The demand for two-wheelers (motorcycles and scooters) has started picking up, which is driven by a change in consumer sentiments in the rural markets, which earlier had remained weak in the last few years.
The pent-up demand in rural areas, which make up around 55% of two-wheeler sales in the nation, is expected to be a major driver of this fiscal year’s double-digit sales growth, according to several senior industry executives.
Better agricultural output, the availability of water for irrigation due to healthy reservoir levels, the increase in the minimum support price (MSP) of the kharif crop announced recently, and government spending on rural development will all help increase disposable income and further improve consumer sentiment in rural India, they claimed.
According to the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales in the local market increased by 16% year-over-year to 2,810,138 units in the first two months of this fiscal year. Experts anticipate a sales increase of 13.5% from 15.86 million units in FY23 to 18 million two-wheelers this fiscal year.
Honda Motorcycle & Scooter India (HMSI) will drive in about half a dozen models, including two electric vehicles, this fiscal to expand volumes locally. Further, Hero MotoCorp will launch about a dozen models across segments in FY24 to increase volumes and improve the market share.
Since young, aspirational buyers want the full motorcycle experience, including rides, community, merchandise, accessories, and connected technologies, demand at the premium end of the market has continued to outpace the two-wheeler market overall.
