CHAPTER II - INDUSTRY PROFILE Automobiles have now evolved...

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INDUSTRY PROFILE Automobiles have now evolved as a necessity product in day today life, from a status of luxury in the olden days. Survey reports depict that about twenty to thirty percent of one’s annual income is spend on purchasing the automobile. Moreover, there has been a steep increase in the disposable income of consumers. In particular the middle class constitute the big buyers of the Indian market. Recently the life styles of people have changed considerably. In recent years there has been repaid growth in the production and sales of two wheeler industries. The entire category has registered a substantial growth in the recent years. While throughout the last twenty years there has been a steady expansion in the range of consumer products seen in the markets of the country, a big spurt and more visible expansion has been taken place in the mid seventies and mid eighties. A long array of new consumer’s goods was successfully launched in the market during this period. Most of them became real hits in the market and are now enjoying continued patronage. In addition many of the older products acquired new strengths and new marketing dimensions, making the market rich with a wide range of products. It seems that the middle class is going through a continuous progression in
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the acquisition and enjoyment of never and newer consumer products. For the middle class consumers there are continuous shifts from mopeds to scooters, Automobiles and to car industry. The dynamics of the motorized two-wheeler industry in India make fascinating reading. From a semi luxury product for the urban middle class in the eighties and earlier, the two-wheeler has now become not only the favorite mode of personal transport but also the most coveted personal (household durable) possession among nearly all consumers’ classes, except perhaps the most affluent. Leading this emergent boom has been seems to be equally at home on highways and rural by ways. The trend however has been somewhat similar in all the emerging markets of the world, thanks to the growing economically active and ambitious class, the relative youth of the population, the lower cost of the two-wheeler compared to cars in terms of number of months wages required to pay for it as well as its inherent attractiveness especially to the young male. The game is going to hot up by the year and will remain extremely price-competitive while remaining performance and reputation drive. World Market:
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The global market for two wheelers has shown tremendous growth over the past decade. In 2001 world sales of two-wheelers totaled 27 million. Looked at more closely, however, the geographic spread of this growth has been very uneven. Asia has accounted for the vast majority of growth, sales in the entire region
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CHAPTER II - INDUSTRY PROFILE Automobiles have now evolved...

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