Competitive dynamics in emerging economies: a study of the automobile industry in India

Abstract

This paper studies the evolution of the competitive structure of the two-wheeler industry in India. The evolution of the industry's competitive structure is traced using theory of convergence and then the Herfindahl Index and the Four-firm market concentration ratios. The industry seems to be characterized by oligopoly with the onset of economic reforms not making much difference to industrial structure. Convergence dynamics have given way to more competitive forces now and the near future outlook on the industry is positive in the midst of several structural changes.