Generating Insights on the Innovation and Business Profile of India's Automobile Industry

Two Wheeler Segment, 2000-2015

[Background] [Objectives] [Proposed Methodology] [Relevant Readings]

A project of:

• Institute of Technology and Innovation Management (TIM @TUHH)

Project team: Rajnish Tiwari and Asif Ismail Ansar Ali

Start: November 2015

Project status: Completed in July 2016.

Keywords: Automotive; Automobile; Two Wheelers; Open Innovation; Frugal Innovation; Innovation Path; Innovation Trajectories; India

Schlüsselwörter: Automobilindustrie; Kraftfahrzeuge; Zweiräder; Frugale Innovation; Innovationspfade; Indien

Background

The two-wheeler segment dominates the automobile industry in India, constituting about 81% of the domestic market. As per figures of the Society of Indian Automobile Manufacturers (SIAM), in fiscal year (FY) 2014-15 Indian automobile companies produced close to 18.5 million two-wheelers, making the country the second largest producer of two wheelers in the world next only to China. Of these about 16 million units were sold in the domestic market, whereas about 2.5 million units were exported to overseas markets. Figure 1 shows that Indian manufacturers of two-wheelers have succeeded in expanding their domestic and export sales.

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Figure 1: Domestic and overseas sales of two-wheelers by Indian manufacturers
Own depiction; based on SIAM (2015) data

Objectives

The objective of the present study is to generate insights on the profile and trends in India's two-wheeler vehice segment by creating and analyzing the profiles of relevant players for the years 2000 to 2015. The study will focus on indicators such as:

• Development in the revenues earned by the relevant players over the proposed period of time
• Market segments, geographic distribution of sales, production and development in and outside India
• Role of R&D and its intensity, number of applied and received patents
• Analysis of innovations launched in the relevant study period (based on various dimensions of innovation)
• Role of "open innovation" in the innovation process (collaboration with domestic or international partners)
• Role of "frugal innovation", by analyzing emphasized product features in new launches based on company press releases (cost vs technological features)

Proposed Methodology

The study relies basically on desk research by combing resources scattered across annual reports and other company documents, reports by industry associations such as the SIAM, and reports in the business press.

Relevant Readings

• Two Wheeler Manufacturers and its Market in India, last retrieved: 06.12.2015
• The Two-wheeler Industry in India, last retrieved: 06.12.2015
• George, S., Jha, R., & Nagarajan, H. K. (2002). The evolution and structure of the two-wheeler industry in India. International Journal of Transport Economics / Rivista internazionale di economia dei trasporti, 63-89.
• Ranawat, M., & Tiwari, R. (2009). Influence of government policies on industry development: The case of India's automotive industry, Working Paper no. 57, TIM/TUHH.
• Verghese, M., Spink, A., and Seth, G. (not dated): The Indian Automotive Sector: Gearing Up To Accelerate, Odgers Berndtson India, last retrieved: 06.12.2015.

[ For any enquiries, please contact Rajnish Tiwari ]

Important notice: Research proposals containing project description generally depict initial ideas submitted by students in response to a call for project initiated by the RPGI team, or even on their own initiative. Even though the proposals are cross-checked and edited by the RPGI team before putting them in the public domain, no guarantees can be taken at this stage of the quality and/or other aspects of good academic practices. Their adherence is, however, duly examined when students submit their reports, and prior to any publication of the report.