The dynamics of the Indian automobile market is changing, especially the two wheeler market. In the pre-liberalization era the market was dominantly a scooter market with the market share of scooter touching 70-80 percent of the two-wheeler sales . That changed with liberalization and the ratio changed and it was the motorcycles within the category whose sales dominated the product category. The company which rode the changed preference of the consumers towards motorcycles was Hero Honda, with their best selling Splendor and CD 100 they were able to witness unprecedented growth in both their top as well as bottom line. The change in consumer preferences were driven by both the fact that motorcycles were more fuel efficient and also were technologically superior. The introduction of Honda Activa did revive the scooter segment, but it could never reach it is previous levels. As of 2005-06 data the motorcycle sales are 85% of the total combined scooter and motorcyle sales, which is reverse of what was there 15 years back.
The latest sales figures for September show that there is a fall in the sales of two-wheelers as whole. Though the market leader Hero Honda has shown a small growth but they are cannot be compared with the phenomenal growth that they have had in the last few years and at the other end TVS motor company has shown a substantial drop of 29.04 percent in the overall two-wheeler sales and in motorcycles the drop is to the tune of 49.53 percent. The economy as a whole is doing very well, if one were to look at the sales of consumer durables and also the sales of cars (Though in cars there is a expectation that may be there would be a decline in the near future), so why is this decline in the sales of two-wheelers?
One of the reasons when one reads the newspapers is the rising interest rates and the tightening of finance from company's end for the 100 cc segment. But the market has also witnessed a shift in consumer preference from 100cc to the larger 125/150cc, as can be seen by the success that products like Pulsar, Discover have had in the market place. Companies are claiming that their new launches in the next few months would shore up the sales, but then one wonders if the lowered interest in the segment is due to poor marketing effort by the major players, in terms of new launches, campaigns ................... Hopefully the companies will pull up their socks and ensure a better performance in the upcoming festive season
hmmm.. market data shows that GEARLESS SCOOTERS are the only growing segment in two wheelers.
ReplyDeleteManufactures are lining up interesting products in this segment now.
Just see the Kinetic Blaze, it totally redefines scooters. Then Taiwan's SYM is entering scooters too (finally a new global brand!). Suzuki will launch something here too.
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ReplyDeletemaybe that the 100cc segment is getting saturated and people in that segment are ready to migrate to the car segment with easy finance available. with the news that 1lakh car withn 1-2 years people are waiting for it as that will serve the purpose of the 100cc segment of personal commuting along with fun and leisure with the family.
ReplyDeletethe bike segment will definately rise but in the higher CC segment i.e, more in the 150 and above cc segment, maybe what i rechristen it as the DHOOM effect (after the film). indian market for bikes >150 cc altough a small target will grow certainly in the near future s people with easy disposable manner will have to like to own a bike with >150 cc. the advantage which Bajaj is enjoyning with its Pulsar.....
http://kinetic-engineering-financial.angelfire.com/kinetic_engineering_kinetic_motor_in_red/
ReplyDeleteyou had a valid point then freind . I've analysed it also in my blog kotlerbeckons.blogspot.com. please have a visit . add me in your blogroll
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