But suddenly one envisages a paradigm shift in buying patterns of Indian consumers. The shift has resulted in the suffering of the most talked about segment in automobiles for last few years i.e. the “two wheeler market “ especially bikes . Have a look at the following numbers .
Data Source : SIAM Website
It is evident from the above illustration that saturation , even decline has struck the two wheeler segment. Whether this situation is a long term phenomenon that only time has any clue, but certain indicators point to the shift that has made bike makers already concerned.
Lets not jump to any grave-digging yet , but its true that companies like Bajaj Auto have already indicated future forays into passenger cars . They might justify the move as a diversification tactic but deep inside they know that any further consumer shift would hit them hard financially.
Lets talk about the indicators we were earlier talking about .
1.Fluctuation of interest rates which have pushed the sales down tremendously .( 90% of two wheelers are getting financed today)
2.To counter the finance downturn, cos have to reduce costs which would result in further tightening of the belt for bike makers.
3.Incredible interest towards “Tata Nano” , success of which will eat atleast 10-15% of the two-wheelers market . Also that segment is the most profitable one for the cos.
4.Scooters/Gearless scooterettes have a positive growth rate which makes bike’s rate of decline even more alarming.
5,Finally , we are all waiting for that new Pulsaresque bike launch & not whimpers like TVS flame or even Bajaj’s own XCD (even if it’s a moderate success due to delay in Flame launch)
These indicators may just point towards a trend and not a certain doomsday warning. The bike makers can always look towards our ever growing middle class for some inspiration . More on this topic in the next outing . Watch this space for more …………
2 comments:
Pranav,
That's good analysis.But can u throw more light on scooters eating pie from bike market.Actually in my city I hardly see any scooters.As you mentioned , Has Tata planned any schemes for cheaper loan for buying Nano?
Hi friend I found your blog in search engine. After reading your post i found that this site is relevant to mine. My site is PR2 and PR3 so if you are interested in link exchange please inform me. I will add you then you add me or add me and buzz me i will add you. I have message box in my site itself drop your wishes there. Thank you.
http://skdeepak88.blogspot.com (PR2)
http://maxwellshammer.com (PR3)
Post a Comment