Comments on: Two-Wheelers in India and Market Strategy http://calpolymbatrip.com/2008/india/two-wheelers-in-india/ The MBA Graduate Program at Cal Poly Tue, 22 May 2012 00:31:26 +0000 http://wordpress.org/?v=2.6.3 By: Jeff http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-18004 Jeff Fri, 19 Mar 2010 23:11:51 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-18004 Motorcycles are fast, cheap, flexible, but also dangerous. Especially in the hands of a novice. I think it's already a nightmare on the streets of India if what I've seen in the documentaries are typical. I know people can be very creative in finding ways to use things in a way that they aren't intended. I once saw a motorcycle carrying 6 people in the Phillipines. Talk about dangerous. "Necessity is the Mother of Invention" Be that as it may, I think Honda and now Suzuki have a big future in India. As the middle class income increases in India, I can see both companies start to compete with Tata for business. Motorcycles are fast, cheap, flexible, but also dangerous. Especially in the hands of a novice. I think it’s already a nightmare on the streets of India if what I’ve seen in the documentaries are typical.

I know people can be very creative in finding ways to use things in a way that they aren’t intended. I once saw a motorcycle carrying 6 people in the Phillipines. Talk about dangerous.

“Necessity is the Mother of Invention”

Be that as it may, I think Honda and now Suzuki have a big future in India. As the middle class income increases in India, I can see both companies start to compete with Tata for business.

]]> By: Matthew Perez http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17968 Matthew Perez Fri, 19 Mar 2010 17:59:37 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17968 Having a natural fear of two wheeled vehicles (out of the five fractures I have had over the course of my life, four were from riding a bicycle), I am less inclined to support the increase of motorcycle use. As a mode of transportation, they have most of the disadvantages of bikes without any significant advantages. Sure, they are faster, but their increased speed and weight makes them a far more dangerous if you fall while riding. Motorcycles are also significantly more expensive than the average bike to purchase, require fuel to keep them running, and require more maintenance than a bicycle. Given these inherent disadvantages, I would suggest sticking with bicycles if the commute is short enough that it allows for it. For longer distances, public transportation and automobiles should be used. I just believe the speed gained from a motorcycle over a bike and the advantages of other forms of transportation defeat the need for it as a vehicle in India. Having a natural fear of two wheeled vehicles (out of the five fractures I have had over the course of my life, four were from riding a bicycle), I am less inclined to support the increase of motorcycle use. As a mode of transportation, they have most of the disadvantages of bikes without any significant advantages. Sure, they are faster, but their increased speed and weight makes them a far more dangerous if you fall while riding. Motorcycles are also significantly more expensive than the average bike to purchase, require fuel to keep them running, and require more maintenance than a bicycle. Given these inherent disadvantages, I would suggest sticking with bicycles if the commute is short enough that it allows for it. For longer distances, public transportation and automobiles should be used. I just believe the speed gained from a motorcycle over a bike and the advantages of other forms of transportation defeat the need for it as a vehicle in India.

]]> By: Leslie Mann http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17952 Leslie Mann Fri, 19 Mar 2010 14:14:02 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17952 Motorcycles may be cheaper and faster and even get better gas mileage than some cars, but are they safer? I have to agree with Tim on this one and after seeing the ‘traffic’ video Pierre and Kyle posted on their cheap cars in India blog, it is a wonder there are not more traffic deaths per year. With over 130,000 traffic fatalities last year alone, India is the world’s leader. The poor infrastructure combined with thousands of Nanos and two-wheelers hitting the road each day will result in either more and more deaths per year or will force the government in the near future, as Jordan had stated, to take the lead and improve the quality of the roads and highway systems. Two-wheelers are great for single riders, but like Mike pointed out, many Indians who cannot afford a car are forced to strap their wife and two kids onto a two-wheeler for transportation. How safe can this be? The car is the much safer alternative for a family, and the sense of pride one takes with owning their own car can’t be too bad either. Motorcycles may be cheaper and faster and even get better gas mileage than some cars, but are they safer? I have to agree with Tim on this one and after seeing the ‘traffic’ video Pierre and Kyle posted on their cheap cars in India blog, it is a wonder there are not more traffic deaths per year. With over 130,000 traffic fatalities last year alone, India is the world’s leader. The poor infrastructure combined with thousands of Nanos and two-wheelers hitting the road each day will result in either more and more deaths per year or will force the government in the near future, as Jordan had stated, to take the lead and improve the quality of the roads and highway systems. Two-wheelers are great for single riders, but like Mike pointed out, many Indians who cannot afford a car are forced to strap their wife and two kids onto a two-wheeler for transportation. How safe can this be? The car is the much safer alternative for a family, and the sense of pride one takes with owning their own car can’t be too bad either.

