India Three Wheeler Market Research Report Sample by Goldstein Research by Goldstein Market Intelligence

India Three Wheelers Market Outlook

India Three Wheelers Market Outlook 2024: Opportunity & Growth Analysis, 2016-2024

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Report Code :AM 1335

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India Three Wheelers Market Outlook India Three Wheelers Market Share(%), By Region-2016-2024

India Three Wheelers Market Size USD (Billion). 2016-2024 XX XX

XX% CAGR: (2016-2024)

XX XX

Request Full Market R eport Sample 26. 28.3 33. 92 65 2016 % 39. % 42 %

XX XX XX

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Tier-I Cities

2016e 2017e 2018f

Source: Goldstein Research

2019f

2020f

2021f

2022f

2023f

2024f

Automotive Turbochargers Market

Passenger Carrier

80.0 0%

Source: Goldstein Research

35.8 5%

Tier-II Cities

Tier-III Cities

Goods Carrier

5.00 8.00 % % 38.0 0% 32.0 0% 17.0 0%

Source: Goldstein Research

Tier-II

XX%

With share in 2016, Cities dominated the India three wheelers market

India Three Wheelers Market India Three Wheelers Market Share (%), By Fuel Type -2016 Share(%), By Vehicle Type-2016

20.0 0%

2024

Source: Goldstein Research

Passenger Three Wheelers accounted for the highest market share XX% in Global

In 2016,

35.8 5%

Diesel

India Three Wheelers Market Share (%), By Major Players -2016

Bajaj Auto

Petrol

Piaggio

XX% XX% XX% XX% CNG

LPG

Mahindr a XX%

XX%

Atul Motors TVS Scooters India

Electric

Source: Goldstein Research

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India Three Wheelers Market Outlook

 The export market for three-wheelers mirrored the domestic market scenario. Overseas shipments fell by a substantial XX% to XXX,000 units as compared to XXX thousand units in FY2016. The passenger carrier segment registered a fall of XX% while growth in the goods carrier segment was flat. Bajaj Auto remains the largest export player with a XX% share of total export, followed by TVS Motor with XX% and Piaggio with a XX% share. 

Growing Sales in Rural Regions

Request Full Market R eport Sample Over the past few years, manufacturers like Tata Motors and Mahindra & Mahindra

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have been expanding the mini truck segment to every load and price point. This is taking a toll on the three- wheeler segment which is seeing transport operators preferring to buy a four-wheeler which offers better operating economics and also social status in the Indian context

 Overall three-wheeler sales in FY2016-17 fell XX% to XXX thousand units (2015-16: XXX,000). While sales of passenger carriers, the biggest segment in the threewheeler segment, declined XX% to XXX,000 units (2015-16: XXX,000), the goods carrier segment registered XX% growth with sale of XXX,000 units (2015-16: XX,000).

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Stringent Emission Norms

 Three wheelers are an integral part of the country’s automobile sector as they are one of the most preferred means of transportation in rural as well as urban India. India is positioned as the largest manufacturer as well as market for three wheelers globally with industry volumes of around XXX,000 units in 2015-16.  Moreover, three wheeler manufacturers in India are growing interest in exploring the rural markets, which further aided the three wheelers market growth in India. In 2018, it is expected that three wheelers market is anticipated to witness gradual pickup in demand as the effect of demonetization and GST begins to moderate.

Fuel Efficiency

India Three Wheelers Sales (Million Units) Domestic Sales

2016 2024 Copyright

Export

XX Thousand Units

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Technolog ical Advancem ent

Research Methodology

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Research Methodology

Goldstein Research follows a comprehensive and rigorous research methodology to provide you accurate estimates and forecast of a particular market. We provide estimates, forecast and analysis primarily based on secondary research, primary interviews, in-house database and other free as well paid sources. Our company follows simultaneous top down and bottom approach in order to provide you the accurate market sizing. Data triangulation method is strictly followed where we triangulate the data from all the aspects, be it Function Type, application, industry verticals, material, product type or geography. In addition, the research methodology we follow is a systematic approach in order to estimate and project the market sizing keeping in mind all the on-going and upcoming trends of the market. We conduct both primary and secondary research in order to estimate a market and validate our key findings.

