Presentation on Two wheeler market in India

By : Akshay Saini

Ankur sharma

Anupama Gagan MBA 1st year - A

Presentation Hierarchy INTRODUCTION - Industry Overview /two wheeler introduction - Evolution of the industry

- Industry Players

TWO-WHEELER (TW) MARKET - Demand structure - Segment-wise market share

-Segmental Growth Trend -Motorcycles Sales Growth Trend

ENVIRONMENT ANALYSIS -Identification Of Customer Interests -Some benchmarks -How a Manufacturer analyses the Business Environment

GROWTH ANALYSIS -Why So Much Growth ?? -Future Perspective and Expectations

IntroductionAn Industry Overview• India is the 2nd 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 two-wheelers respectively

• In 2013 , the Indian two-wheeler market accounted for 14.38 million units

• CAGR (Compound Annual Growth Rate )(last three decade’s) is 10.03%

• Average two-wheelers per 1000 people in India are 31

• The urban market for two-wheelers is largely penetrated with nearly 57 of every 100 youths that earn an income to support the ownership of a two-wheeler

• More than 15 industry players in existence

Evolution Of Two Wheeler Industry• 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.

• Today, the industry has the largest share in Indian automobile industry

Industry Players

TWO-WHEELER (TW) MARKET - Demand structure

Purchase cycle

• Moto-Bikes are the most favourite ones in a large part of population

Environment Analysis -Identification Of Customer Interests

• A minute survey of people’s perspective and needs

• Make customer’s requirements , firm’s accomplishments

• Confined specification is “Need of the Hour”

Showing Age of the Respondent

46-5512%

56-656%

36-4520%

26-3520%

15-2542%

15-25

26-35

36-45

46-55

56-65

Some Benchmarks

How a Manufacturer analyses the Business and marketing stretagies • By Refining Demographics of a Potential Two-wheeler OwnerAS•Work Culture of the area, where business is going to be

initiated, is concerned with office-goers• 45% of population own a Desktop• 87% own at least 1 mobile phone• Surfs internet more than 8 hours a week• Average household income above Rs 15,000 a month• Single: 55% Married: 45%

Why So Much Growth ??

• Excise duty cut • Lower interest rates • Easing liquidity situation • Modernisation of young generation• A well-equipped middle-class transport • Used in each and every part of country

Future Perspective and Expectations

• Banking Environment is likely to be favorable for the industry in coming years

• Increase in market share in the two-wheeler finance segment by Public sector banks

• United Bank of India is planning to give two-wheeler loans to customers who have a salary-linked account with the bank

• According to CARE(Credit Analysis & Research ): Rural India will boost two-wheeler growth in FY15 .

• Fast paced urbanization to rise from 28% to 40% by 2020

• Middle class expanding by 30 - 40 million every year

QUERIES……………………….If any??