say a lot depends on rains. The year 2016 is witnessing good monsoons and these
rains are expected to have a positive impact on agriculture which in turn will
increase rural incomes, stabilise prices of food grains and pulses and will
leave a lot more money in the hands of people to buy everything from televisions,
refrigerators, cars to two wheelers. Salary increases for hundreds and
thousands of government employees as a result of the 7th Pay
Commission recommendations will be the icing on the cake that will fuel demand.
The Indian two-wheeler industry is gleefully hoping that the remaining months
of the current fiscal 2016-17 will see a spurt in demand for two-wheelers.
it comes to overall sales, the first few months of 2016-17 fiscal too have been
heartening, according to the data provided by the Society of Indian Automobile
Manufacturers (SIAM). A quick glance reveals that two wheelers comprising
scooters, motorcycles and mopeds grew by 14.08pc when it came to domestic sales
for the period April to July 2016. This meant that in the first four months of
the current fiscal domestic sales of two wheelers stood at 6019076 units as
compared to 5276156 units in the corresponding period last year.
this total domestic sales, motorcycles and step-throughs contributed 3850441
units (3521076 units) growing 9.35pc, while scooters contributed 1876595 units
(1511797 units), growing a healthy 24.13pc. Domestic sales of mopeds grew by
20.04pc to 292040 units (243283 units).
The first four months of this fiscal showed negative growth on the
export front with exports dropping (-) 10.03pc to 780256 units (867220 units).
Motorcycle exports dropped by 12pc to 688414 units (782463 units), while both
mopeds and scooter showed positive growth in exports. Scooters grew by 7.47pc t
o 85,063 units (79147 units) and mopeds by 20.84pc to 6779 units (5610 units).
Hero & Honda, fight for supremacy
two companies Hero MotoCorp and Honda Motorcycle & Scooter India are ruling
the roost in the Indian two wheeler industry and these erstwhile partners are
today the biggest During April-July 2016 HMSI grew by 20.34pc at 1667425 units
while Hero MotoCorp grew by 7.81pc at 2227003 units. While the two wheeler companies have
surpassed the million unit mark in this period, the closest to this mark was
TVS Motor Company with 817967 units for April-July 2016, registering a growth
of 18.67pc. TVS was followed by Bajaj Auto with sales of 723204 units,
registering a growth of 14.89pc.
in the industry.
domestic sales for the period April 2016 to July 2016 as compared to the four
months of the previous fiscal have been relatively positive for all two wheeler
manufacturers, except for two manufacturers—Mahindra Two Wheelers and Suzuki
Motorcycle India Pvt Ltd. with the two companies recording a negative growth of
(-)39.98pc and (-)18.48pc, respectively.
Their sales dropped to a mere 26,009 units and 91,228 units respectively for
Cumulative domestic sales of two
wheelers (April-July 2016)
Motorcycle & Scooter India
Motor Company India
Cumulative exports of two wheelers
the two wheeler space, of the 6019076 units of two wheelers sold in the
domestic market in the first four months of the current fiscal (April to July
2016), scooters contributed 1876595 units. This amounts to roughly about 31pc
of the total cumulative domestic sale. Motorcycles at 3850441 units, accounted
for 63pc of total cumulative domestic sale. The remaining was taken up by sale
of mopeds where TVS Motor company is the only player.
2015-16, April to July 2015 period, two wheeler manufacturers had sold 5276181
units in the domestic market. In the same period, cumulative domestic sales
constituted 1511797 units, signifying about 29pc share in the total two wheeler
sales. Motorcycles at that point of time accounted for 3521076 units,
constituting almost 67pc of total two wheeler sales. It is thus obvious that
there is an apparent shift in customer preferences towards scooter which has
been witnessed in the last few years.
2014-15, April to July 2014 period, 5256429 units of two wheelers were sold in
the domestic market. Of this scooters contributed 1382558 units signifying a
26pc share, while motorcycles sold roughly 3631964 units, signifying 69pc
2013-14, the story was a lot more different with scooters constituting 23pc of
domestic sales for the period April to July 2013. Total two wheelers sold in
the domestic market during this period was 4622669 units of which scooters
accounted for 1057029 units and motorcycles accounted for 3333628 units, which
meant it had a share of 72pc of the market.
