consumer behaviour

Topics: Bajaj Auto, Motorcycle, TVS Motors Pages: 5 (1470 words) Published: October 28, 2013
The era of post independence from the 50's to 70's saw the emergence of the two-wheeler industry. There were a handful of players like Bajaj Auto , Yezdi, Royal Enfield, though with limited production. Manufacturing was licensed, expansion restricted and locations for setting up plants decided by the government. Two wheeler productions were under a lakh during the 70's and iconic brands like Royal Enfield' s bullet and Bajaj Auto's Chetak won the hearts of Indian consumers. "There was dowry and chetak. Dowry was bad and chetak good,� says Rahul Bajaj, chairman, Bajaj Auto After almost decades of a monopoly for Bajaj Auto, things began to change. The 70's and 80's saw new manufacturers like LML Scooters India and Kinetic emerge. This decade got manufacturers the best margins and two wheeler productions went upto almost 4 and half lakh units �Growth rate has not been what it was in 80s, then early 90s shift over period of scooters to motorcycles� adds Bajaj But the 80's proved to be the transformational decade. A slew of global alliances were struck. Hero tied up with Honda, TVS with Suzuki and Escorts with Yamaha. It was hero Honda that moved the Indian market from scooters to bikes with the promise of fuel economy, better technology and a stylish product. Market leader Bajaj was caught off guard but managed to fight back. The ones who failed to make the transition continue to struggle. Post liberalization the focus was on technology, pollution control, emission norms, increased competition and segmentation. Two wheelers production grew to almost 38 lakh units. This period incidentally saw global alliances like Kinetic Honda, TVS Suzuki, and Yamaha Escorts come apart with the foreign partners going it alone. The last 7 years have seen an increase in exports, capacity expansion, more investments and almost a dozen vehicle manufacturers. But global big boys like BMW, Harley Davidson, Triumph, Ducati continue to give India the cold shoulder. While high-end bikes may not make strategic sense yet is it the need of the road for the 100 cc bike? And with small cars with a sub 1000 cc engine market and a price tag of a lakh hitting the Indian market, the two-wheeler makers may find the going tough. Increased disposable income- more families graduating to threshold level of income, increasing need for mobility, demand from semi-urban and rural areas, wider choice, lower prices and greater financing opportunities are contributing to two wheelers growth. From almost a single player to a dozen players today in India, with penetration levels of 30-40 /1000 people owns a motorcycle, there is a huge potential in the two-wheeler market. On October 28, 2013, at 12:08 hrs Bajaj Holdings & Investment was quoting at Rs 819.50, up Rs 3.00, or 0.37 percent. The 52-week high of the share was Rs 1058.00 and the 52-week low was Rs 743.75. The company's trailing 12-month (TTM) EPS was at Rs 64.74 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 12.66. The latest book value of the company is Rs 466.04 per share. At current value, the price-to-book value of the company was 1.76.

Read more at: http://www.moneycontrol.com/news/business/ridingtwo-wheeler-through-60-yearshistory_298057.html?utm_source=ref_article

The era of post independence from the 50's to 70's saw the emergence of the two-wheeler industry. There were a handful of players like Bajaj Auto , Yezdi, Royal Enfield, though with limited production. Manufacturing was licensed, expansion restricted and locations for setting up plants decided by the government. Two wheeler productions were under a lakh during the 70's and iconic brands like Royal Enfield' s bullet and Bajaj Auto's Chetak won the hearts of Indian consumers. "There was dowry and chetak. Dowry was bad and chetak good,� says Rahul Bajaj, chairman, Bajaj Auto After almost decades of a monopoly for Bajaj Auto, things began to change. The 70's and 80's saw new...
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