The two-wheeler scene in India is one of the most competitive and profitable businesses to be found anywhere in the world. There are millions of them sold in the country every year and the number only rises as each annum goes by. And according to the Indian Credit Ratings Agency (ICRA), the industry will bear witness to a 9% increase in growth for the year 2014-15. According to ICRA, the industry is expected to report a Compounded Aggregate Growth Rate (CAGR) volume of 9% and will touch 23-million units which includes domestic and export sales over a medium term (2016-17).
The industry also noticed a strong increase in growth during the previous 5 months of this fiscal, with sales volumes booming by an impressive 14.8%, and that by a long shot, is the industry’s quickest growth since 2010-11. Though most of this record growth is thanks to the scooters sales, motorcycles too have played an appreciable role in the growth of the two-wheeler industry, which in-turn, has been helped along by new model launches by manufacturers. Having said that, scooters have played the majority role and has contributed 27% to the growth of the industry.
Icra Senior Group Vice President Subrata Ray quoted, “The fast expansion of the scooter segment’s pie has encouraged most OEMs (original equipment manufacturers) to launch new models to capitalise on growing opportunity offered by this segment.” He went on further to say, “In 2012-13, three new scooter brands were launched in India, but the count of new brands introduced increased to six in 2013-14 and in 2014-15, already four new models have been launched by various OEMs with more being in the pipeline.”
Source: ET Auto