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We put together our effort and prepare an inclusive questionnaire depending on the title of the market we are tracking and extract the important information we require to validate our findings. Our team of Analysts and experts dedicatedly put their effort to provide you the best possible and accurate data and analysis. Adding to that; technological, economic, cultural and social aspects along with the regulatory barriers are completely analysed to understand the comprehensive market scenario across different geographies. Understanding the market from both buyer and seller point of view is important to track a market and provide analysis on the same. We not only provide the market data of the four geographies as a whole, namely, North America, Europe, Asia-Pacific, Latin America, Middle East & Africa and Rest of the World (RoW) but we also provide you qualitative as well we qualitative information on country level bifurcation. We at Goldstein Research provide you: • Precise Estimates and Forecast • Authentic Analysis • In-depth Data and Analysis • Authentic Sources • Reliable Data and Analysis

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India Three Wheelers Market Outlook : 20162024 Fig: 11: Three-wheelers: Production, Sales and Exports (Thousand Units) 2014-2017

Fig: 10: Regional Three Wheelers Registrations (thousands of units), 201-2016 XX

XX%

2015

2016

XX XX%

XX XX% XX

XX XX

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XX XX

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XX XX

Tier-I Cities

Tier-II Cities

Tier-III Cities

Source: Goldstein Research

Three wheelers are an integral part of the country’s automobile sector as they are one of the most preferred means of transportation in rural as well as urban India. India is positioned as the largest manufacturer as well as market for three wheelers globally with industry volumes of around 943,533 units in 2015-16.

Sri Lanka, Bangladesh (within South Asia) followed by Middle East and Africa account for around 90% of exports from India as per the industry estimates. However, Indian OEMs have also started exploring relatively developed markets in the ASEAN and Latin American region over the past few years. Bajaj Auto accounts for the largest share of ~70% in the exports of three-wheelers from India followed by TVS Motors which account for about 24%.

2014-15

2015-16

Production

Sales

2016-17 Exports

Source: Goldstein Research

Production declined marginally by 1.6% in 2015-16 and reached 933,950 units on back of lower demand from key exports market. Exports increased only by 5% y-o-y after increasing by over 20% in the previous year. In 2016-17 (Apr-Jan), overall sales declined by about 15.9% led by a sharp dip in exports during the period. Exports declined by 34% during the period on back of combination of factors such as regulatory moves by countries like Sri Lanka (hike in import duty) and Bangladesh (as per new regulation threewheelers not allowed to operate on highways), currency fluctuation and reduction in export incentives. Also, in the domestic market, demand for three-wheeler goods carriers’ remains under pressure due to competition from Small Commercial Vehicles (SCVs).

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Major Players â&#x20AC;&#x201C; Market Analysis:

Major Players/ Industries

Bajaj Auto

Production Domestic Sales Export Total Capacity (Thousand Units) (Thousand Units) (Thousand Units) (Thousand Units)

Revenue (USD Million)

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XX XX Market XX Request Full

eport Sample

Piaggio Vehicles

Mahindra & Mahindra

Atul Auto

Scooters India

TVS Motor

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India Three Wheelers Market Size (USD Billion) & Growth Analysis Fig: 13: India Three Wheelers Market Size (USD Billion)-2016-2024 XX

