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Indian Two wheeler industry

5 facts about India's growing two-wheeler market

Two-wheeler company Hero MotoCorp on Monday said its first bike without the technology oferstwhile partner Honda will hit the market by 2014.

The bike could be developed in India or anywhere but it would be on a completely new platform,managing director and CEO Pawan Munjal said.

The company continues to use Honda technology for its products after the break-up of their jointventure, Hero Honda. It has a licence agreement with the Japanese firm till 2014. The jointventure ended in December 2010.

Here are five things to know about the Indian two-wheeler industry:

According to industry body, the Society of Indian Automobile Manufacturers, the Indian two-wheeler industry is expected to post an annual growth of 11-12 per cent, and the market isexpected to double every four years till 2020. According to data from Nomura and Crisil, as manyas 10 million two-wheelers were sold in India 2011-12. Vehicles in the executive segment formedthe bulk of sales at 6.5 million, followed by the economy segment (1.8 million) and premiumsegment (1.7 million).

The recent series of hikes in the price of petrol have played a significant role in the sale of two-wheelers, according to SIAM, as most first-time four-wheeler buyers in rural India and tier II andtier III cities have deferred their purchases. Two-wheelers account for a whopping 76 per cent ofmarket share in the automobile sector in Asias third-largest economy. Passenger vehiclesaccount for 16.25 per cent.

Barely 18 months after Indias most successful two-wheeler marriage ended, Honda made itsambitions clear by launching the 110cc Dream Yuga, its first low-cost motorcycle meant to targetthe budget market ruled by Hero and Bajaj. The Dream Yuga comes at an attractive Rs. 44,642,and will compete with Heros Splendor, which costs Rs. 42,950. The Splendor is Indias top-selling bike.

Other two-wheeler companies such as Yamaha and Suzuki, too, are steadily focusing on themass-market segment in an attempt to dislodge the two giantsHero and Bajaj. Yamaha lastmonth announced a new $280 million factory in India to nearly triple its capacity to 2.8 million

motorcycles by 2018, while Suzuki Motor, which is expected to launch a mass-market offeringsoon, is building a new factory to take its India capacity to close to one million motorcycles by2014.

Hero has a market share of around 56 per cent in the overall domestic two-wheeler market. At25.5 per cent, Bajaj comes a distant second, but maintains a healthy lead over Honda and TVS,

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