Most of the two and three-wheelers plying on Indian roads use two-stroke technology, which is responsible for the high levels of hydrocarbons and carbon dioxide in the atmosphere.

Bajaj Auto Limited, a private sector company, is today the largest manufacturer of two- and three-wheelers in India. Even though the year 1997-98 has been a period of recession and the general market has been virtually stagnant, Bajaj still enjoys supremacy in the two and three-wheeler segments. Until a few years ago, it had a virtual monopoly in this sector. But even with many other players in the field, Bajaj still commands the largest share of the market. In 1996-97, its total market share of three-wheelers was 84.38 per cent; of two-wheelers alone it was 54.27 per cent. The share had only dropped by 2.36 and 4.04 per cent respectively compared to the previous financial year. The rest of the market share is taken up by Escorts Yamaha Ltd, LML Ltd, and a few others.

During 1996-97, Bajaj sold close to 200,000 three-wheelers and 1.24 million two-wheelers. In 1995-96, the company sold approximately 0.15 million three-wheelers and 1.15 million two-wheelers. Of the 1995-96 figures, around 80,000 two-wheelers and 4,848 three-wheelers were sold in Delhi alone. The annual turnover of the company stands at Rs 3,513 crore, of which the net profit is 5.22 per cent. Bajaj has made huge profits but has done precious little to improve the technology. In the environment lexicon, Bajaj enjoys the supremacy of being the "killer number 1'.