XX XX

XX 2016e

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2017e

Source: Goldstein Research

XX Request Full XXMarket R XX eport Sample XX

2018

2019

2020

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2021

2022

2023

2024

India Three Wheelers Market

is anticipated to expand at a compound annual growth rate of XX% during the forecast period i.e. 2016-2024. The market is anticipated to reach USD XX Billion by the end of 2024. Further, three wheelers sales increased from XXX thousand units in 2015 to XXX thousand units in 2016, which is likely to reach XXX million units by 2024.  Growth in the market is led by the growing need to curb the air pollution levels and the rising incentive schemes by the government to support manufacturing as well as use of electric three-wheelers. Moreover, consistently increasing affordability of electric three-wheelers is also boosting their adoption across the country.  one of the major trend that driving the growth of three wheelers market is the up-gradation of three wheelers. Three wheeler passenger carriers are expected to benefit from product up-gradations such as 2-stroke to 4-stroke and petrol/diesel to CNG as well as from the fresh permit opening by different state governments. Further, major driver in Indian three wheelers market is the rising population and growing need for affordable and convenient transportation in Tier-II and Tier-III is fuelling the market for passenger and goods carrier three wheelers in India.

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Market Dynamics

Fig: 13: Growth Drivers

Fig: 14: Growth Barriers

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Short Driving Range and Speed

Money Saving

m a S Utilizing lead acid battery technology

Not Not Suitable for Cities Facing Shortage of Power

Sample

General Trend

Highly Complex

Moderately Complex

Waived

Rural Sales Copyright

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Growth Drivers Growing Demand in Domestic and Foreign Rural Areas

Technological Advancements



Rapid growth of three wheelers market has been supported primarily by two factors – strong demand from international markets on the back of rising demand for last-mile connectivity (owing to lack of a well-developed public transport system) in the emerging markets in Africa and South-East Asia, and the declining trend in demand for 3W goods carriers in the domestic market due to competition from Small Commercial Vehicles (SCVs).

 Electrification of twoor three-wheeler Request Full Market R vehicles is something that can be done cheaply, easily. It’s where technology Accordingly, the growth drivers of the domestic 3W industry are eportvery andSample battery swaps could happen and majorly influenced by factors that drive demand for passenger 3Ws. Over the past decade (i.e. FY 2006-15), the passenger carrier segment has witnessed a CAGR of XX% driven by increasing demand for last-mile connectivity in metros and major cities; improving penetration in T-3 and 4 towns and rural areas, gradually increasing availability of funding through organized channels.



In urban markets, replacement demand has also been an important growth driver where an improving network of CNG fuel stations is driving replacement of older petrol or diesel-powered 3Ws with ones based on CNG.

XX XX XX XX

XX XX XX

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that’s a very significant part of oil demand.



he challenges associated with very rapid growth of electric cars is very significant. The total subsidy on an electric car in China is USD 20-25,000 while fitting a car with compressed natural gas (CNG) kit costs as low as USD 300-400.

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Fig: 17: Total Sales of Three Wheelers (Thousand Units)2005-2016

India should push two-wheelers and three-wheelers among electric vehicles and encourage use of natural gas for cars since promoting electric cars can be very expensive

Impact Analysis:-

 three-wheeler passenger carrier production has grown incessantly to meet the demand for such vehicles in tier-II and tier-III cities. Many players are planning to introduce new vehicles with more advanced features under this segment. It is anticipated that the three-wheeler passenger carriers’ sales will increase at a CAGR of over 5.2% during 2014-15.

XX XX XX XX 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 High

Medium

Low

Impact on India Three Wheelers Market

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Market Restraints Declining Export Volumes

 India's automobile exports across categories fell XX per cent in 2016 dragged down by lower sales of two and three-wheelers in various markets, including Latin America and Africa. According to latest data by Society of Indian Automobile Manufactures (SIAM), overall exports during the last year stood at XXX thousand units as compared XXX thousand units in 2015, down XX per cent.

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 Two-wheeler and three-wheeler exports pulled down the overall exports during the last year even as overseas shipments in segments like passenger vehicles and commercial vehicles grew in double digits. Major markets in Latin America and Africa continued to reel under high inflation and currency devaluation thereby impacting demand for vehicles exported from India.

