Report on Two Wheelers in India
The dynamics of the two wheeler industry has changed drastically since its inception when there was only one specific type of a scooter that was sold in the late 40s soon after India attained independence. Today, customer tastes and preferences have changed which has led to a huge shift in the way two wheelers are manufactured and sold in the country.
It is not only scooters now, but also a completely different range of mopeds, geared bikes, motorcycles, etc. which have been introduced in the market. Earlier, a two wheeler could be purchased for a few thousands but now there are luxury bikes available in the market that cost lakhs of rupees!
The decade of 2000 to 2010 saw excellent growth of two wheelers in the automobile industry. The following factors led to this growth.
• Rising income levels
• Easy availability of finance offered by banks and financial institutions
• Reduction in excise duties
• Increasing traffic especially in cities
• Limited Parking space especially in metro cities
With the rise in the working women population, there was a need for the fairer sex also to possess her own vehicle. Since two wheeler prices were also affordable as compared to a car, there were dedicated two-wheelers introduced for them. As far as the future growth of the industry is concerned, it will mainly come from rural areas which remain largely under penetrated. Also factors like a decent GDP growth rate, favorable demographic profile and inconvenience to public due to underdeveloped public transportation will ensure that two-wheelers remain a preferred choice of customers. It must be noted that the customer will always select the best mileage bike especially due to rising fuel prices.
In spite of Indian manufacturers offering two wheelers at a much cheaper rate, consumers are smitten by the macho looks, powerful engine and speed which have the ability to provide the adrenaline rush to an individual. This holds true especially in urban areas. Foreign two-wheeler manufacturers are increasing their presence in the two-wheeler segment in India which has led to a fall in the market share of Indian manufacturers. Above average disposable incomes have also meant that consumers are willing to pay a heavy price for expensive but stunning looking bikes! In 2012, the number of luxury bikes on Indian roads in the category of above 500 cc engine capacity had doubled as compared to the previous years. No doubt, these sales are increasing due to the middle class moving into the rich segment and the rich getting into the High Net Worth Individual (HNWI) category.
As India continues to grow, the two-wheeler industry will also continue to do well as personal transportation needs of individuals increase with each passing day.
It is not only scooters now, but also a completely different range of mopeds, geared bikes, motorcycles, etc. which have been introduced in the market. Earlier, a two wheeler could be purchased for a few thousands but now there are luxury bikes available in the market that cost lakhs of rupees!
The decade of 2000 to 2010 saw excellent growth of two wheelers in the automobile industry. The following factors led to this growth.
• Rising income levels
• Easy availability of finance offered by banks and financial institutions
• Reduction in excise duties
• Increasing traffic especially in cities
• Limited Parking space especially in metro cities
With the rise in the working women population, there was a need for the fairer sex also to possess her own vehicle. Since two wheeler prices were also affordable as compared to a car, there were dedicated two-wheelers introduced for them. As far as the future growth of the industry is concerned, it will mainly come from rural areas which remain largely under penetrated. Also factors like a decent GDP growth rate, favorable demographic profile and inconvenience to public due to underdeveloped public transportation will ensure that two-wheelers remain a preferred choice of customers. It must be noted that the customer will always select the best mileage bike especially due to rising fuel prices.
In spite of Indian manufacturers offering two wheelers at a much cheaper rate, consumers are smitten by the macho looks, powerful engine and speed which have the ability to provide the adrenaline rush to an individual. This holds true especially in urban areas. Foreign two-wheeler manufacturers are increasing their presence in the two-wheeler segment in India which has led to a fall in the market share of Indian manufacturers. Above average disposable incomes have also meant that consumers are willing to pay a heavy price for expensive but stunning looking bikes! In 2012, the number of luxury bikes on Indian roads in the category of above 500 cc engine capacity had doubled as compared to the previous years. No doubt, these sales are increasing due to the middle class moving into the rich segment and the rich getting into the High Net Worth Individual (HNWI) category.
As India continues to grow, the two-wheeler industry will also continue to do well as personal transportation needs of individuals increase with each passing day.
