Themes: Business Environment
Period : 1990s-2002
Organization : Hero Honda, TVS
Pub Date : 2002
Countries : India
Industry : Automobile & Automotive
- Business Line, January 2001.
In 1999, Hero Honda, the leading motorcycle manufacturer in India, launched the CBZ 156-cc motorcycle - and the Indian motorcycle market was never the same again. Following this, all major players went on a 'motorcycle launching spree.' Bajaj Auto, the second largest player, launched Bajaj Kawasaki (BK) Boxer AT and CT. |
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In October 2001, Bajaj launched the Pulsar and TVS launched the TVS Victor 110-cc. The unusual aspect about these launches was the frequency - just two years after CBZ, over 15 brands had been introduced. This was equal to the total number of brands launched in the 4-year period prior to 1999. While in 1992, only one out of every five vehicles sold in India was a motorcycle, in 2001, one out of every two vehicles sold was a motorcycle.
During 2001, motorcycle sales crossed the two million mark, leading the two-wheeler industry sales for the eighth consecutive year, recording a compound growth of 25% (1993-2001). The unprecedented hectic activity in the Indian motorcycle market between 1999-2001 had taken even auto analysts by surprise, with the players revealing plans to launch more bikes in the next few years.