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 Overseas shipments fell by a substantial XX% to XXX thousand units as compared to XXX thousand units in FY2016. The passenger carrier segment registered a fall of XX% while growth in the goods carrier segment was flat. Bajaj Auto remains the largest export player with a XX% share of total export, followed by TVS Motor with XX% and Piaggio with a XX% share.  All three-wheeler manufacturers saw a sizeable drop in both their domestic and export sales, a trend which is attributed to three-wheelers being replaced by aggressively priced, small four-wheeled mini-trucks.

Fig: 17: Margins of Two-Wheeler & Three-Wheeler players, (2010-016)

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Impact Analysis: While overall automotive sales for 2016-17 remained positive as a result of the uptick in demand for passenger vehicles, commercial vehicles and two-wheelers in the domestic market, one segment that took a hit was three-wheelers.

20 15 10 5 0 2010-11

2011-12

2012-13

2013-14

Operating Margi ns

2014-15

2015-16

 Dramatic cost reductions over the last few years have significantly reduced all plug-in vehicle production costs and resulted in growing market for battery electric vehicles, which is likely to throttle the growth of conventional turbochargers market growth.

Net Margi ns

Fig: 17: Emission Share by Transportation Mode for India (20002030) 25

PC, Utility and MPVs

Carbon Monoxide (Tg)

20 15

Heavy Commercial Vehicles

High

Medium

Three-Wheeled Vehicles

5 0 2000

Impact on India Three Wheelers Market

Light Commercial Vehicles

Two-Wheeled Vehicles 2005

2010

2015

2020

2025

2030

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Low

India Three Wheelers Market Opportunity, 2016-2024 India Plans To Buy Electric Buses, Three-Wheelers In Clean Transport Push The government plans to launch an electric vehicle procurement scheme to push cleaner transport in the country. The government plans to buy 10,000 electric buses over the next 15 months, and 50,000 three-wheelers. Stocks of electric vehicle makers jumped following announcement. Electric three-wheeler maker OK Play India Ltd. rose as much as 17 percent, while electric bus manufacturer JBM Auto Ltd. gained 6.7 percent. JSW Energy Ltd., which plans to launch its first electric car by 2020, jumped 10 percent. Battery maker Exide Industries Ltd. jumped 6 percent.

XXX 2024

Source: Goldstein Research

Our report, “India Three Wheelers Market”, observed that the three-wheeler passenger carrier production has grown incessantly to meet the demand for such vehicles in tier-II and tier-III cities. Many players are planning to introduce new vehicles with more advanced features under this segment. It is anticipated that the threewheeler passenger carriers’ sales will increase at a CAGR of over XX% during 2016-24. Copyright

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Government Regulations Demand for new vehicles in the future will be driven by the age limit enforcement on usage of three wheelers in large cities. Government regulations and incentives in the form of subsidies on usage of cleaner fuels like CNG and LPG will force a shift to new vehicles. This trend is already visible in cities like Delhi and Ahmedabad. Relaxation of ceilings on new vehicle registrations in cities like Bangalore, Mumbai, Delhi and Hyderabad will also generate demand for three wheelers.

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Fig: 19: India Three Wheelers Export (Thousand Units), 2016-2024

XXX 2016

Need for Economically Viable Transportation System The high growth achieved by the Indian economy has resulted in the growth of the manufacturing sector, which in turn has generated demand for vehicles for transporting goods and commodities across the country. India is moving towards a hub and spoke transportation model in which M&HCVs are used for inter-city (hubs) transportation and the three-wheelers fulfill the need for last mile connectivity in goods transport.

Exports of Three Wheeler Vehicles from India The highest growth in automotive exports has been recorded by the three wheelers segment. Bajaj Auto is the largest exporter of three wheelers with a share of XX per cent in 2016-17. Passenger versions of three wheelers accounted for XX per cent of the exports by Bajaj Auto, a fact that indicates the need for low cost public transportation in the other developing countries. www.goldsteinresearch.com

India Three Wheelers Manufacturers Outlook Major Competitors Analysis In the environment of massive competition, stiffening norms and policies, diversion of customers towards the four wheelers, Bajaj need to be proactively involved in attracting the prospective customers and improving the customer satisfaction level. Retaining the market share is possible with the support, cooperation and effective backing of Dealers and Sub dealers. This research analyses the present system of sales and service, customer expectation form the company, competitorâ&#x20AC;&#x2122;s products and possible ways to improve the market share.

