
24.4
14.2
23.2 25.126 25.6
13.9
2.97.3 8.1
Growth in ScootersGrowth of Two wheeler industry
Scooter Sales CAGR – 25.2% (2009-15) Demand- Ungeared Scooters Share of scooters in total domestic two wheeler sales- 28.2%
TRENDS IN COST STRUCTURE
2009-10 2010-2011 2011-12 2012-13 2013-14 2014-150
102030405060708090
100
69.4 73.1 74 73.7 71.5 71.7
3.73.4 3.3 3.7 4 4.54.8
4.2 3.2 3.8 4.3 4.55 4.3 3.64.2 4.6
517.1 15 15.9 14.6 15.6 14.3
Raw material cost Employee Costs Other Manufacturing ExpensesSelling Expenses Operating Margins
Tren
ds in
cos
t str
uctu
re(p
erce
nt)
Value engineers, vendor and workforce rationalization localizationRaw materials- economic crisis (steel and aluminum prices)Employee – 4.5%( higher 10yrs)Advertising expense – 20.5% , Marketing and distribution- 22.9%, Selling and distribution = 21.9%
2009-10 2010-11 2011-12 2012-13 2013-14 2014-1585
87
89
91
93
95
97
99 98.3
95.896.1
94.2 93.6 94
96.4
95.4 95.6 95.4 95.7 95.7
89.889
87.486.2
85.5 85.6
9695 95
9493 93
Hero MotoCorp Bajaj Auto TVS Motors Industry Indigenisation
LOCALIZATION GAINING STRENGTH
Localization level – 96.97% (reduce costs)Import technologies for newer models ( localization level )