Share % in total two wheeler domestic
is very evident that the share of scooters in the overall domestic sales of two
wheelers has been increasing over the years. Leading this scooterisation drive
is obviously Honda Motorcycle & Scooter India with its popular Honda Activa
Yadvinder Singh Guleria, Senior Vice President - Sales & Marketing, Honda
Motorcycle & Scooter India Pvt. Ltd, “Activa today represents the
metamorphosis of the society. The superior convenience, unisex appeal coupled
with product features (increased mileage, style and technology) has converted
millions from pillions to riders. Honda’s Activa has come to symbolise a
remarkable blend of reliability, comfort & convenience, style and
the 17 year long monopoly of motorcycles, Honda’s Activa (an automatic scooter)
is now ruling two-wheeler sales and is India’s highest selling two-wheeler of
2016. It has a lead of over 1 lakh units over its nearest competition. Activa’s
domestic sales stood at 1,338,015 units in 2016 (Jan’16 to June, 2016) compared
to 1,233,725 units in the same period of 2015. Activa added a phenomenal
197,295 units over last year in just six months (Jan to June, 2016) to be on
its launch in 2001 as the 1st two-wheeler by Honda 2Wheelers India, Activa has
reactivated the dying automatic scooter market.
of Activa rose exponentially from 55,000 units in its debut year (FY’2001-02)
to over 2.46 million units in last FY’2015-16. Every second automatic scooter
purchased in India today is a Honda Activa.
fact Activa sales alone contributes 15pc to the domestic 2 wheeler industry –
which is more than entire 125cc motorcycle segment sales put together!
domestic sale trend:
is no denying the fact that HMSI is indeed the clear leader in the scooter
segment in the country. Of the seven scooter makers in the country, HMSI is the
clear leader with sales of 1106284 units during April-July 2016. Second on the
list is Hero MotoCorp, followed by TVS Motor Company, India Yamaha, Suzuki
Motorcycle, Mahindra Two Wheelers and Piaggio.
domestic sales of scooters (April-July 2016)
domestic sales of motorcycles (April-July 2016)
“With more than 50% market
share, Activa continues to be in the forefront of scooter demand. To cater to
the increasing customer demand, Honda 2Wheelers India has appropriately
invested in a scooter only plant at Vithalapur in Gujarat. We believe the
scooterisation trend has just started in India and Activa is the trendsetter of
the segment today,” notes Guleria of HMSI.
on the scooterisation of the two wheeler industry, Roy Kurian, Vice President, Sales & Marketing, Yamaha Motor
India Sales Pvt. Ltd. says “People are shifting from motorcycles to scooters
now, which is quite evident, this is happening mostly in cities and also in
tier II and tier III cities as well because more and more females have started
working or are going to colleges and they want personal mobility. We are able
to see that this change is happening and earlier the contribution of scooters
was 25%-30%, now it is at 35%. What I feel is in a year or two you’ll see
scooters contributing to more than 40%. Already some states have crossed 60%,
like Kerala scooters are more than 60-65%. Tamil Nadu is at 60%. Entire west,
if I talk about Maharashtra, is more than 50%. This change in trend that we’re
able to see, it hasn’t come to the North at the moment but I believe eventually
it’s going to come to the North as well. These are the changes which I’m able
to see from my side.”
Equally excited about the
growth of the scooter market is Arun Siddharth, Head – Marketing (Motorcycles),
TVS Motor Company who says, “The scooter segment has performed consistently
well for us and we have a 14 percent market share in scooters and we sell
65,000 scooters every month. We intend to grow our market share in the scooter
segment to 16-17 percent. Jupiter is our flagship product and the new MillionR
edition that we recently launched with 10 new features has been received well
in the market.
We believe the scooter
industry is poised to expand and with a wide product portfolio that we have, we
will be able to cater to a wide range of consumers with products designed to
meet their needs.”
Two Wheelers may be a late entrant to the Indian two wheeler market but is
surely and slowly introducing new products into the market to garner market
share. Says Vinod Sahay, CEO, Mahindra Two Wheelers, “With the rise in the
purchasing power and internet penetration across all segments, the Indian
consumer is becoming increasingly aware of the latest technology, features and
is ready to explore new products. This has led to a clear polarization of the
market with one end of the segment, opting for the premium and innovative
products, whereas the other end who are still value conscious.”
The Mighty Motorcycle Brands
one end of the Indian motorcycle market are the so called affordable
motorcycles with engine capacities in and around 100cc and 300cc. But as power
of the engine increases and performance gets into a new level, enter players
like Harley-Davidson, Triumph, Kawasaki, Ducati, Benelli (DSK Benelli), MV
Agusta, Indian Motorcycle and the likes. Except for Harley-Davidson, Triumph
Motorcycles and Kawasaki, none of the others share their sales data with SIAM.