]]> By: Jordan Wente http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17839 Jordan Wente Sun, 14 Mar 2010 00:35:27 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17839 Two wheelers in India seem practical but I would have to disagree. From my experience in Vietnam two wheelers are traffic nightmare. Its craziness you almost have to cross a street like you are in the game frogger and hope that one of these two wheelers doesn’t run you over. Even with the environmental and cost benefits of a motorcycle, I still think cars are a better option. Motorcycles don’t provide the functional aspects of a car. While they may appeal to the single demographic they are just not functional or safe for families. As income increases the demand for cars will most likely increase as well. The car will surely become a status symbol or a symbol of success. I think even though at this moment cars are out of reach for most people in the country they won’t be for long and car manufactures will benefit from their market strategy. The government needs to start thinking about how to handle this increase in demand. The development of infrastructure has been a major part of economic reforms but has made slow progress. The increase in demand for cars will likely put pressure of the government to continue to modernize infrastructure to handle this demand. The increase in demand for cars will hopefully also put pressure on car companies to continue to develop environmental friendly models. Two wheelers in India seem practical but I would have to disagree. From my experience in Vietnam two wheelers are traffic nightmare. Its craziness you almost have to cross a street like you are in the game frogger and hope that one of these two wheelers doesn’t run you over. Even with the environmental and cost benefits of a motorcycle, I still think cars are a better option. Motorcycles don’t provide the functional aspects of a car. While they may appeal to the single demographic they are just not functional or safe for families. As income increases the demand for cars will most likely increase as well. The car will surely become a status symbol or a symbol of success. I think even though at this moment cars are out of reach for most people in the country they won’t be for long and car manufactures will benefit from their market strategy.
The government needs to start thinking about how to handle this increase in demand. The development of infrastructure has been a major part of economic reforms but has made slow progress. The increase in demand for cars will likely put pressure of the government to continue to modernize infrastructure to handle this demand. The increase in demand for cars will hopefully also put pressure on car companies to continue to develop environmental friendly models.

]]> By: Chris Phippen http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17837 Chris Phippen Sat, 13 Mar 2010 07:29:17 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17837 I agree with both sides of the discussion. On one hand, India doesn't have the infrastructure to support a large influx of cars, so motorcycles seem to be the answer. But, what if the need is that of a family instead of a single person, as Mike pointed out. Are there any figures out there for what percentage of the population is single vs families? Also, great find Catherine! Very Bollywood. I love Honda's marketing: in India the message is "You'll be happy if you drive a Honda"; in America the slogan reads "Be the blur." Interesting. I agree with both sides of the discussion. On one hand, India doesn’t have the infrastructure to support a large influx of cars, so motorcycles seem to be the answer. But, what if the need is that of a family instead of a single person, as Mike pointed out. Are there any figures out there for what percentage of the population is single vs families?
Also, great find Catherine! Very Bollywood. I love Honda’s marketing: in India the message is “You’ll be happy if you drive a Honda”; in America the slogan reads “Be the blur.” Interesting.

]]> By: Catherine Kristensen http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17803 Catherine Kristensen Fri, 12 Mar 2010 21:27:03 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17803 I came across this link, just posted today, that may be of interest to those following the motorcycle craze in India: http://motorsportsnewswire.wordpress.com/2010/03/12/2010-honda-honda-motorcycles-and-scooters-india-corporate-tv-commercial-0312102/ Honda India has just released this Bollywood style commercial, complete with singing and dancing. The use of "If You're Happy and You Know It," sung in a thick Indian accent, combined with images of BOTH men and women riding bikes through the streets of India is Honda's newest encouragement to consumers poised for purchase. Also of interest this week, Honda announced (http://www.honda2wheelersindia.com/showpress.asp?typ=company&pressId=48) that they have plans to build a second motorcycle production plant to meet increasing demand in the rapidly growing motorcycle market in India. India is the world’s second largest motorcycle market (behind China). Looks like motorcycle are quickly becoming the wave of the future in the country of India. Any of you planning to rent a motorcycle for your post-563 sight-seeing? I came across this link, just posted today, that may be of interest to those following the motorcycle craze in India:
http://motorsportsnewswire.wordpress.com/2010/03/12/2010-honda-honda-motorcycles-and-scooters-india-corporate-tv-commercial-0312102/

Honda India has just released this Bollywood style commercial, complete with singing and dancing. The use of “If You’re Happy and You Know It,” sung in a thick Indian accent, combined with images of BOTH men and women riding bikes through the streets of India is Honda’s newest encouragement to consumers poised for purchase.

Also of interest this week, Honda announced (http://www.honda2wheelersindia.com/showpress.asp?typ=company&pressId=48) that they have plans to build a second motorcycle production plant to meet increasing demand in the rapidly growing motorcycle market in India. India is the world’s second largest motorcycle market (behind China). Looks like motorcycle are quickly becoming the wave of the future in the country of India.

