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Current Development of the Indian Two-wheeler Market

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Indian automobile industry, especially the two wheeler segment has undergone tremendous change from the earlier times, when two wheelers were more or less about the scooters, and bikes were the odd one out. Over the years, consumer behavior has changed drastically and it has become all the more dynamic, changing on a regular basis.

India is global major in the two wheeler industry producing motor cycles, scooters and mopeds principally of engine capacities below 200cc. The two wheeler industry in India has grown at a compounded annual growth rate of more than 15% during the last five years and Indian two wheelers comply with some of the most stringent emission and fuel efficiency standards maintained worldwide. Many factors affect how we, as individuals and as societies, live, buy, and consume. For example, the feeling of freedom and being one with the nature comes only from riding a two wheeler. External influences such as culture, ethnicity, and social class influence how individual consumers buy and use products. Indians prefer two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayment. Other social factors include consumer’s family, small groups, social status and roles. The personal factors characterized such as buyer’s age, lifecycle stage, occupation, economic situation and lifestyle etc. also influence the buying decision. Majority of two wheeler buyers belong to middle income group. Employees and students are the major customer base for two-wheelers when compared to others and further most of them are graduates as their educational qualification. Male customers still play crucial role while making purchase of two-wheelers but there is drastic rise in number of female customer base not only as decision makers but also demand for female oriented 2 wheelers like Honda Activa, Pleasure, Scooty , Suzuki, TVS- Wego, etc. are on the rise. Brand image and durability features of the bikes are the strong parameters for buying followed by past experience of the usage.

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Earlier, people were more price sensitive than now and hence would buy 2 wheeler with reasonable price. But in the recent times, with the advent of internet, people are exploring options based on factors apart from just price. For example, despite high price and import tax the riches buy Harley Davidson for the brand value it holds. Hence, in the current scenario foreign 2 wheeler companies penetrate the Indian market. Moreover the influence of family members related to the buyer behavior of two wheeler is another factor. Influence of the family members is such that majority of the consumers are influenced by the decision of “husband” and also the purchase decision is also determined by the life partner (wife) who is second among the family members. As buyer has unlimited choice and they look for a two-wheeler from their point of view, two wheeler companies must address to the needs such as provision of mobile charger and so on. Other factors of convenience like comfort of pillion seat, i.e. the ergonomics play an important role. For example: Royal Enfield is very comfortable to ride and hence preferred by everyone for road trips. In metro cities, considering the heavy traffic, 2 wheelers are a boon when compared to 4 wheelers for commuting to work. However, people who are brand/ status conscious choose to buy Harley Davidson despite the high price and import taxes. Electric scooter is another option for people who are status conscious in addition to being environment friendly. The Indian Two-Wheeler Market is showing a continuous steady demand and thus resulting in growing production and sales volume. This is mainly due to the launching of new attractive models at affordable prices, design innovations, easy finance and latest technology utilized in manufacturing of vehicles. The sale of two-wheeler products has increased tremendously.

Moreover, improved incomes in rural areas will accelerate the demand of 2 wheelers. The growth percentage of 2 wheeler industry is expected to touch 20 million units in 2018. The motorcycle is contributing to 12.6 million units followed by 6.7 million units and a very small percentage of mopeds. . Hence we can conclude that the knowledge of consumer behavior and their socio-cultural preferences enables the 2 wheeler companies to take appropriate marketing decisions and design specifications.

  1. External influences such as culture, ethnicity, and social class influence how individual consumers buy and use products.
  2. Social factors include consumer’s family, small groups, social status and roles.
  3. Buyer’s age, lifecycle stage, occupation, economic situation and lifestyle etc. also influence the buying decision.
  4. Indians prefer two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayment.
  5. Being open to the western culture, a certain section of the consumers are no more price sensitive, leading to the emergence of foreign players and premium bikes.
  6. The brand or status conscious people opt for the high end two wheelers.
  7. The changing state of the women has led to the increase in the sale of scooters i.e., Scooty Pept.
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