Automotive Industry Fact: Two-Wheelers Make More Money Than Four-Wheelers

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As strange as it sounds, yes, two-wheeler manufacturers make more money than four-wheeler makers. Last Financial Year (FY), two-wheeler makers had almost twice the operating margin compared to four-wheeler makers.

The analysis is based on the audited financial results of unlisted and listed two- and four-wheeler makers. The sample includes six four-wheeler makers, namely, Maruti Suzuki, Tata Motors, Mahindra, Hyundai, Honda, Toyota, and Ford.

The two-wheeler makers that were part of this analysis are Hero MotoCorp, Bajaj Auto, TVS Motors, Eicher Motors, and Honda. Margins in the two-wheeler industry have consistently been higher than that of the four-wheelers for the past decade.

Two-wheeler makers have also grown faster compared to four-wheelers. In the past five years, two-wheeler makers (the five mentioned above) have posted 17 percent compounded growth combined, compared to 11 percent growth that carmakers posted.

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