Any of you planning to rent a motorcycle for your post-563 sight-seeing?

]]> By: Michael Minasian http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17773 Michael Minasian Wed, 10 Mar 2010 19:20:04 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17773 I agree with Chase that the car is a status symbol. It might not be the best thing for people to slowly migrate towards getting a car. The interesting thing that people aren't evaluating in this debate is that the Nano can carry 4 people. Unfortunately, this is not possible on a motorcycle. While the cycle may be a good idea for single people who are commuting, it makes much more sense to have one Nano, versus 4 motorcycles. Just food for thought. I agree with Chase that the car is a status symbol. It might not be the best thing for people to slowly migrate towards getting a car.

The interesting thing that people aren’t evaluating in this debate is that the Nano can carry 4 people. Unfortunately, this is not possible on a motorcycle. While the cycle may be a good idea for single people who are commuting, it makes much more sense to have one Nano, versus 4 motorcycles. Just food for thought.

]]> By: Chase Janvrin http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17738 Chase Janvrin Tue, 09 Mar 2010 00:22:21 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17738 Cars have always been, and I think always will be, a status symbol. In America it's been engrained in our culture for so long that when that when you tell someone that you don't own a car, it's met with an absolute look of shock. In emerging markets like India where the middle class is larger than the entire population of the U.S., the market for these status symbols is huge. Even if motorbikes are cheaper, more efficient, and more practical, the new middle class will strive to show how well they're doing by showing off their new set of wheels, all four of them. After all, nothing says capitalist success like an automobile! Cars have always been, and I think always will be, a status symbol. In America it’s been engrained in our culture for so long that when that when you tell someone that you don’t own a car, it’s met with an absolute look of shock. In emerging markets like India where the middle class is larger than the entire population of the U.S., the market for these status symbols is huge. Even if motorbikes are cheaper, more efficient, and more practical, the new middle class will strive to show how well they’re doing by showing off their new set of wheels, all four of them. After all, nothing says capitalist success like an automobile!

]]> By: Danielle Steussy http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17715 Danielle Steussy Sat, 06 Mar 2010 19:11:03 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17715 Motorcycles actually offer a great opportunity for companies like Honda. Even Tata can capitalize on the opportunity of manufacturing and distributing motorcycles if they realize the potential. Over 7 million two-wheelers were sold last year and sales of motorcycles in India have dramatically increased by 24% in the last year and will continue to grow. They are cheaper and more fuel efficient, something that I think the majority of the Indian population is demanding. Furthermore, The Wall Street Journal recently reported that car companies like Tata and Suzuki are actually raising the prices of their cars, making them less affordable to people who don't have the income to support the purchase of a car. Read the article at http://online.wsj.com/article/SB126718495889852197.html?mod=googlenews_wsj Even if Tata can't sell two-wheelers for a greater price, they can at least win the hearts of millions of potential two-wheel riders in India. Motorcycles actually offer a great opportunity for companies like Honda. Even Tata can capitalize on the opportunity of manufacturing and distributing motorcycles if they realize the potential. Over 7 million two-wheelers were sold last year and sales of motorcycles in India have dramatically increased by 24% in the last year and will continue to grow. They are cheaper and more fuel efficient, something that I think the majority of the Indian population is demanding.

Furthermore, The Wall Street Journal recently reported that car companies like Tata and Suzuki are actually raising the prices of their cars, making them less affordable to people who don’t have the income to support the purchase of a car. Read the article at http://online.wsj.com/article/SB126718495889852197.html?mod=googlenews_wsj

Even if Tata can’t sell two-wheelers for a greater price, they can at least win the hearts of millions of potential two-wheel riders in India.

]]> By: William Ary http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17607 William Ary Mon, 22 Feb 2010 04:23:36 +0000 http://calpolymbatrip.com/2008/india/two-wheelers-in-india/#comment-17607 Motorcycles offer most of the utility of a car without making any pesky concessions to things like crash safety, weatherproofing and stability. This is fine. People will pay for those things if they think such features are worth the extra cost. Honda clearly thinks people care more about getting where they want than with safety and comfort, cars' two long suits. Personally, I'd buy a bike not a motorcycle, but then again, I broke my wrist last quarter and have probably lost 30 square inches of skin while riding my bike. Not everyone will take that risk and not everyone is that reckless while riding. Motorcycles offer most of the utility of a car without making any pesky concessions to things like crash safety, weatherproofing and stability. This is fine. People will pay for those things if they think such features are worth the extra cost. Honda clearly thinks people care more about getting where they want than with safety and comfort, cars’ two long suits. Personally, I’d buy a bike not a motorcycle, but then again, I broke my wrist last quarter and have probably lost 30 square inches of skin while riding my bike. Not everyone will take that risk and not everyone is that reckless while riding.

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