Scooters to Outpace the Overall Two-wheeler Industry

Today, the introduction of automatic transmission in scooters, increasing urbanization, better roads and a growing number of women consumers are helping turn the wheels in favor of scooters. In the past five years alone, the share of scooters in the overall two-wheeler market in the country has risen at annual growth rate (CAGR) of 20%, whereas motorcycle sales have expanded in low single digits.

In first nine months of Financial Year 2017-18, scooter sales grew by 18.5 per cent, whereas overall two-wheeler sales grew 11.5 per cent. At such outstanding growth rate we can say that the wheels now appear to be turning for scooters to reclaim their leadership status in India’s personal transport industry.

The country’s biggest metropolitan centers now show a distinct preference for scooters. In the past couple of years, one in every two two-wheelers sold in Mumbai, Delhi, Bangalore, Hyderabad and Chennai is a scooter. The statistics are similar for other aspiring metros, such as Pune, Ahmedabad and Lucknow.

This gender neutral mode of transportation is mostly the first choice of consumers in rural and semi-urban areas, as it’s the growth from these areas, which is about to outpace the overall two-wheeler industry.

Now, the scooter is increasingly becoming a robust alternative to the mass-market motorcycle. The Activa brand of Honda Motorcycle and Scooter India (HMSI) has become top seller in FY17.

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