India's Two Wheeler Market Is Growing Well

The country’s third largest two wheeled vehicle maker TVS motors has announced that their sales have grown by at least 11% for the month of August as compared to the same time last year. This bit of information comes on the back of another significant bout of growth recorded by the company a month earlier in July where TVS showed a rise of 13%.It is interesting to note that TVS have managed to post significant levels of growth in an environment where consumers have thought many a time about buying a new vehicle.

Some consumers have made the trade-off between buying a car and buying a 2 wheeler due to the uncertainty over fuel prices .Most obviously, this decision has benefitted TVS as reported in the figures.However, even in such a case a high rate of growth isn’t being attributed to this aspect alone. It shows that there is still an inherent market in India for two wheelers.

Something that has also rubbed off on TVS’s bigger rival and India’s 2^nd largest two wheeler maker Bajaj. Even Bajaj have reported an increase in sales of their motorcycles by 5% compared to last year. It is interesting to note that despite Bajaj having sold more motorcycles that TVS, their rate of growth is nearly half that posted by TVS.

Market leaders Hero Honda are definitely taking a note of this. However it shouldn’t worry them too much because they too have posted great results for the month of August. Hero Honda has banked on the fact that their existing array of motorcycles will be good enough to drive sales for some time. Their only significant marketing movements have been towards bringing awareness to redesigned variations of their super successful ‘Splendor’ bike and expanding sales into rural and semi-urban areas.

TVS have focused on making products for each sector of the 2 wheeler industry. Right from mopeds to scooters to faster motorbikes aimed at combining speed with mileage. The strategy has impacted the growth of TVS as a company significantly. The increased diversity of their vehicles has led to a big market overseas.

Combined with the relatively cheaper price of the TVS bikes and their reliable quality, foreign markets have been continuously importing them. It is therefore not a surprise to see that TVS’ exports have grown by fifty one percent this August as compared to last.

The company is viewed as one that is fundamentally quite strong .Their revenues last year amounted to a little around a Billion Dollars. With the increased competition that the 2 wheeler industry will face with the new wave of the smaller Indian cars, there are going to be significant innovative developments in this field.

Quite naturally, TVS will do their part as well. It would therefore not be a bad idea to invest in this company with a proposed long term view. There is immense growth expected in the Indian 2 wheeler market.The three biggies Hero Honda, Bajaj and TVS will be trying their best to take advantage of this.