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India has emerged as the fastest growing major economy in the world and is expected to be one
of the top three economic powers of the world over the next 10-15 years, backed by its strong
democracy and partnerships.
Market size
India’s GDP is estimated to have increased 7.2 per cent in 2017-18 and 7 per cent in 2018-19.
India has retained its position as the third largest startup base in the world with over 4,750
technology start-ups.
India's labour force is expected to touch 160-170 million by 2020, based on rate of population
growth, increased labour force participation, and higher education enrolment, among other
factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.
India's foreign exchange reserves were US$ 405.64 billion in the week up to March 15, 2019,
according to data from the RBI.


 India is the world’s largest two-wheeler market, followed by China and Indonesia in
terms of domestic consumption.
 The scooter has been the fastest growing segment in India two-wheeler sector at 15%
CAGR from 2012-2019. Consequently, the share of Scooters in the domestic two-
wheeler sector has increased from 19% in 2012 to 32% in 2019 and is further.
 The market for motorcycle is concentrated, the top 3 players accounted for 83% of
the motorcycle market in 2018. (Hero – 52%, Bajaj – 16%, Honda – 15%)

 Two-wheeler sales in India reached an all-time high as of 2019, when India's auto industry
sold some 21 million units. This figure is almost double the 2011 sales, when just 11.77
million two-wheeler units were sold in India.

 Dominant position; strong brand
HMCL is a formidable player in the 100/110cc segment and continues to maintain market
leadership. Its domestic motorcycle market share remains strong at 51.2 percent on the
back of its strong distribution network and brand recall.
 Focus on exports
The management is focusing on exports and plans to expand its presence in fast growing
markets of Sri Lanka, Bangladesh and Nepal. It commenced production at its second
global manufacturing facility in Bangladesh in May last year and was able to garner retail
level market share of around 30 percent. It has chalked out plans to grow its exports by
entering new market such as Mexico, launching new products and brand building through
various marketing activities. They see positive momentum in many countries going
forward and plans to expand to 50 countries by 2020 from the current 35 countries.
 Focus on electric vehicles
HMCL has been focusing on electric vehicles (EVs) and has invested Rs 201 crore to
acquire 30 percent equity in Ather Energy, a start-up, to build EV scooters. The
management said Ather will start retailing its smart electric scooter S340 soon.
 Expansion plans are on track
The management has earmarked Rs 2,500 crore, to be spent over two years, for capacity
expansion, technology upgradation and digitisation. The company has commenced
construction of its eighth manufacturing facility in Chittoor, Andhra Pradesh and has
started commercial production at its second manufacturing facility outside India, in
 Strong financial performance
The company has been doing well in terms of its financial performance and is a debt-free
and cash rich. Given the size of the business, net sales have seen a compounded annual
growth rate of 6 percent over FY14-18. Earnings before interest, depreciation, tax and
amortization (EBITDA), however, has grown at 11 percent over the same period. Its
EBITDA margin average stands around 14.9 percent over the same period.