The Indian two-wheeler industry has witnessed deep cyclical trends. A robust growth witnessed up to 1989, was followed by a severe recession up to FY93 and a strong recovery during 1993-96. The industry then witnessed a slowdown since the second half of FY97, which continued up to FY99. Prospects in FY2000 have turned for the better once again with an overall revival in demand.
The demand for two-wheelers in India is dependent upon factors like availability of finance, increase in income levels, and restricted growth in public transportation and movement in petrol prices. Except petrol prices, all other factors have positive correlation with the demand for two-wheelers. The increase in petrol prices on the contrary, adversely affects the demand for two-wheelers, due to increase in the running cost of a vehicle.
Two-wheelers are distinguished on different factors for different consumer segments. For e.g. high-powered two-wheelers have a niche market as racing/sporting vehicles and have a special appeal to youngsters. Teenagers and women prefer easy maneuverability/handling ease. Urbanites are lured by fuel efficiency and low maintenance. The lower end of the market looks for durability, value for money and higher resale value.
The demand for two-wheelers in India is dependent upon factors like availability of finance, increase in income levels, and restricted growth in public transportation and movement in petrol prices. Except petrol prices, all other factors have positive correlation with the demand for two-wheelers. The increase in petrol prices on the contrary, adversely affects the demand for two-wheelers, due to increase in the running cost of a vehicle.
Two-wheelers are distinguished on different factors for different consumer segments. For e.g. high-powered two-wheelers have a niche market as racing/sporting vehicles and have a special appeal to youngsters. Teenagers and women prefer easy maneuverability/handling ease. Urbanites are lured by fuel efficiency and low maintenance. The lower end of the market looks for durability, value for money and higher resale value.