Boom in Indias Motorcycle Segment

Boom in Indias Motorcycle Segment

2015-16

Recognised as the next booming category in the motorcycle market is the mid-size motorcycle segment (250cc - 800cc) by all the major OEMs.This segment is driven by motorcycle giants of India Royal Enfield, which is the oldest player in this category and operating in India for decades, on the back of a strong demand for its products. According to our analysis, Royal Enfield is estimated to contribute close to 480,000 units, accounting for a whopping domestic market share of close to 96 percent, to the overall segment sales.

chart for Fy2016

The rise in the demand for midsize motorcycles, roughly understood as a category with engine displacement in the range of 250cc-800cc and a price-tag likely to be Rs 100,000 and above, reflects a number of economic factors at play. These mainly include rising per capita income, a large base of premium commuter users migrating to bigger motorcycles, a trend of riding groups that is catching up across the country and growing aspirational values associated with bigger motorcycles.

Biker Groups

To capitalise on these potential factors, the companies are also picking up the pace in bringing new models in the booming space. For example, January 2015 to January 2016 has seen at least 12 new model additions in this segment from companies such as Triumph Motorcycles India, India Kawasaki Motors, India Yamaha Motors, Honda Motorcycle & Scooter India (HMSI), DSK Benelli and even Mahindra Two Wheelers.

2016-17

As the month of March 2017 drew to a close, the Supreme Court announced its decision to uphold the ban on the sales and registration of BS III vehicles across the country. Of course, this sent the automotive manufacturers into a tizzy, with many of them offering cash discounts on their models. This led to a huge boost in the sales numbers for almost all manufacturers over the last two days of March 2017. Were these two-wheeler manufacturers able to clear their two-wheeler stocks in time, this is a question that we will answer soon but it definitely added to the overall end of FY 17 sales numbers. All two-wheeler manufacturers listed here have shown positive growth, with the exception of Bajaj Auto. Here is a lowdown on how each company fared in the month of March 2017 for two-wheeler sales.

All Bike Brands

 1. HERO MotoCorp                                 

Splendor Hero

Unit sales March 2017 March 2016 Percentage growth
Overall 6, 09,951 units 6, 06,542 units 0.53%

2. Royal Enfield

RE 350

Unit sales March 2017 March 2016 Percentage growth
Domestic 58,549 units 50,059 units 17%
Exports 1,564 units 1,261 units 24%
Total business 60,113 units 51,320 units 17%

3. Honda

Honda Activa

Unit Sales FY 2016-17 FY 2015-16 Percentage growth
Overall 50, 08,103 units 44, 83,462 units 12%

4. Bajaj

Bajaj Pulsar

Unit sales March 2017 March 2016 Percentage growth
Domestic 1,51,449 units 1,76,788 units -14%
Exports 92786 units 87461 units 6%
Total business 2,44,235 units 2,64,249 units -8%

5. Yamaha

Yamaha FZ1

Unit sales March 2017 March 2016 Percentage growth
Domestic (including Nepal) 76,144 units 60,032 units 27%

6. Suzuki

Suzuki Gixxer

Unit sales March 2017 March, 2016 Percentage growth
Domestic 36,029 unit 20,673 units 74%

7. TVS

TVS Apache

Unit sales March 2017 March 2016 Percentage growth
Domestic Two-Wheelers 216,995 units 200,190 units 8.4%
Motorcycles 95,671 units 86,776 units 10.3%
Scooters 84,173 units 68,161 units 23.5%

The most affordable bike in the midsize segment comes from Royal Enfield, which is the age-old four-stroke, single cylinder, 346cc Bullet 350 (on-road price tag of close to Rs 1.05 lakh, Delhi). Meanwhile, at an on-road (Delhi) price tag of close to Rs 8 lakh, Honda’s CBR 650F is understood to be the most expensive in the segment.


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