Motorcycles
The motorcycle is being increasingly used by youngsters/bachelors in urban areas and by rural folk as a sturdy means of personal transportation.
Bigger wheels, better road grip, higher ground clearance, power, fuel efficiency, low maintenance cost are the major attraction of this segment.
The motorcycle segment, too, can be further classified into the Japanese and the Indian motorcycle segments.
The former consist of models manufactured out of Japanese technology while the latter category consist of the high-powered bikes of the 'Rajdoot' and 'Bullet' range and also the step-thru's which fall somewhere between a scooter and a motorcycle.
The sale of motorcycle has increased from 0.1mn in FY80 to 0.38mn in FY93 at a CAGR of 11.6%. The segment picked up momentum in the 90's to grow at a CAGR of 15.7% to 1.796mn vehicles in FY2000. Motorcycle sales achieved a major milestone of crossing the scooter sales in the month of November 1998. This trend has further continued for the next couple of years causing a jump in sales of 28.7%yoy to 1,796,734 units in FY2000.
In the last two years, the motorcycle segment has witnessed the launch of several new models from existing players. Majority of these have been in the four-stroke engine category for which the technology has come from Japanese parents. Increasing product differentiation and competition has resulted in new sub-segments emerging.
The efficiency segment is currently the fastest growing and constitutes four-stroke motorcycles. This has caused a dent in the demand for two-stroke motorcycles, which is expected to further drop in the future. Taking in to consideration the limited availability of mass transportation in rural and semi-urban areas and suitability of motorcycles to these conditions, we expect the segment to continue to grow at 20%yoy growth in FY01. This will increase demand for motorcycles from 1.80mn in FY2000 to 2.5mn in FY02.
The motorcycle is being increasingly used by youngsters/bachelors in urban areas and by rural folk as a sturdy means of personal transportation.
Bigger wheels, better road grip, higher ground clearance, power, fuel efficiency, low maintenance cost are the major attraction of this segment.
The motorcycle segment, too, can be further classified into the Japanese and the Indian motorcycle segments.
The former consist of models manufactured out of Japanese technology while the latter category consist of the high-powered bikes of the 'Rajdoot' and 'Bullet' range and also the step-thru's which fall somewhere between a scooter and a motorcycle.
The sale of motorcycle has increased from 0.1mn in FY80 to 0.38mn in FY93 at a CAGR of 11.6%. The segment picked up momentum in the 90's to grow at a CAGR of 15.7% to 1.796mn vehicles in FY2000. Motorcycle sales achieved a major milestone of crossing the scooter sales in the month of November 1998. This trend has further continued for the next couple of years causing a jump in sales of 28.7%yoy to 1,796,734 units in FY2000.
In the last two years, the motorcycle segment has witnessed the launch of several new models from existing players. Majority of these have been in the four-stroke engine category for which the technology has come from Japanese parents. Increasing product differentiation and competition has resulted in new sub-segments emerging.
The efficiency segment is currently the fastest growing and constitutes four-stroke motorcycles. This has caused a dent in the demand for two-stroke motorcycles, which is expected to further drop in the future. Taking in to consideration the limited availability of mass transportation in rural and semi-urban areas and suitability of motorcycles to these conditions, we expect the segment to continue to grow at 20%yoy growth in FY01. This will increase demand for motorcycles from 1.80mn in FY2000 to 2.5mn in FY02.