According to Siam data, Harley-Davidson sold 1420 units of their motorcycles in
the domestic market in the four months of the current fiscal 2016-17. Triumph
could only manage 471 units while India Kawasaki sold 505 of their motorcycles.
have built a firm foundation over the past seven years and consistently demonstrated
the power of being a customer-led company very successfully. We continue to
receive unparalleled enthusiasm for the brand and now have over 12000 proud
owners experiencing the freedom and adventure of Harley-Davidson on Indian
roads since we opened our first dealership in 2010. Industry body SIAM has
consistently placed us as the undisputed market leader in India in the segment
of 600 + cc motorcycles. Our market share as per SIAM currently stands at 59.8%
which is significantly more than the combined share of other players,” says
Vikram Pawah, Managing Director, Harley-Davidson India.
But players like Benelli of
Italy are very aggressive on the Indian soil. This Shirish Kulkarni controlled
DSK Motowheels the company that has collaborated with legendary Italian
superbike manufacturer Benelli recently shifted its CKD plant from Wai,
Maharashtra to Takwe, near Pune. This shift has enabled the company to achieve
a production capacity of 500 – 600 units per month. The plant currently
operates in single-shift and has two assembly lines – one each for the engine
and for the motorcycles where Benelli and Hyosung models are assembled. The
company plans to begin its capacity expansion programme at the plant post the
launch of the Benelli 302R. By 2018, the company should reach a production
capacity of 50,000 units per year.
In the meantime, since the
launch of Benelli superbikes in India in March 2015, DSK Motowheels and Benelli
have sold 3,000 bikes in India with DSK Benelli TNT 600i being the fastest
selling model from the brand, registering 1000 units sold already.
motorcycles sold in the country at present include sporty-looking Tornado Naked
Tre, TNT superbikes that encompass the TNT 25 – Single cylinder 250cc engine,
TNT 300 – In-line two cylinder 300cc engine, TNT 600i (ABS) – In-line four
cylinder, 600cc engine; TNT 600 GT - In-line four cylinder, 600cc engine; TNT
899 – In-line, three cylinder 898cc engine and the TNT R – In-line, three
cylinder 1131cc engine.
Shirish Kulkarni, Chairman, DSK Motowheels, “DSK Benelli has managed to carve a
strong niche for itself in India’s superbike industry thanks to our emphasis on
performance coupled with compelling design language. We have established our
brand leadership stance on the basis of our diverse portfolio that offers
superbikes at various price points. Our overall vision is to create a vibrant
superbiking culture in India and help more and more riding aficionados
experience the pure pleasure of owning an Italian superbike unlike any other.”
recent entrant to the world of superbikes is another legendary Italian
superbike maker MV Agusta which has entered the country through the Kinetic
Group. MV Agusta has entered into an exclusive partnership with Pune’s Kinetic
Group. The company unveiled its first range of superbikes - the F4, F3 and
Brutale 1090 -which will now be available at its first ‘Motoroyale’ dealership
in Pune. The company will operate as MV Agusta India Pvt. Ltd.
Firodia, Managing Director of MV Agusta India Pvt. Ltd feels that his company
has brought in the Agusta brand in India at a right time. “The Indian
superbikes market has been growing very aggressively. Various brands have established themselves in
the past 6-7 years. While not all of
them have published figures, the superbikes market is about 12,000 vehicles
annually, making India one of the most potential markets for superbikes. With a
growing rate of 15 – 20%, it is estimated that the market will touch 20,000 –
25,000 vehicles annually by 2020 which makes me positive that Motoroyale has
launched MV Agusta in India at the perfect time”
emphatic about the growth of India’s luxury motorcycle market is Pankaj Dubey,
Managing Director, Polaris India Pvt Ltd. He says, “India’s Two-wheeler market is one of the largest and the
fastest growing in the world. The CAGR of luxury bike market is projected at
20% till 2020. We are very excited with the positive response received by
Indian Motorcycle launch in India. In the year 2011, Polaris acquired Indian
Motorcycles and in the year 2013, we launched Indian Motorcycle’s products
internationally. It took us about six months to introduce the entire range in
India and it was in May 2014 that we inaugurated our first dealership in India
in Gurgaon. It has been almost two years since then and it has been an upward
journey for the brand.”
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