Flooding the Indian Motorcycle Market

The restrictive policy of the government towards the passenger car industry in the pre-liberalization era, the rising demand for personal transport and the inefficiency of the public transportation system were some factors responsible for the strong growth in the two-wheeler segment. The Indian two-wheeler market is broadly classified into three major segments - scooters, motorcycles and mopeds. Bajaj Auto laid the foundations of the Indian two-wheeler industry in 1948 by trading in imported Vespa scooters. In 1952, Enfield India Ltd. started manufacturing motorcycles, followed by Ideal Jawa and Escorts in the 1960s. The motorcycle segment registered a healthy growth during the 1960s and accounted for 36% of the total two-wheeler sector sales in 1971-72.

However the scenario changed with the de-licensing of the sector in the 1980s. The number of manufacturers increased drastically and the focus shifted to branding and product features. Scooters dominated the two-wheeler market until 1990, accounting for an estimated 60% of the market. Bajaj Auto was the undisputed leader in the scooter market, followed by LML and Kinetic. The healthy growth of the 1980s continued through to the 1990s, and the two-wheeler segment registered a growth of 14%. Till the 1980s, Enfield, Escorts and Ideal Jawa were the only major players in the motorcycle segment. From the mid 1980s, the segment gradually picked up momentum and its high growth potential forced all the major two-wheeler players to focus on the segment...