The Indian two wheeler is already jam packed with vehicles from the three Musketeers- Hero Honda, Bajaj and TVS. The trend now forces them to increase their production-a minimum of 1.5 million – to meet the demand in another two or three years. On the higher score Honda Motorcycle & Scooter is on the verge of Greenfield effect. Setting apart, Hero Honda’s tally of bikes is 5.4 million per annum delivered possibly by two shifts from its three facilities. Closely followed by Bajaj’s capacity of 3.9 million from its three facilities but the capacity that of TVS is barely two million units.
The global recession or slowdown had no impact on the two wheeler market. The industry saw the growth at 15% per year which clearly indicates the need of 1.5million annual units. Hence Hero Honda has already started its search for land to install more facilities by increasing the production by 0.75-1 million units. This is further confirmed by the MD of Hero Honda at the Auto Expo. The company seeks to set the go on 2000 units a day while Bajaj is gearing its Pantnagar facility to increase the production- from 80000 to 120000 units. Bajaj’s stint in the last fiscal was an increase of 85% (191036 units in addition to the export figure of 77642 units @53%). Bajaj is set to form a new brand manufacturing unit by 2012. TVS intends to increase the production mainly for the export market.