INDIAN AUTO INDUSTRY

TURNS GLOBAL
Presented by:
M. Arsalan Sheikh(#7989)
Ahsan Bham (#8106)
Sobia Khan (#6316)
INDIAN TWO-WHEELER INDUSTRY:
OVERVIEW

 Oligopolistic market structure

 Product and brand differentiation

 Spending on advertising and brand building activities

 Supply and distribution networks

 Capital intensive market

 Short design-to-market cycles

 Achieving economies of scale

 Complex distribution channel

INDIAN TWO-WHEELER INDUSTRY:
CURRENT STATUS
 The two-wheeler market in India is the biggest
contributor to the automobile industry with a size of or
Rs 220 Billion.
 In terms of volume the industry sales around 5.4 million
units a year.
 India is the second largest producer and manufacturer of
two-wheelers in the world.
 It stands next only to Japan and China in terms of the
number of two-wheelers produced and domestic sales
respectively.
INDIAN TWO-WHEELER INDUSTRY:
CURRENT STATUS
 India is the two wheeler capital of Asia with 27 two
wheelers per 1000 persons as compared to 8 two
wheelers per 1000 persons in China.
 According to the figures published by SIAM, the share
of two-wheelers in automobile sector in terms of units
sold was about 80 per cent.
 Indian two-wheeler industry has got spectacular growth
in the last few years.
INDIAN TWO-WHEELER INDUSTRY:
SALES FIGURES
HeroHonda →

← TVS
INDIAN TWO-WHEELER INDUSTRY:
MARKET SEGMENTATION
 The three main product segments in the two-wheeler
category are
 scooters,
 motorcycles and
 mopeds.

 However, in response to evolving demographics and

various other factors, other sub-segments have emerged
which are
 scooterettes,
 gearless scooters, and
 4-stroke scooters.
INDIAN TWO-WHEELER INDUSTRY:
PRODUCT CHARACTERISTICS
INDIAN TWO-WHEELER INDUSTRY:
MARKET SHARE
DEMAND AND GROWTH DRIVERS

 Personal Income

 Economic / Finance

 Demography and Inspiration

 Penetration Level

 Other Factors (Mass transport system, utility,

convenience, etc.)
COMPETITIVE INDUSTRYSTRUCTURE:
OVERVIEW

 Degree of rivalry

 Threat of substitutes

 Barriers to entry

 Suppliers’ power

 Buyers’ power
CORE COMPETENCY OF COMPETITORS
Product development
• Ability to understand customer’s needs and wants
• Exceeding expectations of customers
• Recognized and established brand name
• Effective advertising capability
Manufacturing capability
• Fuel economy and least-cost production
Service levels
• Fully trained workforce
• Superior personalized customer service
RBV: RESOURCE-BASED VIEW

 Focuses on the internal forces of the firm

 Describes firm’s internal characteristics and performance

 Assumed that firm has distinctive, not identical strategic

resources

 Recourses are immobile and heterogeneous

INTERNAL FORCES: COMPETITIVE
ADVANTAGE

 Consumer preferences and taste

 Low-cost manufacturing capability

 High-quality manufacturing capability

 Short design-to-market cycles

 Supply and Distribution network