India on a Motorbike
When we talk about the automobile sector, we speak just about cars. However, we often forget its less glamorous cousin, the motorbike sector. In developing economies, especially, India, bikes have traditionally been the pallbearers of the automobile market. Over the last two decades bikes have also replaced scooters as the preferred mode of traveling by two wheelers.
In the year 2011-12 almost one and a half crore two wheelers were sold in India. It is expected to grow at double digits. The motorbike sales in India have grown at a rate much faster than other two wheelers. Among the most popular brands fighting for attention in such a lucrative market are Hero, Honda, Bajaj, Piaggio, Mahindra and others. The other brands like Suzuki, Ducati, Harley Davidson, etc are looking at the luxury and superbike segment.
There are various reasons for this sustained growth in the demand for motorbikes in India. The most prominent reason is the poor infrastructure of public transport in India. The buses and other modes of public transport cause a lot of inconvenience to passengers. The lanes in India are too narrow to accommodate larger vehicles. Thus, they prefer the ease of mobility through motorbikes. The other reason is, over the years, bike manufacturing has become very efficient and cost effective.
Among all other reasons, the biggest driver for demand of motorbikes in India is the young population. Youth prefers the power and speed a motorbike offers. Also, the disposable income they possess has been growing at fast pace. The motorcycle segment is addressing a key demographic sweet spot, which will fuel the demand for years to come. As many as 11 million urban households and 4.4 million rural households have annual household incomes in the Rs 3-5 lakhs category. Easy financing options for bikes are available too. All authorized dealers of motorbikes have tie-ups with auto loan companies and banks for easy financing of motorbike purchases. Hence, the demand growth of bikes has been resilient and sustained. This trend doesn't seem to be changing in the near future.
Sensing these opportunities in the market, in a reversal of sorts, a commercial vehicle company, Mahindra ventured into two wheelers. Today, within three years of launch, Mahindra 2 wheelers have carved a small niche in this market with their honest, straightforward approach to motor bikes and some smart usage of celebrity endorsements.
The need for a motorbike, the ease of purchasing one, the cost at which it can be bought, the demographics and a variety of choices available in the market, authorized dealers at all major locations, together make the two-wheeler motorbike segment really exciting and popular in India. Motorbikes are here to stay.
In the year 2011-12 almost one and a half crore two wheelers were sold in India. It is expected to grow at double digits. The motorbike sales in India have grown at a rate much faster than other two wheelers. Among the most popular brands fighting for attention in such a lucrative market are Hero, Honda, Bajaj, Piaggio, Mahindra and others. The other brands like Suzuki, Ducati, Harley Davidson, etc are looking at the luxury and superbike segment.
There are various reasons for this sustained growth in the demand for motorbikes in India. The most prominent reason is the poor infrastructure of public transport in India. The buses and other modes of public transport cause a lot of inconvenience to passengers. The lanes in India are too narrow to accommodate larger vehicles. Thus, they prefer the ease of mobility through motorbikes. The other reason is, over the years, bike manufacturing has become very efficient and cost effective.
Among all other reasons, the biggest driver for demand of motorbikes in India is the young population. Youth prefers the power and speed a motorbike offers. Also, the disposable income they possess has been growing at fast pace. The motorcycle segment is addressing a key demographic sweet spot, which will fuel the demand for years to come. As many as 11 million urban households and 4.4 million rural households have annual household incomes in the Rs 3-5 lakhs category. Easy financing options for bikes are available too. All authorized dealers of motorbikes have tie-ups with auto loan companies and banks for easy financing of motorbike purchases. Hence, the demand growth of bikes has been resilient and sustained. This trend doesn't seem to be changing in the near future.
Sensing these opportunities in the market, in a reversal of sorts, a commercial vehicle company, Mahindra ventured into two wheelers. Today, within three years of launch, Mahindra 2 wheelers have carved a small niche in this market with their honest, straightforward approach to motor bikes and some smart usage of celebrity endorsements.
The need for a motorbike, the ease of purchasing one, the cost at which it can be bought, the demographics and a variety of choices available in the market, authorized dealers at all major locations, together make the two-wheeler motorbike segment really exciting and popular in India. Motorbikes are here to stay.
Source...