With the spiralling demand for two-wheelers in India, it has recorded staggering sales of 17.7 million two-wheelers last year.
The data from Society of Indian Automobile Manufacturers and insights from industry insiders reveal what is working in India’s favour.
It is a common sight in Tier II and Tier III cities in India to witness roads packed with two-wheelers. Aspects like affordability and convenience come for the rescue of thousands of people who seek a comfortable mode of transportation for daily errands. While passenger cars are a little heavy on pocket, two-wheelers serve the purpose at a substantially lower price. With the spiralling demand for two-wheelers in India, it has recorded staggering sales of 17.7 million two-wheelers last year, toppling China to become the world’s largest two-wheeler market.
China with total sales of 16.8 million units dropped to the second spot followed by Indonesia with estimated sales of 6 million units in 2016 as against 6.5 million units in 2015. The curbs on petrol powered two-wheelers and a shift in focus to four wheelers led to decline in two-wheeler sales in China.
The data from Society of Indian Automobile Manufacturers and insights from industry insiders reveal what is working in India’s favour and why the market will continue to grow in coming years.
Spurt in Incomes –
India has witnessed an overall rise in salaries in the past few years with the onset of new businesses and brands in India, thereby providing more employment. The corporate segment with healthy annual incomes and perks aide larger spending. In addition, the combined incomes of working couples empower them to spend more as compared to the former times.
Better Infrastructure in Rural & Non-Urban Areas –
This combined with growing infrastructure in rural and non-urban areas is creating greater demand for two-wheelers. The government is also rolling out new programmes and spending in projects such as construction of roads for developing infrastructure in smaller towns. On the contrary, in larger cities people are switching to two-wheelers for easy manoeuvring amid thick traffic due to suffocating infrastructure.
Rise in Women Commuters –
Unlike the bygone days, females are also stepping out of their households to pursue career in almost every field. Additionally, students in smaller cities and towns prefer commuting on two-wheelers than taking the more tiresome modes of transportation. Considering the low expenditure on fuel, two-wheelers seem like a more feasible option. The idea of commuting on a scooter more commonly referred to scooty for females, came in with the advent of gearless scooters in the early 2000s. Market leader Honda (scooter segment) reveals almost 35% of their sales are driven by female customers.
Availability of Financial Loans –
Prospective customers have the option to finance the vehicle instead of paying the lump-sum amount. The easy availability of finance and monthly EMIsfurther simplify the buying process. This in turn works as a beneficial symbiosis wherein buyers and manufacturers both benefit.
Affordability Combined with Low Fuel Consumption –
Companies have been rolling out new models lately to meet rising demand. The contemporary looking models with low price tag and high mileage (claimed) easily gain traction among customers. These are rather the most important factors in luring customers to showrooms.
Industry insiders predict that the two-wheeler marketin India will continue growing at a fast pace. It is estimated that in the coming years, the industry might grow by 9-11%.