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   India Infoline Sector Reports Wed, 31-Dec-2003 10:17:38 IST (GMT+5:30)
   Automobile - Two Wheelers

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International Scenario

A two-wheeler is used as a personal/family vehicle or a goods carrier in the developing countries, whereas it is confined to sports/racing (heavy motorcycles) or short distance shopping (mopeds) in developed countries.

The world two-wheeler market is dominated by Japan. Japanese manufacturers account for around 65% of the total two-wheeler production in the world. However, production within Japan has been declining due to lower domestic demand and shift in manufacturing base outside the country. Japan is also the world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its major markets are China, USA and Europe. In terms of player positions, Honda Motors Corporation, Yamaha Motors and Suzuki Motors corporation share the top three slots in the world two-wheeler market. The table below shows the production and sales figures of motorcycles and scooters in Japan during the past decade.

Production Of Two-wheelers By Capacity (nos)

Year

0-50 cc

51-125cc

126-250cc

>250cc

Total

1989

1,408,134

585,972

310,052

490,204

2,794,362

1990

1,343,220

686,734

270,304

506,637

2,806,895

1991

1,340,241

807,397

285,281

595,697

3,028,616

1992

1,180,702

1,053,167

279,707

682,959

3,196,535

1993

972,362

1,182,554

231,159

637,079

3,023,154

1994

874,919

1,062,560

237,386

550,421

2,725,286

1995

951,803

1,038,938

217,738

544,760

2,753,239

1996

948,298

828,299

238,045

569,775

2,584,417

1997

933,921

817,284

275,847

648,631

2,675,683

1998

839,123

783,646

271,378

742,149

2,636,296

Sales of two-wheelers by capacity (nos)

Year

0-50 cc

51-125cc

126-250cc

>250cc

Total

1989

1,248,976

157,385

175,835

76,617

1,658,813

1990

1,213,512

169,618

158,882

76,921

1,618,933

1991

1,147,741

197,638

151,800

83,320

1,580,499

1992

987,260

214,232

128,593

115,365

1,445,450

1993

853,115

177,929

103,463

119,747

1,254,254

1994

824,792

156,951

95,926

115,942

1,193,611

1995

884,718

138,115

98,833

91,186

1,212,852

1996

876,522

171,105

83,982

88,307

1,219,916

1997

864,395

156,183

84,799

82,861

1,188,238

1998

744,900

177,092

65,659

75,329

1,062,980

The above tables indicate a falling trend in production and sales in Japan. While sales in the less than 50cc and 126-250cc vehicles have fallen by a sharp 40.4% and 62.7%, that of 51-125cc have risen by 12.5% in the 1989-1998 period. Sales in the above 250cc segment have more or less remained stagnant. However, production of in the 250cc+ segment has gone up by 51.4% in the same period.

Current Scenario

Production In January To June 2000

Company

Up to 50cc

> 50cc

Total

Total (Jan-Jun 1999)

Honda

189,131

251,903

441,034

411,655

%yoy

(1.6)

14.8

7.1

(22.8)

Kawasaki

123,442

0

123,442

116,913

%yoy

6.7

0

5.6

3.8

Suzuki

45,796

176,092

222,698

225,366

%yoy

(14.4)

2.9

(1.2)

(18.7)

Yamaha

113,957

299,314

413,271

379,636

%yoy

(22.5)

28.7

8.9

(9.0)

Others

217

0

217

1,242

%yoy

(82.5)

0

(82.5)

-

Total

349,101

851,561

1,200,662

1,134,812

%yoy

(11.6)

15.1

5.8

(15.3)

The downward trend in production witnessed in the first six months of 1999 has reversed. The rise has been entirely driven by higher production of 50cc plus two-wheelers, completely reversing the trend witnessed in the same period in 1999 when production fell by 15.5%yoy. This perhaps is a sign of the rising fortunes of the Japanese economy. Except Suzuki, all the major manufacturers have posted higher production figures. In terms of share in production, Honda leads with 36.7% followed by Yamaha with 34.4%. 

Exports In January To June 2000

Company

Up to 50cc

> 50cc

Total

Total (Jan-Jun 1999)

Honda

12,003

199,392

211,395

198,869
%yoy

(34.8)

10.5

6.3

(21.4)

Kawasaki

-

116,305

116,305

104,708
%yoy

-

11.1

11.1

(1.7)

Suzuki

2,608

186,663

189,271

187,180
%yoy

(60.7)

3.4

1.1

(6.1)

Yamaha

20,988

280,376

301,364

234,016
%yoy

12.3

30.2

28.8

(7.4)

Total

35,599

782,736

818,335

724,773
%yoy

(18.6)

14.9

12.9

(10.7)

68% of the production in Japan has been exported out of the country in the first six months of 2000 as compared to 64% last year.   This scenario contrasts directly with the Indian scenario. In India, only about 2-3% of the production in FY2000 were exported. 

The Asian continent is the largest user of two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry. The technology for two-wheelers is not as well developed as for car industry. This is due to oligopoly between top five players in the segment, compared to thirty manufacturers in the car industry.

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