Move over motorcycles, scooters are way more in demand these days
Scooters captured more
than one-third of domestic two wheeler market for first time in over a decade
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NEWS : Think about the slowest growing segment of
Indian automobile industry. It is not the three-wheelers or the commercial
vehicles. It is the
motorcycle, the biggest segment of the industry by volume, marked by
top players like Hero MotoCorp, Bajaj Auto and Honda.
Society of Indian Automobile
Manufacturers (Siam) data shows that the Indian motorcycle market has grown by
less than six per cent cumulatively since FY14. In the same period, domestic
passenger vehicle market expanded by 20 per cent, commercial vehicles grew by
13 per cent and three-wheelers by 12 per cent.
The volume of motorcycles, the
largest segment by units sold, has remained stuck between 10 and 11 million
units a year in last four years. While two consecutive deficient monsoons (2014
and 2015) were a factor, the larger impact is coming from a shift towards
scooters. If we include scooters, the two wheeler market shows growth of 19 per
cent between FY14 and FY17. This implies that the all the growth is coming from
scooters.
Domestic scooter market has
expanded from 3.6 million units in FY14 to 5.6 million units in FY17, growing
55 per cent. However, motorcycle volumes grew only six per cent from 10.48
million units to 11.09 million units in the specified period. This is also
visible in the volumes sold by top players. Hero MotoCorp, the country’s
largest two-wheeler maker, had sold 5.42 million motorcycles in FY14 and its
domestic sales stood at 5.69 million units in FY17, showing a cumulative growth
of five per cent.
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