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Piaggio Vehicles Private Limited (PVPL) in India is a 100% subsidiary of Piaggio & C. Spa of Italy, a world major in two, three and four wheeled motorized vehicles. Piaggio has about 33% of the share in Indian threewheeler market. The company claims it is currently the market leader in the state-of-the-art three-wheeler diesel category in India, with a market share of 55%. M&M entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. They have grown into a US USD XX billion multinational group with more than 1,44,000 employees in over 100 countries across the globe. M&M says it is the only three-wheeler with 24 months warranty. M&M has about 8% of the market share in the diesel segment of passenger vehicles.

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2007-2008. TVS has about 10% share in the three-wheeler market, and its growing rapidly. Bajaj Auto, the largest player in the three-wheeler industry with a dominating presence in the passenger carrier segment, posted flat sales. Its India market sales were a total of 253,147 units, down 0.72%. Its exports though took a bigger hit â&#x20AC;&#x201C; down 31.70% with total shipments of 191,236 units.

Market share in Out-City Region XX% XX%

XX% XX%

Diesel LPG Petrol

Bajaj Mahindra Piaggio

XX% XX%

FACTS: The out city market is dominated by the diesel variant of the Auto rickshaw with, XX% of Diesel rickshaw. The market is dominated by the Piaggio with XX% of the share, followed by Bajaj having around 32.8%

INFERENCE: From the data it is inferred that the Piaggio is the market leader in out-city region and the Bajaj being the second in the market is the market challenger. So Bajaj and other players should adopt the Challengers strategy for its sales in the out city market.

Financial Aid

XX%

Bank XX%

Cash Co-op Society

XX%

Personal

FACTS: XX% of the customers obtained financial assistance from the Recognized Banks XX% of the customers got the assistance from Co-operative societies

INFERENCE: From analysis it is evident that nearly 90% of the customers are in need of financial assistance If Bajaj can tie up with Banks and Co-operative societies it will be very beneficial for the customers as well as it will help to increase the sales of theBajaj, three wheeler vehicles

India Three Wheelers Market Outlook Piaggio (Company Overview & Business Strategy)

Founded 1926

Employees 51,458

Company Overview

Headquarters Japan

Request Full Market R eport Sample Key Products



Piaggio Motor Corporation is a Japanese automotive and material handling equipment manufacturer headquartered in Piaggio, Aichi, Japan.



The Company is traded on the New York Stock Exchange (NYSE)

Reach Truck



Piaggio was the largest automobile manufacturer in 2012 (by production) ahead of the Volkswagen Group and General Motors.

Low Lift Truck



The Industrial Vehicle segment provides forklift trucks, warehouse equipment, automatic warehouse, vehicles for high-place work.



Lift trucks, which capture the top global market share*, are delivered to customers around the world under the Piaggio, BT, RAYMOND and CESAB brands.

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Website www.PiaPiaggio.com

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Internal Combustion Lift truck

Warehouse Logistics

Simple AGV (Automated Guided Vehicles) Automated storage and retrieval system

Business Strategy

Improves quality control structure and globalization: The company has adopted various methods to enhance their manufacturing structure which helps the company to improve the quality of their automobile products. Moreover, the company is looking forward towards expansion of globalization. Piaggio Motors adopted Piaggio Global Vision in 2011 to improve the quantitative expansion across the globe. The company is investing a huge amount for research and development activities to introduce the future of material handling equipment such as hydrogen powered forklifts and automated guided vehicles. The company spend USD 588.11 Million in 2016 for research and development of their products and services. Piaggio motors is one of the largest automobile and material handling equipment manufacturer across the globe and expected to lead other global companies in near future.

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India Three Wheelers Market Outlook

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