[dailydriver]

The year 2016-17 has been a hugely successful one for Indian two wheeler manufacturers. They managed to sell 48,190 two wheelers per day during the said period.

Yes, that is the average number of two wheelers sold in India on a daily basis in the year 2016-17. As per statistics published by SIAM, the total sales of two wheelers during the said period stood at 1,75,89,511, an increase of over 11,33,000 units compared to 2015-16. link.

With this, India becomes the largest seller of two wheelers in the world, leaving behind China (largest seller last year) which sold a total of 1,68,00,000 (approx) units. Times of India reports that the increased sales has been made possible because of improved infrastructure, specially in rural and semi-urban areas, easy access to credit, rising incomes and more prominently, the rise in number of women riders. The last point is highlighted by the fact that over 35% of Honda's customers are women.

As a side note, it is interesting to note that though China has seen a decline in two wheeler sales in recent years, its annual sales at its peak stood at an astounding 2,50,00,000 units, which is a different territory altogether. link

However, neither SIAM nor TOI touch upon the flurry of end of March sales fuelled by the BS3 ban. It is not clear whether the sales figure for 2016-17 includes these numbers as well.

[V.Narayan]

http://timesofindia.indiatimes.com/a...w/58555735.cms

http://www.businesswire.com/news/hom...r-Markets-2020

While India becomes the world's largest 2-wheeler market China is set to be the world's largest electric 2-wheeler market by 2020 according to this report by businesswire.

2-wheelers might go electric big time before 4-wheelers.

[Omkar]

Was wondering when this would happen especially after reading that Honda has sold 1.5 crore Activas from its facility in Gujrat. The sheer amount of two wheelers you see on the roads these days is mind boggling.

Originally Posted by dailydriver

However, neither SIAM nor TOI touch upon the flurry of end of March sales fuelled by the BS3 ban. It is not clear whether the sales figure for 2016-17 includes these numbers as well.

Good point. Since it's mentioned as 2016-17, this is probably the Financial Year which means that this would include the month of March. So, the sales due to the BSIII ban are included. Though it should also be noted that the industry incurred losses of over Rs. 600 crore due to the said BSIII ban (Source). One more factor to consider here is the total number of sales per month in the last year. The sales were at an all time high in September-October 2016 after which there was a serious decline mainly because of Demonetization. There has been a steady increase post that and the numbers in March 2017 are just slightly more than those of March 2016 (graph).

Originally Posted by V.Narayan

While India becomes the world's largest 2-wheeler market China is set to be the world's largest electric 2-wheeler market by 2020 according to this report by businesswire.

2-wheelers might go electric big time before 4-wheelers.

Don't see why not.
The Chinese market clearly saw a saturation in terms of the number of vehicles and the amount of pollution in their urban cities. This was the reason for the implementation of such stringent rules in the country. China banned petrol two wheelers in most urban centres and thus has been seeing a downtrend in the two wheeler market.

Wonder if this would ever happen in India. The amount of two wheelers in urban cities of India is way too high. The two wheelers are proving to be a viable option in the urban areas since the streets are packed with four wheelers. Though there might soon be a time when even the two wheelers will feel saturated. The two wheelers are sleek and can cut through traffic easily. You will also see a lot of them cutting traffic on another level by riding over footpaths or anywhere possible.

Electric vehicles though clearly a way forward seem farfetched in the Indian market especially when the costs aren't as competitive in comparison with the petrol siblings. The idea of switchable batteries for cars and bikes seems promising. The implementation of switchable batteries might prove be the necessary push that is needed for the Indian electric car as well as bike scene. If that does work out well, the 2-wheelers might surely go electric big time before 4 wheelers.

Though on a positive note, the news would bring in a lot of investment in the two wheeler market wherein other manufacturers would want to invest in India. Introduction of models and broadening the line-up can also be expected from manufacturers. Also, this might lead to the current foreign manufacturers setting up manufacturing plants in India to price their bikes competitively. All in due course of time.

[GTO]

Boggles the mind when you think of the sheer volumes. Incredibly proud of India !

Honda's Indian 2-wheeler arm is now the no.1 for Honda worldwide - source.

[SmartCat]

Some numbers to chew on -

Hero Motocorp:
FY16 Revenues: Rs. 28,600 crores
FY16 Profits: Rs. 3,132 crores
FY16 Networth: Rs. 7,900 crores

Honda Motorcycles & Scooters Ltd
FY16 Revenues: Rs.18,127 crores
FY16 Profits: Rs. 1,049 crores
FY16 Networth: Rs. 4,580 crores

Bajaj Auto:
FY16 Revenues: Rs. 22,680 crores
FY16 Profits: Rs. 3,652 crores
FY16 Networth: Rs. 12,000 crores

40% of Bajaj Auto revenues are from exports though.

