The recent years have experienced the slowest growth in automobile sales.
The motorcycle segment is the largest segment by volume. It surpasses that of the three-wheeler vehicles and the commercial ones..
SIAM, which is the Society of Indian Automobile Manufacturers has data which exemplifies that the cumulative growth of the Indian motorcycle market is less than six percent since 2013-14. In this time span the three-wheeler market expanded by six percent, commercial vehicles witnessed a growth of little over twelve percent whereas the vehicle market for domestic passengers increased by 21 percent.
Bajaj Auto commented about the negligible growth in motorcycle sales for the last four years. They are the second largest company in the country when it comes to the motorcycle segment.
Rural markets account for half of fifty percent sales of motorcycle sales in the country. 2014 and 2015 experienced deficit monsoons in rural areas thereby affecting sentiments in those markets. Also, owing to convenience we can find a migration to scooters in urban markets.
There is a lot of scope for growth in the domestic market is what Hero believes.
They consider a scope for consistent growth in the domestic industry owing to low penetration level of two wheeler’s in the current market. Hero with its established business is well composed to drive this. The company knows that scooters will play a major part in this growth. Being the current market leaders they aim to rule both segments – motorcycles and scooters.
A phenomenal growth is being experienced by the scooters and the company plans to dominate the market in this market segment as well. The scooter portfolio of the company will be augmented by new launches in the next few quarters.