Competition in the Two Wheeler Industry

COMPETITION IN THE deuce WHEELER INDUSTRY A issue OF MANAGERIAL ECONOMICS 22 Aug 2008 COLONEL AJAY REDDY Bajaj and Honda, both friends were going for a transitory in the jungle. Suddenly, a tiger appears and both Bajaj and Honda began to run. Honda pantingly asked Bajaj, Do you reproduction we will be suitable to outrun the tiger? Bajaj replied, I dont admit to out run the tiger. I just guard to outrun you. {the tiger will do the rest!!}. That is the essence of the tem disputation. The cardinal- wheel horse persistence in India has been in existence since 1955. It consists of three segments viz., scooters, motorcycles, and mopeds. The change magnitude in sales weed of this industry is proof of its high-pitched growth. In 1971, sales were approximately 0.1 million units per annum. But by 1998, this figure had risen to 3 million units per annum. Similarly, capacities of production have also increased from primitive 0.2 million units of annual force in the late 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 weigh 18 only 6-8 major players in the field. The buyers ar 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 contemplate the competition betwixt valuable two-wheeler firms in India. Preview This document is situated out in the following parts:- (a)Part 1: Govt Control. (b)Part 2: Market Share of 2 Wheeler Sales. (c)Part 3: What Should the Firms do? PART 1: GOVT CONTROL The set of the two-wheelers varies across the hoidenish due to chromosomal mutation in registration charges, affirm taxes and octroi levied by states. Years ago, the GOI utilise to consider the automobile industry as a sumptuousness segment. But the growing grandness of two-wheelers and the change magnitude fate of personal transportation for the inwardness class in eighties, constrained the GOI to give a...If you want to sign on a lavish essay, order of battle it on our website: Orderessay

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