Competition in the Two Wheeler Industry

COMPETITION IN THE TWO WHEELER INDUSTRY A bulge OF MANAGERIAL ECONOMICS 22 Aug 2008 COLONEL AJAY REDDY Bajaj and Honda, two friends were dismission for a passing in the jungle. Suddenly, a tiger appears and both Bajaj and Honda began to run. Honda pantingly asked Bajaj, Do you echo we will be able to run the tiger? Bajaj replied, I dont have to place run the tiger. I just have to out(a)run you. {the tiger will do the rest!!}. That is the essence of the tem competition. The two-wheeler manufacture in India has been in existence since 1955. It consists of three segments viz., scooters, motorcycles, and mopeds. The increase in sales plenty of this industry is proof of its high growth. In 1971, sales were approximately 0.1 million units per annum. But by 1998, this radiation diagram had risen to 3 million units per annum. Similarly, capacities of production have to a fault increased from rough 0.2 million units of annual capacity in the late mid-nineties in the seventies to more than 4 million units in the late nineties . Background The two wheeler market in India is an Oligopoly. This is because there atomic bite 18 only 6-8 major players in the field. The buyers are in millions. The various two wheeler majors in India are:- (a)Bajaj Auto Limited. (b)LML. (c)TVS. (d)Rajdoot. (e)Hero. (f)Enfield. (g)Kinetic.

Aim This document seeks to analyse the competition betwixt important two-wheeler firms in India. Preview This document is laid out in the following parts:- (a)Part 1: Govt Control. (b)Part 2: trade Share of Two Wheeler Sales. (c)Part 3: What Shoul d the Firms do? array 1: GOVT CONTROL T! he price of the two-wheelers varies across the hoidenish due to fun in registration charges, state taxes and octroi levied by states. Years ago, the GOI utilise to consider the automobile industry as a luxury segment. But the growing importance of two-wheelers and the change magnitude destiny of personal transportation for the middle class in eighties, coerce the GOI to give a...If you want to get a lavish essay, guild it on our website: OrderCustomPaper.com

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