Two-wheeler service sector: a billion dollar industry in India

Virupaxi Bagodi and Varsha Bagodi

International Journal of Services, Economics and Management, 2022, vol. 13, issue 4, 313-337

Abstract: Since the liberalisation, the two-wheeler market has grown by leaps and bounds in India. Two-wheelers have become the common mode of transportation. More than 225 million two-wheelers move on Indian roads and their usage is over 4.500 million kilometres per day. These two-wheelers require regular maintenance and upkeep for effective functioning. Gandhi (2019) asserted that the two-wheeler after-sales market would be Indian Rupees (INR) 663.33 billion in 2025. The objective of the paper is to verify the statement and to explore the policies adopted by manufacturers regarding services. System dynamics methodology is adopted to explore and experiment with various policies. Authors argue that if the spare parts replacement cost is included; it would be double than claimed by Gandhi. In two-wheeler services, the reliability of services is the important factor to reap the benefits.

Keywords: two-wheelers; India; services. (search for similar items in EconPapers)
Date: 2022
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