It is the preferred mode of transportation for millions of Indians. With rising global crude prices and the Government's decision to deregulate fuel prices and leave them to the whims of global goings-on, many first time car buyers are having second thoughts about their decisions and are either sticking to their old, faithful 2-wheelers or are planning to buy new, better ones. This only augurs well for the robust Indian 2-wheeler market. Let's take a look at some of the interesting facts about this market.
Statistics: 2-wheeler production in India grew by 7% in 2013-14 with 16.9 million units, as compared to 15.7 million units in the previous year. 12.5 million Motorcycles, 3.7 million scooters and 0.7 million mopeds were produced in this financial year. Domestic sales have also seen a 7% growth and companies sold 14.8 million units (as against 13.8 million units) during 2013-14. This roughly translates into a US$ 14 billion industry; without even considering other paraphernalia like suppliers, accessories, dealers, etc.
Gearless Scooters: Although motorcycles command a major share in the market, the rise in the popularity of the gearless scooters is astounding. This segment posted an astonishing 25% growth from the previous year in 2011-12. This popularity can be attributed to heavy traffic conditions in cities and such scooters are very popular with college-going girls and working women. The most popular scooter is Honda’s Activa, which sells more than 100,000 units a month. It also has a waiting period of around 10 days to 2 weeks.
Major Players: Hero MotoCorp still leads the pack with a 41% market share but the major overhaul was seen in the second spot, where Honda has dislodged Bajaj from the Number 2 position and now has a 24% market share. These two are followed by Bajaj (at 14%) and TVS (at 12%). Yamaha is at 3% and brands like Suzuki, Mahindra, Royal Enfield make up the remaining 5%.
Rural Sector: The primary demand for motorcycles (entry-level) still comes from the rural sector. So even though the demand for cars might be more on the lines of luxury, the driving force behind a 2-wheeler sale is utility. This is the main reason for the constant rise in the sales of 2-wheelers through the years even when economic conditions were not conducive for growth.