The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds.
Among the 3 segments of the Indian two wheeler market, major growth trends have been seen in the motorcycle segment over the last four to five years. One good reason for such increase in demand for motorcycles is due to its resistance and balance even on bad road conditions. Most of the rural areas in India do not have decent roads and hence the need for good, shock-resistant, and steady two-wheelers such as motorcycles had been felt.
Some of the major players in the Indian motorcycles market are Hero Honda CBZ, Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle brands into economy, executive, and premium segments, Bajaj stands as the leader in the economy segment, Hero Honda leads in the executive segment, and there is a competition in the premium segment between Hero Honda and Bajaj.
The following are the main factors that affect two-wheeler sales in India:
- Increase in credit and financing for auto vehicles - Two-wheeler loans and financing has been on the rise.
- Increase in consumer's salary - Due to opportunities offered by multinationals the disposable incomes of salaried individuals have increase manifold.
- Constant petrol prices - Today, the government of India has been working on reducing subsidies on kerosene and diesel which will keep petrol prices at more or less the same level.
- Delay in initiation of Mass Transport System - Probably a future threat to the two-wheeler market, the implementation of the mass transport system has been delayed.