India is second largest producer and manufacturer of two wheelers at intervals the globe. State two-wheeler has spectacular growth at intervals the previous number of years. The two-wheeler business (henceforth TWI) in state has been alive since 1955. It consists of three segments viz., scooters, motorcycles, and mopeds. the increase in sales volume of this business is proof of its high growth. In 1971, sales were around zero.1 million units once a year. But by 1998, this figure had up to 3 million units once a year. Similarly, capacities of production have to boot increased from concerning zero.2 million units of annual capability at intervals the seventies to over four million units at intervals the late nineties4.
The TWI in state began operations among the framework of the national industrial policy as espoused by the policy Resolution of 1956. This resolution divided the whole industrial sector into three groups, of that one contained industries whose development was the exclusive responsibility of the State, another basined those industries throughout that every the State and additionally the non-public sector could participate and additionally the last set of industries that might be developed alone beneath personal initiative among the foundations and objectives organized out by the five Year Plans (CMIE, 1990). Personal investment was channelized and through the thorough use of licensing giving the State comprehensive management over the direction and pattern of investment. Entry of companies, capability enlargement, choice of product and capability mix and technology, were all effectively controlled by the State in associate degree extremely bid to prevent the concentration of economic power. however due to lapses at intervals the system, recent policies were brought in at the tip of the sixties. All sales figures unit from varied issues with ACMA, capability figures from varied five Years organize documents.
The two-wheeler business in state should an honest extent been fashioned by the evolution of the policy of the country. Regulatory policies like FERA and MRTP caused the growth of some segments at intervals the business like motorcycles to stagnate. These were later ready to grow (both in terms of overall sales volumes and vary of players) once foreign investments were allowed in 1981.