Two Wheeler Market

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  • Topic: Hero Honda, Motorcycle, Hero Honda CBZ
  • Pages : 4 (1402 words )
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  • Published : August 19, 2008
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The Indian two wheeler market has a size of over Rs 100,000 million.

The Indian two wheeler segment contributes the largest volumes amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub-segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooterettes and step thru’s. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well-known Japanese firms earlier. But most of the companies are now planning 100% subsidiaries in India.

In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2000-01. The Euro emission norms led the existing players in the two stroke segment to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced resulting in price reduction, which has aided in propelling the demand for motorcycles. Fierce competition has also forced players to cut prices in certain models.


Motorcycle sales grew by an annual average of 27% over f 1995-2002, and constituted nearly 66% of total two wheeler sales in F2002, up from just 24% in F1995. Average monthly motorcycle sales have increased five-fold since F1995 to almost 250,000 units in F2002. The current share of the leading three companies is shown in the pie chart. And this clearly shows that hero Honda is the current market leader with a 49% market share. Hero Honda has been an early entrant in the 4...
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