India's entry-level motorcycle segment to remain under pressure: Bajaj Auto MD

Several factors such as the growing focus on EVs, the Covid-19 pandemic, job losses and rising petrol prices have impacted the sales of entry-level tw
...
Several factors such as the growing focus on EVs, the Covid-19 pandemic, job losses and rising petrol prices have impacted the sales of entry-level two-wheelers.
Several factors such as the growing focus on EVs, the Covid-19 pandemic, job losses and rising petrol prices have impacted the sales of entry-level two-wheelers.

The entry-level motorcycle segment in India has been facing the pressure of dampening sales over the last few years. This will continue in the near future, believes Bajaj Auto Managing Director Rajiv Bajaj. Reuters has reported that in an interaction, Bajaj reportedly said that entry-level motorcycle customers are unlikely to return in the near future. His comment comes right ahead of the festive season, which is generally known as the best time for any automaker across India to fetch the biggest sales volume in a year.

Along with the dampened consumer sentiment towards entry-level motorcycles in India, the traditional fossil fuel-powered two-wheeler manufacturers will also experience the pressure of consumers' increased focus on electric two-wheelers this festive season, hinted the Bajaj Auto MD. He said that the upcoming festive season would be a dull one for the traditional fossil fuel-based two-wheeler manufacturers, as the buyers are inclined towards electric two-wheelers.

Also check these Bikes

Find more Bikes
Bajaj Ct110 (HT Auto photo)
Engine Icon115.0 cc Mileage Icon70.0 kmpl
₹ 50,483 - 62,349
Compare
View Offers
Hero Hf Deluxe (HT Auto photo)
Engine Icon97.2 cc Mileage Icon70 kmpl
₹ 59,998 - 68,768
Compare
View Offers
Tvs Sport (HT Auto photo)
Engine Icon109.7 cc Mileage Icon70.0 kmpl
₹ 59,431 - 70,773
Compare
View Offers
Tvs Radeon (HT Auto photo)
Engine Icon109.0 cc Mileage Icon73.68 kmpl
₹ 59,942 - 71,542
Compare
View Offers
Honda Cd 110 Dream (HT Auto photo)
Engine Icon109.0 cc Mileage Icon65.0 kmpl
₹ 49,336 - 73,400
Compare
View Offers
Hero Hf 100 (HT Auto photo)
Engine Icon97.2 cc Mileage Icon70 kmpl
₹59,018
Compare

Also Read : Bajaj Auto trademarks Swinger and Genie names. New EVs incoming?

Watch: Bajaj Pulsar P150: Road test review

The entry-level motorcycle segment comprising the 100-110 cc models has always been the key revenue churner for any two-wheeler manufacturer in India. Bajaj Auto being a major legacy player in the Indian two-wheeler market has relied on this segment like other companies such as Hero MotoCorp, TVS and Honda. However, over the last few years, the consumers' focus has shifted towards premium models that come powered by higher displacement engines and deliver better performance. The Covid-19 pandemic, job losses and rising petrol prices too hit the segment hard.

This change in consumer perspective has put pressure on the entry-level segment. “The entry segment, which is the 100 cc motorcycle, continues to be under pressure for the industry as a whole," Rajiv Bajaj said, adding that the buyers are at the bottom of the pyramid who were hit by the Covid-19 pandemic, job losses and rising petrol price, are not coming back. The homegrown two-wheeler manufacturer currently sells seven motorcycles in the 100-125 cc segment, which are priced between 67,000 and 1.07 lakh (ex-showroom)

Speaking about the dampening demand for entry-level motorcycles, Bajaj has advocated for a disruptive action. He proposed that the two-wheeler manufacturers should develop CNG-powered motorcycles. Also, he has advocated for tax incentives for such motorcycles from the government, hoping that would galvanise entry-level customers again.

First Published Date: 19 Sep 2023, 09:26 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.