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House Includes 125cc, 150cc scooter market to see growth in India

TWO-WHEELERS

125cc, 150cc scooter market to see growth in India

by Amit Panday Jan 04, 2017

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India’s blossoming scooter sector, which has actually been specifying the development trajectory for the domestic two-wheeler market in the current past, is now all set to grow, resulting in growth of brand-new sub-segments.

The section, presently an umbrella to 100cc, 110cc, 125cc and 150cc scooter classes however controlled by 110cc designs, is approximated to tape development in the 125cc and 150cc scooter classifications in the future. An analysis by Autocar Expert of the growing scooter section (throughout its sub-categories) approximates that the 125cc scooter classification had a domestic market size of less than 500,000 systems per year in FY2016 on the conservative front. This section (125cc scooter classification), for that reason, represented a share of less than 10 percent of the general domestic scooter market in the last .

Our research study projections that the 125cc scooter section will grow by One Hundred Percent, if not more, in FY2018-19.

How the 125cc scooter market accumulates

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The 125cc scooter classification is presently controlled by 2 strong gamers– Suzuki Motorbike India (SMIL) and Honda Motorbike & Scooter India (HMSI). While Suzuki’s 125cc scooter Gain access to 125 has not just developed the marketplace for this class by itself over the last years, it has actually likewise been a traditionally essential competitor to the successful 110cc Honda Activa.

Suzuki likewise had on sale another 125cc scooter design called Swish 125, production which has actually now come to a standstill as the business is prioritising the production of its brand new Gain access to 125 (very first revealed at 2016 Car Exposition and introduced in March). The brand new Gain access to 125, especially, has actually restored the decreasing sales for SMIL in India this year.

” Suzuki is prioritising the production of its New Gain access to 125 to satisfy the high need and to attempt and decrease the waiting duration and backorders. Likewise, Suzuki has adequate trade supply of the Swish (125) in the pertinent markets where there is need for this design,” the business had actually clarified to a question from Autocar Expert just recently.

Honda, on the other hand, had actually forayed into this (125cc scooter) sector in 2014 by presenting its Activa 125. A quick study amongst HMSI dealerships exposes that the 125cc Activa is yet to make its mark amongst purchasers, who mainly choose Honda’s 110cc bestseller.

Nevertheless, while the Suzuki Gain access to 125 continues to be the most popular and segment-bestselling design, Piaggio’s Vespa variety, in the 125cc class, sits atop this classification with its premium prices.

It is to be kept in mind here that up until now significant gamers such as Hero MotoCorp, TVS Motor Business and India Yamaha Motor continue to stay missing in this classification.

TVS Motor to get in 125cc scooter market

Previously this year, Autocar Specialist had actually broken news about TVS Motor Business preparing to go into the 125cc scooter section quickly. The business, likewise the 3rd biggest two-wheeler producer in India, is comprehended to be establishing a brand new 125cc scooter design( s), which might see rollout in the very first couple of months of CY2017.

The Hosur-based business is likewise learnt how to be thinking about drifting a brand-new scooter brand name to release its upcoming line-up of more effective city scooters. 4 various sources, all opting to remain confidential, have actually verified that TVS is establishing 125cc scooter designs– and for this reason a more powerful scooter portfolio– to take its game-plan a notch greater.

” TVS Motor is readying a 125cc scooter design which is approximated to be presented early next year. The business is treading its own constant course in establishing and releasing brand-new items. The business is likewise examining the possibility of debuting in this sector (125cc) under a brand-new trademark name. Nevertheless, it was anticipated that a 125cc scooter might get branding under the effective Jupiter name,” exposed the source.

” The Jupiter has actually developed itself effectively, and this plainly implies that it will continue with its existing momentum in the market. Nevertheless, that is the only large-selling scooter brand name from the TVS steady, which indicates that the business will need to take a look at developing another scooter brand name that might cost them,” divulged another source.

TVS Motor Business has actually not reacted to an emailed question from Autocar Expert on its upcoming 125cc scooter design

Hero MotoCorp likewise dealing with a 125cc design.

It is likewise discovered that Hero MotoCorp is dealing with 125cc scooter design( s) and prepares to reinforce its scooter portfolio in the progressing classes.

The upcoming design– a firmly held personal job for the business– is being prepared for launch in the domestic market within the very first 2 quarters of FY2017-18, divulged a minimum of 3 reliable sources who know the advancements.

Current scooter designs from Hero MotoCorp– Master Edge and the Duet– have actually provided excellent volumes to the business, consequently combining its grip in the Honda-dominated market.

The two significant gamers– Hero MotoCorp and TVS Motor Business– have actually been contending increasingly with each other in the past. Market information of FY2016 highlights that while Hero MotoCorp taped overall scooter sales of 818,777 systems, TVS Motor offered 773,597 systems, behind by just 45,180 systems for the 12-month duration.

In September 2016, Hero MotoCorp outsold TVS Motor by just 5,456 scooters. (Hero: 83,990 systems vs TVS: 78,534 systems). In October 2016, Hero MotoCorp handled to outsell TVS Motor by just 980 systems (Hero: 88,780 systems vs TVS: 87,810 systems).

This pattern altered in November when TVS Motor outsold Hero MotoCorp by 16,349 systems (Hero: 53,410 systems vs TVS: 69,759 systems). Nevertheless, on a cumulative basis, Hero continues to lead TVS Motor in the April– November duration.

Surprisingly, it can be observed that TVS Motor, likewise the 3rd biggest scooter gamer in the domestic market presently, is progressively closing the space with the second-largest scooter gamer– Hero MotoCorp.

First-to-market benefit

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While it is comprehended that the business intend to be present in all significant (growing) item classifications, senior market authorities have actually constantly repeated that early to market provides an advantage over competitors (who get in late) and, likewise in regards to the recall worth.

This suggests that it would not be wrong to presume that both TVS and Hero MotoCorp would be seeking to present their 125cc scooter designs as early in the market as they can. Entering this brand-new, somewhat more effective scooter class, both two-wheeler majors will planning to progressively own gains in this market section.

State of the 150cc scooter market

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The 150cc scooter class makes up the leading end with brand names from Piaggio Automobiles India– Vespa and Aprilia. Market information has it that in FY2016 the 150cc scooter market size stood at less than 5,000 systems, all thanks to the two premium Vespa designs (Vespa SXL 150 and VXL 150), which had a list price tag of over Rs 85,000 (ex-showroom).

This, nevertheless, greatly altered when Piaggio Cars India presented the SR 150 under the Aprilia brand name at a competitive price-tag of Rs 65,000 (ex-showroom) in August 2016. In the joyful month of October, the business offered 820 systems under the Vespa brand name and 3,403 systems under Aprilia alone.

Even more, Piaggio has actually currently verified more variations of the trendy Aprilia SR 150 (in the pipeline), which plainly shows great times for this end of the general scooter market too.

Cumulatively in between April-November 2016, the Honda Activa 4g market has actually offered more than 14,000 systems, which marks a dive of more than 7 times over the matching worth from the previous financial. Our analysis approximates that regardless of the preliminary effect of demonetisation, the marketplace size of this classification will cumulatively cross the 20,000 unit-mark by the end of FY2017. The general scooter market has actually been a buffer to slowing bike sales. With 125cc and 150cc power, it might start to speed up.

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