Conclusion
The two-wheelers
market has had a perceptible shift from a buyers market to a
sellers market with a variety of choices. Players will have to
compete on various fronts viz pricing, technology, product design,
productivity, after sale service, marketing and distribution. In
the short term, market shares of individual manufacturers are going
to be sensitive to capacity, product acceptance, pricing and
competitive pressures from other manufacturers.
All the three segments, motorcycles, scooters and mopeds have
witnessed capacitiy additions in the last one year and it will
continue in the upcoming period as and when Honda opens a local
subsidiary. Over this period, only the motorcycle segment is
expected witness higher demand vis-à-vis supply, while the
scooters and mopeds supply will outstrip demand.
As incomes grow and people feel the need to own a private means of
transport, sales of two-wheelers will rise. Penetration is expected
to increase to approximately to more than 25% by 2005.
The motorcycle
segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sales is expected to increase by 20%yoy as
compared to 1% growth in the scooter market and 3% by moped sales
respectively for the next two-years.
The four-stroke
scooters will add new dimension to the two-wheeler segment in the
coming future. Perhaps, the moped segment will be the worst
affected due to Y2K emission norms applicable from April 2000 as
not many of the present models confirm to the norms.
The three-wheeler
segment will witness 10% yoy growth for the next two years. In
spite of entry of Piaggio, Italy into the three-wheeler segment in
the country, Bajaj Auto will continue to dominate the segment. In
this segment, we would see players shifting from diesel to cleaner
fuels like CNG in line with norms set out by various state
governments.