TVS Motors:
FY16 Revenues: Rs. 11,243 crores
FY16 Profits: Rs. 432 crores
FY16 Networth: Rs. 1,900 crores

Three wheelers contribute 10% to TVS Motors sales though

Royal Enfield
FY16 Revenues: Rs. 4,950 crores
FY16 Profits: Rs. 980 crores
FY16 Networth: Rs. 2,123 crores

Royal Enfield net profit margins are close to 20%!

[Lobogris]

If we look at countries like Vietnam and compare an Indian city to Ho Chi Minh City or Hanoi, you will find Vietnam engulfed in a sea of two wheelers. There are dozens and sometimes hundreds of two wheelers for every car on the roads. It is frightening to drive there even after driving in India as the two wheelers don't follow any rules and there are hundreds of them around each car. People there have figured out that these vehicles provide them cheap mobility and every one, even the very poor use them. Bus service is rather limited for the same reason. Most of the adverts on TV for vehicle care products and washing are for two wheelers there! You can even see people sleeping and resting on their two wheelers.

This link provides some pictures for a perspective (takes a bout 30 seconds to load the page). Please pardon the poor English grammar:

http://autonetmagz.net/hanoi-ready-t...on-2025/27525/


I am afraid the same is going to happen in India. On one hand it is good as it will allow the poorer segment to directly drive to work rather than walking across highways. The flip side is that driving will become even more lawless as most two wheeler drivers don't follow road rules. Already is it hard to drive smoothly even on rural roads as there are far more two wheelers present on the highways.

[heydj]

I am scared. If this vehicle explosion continues where will all the free space go? It's getting way too difficult to even find walking space and what about the pollution.

Stephen Hawkins says humans have about 100 years left on Earth. What about all other species?

Is this beginning of the end.

[OrangeCar]

Originally Posted by dailydriver

With this, India becomes the largest seller of two wheelers in the world, leaving behind China (largest seller last year) which sold a total of 1,68,00,000 (approx) units. Times of India reports that the increased sales has been made possible because of improved infrastructure, specially in rural and semi-urban areas, easy access to credit, rising incomes and more prominently, the rise in number of women riders. The last point is highlighted by the fact that over 35% of Honda's customers are women.

As a side note, it is interesting to note that though China has seen a decline in two wheeler sales in recent years,

I do not see this as a good development for India. Another major factor is the lack of public transport.

If people in an average Indian family have to rely on public transport, i.e., buses in most cities & trains in few, given poor infra and dismal traffic management, they will end up spending at least 30% more time than they would if they use 2-wheelers.

Also, I do not think an average middle class family will be able to afford auto rickshaws / cabs for their commute to work on daily basis. Increases transportation costs.

This leads to the easiest alternative -> 2-wheelers.

Go anywhere, anytime. Low running costs, low investment (particularly given rising incomes), and low maintenance costs.

Additional features - wearing helmets is not enforced everywhere. Plus, convenience of making U-turns at will + going in wrong directions slowly, jumping dividers all add to the convenience factor.

This makes growth in 2-wheeler sale obvious, but not desirable.

China 2-wheeler sales had to decline! It is a nation whose incomes has risen rapidly, much better infra, more affordable and variety in 4-wheelers. Market obviously has moved away from 2-wheeler to cars. This trend will continue, until major economic debacle hits China.

Originally Posted by GTO

Boggles the mind when you think of the sheer volumes. Incredibly proud of India !

Volumes does boggle your mind. But does not make me feel proud, but makes me feel sad. Know many people who travel 30km+ on 2-wheeler on a daily basis. Risky + uncomfortable - all because no efficient affordable transportation systems in the country exist and inefficiently enforced traffic rules.

Ideal scenario would be - buy 2-wheelers. But most 2 wheeler are used for short distance commutes and fulfilling last leg transportation and/or local chores fulfillment.

[payeng]

Originally Posted by Omkar

Good point. Since it's mentioned as 2016-17, this is probably the Financial Year which means that this would include the month of March. So, the sales due to the BSIII ban are included.

NOPE.

SIAM Numbers are Wholesale Numbers/Dispatches to Dealers for that particular month. The BSIII/IV Sales are related to Retails (of the last week of March). The Effect of it, if any will probably be felt / seen in the (Wholesale/SIAM numbers) coming months.

[hangover]

I've been been to some villages around where I live.
2 wheelers are huge business. Even the usually astute Marwadis and Sindhis haven't seen the trend.
Spare parts business in any remote place is huge.
People want more colors in bikes, variants, power even.

Suggest you stop at a village. Early morning. Have breakfast. Local types . Do this before 6 am, THEN look at the bikes parked outside.

Their numbers. Outside your hotel. You will be surprised.

[dailydriver]

Originally Posted by hangover

I've been been to some villages around where I live. 2 wheelers are huge business..

Absolutely. The growth of sales of commuter bikes in India is largely a result of rise of disposable income of people living in tier 2 cities, mofussil towns and villages. In the early part of this century, Hero Honda and TVS could ascribe the chartbursting sales of Splendor and Victor respectively to their being in demand as an important item on the dowry list during marriages!

