MNCs ESTABLISHING SUPREMACY IN INDIAN TWO-WHEELER INDUSTRY

MNCs have deeply penetrated the Indian two-wheeler industry and are spreading their reach all over India with extensive distribution network. This has started impacting the Indian domestic players as their market share are on decline and within couple of years it seems like the MNCs will capture maximum market share of the Indian domestic players and doinate the market

 Honda: Honda a MNC is aiming at dominating the market and capturing the No.1 position in the Indian motorbike industry leaving Hero behind. Two years back Honda's production  capacity was 80000 units per month, which has increased to 2.5 lacs units per month and further targeting to more than 5 lacs units per month within 2 years. The firm is all set to start production at the upcoming 3^rd plant in Narsapur facility in Kolar district, near Bengaluru from January 2013 along with an additional second line of production in its 2^nd plant in Rajasthan in March 2013. To boost it all it is further investing Rs 1,500 crore in its 4^th plant at Karnataka, scheduled to open in 2014, as a part of expansion of network.

 Yamaha: Yamaha is expanding its capacity in existing two plants and also coming up with a 3rd plant in chennai, shooting up its capacity from 40000 units per month to 1 Lac units per month within a span of 18 months. At present they have 400 dealers, to increase the distribution network in tier 2 and tier 3 cities they are increasing to total of 2000 dealers.

Suzuki: Suzuki plans to increase 5 times from its existing capacity by setting up a new plant in Rohtak and coming up with 7 new models of bikes of different variants

 In the coming years the impact of MNCs will be so strong that it will weaken the Indian domestic players. Currently MNCs hold a market share of 25% which is predicted to go up 55% to 60% in span of 2 years establishing supremacy in Indian two wheeler industry.

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