News
Religare Capital Markets has concluded in its India Auto Urban Consumer Survey that two-wheelers have now emerged as the most preferred mode of transport for the lower income group.
The survey covered 1,500 respondents from Tier I & II cities across the country. It was conducted across age, income-groups and gender.
Some interesting findings:
• Convenience and cost effectiveness vis-à-vis public transport (savings of around Rs. 400/month) is the key factor which is driving demand for two-wheelers in India.
• Two-wheelers are viewed as a necessity, rather than a discretionary purchase
• Brand incumbency persists with Hero (motorcycles), Honda (scooters) and Maruti (cars) in the clear lead.
• New buyer budgets upward of Rs. 55,000-plus for two-wheelers, indicating premium aspirations.
• 65% of survey respondents have cited the daily commute to work as the main reason for buying a two-wheeler. On the other hand, cars are popularly used for both, office commute and weekend travel.
• Scooters continue to make a comeback.
• 55% of potential scooter buyers are first-time shoppers (compared to 26% for bikes), thereby implying strong growth prospects for the segment. In fact, the change in preference is already reflecting as scooter market share has risen from 15% in FY09 to 28% in FY15.
• The segment of women has emerged as a key focus area for two-wheeler companies with 62% preferring the vehicle for their daily commute, and a whopping 65% of these favouring scooters.
• In terms of brands, Honda reigns supreme with a thumbs-up from consumers across income strata, while Bajaj Auto is a clear laggard with no presence in the segment.
• Despite losing the Honda tag, Hero remains one of the most preferred motorcycle brands amongst consumers (especially lower income buyers), topping the charts on mileage, after-sales service and resale value.
• The survey also notes increasing aspirations for Honda, Royal Enfield and higher powered bikes in general. Royal Enfield, Shine and Pulsar are preferred by potential buyers (in that order).