Riding the two-wheeler through 60 years of history

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Riding the two-wheeler through 60 years of history

From humble scooters to bikes and now bikes that are over a lakh of rupees! India, the world's second largest 2-wheeler market after China has undergone a strong evolution where consolidation is the name of the game now!

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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.