Two Wheelers

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Two Wheeler Industry A presentation by: Section C , Group 3 Ameya, Ashish, Lakshay,

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Two Wheelers Industry Analysis in India

Transcript of Two Wheelers

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Two WheelerIndustryA presentation by:Section C, Group 3Ameya, Ashish, Lakshay,P Abhishek, Prachi, Prerit,SasmitaTWOWHEELER INDUSTRYIndia is the second largest producer of two-wheeler automobilesJapan leads in terms of number of units producedChina leads in terms of number of domestic salesThe Automobile Products of India (API) started producing scooters in 1950sAPI was formed in 1949 in Bombay by British Company Rootes Group. It was later overtaken by Bajaj Auto

Bajaj Auto came out with a scooter named Bajaj Chetak which became the face of Indian two-wheeler industry in 1972Bajaj soon became a status symbol for a middle class familyBajaj sold 1,00,000 units per month but also had a waiting time of a decadeIndo-Japanese ventures soon commenced and market demand was met eventuallyTWOWHEELER INDUSTRY

Indian Automotive Industry3 WheelersCommercial VehiclesMulti Utility VehiclesPassenger Cars2 WheelersPassenger CarriersGoods CarriersMini VansSmall CarsMedium CarsLuxury CarsMotor CyclesMopedsScootersSource: Automotive Component Manufacturers AssociationofIndia(ACMA)INDUSTRY OVERVIEW

Segment wise share for two-wheeler automobile industry in India for FY 2014(Data collected from CurrentWeek journal, Society of Indian Automobile Manufacturers (SIAM) Reports and CRISIL Reports and Industry Sources) Scooter

Motorcycle

MopedSegment wise growth for FY 201421%

5%

8%

REASONS FOR GROWTH OVER LAST FEW YEARSGrowing young and working population in rural and semi-urban areasRise in credit and financing activities availableHigh inflation in recent years and increase in fuel priceAnnual two-wheeler production in India (in millions)(Data collected from CurrentWeek journal, Society of Indian Automobile Manufacturers (SIAM) Reports and CRISIL Reports and Industry Sources)

PORTER FIVE FORCES ANALYSISSource: Analysis based on Allegro Capital Advisors Pvt Ltd report

MARKET SHARE AND SALES(Data collected from CurrentWeek journal, Society of Indian Automobile Manufacturers (SIAM) Reports and CRISIL Reports and Industry Sources)

MARKET SHARE AND SALES

Net Sales of major players in two wheeler automobile industry as on August 26, 2014(Data collected from CNBC TV18 moneycontrol.com financial portal)

INDUSTRY SETUP

MARKET CAPITALIZATIONBSE Market Capitalization of major players in two wheeler automobile industry as on August 26, 2014(Data collected from CNBC TV18 moneycontrol.com financial portal)

PROFITS OF VARIOUS PLAYERSPBDIT as per the latest Profit and Loss Account available for major players in two wheeler automobile industry as on August 26, 2014(Data collected from CNBC TV18 moneycontrol.com financial portal)

YoY growth witnessed has been 13.0%Volume of scooter sales expanded by about 25.2% YoY.The growth was mainly witnessed by two big giants Honda and TVSMotorcycle segment - growth rate of 9.6% YoYCost optimisation because of the increased competition in the marketForeign OEMs are opting for local manufacturing now to reduce pricesThe industry is exploring new export markets and the trend of more foreign acquisitions and partnershipsCURRENT AND FUTURE TRENDS

Hopes on the new government to boost reforms like the Goods and Service Tax (GST) and policies that push developmentExcise duty cut to 8% for scooters, motorcycles, small cars and commercial vehiclesSubsidy for consumers buying electric vehicles like battery operated scooters for promoting alternative source of energy for mobility (National Electric Mobility Mission)Abolishment of tax for incomes up to Rs. 2.5 lakhs and allocation of Rs.14,389 crore for development of roads in the rural areas might help in the long runMACRO-ECONOMIC PROFILE

REFERENCESCover picture from BajajAuto. Advertisement for Bajaj DTS-Si commercialAutocarpro. (2014, June). Retrieved from Autocarpro website: http://www.autocarpro.in/analysis-sales/buzz-sales-revive-june-2014-5933#sthash.8gMPIzjZ.dpuf(2014). Automobile industry report. Investment Information and Credit Rating Agency of India Limited (ICRA).CRISIL. (2014). Two wheeler industry report. CRISIL.(2014). Current Week Journal. Society of Indian Automobile Manufacturers (SIAM).Currentweek. (2014). Retrieved from Currentweek Website: http://www.currentweek.com/2-wheeler-production-trends-market-share-in-india-2014-analysis-report-infographic/Livemint. (2014, May 16). Retrieved August 23, 2014, from Livemint website: http://www.livemint.com/Industry/f0VLQzJdn28hSun6nXFTmO/Auto-sector-hopes-Narendra-Modiled-government-will-bring-in.html

Management Paradise. (2014). Retrieved from Management Paradise website: http://www.managementparadise.com/forums/marketing-management-rm-im/19336-two-wheeler-industry-india.htmlMaps of India. (n.d.). Retrieved from Maps of India website: http://business.mapsofindia.com/automobile/market/two-wheeler.htmlMoneycontrol CNBC TV 18. (2014, August 26). Retrieved from Moneycontrol Website: www.moneycontrol.comSaraswathy, M. (2014, August 23). Business-Standard. Retrieved from Business-Standard website: http://www.business-standard.com/article/pf/two-wheeler-insurance-policies-may-get-cheaper-easier-to-buy-114082300506_1.html Wipro. (n.d.). Retrieved from Wipro website: http://www.wipro.com/ftob-automotive/downloads/FTOB%20Automotive%20Report%20WEB.pdfYogi, V. (2014, July 11). NDTV. Retrieved from NDTV Website: http://auto.ndtv.com/news/2014-union-budget-what-it-holds-for-indian-automobile-industry-586443

REFERENCES

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