Entry-level bikes fail to enthuse riders, sales see decline

Vijay C Roy

Chandigarh, March 19

Gone are the days when affordability used to be a major factor behind uptick in two-wheeler sales, especially motorcycles.

According to the data, the share of entry-level motorcycles (75-110cc) in overall bike sales is on declining. The share of other segments, i.e. above 110 CC, is growing faster than the entry-level segment mainly because of significant growth in sales.

The share of entry-level bikes having engine capacity of up to 110 cc, has gone down to 48.6 per cent during April 2023-February 2024 compared to 50.6 per cent during the same period in previous financial year, according to the Society of Indian Automobile Manufacturers (SIAM) data. During April 2023-February 2024, as many as 1,06,73,137 bikes were sold as compared to 94,14,380 units during the corresponding period of in the last fiscal.

As per industry experts, there are many factors behind the decline in the share of entry-level bikes. As aspiration of young riders is increasing, there is a significant demand for bikes with higher power and more features, especially due to higher disposable income.

Also, easy finance availability, ever-increasing options and bigger operating margins for original equipment manufacturers (OEMs) are other enablers. According to experts, in the past few years, manufacturers have scaled their offerings with more features as this segment continues to outpace the overall growth of the two-wheeler market.

According to the data, the major volume drivers besides entry level bikes and the segment which are witnessing significant growth includes motorcycle having engine capacity of above 110 CC-125 CC, followed by 150 CC-200 CC and 250 CC-350 CC (engine capacity) respectively. In addition to this, the industry is witnessing significant demand in category having engine capacity of 125 CC -150 CC.