MNCs ESTABLISHING SUPREMACY IN INDIAN TWO-WHEELER INDUSTRY

MNCs ESTABLISHING SUPREMACY IN INDIAN TWO-WHEELER INDUSTRY

MNCs have deeply penetrated the Indian two-wheeler industry and are
spreading their reach all over India with extensive distribution
network. This has started impacting the Indian domestic players as
their market share are on decline and within couple of years it seems
like the MNCs will capture maximum market share of the Indian domestic
players and dominate the market

Honda: Honda a MNC is aiming at dominating the market and capturing
the No.1 position in the Indian motorbike industry leaving Hero
behind. Two years back Honda's production capacity was 80000 units
per month, which has increased to 2.5 lacs units per month and further
targeting to more than 5 lacs units per month within 2 years. The firm
is all set to start production at the upcoming 3rd plant in Narsapur
facility in Kolar district, near Bengaluru from January 2013 along
with an additional second line of production in its 2nd plant in
Rajasthan in March 2013. To boost it all it is further investing Rs
1,500 crore in its 4th plant at Karnataka, scheduled to open in 2014,
as a part of expansion of network.

Yamaha: Yamaha is expanding its capacity in existing two plants and
also coming up with a 3rd plant in chennai, shooting up its capacity
from 40000 units per month to 1 Lac units per month within a span of
18 months. At present they have 400 dealers, to increase the
distribution network in tier 2 and tier 3 cities they are increasing
to total of 2000 dealers.

Suzuki: Suzuki plans to increase 5 times from its existing capacity by
setting up a new plant in Rohtak and coming up with 7 new models of
bikes of different variants

In the coming years the impact of MNCs will be so strong that it will
weaken the Indian domestic players. Currently MNCs hold a market share
of 25% which is predicted to go up 55% to 60% in span of 2 years
establishing supremacy in Indian two wheeler industry

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