India becomes the largest two-wheeler market in the world

According to the data from Society of Indian Automobile Manufacturers (SIAM) and China Association of Automobile Manufacturers (CAAM), a total of 17.7 million two-wheelers were sold in India in 2016, as compared to China’s figure of 16.8 million. Which equates to one two-wheeler being sold every two seconds the country. How was this astonishing figure achieved? Let’s find out.

Rural areas certainly play an important role with rising incomes and growing infrastructure but the most important factor has been the spurt of women riders. Honda Motorcycle and Scooter India (HMSI) is the leader in the two-wheeler market with the maximum sales coming from Activa. And 35 per cent of the Activa owners are females, says HMSI.

Easier finance options, fuel efficient bikes and rising income also play an important role along with the addition of online portals for sales. The government has been spending extravagantly on rural infrastructure as well as construction of highways to connect major cities as well as small towns. The urban areas are already filling up with cars and the roads are already over populated, especially in metros such as Bengaluru and Delhi and hence, people are opting for two-wheelers to save time as well as money. The growth is not limited to just commuter bikes but more premium brands such as Royal Enfield have seen a growth of over 30 per cent since last year and are selling almost 50,000 units every month now. Superbike makers such as Triumph and Harley-Davidson also have seen a surge in demand for its entire range.

Industry officials have suggested that the market is expected to grow at a rate of 9-11 per cent over the coming years, which would add almost 1 million two-wheelers on the roads, every year. The Government of India will have to add even more roads to cater to so many new entrants and the game has just begun.

Source: Economic Times