16 July 2018 Automobiles The domestic 2W industry is expected to grow at a CAGR of ~10% until FY22, led by the Scooter (CAGR of 12-14%) and Motorcycle (CAGR of 8-9%) segments. We expect continued value migration away from the Executive motorcycle 100/125cc segment toward the Scooters (driven by wider appeal), Premium >150cc (driven by need for uniqueness and upgrade) and Entry motorcycle 100cc (driven by substantial value proposition) segments. BJAUT's strategy is to capitalize on this value migration by focusing on the Entry and Premium motorcycle segments. BJAUT's domestic motorcycle volumes grew 30% in CY18YTD (v/s 22.7% growth for domestic 2W industry), leading to a market share recovery of 90bp YoY to 15.8% in 1HCY18 (1QFY19 market share at 16.3%). Domestic motorcycle industry grew at a CAGR of just 2% over FY12-17 due to weak monsoon (FY15/16), scooterization, and demonetization (FY17), etc.