Share of 100-110cc motorcycles declined by 4 percent in 2023, compared to the previous year.
Bajaj Auto’s Executive Director Rakesh Sharma, foresees slower growth in the 100-110cc motorcycles as Indian consumers seek features and performance. He believes that the 125cc and above segment will likely outpace the entry-level motorcycle segment in the next three years. A comparable trend was observed in the passenger vehicle segment where utility vehicles now account for half of the sales.
- Over 50 percent of bike sales in India come from 100-110cc segment
- Leading two-wheeler manufacturers collaborate with premium automakers
“There is a large 100-110cc segment. It may not be growing as fast. I don’t expect it to disappear but gradually the 125cc plus segment could become larger. Taking a three-year view, that segment could become larger than the 100-110cc segment,” Sharma told reporters in a post-earnings call when asked about the future of the entry-level segment.
According to data from the Society of Indian Automobile Manufacturers (SIAM), sales of motorcycles with an engine capacity of up to 110cc decreased to approximately 51 percent in 2022-2023 from 55 percent in 2021-2022. And a shift towards higher engine capacities is expected in the coming years with over 50 percent sales belonging to the entry-level segment. This segment is witnessing a growing attraction from India’s young consumers due to the introduction of new products, designs, and technologies.
“Its share in the industry will continuously erode. It eroded faster during the pandemic because then customers were more fragile and vulnerable. Now, some savings have come to that customer. So it is true. But the tendency is for people to upgrade to 125cc and then to 150cc. That trend we are seeing,” he noted. Major motorcycle manufacturers including Hero MotoCorp, Bajaj Auto and TVS Motor have formed partnerships with premium automakers like Harley-Davidson, Triumph and BMWrespectively, to co-develop cost-effective premium products.