Motorcycle Inustry

Topics: Motorcycle, Honda, Suzuki Pages: 4 (833 words) Published: September 14, 2012
Flooding the Indian Motorcycle Market
A spree of launches
An Introduction:
This case talks about how the Indian market got flooded with Motorcycles. In 1999 the main players in the market were :- * Hero Honda Ltd.
* Kinetic Engineering Ltd.
* Bajaj Ltd.
* Royal Enfield Ltd.
Hero Honda launched CBZ 156cc motorcycle . Bajaj launched Kawasaki, Boxer AT & CT .Royal enfield launched machismo A350 and lightning 535 . Kinetic engineering ltd launched Brat and kinetic challenger . 2000:

There was a entry of new companies like TVS , Yamaha , (Lohia Motors) . Hero Honda launched Joy, Passion , and a remodeled Street. Bajaj launched KB Eliminator , KB Caliber Chroma , KB Aspire and KB Acer . LML came up with Adreno and

Energy . Escorts Yamaha launched Crux and TVS Group launched Fiero . 2001:
Bajaj launched the Pulsar range . TVS launched Victor 110cc .Yamaha upgraded the Crux version with Crux R. Kinetic engineering launched the GF125 and GF150.

Background note:-
Indian two wheeler market is divided into three major segments :-

India is the 2nd largest user and 3rd largest manufacturer of two wheelers in the world. Bajaj Auto laid the foundation of the Indian two wheelers industry in 1948 by trading in imported Vespa scooters.

Change in the Trend:
Scooters dominated the Indian market till 1990. Thus till 1990 Bajaj was the undisputed leader in scooter market followed by LML & Kinetic . After the Liberalisation , privatization and globalization , many companies entered into joint ventures and technical collaborations with foreign companies lke Honda , Suzuki , Yamaha etc. Due to introduction of 100-cc motorcycles an intersegment shift began to start which resulted in the decline in the sales of the motorcycles. Due to delayed launch of new and advanced scooter models , four stroke scooters prone to skidding risk and vibrations etc the demand for motorcycled went up. This demand was mainly driven by rural and...
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