The Indian two-wheeler market has matured significantly in the last
two decades, causing stiff competition amongst the players in this
market. This article quickly scans the Indian automobile industry from
independence to the present. http://www.infibeam.com

The two-wheeler industry in India has grown rapidly in the country
since the announcement of the process of liberalization in 1991 by the
then finance minister Dr. Manmohan Singh, now Prime Minister of
India.

Previously, there were only a handful of two-wheeler models available
in the country. Currently, India is the second largest producer of two-
wheelers in the world. It stands next only to China and Japan in terms
of the number of two-wheelers produced and the sales of two-wheelers
respectively. In the year 2005-2006, the annual production of two-
wheelers in India stood at around 7600801 units.

The trend of owning two-wheelers is due to a variety of facts peculiar
to India. One of the chief factors is poor public transport in many
parts of India. Additionally, two-wheelers offer a great deal of
convenience and mobility for the Indian family.

The condition of motorcycle manufacturers was no different. Until the
mid 80’s, there were only three major motorcycle manufacturers in
India namely Rajdoot, Escorts, and Enfield. The two-wheeler market was
opened to foreign manufacturers in the mid 80’s. The industry, which
had seen a smooth ride before, faced fierce foreign competition.

Motorcycle companies like the Yamaha, Honda, and Kawasaki, set up shop
in India in collaboration with various Indian two-wheeler companies.
Companies like Escorts, Rajdoot and faced immense competition from
smaller 100 cc Japanese technology motorbikes. Bikes manufactured by
Hero Honda, the only company manufacturing four-stroke bikes at that
time, gained massive popularity.

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