Problems in 2 wheeler industry

And any slowdown in the rate of economic growth, indeed even a one per cent decline, tends to get exaggerated many times over. The hardening of interest rates at such a juncture leads to the customer postponing or deferring a new purchase.

Bajaj auto has taken the biggest hit its market share has nearly halved from FY11, however Bajaj is the largest exporter of 2W from India, and it exported 1.

A fast […] Introduction to Two wheeler Industry Two-wheelers are one of the most versatile forms of transportation. The table3 shows the major players in the industry during this time-frame.

Two Wheeler Industry in India – Introduction & History

It also needs to be noted that Bajaj auto is the leader in exports, it exported 1. Everyone expected demand to pick up speed.


Last year, two-wheeler loans saw a huge amount of delinquency. In that sense two-wheelers are a lead indicator of sorts for the economy.

Credit Crunch Difficulty in availing loans, rising defaults, tightening of loan recovery laws and various other factors have dissuaded consumers from availing loans and led to further problems in credit lending.

Segment-wise analysis Many factors have contributed to this phenomenon. The financier has to have greater integration in the entire supply chain, working towards maximising customer solutions and services.

The industry was deregulated, with several reforms to make Indian exports competitive. Every company purchases raw materials to make its products, they do not pay for the raw materials immediately and enjoy a credit period granted by their supplier, this results in account payable.

Problems in the Two Wheeler Industry — Negative Growth Negative growth is the major problem being faced by companies in the two wheeler industry. One major occurrence of this decade was that several existing but weaker players died out giving way to new entrants and superior products.

What r the challenges faced by the 2W industry?

Indian Two Wheeler Industry Analysis Research Report

There are 7 players currently in the scooter market. Acceleration of road construction and traffic law enforcement are key areas for improvement because of the impact of traffic congestion on consumer purchasing patterns.

The major contributors to the demand of two wheelers are the countries in Asia-Pacific region which will continue to dominate the worldwide demand in future.

Two Wheeler

Despite large investments in highways, connections between rural and urban cities are still lacking. Cash conversion cycle measures how fast a company can convert cash on hand into inventory and account payable, through sales and account receivable and then back into cash. Oct 16, For this segment, aspirations have outpaced real income growth leading to a greater propensity to borrow and spend.

The region is the home to the top six markets in the world. Domestic scooter sales for the year ending FY17 stood at 5. Interest Rates Interest rates are one of the prime reasons for the sharp fall in demand.

In the same period sales of Honda have increased from 1. Smaller vehicles also typically provide a higher level of emissions control than two-wheelers. History of Two wheeler industry in India The Indian two-wheeler industry since its beginning, has evolved many folds in technology and, in the numbers being manufactured and produced.

There is another angle to that story. In the domestic market two segments are expected to contribute significantly to growth. A few of them are discussed ahead.

Honda Activa is their best selling model and highest selling scooter in India, Activa sales for FY17 were 2. The finished product is stocked as inventory until it is sold and companies make sales on credit, where they extend certain period to the buyer to pay for its purchase, thereby creating an account receivable.

Indian labor is overprotected. Even the launch of new models will not make much of a difference to the demand situation. The domestic sales of two-wheelers is down by 9.

Thus ironically it has been the supply of finance that has been the hurdle and not customer demand. The adaptive ability of a motorised two-wheeler can be characterised by its usage. Bajaj auto is only present in the motorcycle segment. The best selling model from TVS is Jupiter which sold 0.Sep 20,  · two wheeler industry Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times.

two wheeler industry Blogs, Comments and Archive News on India is the 2nd largest two wheeler market in the world. Over the past few years the two wheeler industry has witnessed healthy growth scenario primarily driven by strong demand from urban as well as rural areas owing to healthy economic scenario.

for slides: Problems in the Two Wheeler Industry – Negative Growth Negative growth is the major problem being faced by companies in the two wheeler industry.

The two wheeler industry has been shrinking continuously3. From a peak of over 40% growth in it is currently facing a growth of % in the second quarter [ ]. Problems in the Two Wheeler Industry - Negative Growth Negative growth is the major problem being faced by companies in the two wheeler industry.

The two wheeler industry. Indian two wheeler Industry. The Indian two wheeler industry is the largest in the world, Indian manufacturers sold Million units in FY17 (domestic + exports). The domestic market contributed 88% of sales with exports standing at 12%.

India India has displaced China to get to the top spot. China sold Million units in the same period. two wheelers and million passenger cars and utility vehicles. India is a global major in the two-wheeler industry producing motorcycles, scooters and mopeds principally of engine capacities below cc.

It is the second largest producer of two-wheelers and 13th largest producer of passenger cars in the world.

Problems in 2 wheeler industry
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