Even now, the mark of arrival of a man in a village or his graduation from boyhood to manhood requires him to buy a new bike. Hero, Honda, TVS and Bajaj have cleverly played on this requirement by arranging hassle free loans in the showrooms. Ask a guy how much does a particular bike costs and his answer is invariably like " 55 if paid in cash, 62 through loan ". The revival of Royal Enfield as a brand too was made possible because riding a Bullet is considered the ultimate in thing among small town and rural youth (plus the college-goers and techies).

Honda and TVS have also benefited by the increased need of women for mobility by selling them gearless scooters. The unisex nature of these two wheelers is a great USP. I can even hazard a guess that the history of women liberation movement in the 21st century would have a chapter dedicated to Scooty and Activa .

My cousin runs a small two wheeler garage in a village that lies on the State Highway connecting two taluks of Hassan District. He stocks the spares too, thus making it a Sales cum service point. From the day he opened three years ago, his monthly after-expense profit has never fallen below 25k. These days, he coolly pockets an average of tax free 40k/month, working from 9-7.

While the Dukes may Triumph in big cities, it is the Passion of the people in small towns and villages that let's them Discover new bikes, thereby enabling the manufacturers to XL(excel) in sales and reach for the Stars and Shine in the market. .

[amitkumarsi]

As someone who has been riding a motorbike regularly for the past 4 years in Mumbai, I would not see this as a good development for the following reasons:

1) The majority of Indian two-wheeler riders are indisciplined while riding on the roads. Not giving turn-indicators, honking irresponsibly to indicate displeasure, riding on footpaths, overtaking from wrong sides, elbowing pedestrians, jumping traffic lights - there is no end to their dangerous behaviour.

2) Substantial amount of riders still use their bikes as mini luggage carriers. From poultry owners to milk-transporters, to carrying large glass sheets, wooden sheets - they don't just endanger their own lives, but also the lives of fellow commuters.

3) Though fewer, a substantial amount of Indian families use the bike as a car. Families of four-five are stuffed on the bike alongside luggage traveling medium to long distances.

4) Protective gear- the only one popularly used by Indians is a helmet, that too a good amount being picked up from the streets, and even that one being used to protect the hand, rather than the head. Except the metros and defence areas, the concept of helmets do not exist. It's absolutely irrelevant to even speak about other protective gear like gloves, knee pads, elbow pads, riding jackets etc.

5) Maintenance of vehicles - As long as the bike is spewing up some smoke, blaring up an unbearable noise and treading ahead, we are okay. As mentioned above, we use our bikes or scooters for far more unsuitable purposes than mere people transportation and any maintenance that costs us more than 500 is strongly fought back.

6) Roads- I honestly am not sure if our roads are really meant for two wheelers. From sudden potholes, to a hole in the road for manhole covering to slippery surfaces to broken roads - I have personally experienced death traps on the most popular roads of Mumbai. Their instances just keep on increasing as you shift towards smaller towns, cities and villages.

The biking scene in India maybe changing with bigger and better brands coming in. However, for millions riding bikes in India, there is an entire system formed by the nexus of an uncaring government, cost-saving oriented companies and indifferent or irresponsible citizens who make the two wheelers, two wheeled potential coffins lurking on the roads.

[V.Narayan]

Originally Posted by V.Narayan

While India becomes the world's largest 2-wheeler market China is set to be the world's largest electric 2-wheeler market by 2020 according to this report by businesswire.

2-wheelers might go electric big time before 4-wheelers.

In 2016 China purchased/manufactured 20 million electric two wheelers out of a total Chinese market of 26 million. Arguments about cleanliness of the primary energy source notwithstanding this trend is worth watching. There is nothing more powerful than an idea whose time has come.

[srishiva]

Originally Posted by V.Narayan

In 2016 China purchased/manufactured 20 million electric two wheelers out of a total Chinese market of 26 million. Arguments about cleanliness of the primary energy source notwithstanding this trend is worth watching. There is nothing more powerful than an idea whose time has come.

Totally agree. I think the govt should really force electrification of two wheelers by providing good subsidy. I read today that by 2022 renewable energy will surpass thermal based installed capacity in India. Its not that far and we need to gain expertise by that time. Atleast they should start with premium bikes.

[ArizonaJim]

Originally Posted by srishiva

Totally agree. I think the govt should really force electrification of two wheelers by providing good subsidy. I read today that by 2022 renewable energy will surpass thermal based installed capacity in India. Its not that far and we need to gain expertise by that time. Atleast they should start with premium bikes.

To each their own but, I think the government should stay out of "forcing" electric vehicles onto the public, be it by subsidy or mandate.

Any subsidy they give/pay to anyone is tax money which they don't have and any mandate they make removes the freedom of choice I believe every person should have.

I am a believer in letting the market decide if and when a item becomes successful.

If people decide an electric vehicle or any other item is best for them, they will buy it.

If people decide the product doesn't serve their needs they won't buy it and it will either fail, or the makers will re-engineer it to improve it so that it does meet more peoples needs.

That's how progress and improvements are made.