Two-wheeler manufacturers in India are shifting their focus to scooters instead of motorcycles.
2-wheeler manufacturers are slowly shying away from the entry-level motorcycle segment and instead focusing on the scooter segment. Manufacturers like Bajaj, Honda, Mahindra and Yamaha haven’t launched new products in the entry-level motorcycle space for quite some time.
Sources reveal that Honda will not be developing any new products in this segment but will focus on the scooters segment. Honda launched 5 motorcycles in the 100-110cc segment but their share stood at a meager 7.9 percent by the end of last month. On the flip side, Honda has a share of 60 percent approximately in the scooter segment.
Bajaj discontinued the Discover 100 and 100M in India and hasn’t launched any new motorcycle in the entry-level segment. However, it did give new variants to the CT 100 and Platina recently. Bajaj is putting its focus on the premium motorcycle segment (above 150cc) as it does not want to venture into scooters.
According to data by SIAM, Yamaha hasn’t sold a single unit of a sub-110cc motorcycle in the Indian market. We suspect Yamaha could have completely exited the entry-level motorcycle segment. Among all the other players, Hero MotoCorp is the only such brand to have posted a growth in motorcycle sales. Hero’s bread and butter models, the Splendor, HF Deluxe, Passion and Glamour have driven the volumes for the bike maker.
Scooters being priced on par with entry-level motorcycles and the ease of riding that they offer are the main reasons why manufacturers are shifting their focus to scooters from entry-level motorcycles. The presence of paper-thin margins and increased dominance of Hero in the entry-level motorcycle space are some other reasons why manufacturers are moving away from this category.
Companies Focus On Scooters
– 2-wheeler makers like Bajaj, Honda and Yamaha are slowly moving away from entry-level motorcycles
– As per SIAM data, scooters posted a growth of 18 percent in the April-July quarter this year
– Scooters are known for their ease of riding and are the preferred choice in urban cities