Even though the scooter segment is making a gradual recovery, the trend of premiumization is gaining momentum in the segment. Although the 110cc segment is a huge segment in the scooter market, the 125cc scooter market has been witnessing action since the last several months considering the growing potential of the customers.
As the customers in this segment aspire for more power and better riding experience in scooters, the two wheeler manufacturers come up with new 125cc scooters and variants from time to time, which are loaded with a range of features. It has only intensified in recent times. It is estimated that a little over a third of the scooter market sales come from 125cc scooters, up from around 20 per cent three years ago. With the growth of customers in the 125cc segment, especially the young buyers, this market is expected to see better growth across cities.
“As a natural progression, once there is a general acceptance and demand for the category, it leads to a sub-division with increasing needs of the customers. Especially after the introduction of BS6 norms, the new The technology allowed us to introduce advanced features at a new value proposition for the customers.Advanced technology has brought a paradigm shift in the segment as well as the growing penetration of retail finance for the growth of the 125cc scooter segment through upgradation and premiumization Assisted,” said Yadwinder Singh Guleria, Director, Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. told business Line.
big players
While Honda is the top player in the entire scooter market, TVS Motor is the other big player. Recently TVS Motor launched its 125cc Jupiter to further strengthen its position in the segment, while Yamaha launched its new sports scooter a few weeks back.
Honda and Suzuki have dominated the 125cc segment, while Hero MotoCorp has also strengthened its presence. Both Suzuki and Yamaha are sold in the 125cc scooter space. Ritu Goswami, Assistant Vice President, says, “With almost all OEMs offering product in the 125 cc category, Honda’s Activa 125 and Grazia, TVS’s Ntorq and Suzuki’s Access and Burgman are some of the most sought-after models.” , Icra. Meanwhile, there is another view that the increasing acceptance of electric scooters in cities may put some dent in the ICE-based 110cc scooters due to price parity and higher fuel prices. Hence, two wheeler companies want to create excitement and excitement in the market with the launch of premium products.
However, two-wheeler makers say it is too early to form an opinion on the impact of electric scooters.
Top scooter maker Honda says that while there will be growth in other segments, the mass segment continues to grow at a significant amount at present. “Overall, 110cc scooters with wide acceptance and unisex appeal attract a diverse target audience ranging from college students, office goers, businessmen and the older generation to the self-employed. User profiles reflect the unparalleled diversity and commonality across different geographies of our larger country. Now with the entry of electric vehicles into the two wheeler landscape, there are certainly new avenues of growth. However, it is too early to comment on any tradeoffs,” Guleria said. However, industry analysts say that an improvement in the ecosystem for electric two-wheelers will drive sales of electric scooters northwards. Goswami said, “In the medium term, with the cost economics for electric scooters becoming increasingly favorable due to FAME and state EV subsidies and rising petrol prices, faster electric vehicle penetration is expected in the scooter segment.”
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