The two wheeler industry is a sub segment of the automobile industry in India. This segment comprises of motorcycles and scooters. There are four major players in this sector and market share wise they are: Hero Motocorp, Honda Motorcycle and Scooter India, Bajaj Auto and TVS Motor Company. This segment is the backbone of our rural and the semi urban economy. Though, a culture of two wheeler riding is fast catching up in our large cities as well. Reasons: cheap cost, easy parking, easy movements and off road driving while carrying multiple passengers and / or variety of goods.
India produces largest number of two wheelers in the world and Hero MotoCorp is the single largest manufacturer of two wheelers world wide. There are some small but niche players in the industry such as Yamaha, Royal Enfield, Suzuki, Mahindra n Mahindra and Piaggio (Vespa).
Let’s talk about the performance of this sub sector during the current year. April-June quarter is the first quarter of the year. During this quarter, the industry has sold 54.70 lac vehicles as against 48.10 lacs during the first quarter of the last year. It is to be noted that India exports two wheelers across the globe and exports have also increased during the quarter.
While during the quarter Hero Motocorp (current share 37.5%) and Honda Motorcycle (current share 31%) have lost their market share by approximately 1% each, Bajaj Auto has gained by roughly 2%. TVS Motors has also lost its market share slightly and has market presence of below 10%.
The significant growth in the two wheeler segment indicates towards increased rural buying capacity and an overall uplifting in the economy. At this rate, the country will be producing over 2.2 cr two wheelers during the current year. And this will be an all time high.