The automobile industry is a wide range combination of different companies/firms involved in various manufacturing units including Passenger Vehicles, Commercial Vehicles, Two Wheelers, Three Wheelers and Quadricycles.
On the flip side, the Bicycle industry in India has been generating decent revenues for the ownership companies. After China, India is the second-largest cycle manufacturer in the world and bicycle brands such as Hero Cycles, Avon Cycles, Atlas and Firefox Cycles are few others which are very popular in India.
What are the key aspects of the Automobile industry in India?
As per 2019 statistics, Indian is the fourth largest with almost 4 million vehicles sold in the category of passenger and commercial vehicles.
As per the current trend in 2021, India is likely to overtake Japan which is enjoying the third spot in the auto market by the end of the year.
With the growing youth population and economic standards of the middle-class section, the usage of two-wheelers is showing a positive trend by each passing year.
A few economic and automobile market agencies predict that Indian is soon going to emerge as a leader in the manufacturing and usage of two-wheeler and four-wheeler vehicles.
How big is the Automobile industry in India?
Despite the Corona crisis across the world, the automobile units in India have maintained stability due to the excellent performance in the previous years.
Including two-wheelers and passenger vehicles, the small and mid-sized cars dominated the market in the year 2020 with an approximate sale of close to 22 million.
Overall, automobile export reached close to five million vehicles in 2020. While approximately 74% of the total sold are two-wheelers, the rest is contributed by passenger vehicles, three-wheelers and commercial vehicles.
Premium motorbike sales, EV sales witnessed good growth. Adding to it, the sale of luxury cars also saw a decent spike last year.
To keep up with the growing demand, several automobile industries started launching new segments from the past few months.
By mid-2020, the Indian automobile industry has attracted Foreign Direct Investment ( FDI) worth of approximately 25 billion dollars, says a data unveiled by DPIIT.
Some of the main developments and investments in the automobile sector are mentioned below.
A) Audi India planning to launch nine new models including Sedans, SUVs and futuristic E-Tron EV in 2021.
B) A British automobile brand, Morris Garages( MG) is planning to invest an additional amount of ₹3,000 crores in the Indian market
C) Tata Autocomp Systems, the auto-components arm of Tata Group entered a joint venture with Beijing based Prestolite Electric to venture into the EV components market.
Bicycle market in India?
Being a common man’s transport in rural areas and among low-income societies, the bicycle market in India always enjoys a significant value.
Bicycles are of two types. While a few are meant for roadsters, fancy kids, the others are specially designed like mountain bikes, sports bikes, hybrid bikes, touring bikes etc.
Usually, bicycles sales will be done as the retail sector and institutional sector. Retail sector sales are related to residents or people who buy bicycles for personal use to give to someone. In the case of institutional sales, a bulk and mass purchase happens for the use of government schemes, societies or clubs sometimes.
Range and size of the bicycle market in India?
Bicycle market in India is expected to register a compound annual growth rate of close to 10% by 2022 compared to the previous statistics.
As usual, the key domestic players in the market are going to be top brands like Hero Cycles, Avon Cycles, Atlas, Firefox Cycles and TI Cycles among others.
Though the industry witnessed hard times a few years ago, things are changing rapidly and the future looks hopeful for the investors and vendors.
With domestic players showing interest in collaborating with foreign brands, the volume and strategies in the field are growing huge with innovative ideas and services.
Based on the price, the market has been divided into standard, fancy, premium, super-premium and hi-end segments with each one of them having their own benefits based on the usage.
Bollywood Superstars like Salman Khan and John Abraham even launched their own cycling brands and influencing a larger set of the public is also helping the bicycle industry.
How about a merger deal between Automobile and bicycle industries?
As the automobile industry in India is assisted by various factors like availability of skilled labour at affordable wages, low-cost steel production, merging it with the bicycle industry will witness desired results, says Astro strategist Hirav Shah. He is also confident that both the industries together will generate more than fixed targets in the Indian market.
Hirav Shah opinions that approaching the best Astro-Business Strategist before locking the deal between both the industries will surely have its impact both business-wise and Astronomy wise also. Adding to it, the common platform sector/industry provides good opportunities for investment and employment for both skilled and unskilled labour, concludes Hirav Shah.