About Us - Registration/Login - Contact Us - Message Board - Glossary - Features - B-School - Legal - Biz-End - Orange-GTM - WAP
	STOCK MARKETS COMPANIES SECTORS ECONOMY MUTUAL FUNDS ONLINE TRADING INVESTOR POINTS

Company Sector Stock Markets Mutual Funds Economy Legal Investor Point B-School Biz-End line About us     Disclaimer

Industry Structure The Indian two-wheelers Industry can be broadly classified as scooters, motorcycles and mopeds. The domestic two wheeler sales of 3.4mn in FY99 is constituted by these segments as shown below. Year Scooter Motorcycle Moped Total Growth % FY92 769,955 428,118 408,022 1,606,095 - FY93 709,725 379,060 414,567 1,503,352 (6.40) FY94 840,173 472,582 457,471 1,770,226 17.75 FY95 1,033,524 652,012 523,700 2,209,236 24.80 FY96 1,223,425 809,527 627,079 2,660,031 20.41 FY97 1,301,051 978,682 683,756 2,963,489 11.41 FY98 1,262,699 1,131,314 648,842 3,042,855 2.68 FY99 1,325,868 1,395,657 681,902 3,403,427 11.85 FY2000 1,253,969 1,796,734 726,075 3,776,778 10.97 Source : SIAM In the last six years, the domestic two-wheeler industry has seen structural changes. This can be seen from the change in composition of two-wheeler sales, where the motorcycles have consistently gained market share from the scooter and moped segments to corner a share of 41% of total two-wheeler sales. This trend is expected to continue in the next two years till the four-stroke scooters make their presence felt in the segment. The table below gives an idea about the strides made by the motorcycle segment in the last six years.  (in %) Scooter Motorcycle Moped FY93 47.2 25.2 27.6 FY94 47.5 26.7 25.8 FY95 46.8 29.5 23.7 FY96 46.0 30.4 23.6 FY97 43.9 33.0 23.1 FY98 41.5 37.2 21.3 FY99 39.0 41.0 20.0 FY2000 33.2 47.6 19.2 Source : SIAM The scooter market is dominated by 150cc vehicles from Bajaj Auto and LML, with the rest being served by 100cc variometric scooters from Kinetic Honda. For scooters, northern India is the major market contributing nearly 46% of the total scooter sales. Western and southern India take up second and third position with 27.5% and 15.7% respectively. For our calculations we consider TVS Scooty sales as part of scooter sales as given by Society of Indian Automobile Manufacturers (SIAM). The Indian motorcycle industry can be broadly categorized in to Indian motorcycles and Indo-Japanese motorcycles. The Indo-Japanese motorcycle segment is dominated by Hero group, Bajaj and Escorts in collaboration with Japanese vehicle manufacturers Honda, Kawasaki and Yamaha respectively. The Indian motorcycles segment is dominated by Bajaj (M80), Escorts and Royal Enfield. In motorcycles sales, western region leads with a market share of 40% of the total motorcycle sales. South and north regions come second and third with a market share of 27.5% and 17.4% of total motorcycle sales respectively. For mopeds southern and western regions of India are the major contributors with nearly 52% and 28% of the over all moped sales. Looking at the population of moped sales in south it appears that the sale of mopeds has reached stagnation. Western and southern region lead in three-wheeler sales with a contribution of 42% and 35.8% of total three-wheeler sales respectively. In terms of two-wheeler vehicle population, Maharashtra stands first with a population of 2.96mn vehicles and Gujarat stands second with 2.64mn vehicles as on March 31st 1997. Tamil Nadu is the third largest state with 2.45mn two-wheeler population. In terms of three-wheeler vehicle population Maharashtra stands first with a population of 0.39mn and Gujarat in the second place with 0.22mn as on March 31st 1997. Penetration Of Two-Wheelers On a base of around 28mn vehicles on Indian roads and around 175mn households, there were only 160 motorized two-wheelers per thousand households in FY98. This compares poorly with countries like Thailand where it is around 600 per thousand households. Also with a household size of 5.5 persons and more than one wage earner in about 60% of the households, the potential for a second vehicle demand is also good. The NCAER in its latest report on market demographics has clearly indicated that post-liberalization (ie FY92 to FY96) Indian households have graduated to higher income groups as can be seen in the table below. Distribution Of Households In %age Annual income Income group FY86 FY96 (Rs at FY96 prices)   Urban Rural Total Urban Rural Total <=25,000 Low 42.1 73.6 65.2 27.9 57.2 48.9 25,001 - 50,000 Low Middle 35.8 21.4 25.2 34.9 29.0 30.7 50,001 - 77,000 Middle 15.2 4.0 6.9 20.3 8.6 11.9 77,001 - 106,000 Upper Middle 3.9 0.7 1.5 9.6 3.1 5.0 > 106,000 High 3.1 0.3 1.1 7.3 2.0 3.5 Growth In Income Groups (%) In Pre And Post Reform Period Income group FY86 to FY89 FY93 to FY96 Urban Rural Total Urban Rural Total Low 0.93 -0.20 -0.01 -7.03 -3.03 -3.72 Low Middle 3.34 4.91 4.33 5.46 10.20 8.59 Middle 8.53 17.82 12.72 11.96 3.11 7.01 Upper Middle 18.52 16.39 17.83 11.90 12.25 12.06 High 9.57 13.90 10.65 18.22 15.68 17.14 Total 4.14 2.04 2.61 3.50 1.44 2.01 Source: NCAER As seen from the above tables, the number of households in the low income group has fallen since FY86 and has been more pronounced in the post-reform period. On the other hand, the number of households in the middle, upper middle and high income groups, which form the consumer base for two wheelers, have increased. Their share of the total number of households has increased from 10.6% in FY88 to 20.5% in FY96. The rising income profile has, however, been more pronounced in the urban areas as average annual growth in industry has surpassed that of agriculture in the period FY93 to FY96.   Other sector reports Previous chapter Next chapter

Subscribe to IIL Newsletters Register now to subscribe for India Infoline Newsletter        Corporate Infoline * Information Base on 5000 Companies * Snapshot * Live Quotes * Share Price Charts * News Archives * Quotes Research Charts Snapshot News Enter Co. Name/First Few letters   Drop us a Line Drop us your queries & suggestions

5PAISA

PREMIUM CONTENT

ADVERTISE WITH US

FEEDBACK

DISCLAIMER

PRIVACY POLICY

JOBS

FAQS

SITE MAP

HELP