Premium Motorcycles Set To Reach 22% Market Share By 2030: Crisil

New Delhi, Jul 10 (KNN) India's two-wheeler industry is experiencing a significant shift toward premium motorcycles, mirroring trends across other consumer sectors in the country.

According to Crisil Intelligence, the market share of premium motorcycles increased to 19 percent in the last fiscal year, up from 14 percent in fiscal 2019, with projections indicating further growth to 22 percent by 2030.

The premium motorcycle segment, defined as vehicles with engine capacity greater than 150 cc, saw volume sales rise to 2.3 million units from 1.9 million units during the same period.

This growth occurred despite challenges facing the broader two-wheeler market, with premium motorcycle sales surpassing pre-COVID levels by 22 percent in the last fiscal year.

In contrast, the economy motorcycle segment experienced a notable decline, with its market share falling to 46 percent from 62 percent in fiscal 2019.

Volume sales in this segment dropped significantly to 5.6 million units from 8.4 million units, primarily attributed to weak rural demand and increased prices.

The overall two-wheeler market recovery remains incomplete, with sales reaching only 94 percent of pre-pandemic levels, while total motorcycle sales stood at 90 percent.

However, the premium segment's robust performance has bucked this trend, demonstrating resilience in a challenging market environment.

Crisil Intelligence attributes the expected continued growth in premium motorcycles to several favorable factors, including improving macroeconomic conditions, rising disposable incomes, increased global consumer exposure, and India's youthful demographic profile.

The research firm anticipates the premium segment's market share will reach approximately 22 percent by fiscal 2030.

Pushan Sharma, Director, Crisil Intelligence, identified key demand drivers for premium motorcycles, noting that buyers with healthy incomes maintained their purchasing power even during the pandemic, leading to sustained preference for higher-end products.

On the supply side, manufacturers have significantly expanded their offerings, with the number of available premium motorcycle models increasing to 35 in the last fiscal year from 23 in fiscal 2019.

The challenges facing the economy segment reflect broader rural market dynamics. Mohit Adnani, Associate Director, Crisil Intelligence, highlighted weak rural demand as a major obstacle for entry-level motorcycles.

Rural incomes have remained largely stagnant while economy model prices have increased by 65-70 percent due to regulatory transitions from Bharat Stage IV to BS VI emission standards, implementation of new safety norms, and the commodity price cycle.

These factors have resulted in economy motorcycle sales recovering to only 67 percent of pre-pandemic levels in the last fiscal year, underscoring the segment's ongoing struggles in the current market environment.

(KNN Bureau)