[hridaygandhi]

So true. While the car prices have increased as well, the 2-wheeler prices have become astronomically high.

I purchased a Honda Activa in 2008 for 45k OTR, a Honda Dio in 2012 for 50k OTR and a Honda Jazz in 2011 for 8L OTR.

In 2020, a new Activa/Dio would cost 75-80k, an increase of 50% while a new Jazz would cost 8.5-10L OTR, an increase of 15-20% over the last 10 years.

But before that, let us look at our inflation and per capita numbers for reference.

Government indexation (CII) numbers:
2008: 137
2011: 184
2012: 200
2019: 280

Average Indian Per capita Income:
2008: ₹ 43,604/-
2010: ₹ 46,492/-
2012: ₹ 61,564/-
2019: ₹ 1,35,048/-

So when I had to recently inquire for a Honda Activa, I was taken aback by the increase in prices. But while it "feels" the prices have risen up significantly, they are in fact in line with inflation (50% over the last 10 years) and increase in per capita income (3x over the last 10 years).

The prices of components must have increased for the manufacturers, however, the economies of scale would have lowered some costs as well. But these companies are in the business of making money, and as with all economies, these run on a principle of demand supply as well, so the companies will try and price their products as high as their potential target customer is willing to spend.

[nitinkbhaskar]

Originally Posted by hridaygandhi

Average Indian Per capita Income:
2008: ₹ 43,604/-
2010: ₹ 46,492/-
2012: ₹ 61,564/-
2019: ₹ 1,35,048/-

I find the 2019 per capita income really hard to digest. Source please ?

Also cross posting from different thread (Auto industry wants govt. to slash GST rate to 18%), which may bring some relief to the 2-wheeler pricings.

Originally Posted by nitinkbhaskar

Came across this article : GST rate cut for 2 wheelers

Anyone idea / thoughts how soon (and if) this is going to come into play ?
Looking forward to a purchase but done want to jump the gun and repent later if this law comes into force

[jetsetgo08]

Originally Posted by ashwinprakas

I fail to see what the problem is.

Originally Posted by SoumenD

So it actually got cheaper over time? Kinda makes sense with technology getting cheaper over the years and ofcourse this segment increasing in scale.

Beg to differ on this. Both the P220 and RTR160 had FI tech in 2009-10 time period. And neither did cost anymore than 85k back then if I am not wrong. Even with inflation, increased industrial automation and efficient methods and more production in place, do they justify a price hike of more than 20-30k even if input costs are taken into inflation.

Originally Posted by rajshenoy

Interesting trend indeed. While some of the hike % can be attributed to introduction of FI, ABS/CBS and multi year insurance etc, what beats me is that the new two wheelers launched in 2019(already compliant with BS6) also decided to conveniently increase the prices. Now they are looking up to the sky for the Govt to reduce GST, which i feel is necessary at least in the budget spectrum as the commuters today are overlapping with higher capacity/performance oriented options.

This is the perfect argument sir.

Our cacophony is due to the sky rocketing of prices that occurred suddenly in a span of 2-3 years. Some manufacturers have used the BS6 as a blanket reason to increase their prices. Same applies to the smart phone industry(2020) which has been dishing out duds at high prices. It's high time the industry needs a price correction.

And in my opinion, the OP's friend did the best by purchasing an RE350, as he can enjoy the max. cc per rupee that he spent.

[hridaygandhi]

Originally Posted by nitinkbhaskar

I find the 2019 per capita income really hard to digest. Source please ?

https://theprint.in/economy/indias-p...n-fy20/346119/

The increase in per capita has to do with a large chunk of workforce coming into the system and more number of people getting employed.

Now, if we compare it with the level of income of the workforce that was already employed in 2010 with their level of income in 2020, that surely would not have grown 3x. So, that must have reduced their purchasing power, making us "feel" that prices have gone up.

[Sheel]

2 wheelers have become expensive, by a lot. Or maybe rupee has fallen, I am not an economist so, I can not comment much.

I paid 65,987 OTR for a Bajaj CT-110B. I forgot to ask for any corporate benefits but will get GST benefit as it was on my company's name.

I remember paying 66,787 OTR for my Pulsar 180 V1 on 4th November 2003.

[AnandB]

Its 11 years on but FZ-S was 67k when i bought it in 2009 and 1.04 lac currently in 2020. I am not a regular bike user so i find this increase too much. Even buying 2-wheeler for staff/office use has become expensive. It is similar to car prices tbf (Santa Fe was around 27lacs in 2011 and now even smaller Tucson is more expensive), and partly taxes are to be blamed but as a customer you don't get the value any more.

[amol4184]

My 2007 Pulsar 200 was Rs 76k. You don't even get commuter bike for 75k now.
But its not just bikes. Cars too. I remember Scorpio used to be under 9L. Right now in my city base model of Scorpio is 14.52L.

[nitinkbhaskar]

Originally Posted by hridaygandhi

https://theprint.in/economy/indias-p...n-fy20/346119/

The increase in per capita has to do with a large chunk of workforce coming into the system and more number of people getting employed.

Now, if we compare it with the level of income of the workforce that was already employed in 2010 with their level of income in 2020, that surely would not have grown 3x. So, that must have reduced their purchasing power, making us "feel" that prices have gone up.

That's a good point.

Apart from that the per capita income quoted in your post is annual. If we look at the monthly figures (as majority of folks shell out EMI to buy), the income stands at measly ~11k. And if anyone goes ahead to buy any decent 150cc bike today, he/she would have to shell out ~4k in EMIs. That's a huge disparity.

FI, ABS etc is welcome but at a logical expense. No one would like to be taken for a ride.

[aghate]

OT: So if I had to sell my 12 year old Pulsar 180 I should be able to get 35k for it as there is inflation.

It has done about 60k kms and still in top nick and can smack past 100 kmph easily. If a new Pulsar 180 would cost about INR 100k then the used bike at around 30k is still a bargain.

On a serious note, I don't think these inflated prices would have any effect on the prices of pre 2010 used bikes. They would still go dead cheap. It makes my eyes water looking at these new prices and if I am looking for an upgrade to a Dominar 400 I have to spend more than 200k or go beyond 300k for an out an out fun upgrade for the KTMs.

I do not see the point in selling what is essentially the same bike (from 2007-08) for twice the price today. There may be some refinements and addition of ABS but the price should be around 10k less than what it is today or get a serious/next-gen upgrade to justify the price.

[KPR]

Originally Posted by ₹itzylove

Him: You know how much does it cost? I checked with dealers a week back they are quoting around 95K.

Me: Yes, I remember Unicorn was around 80K few years back so with BS6 this that it should definitely be around 95K, but its still better than investing on an RE350 (to run a maximum of 1k kms per year).

Him: In which world are you? The price am talking about is for Honda Shine, not for Unicorn. Unicorn is more than 1.20 Lakh.

In Oct 2019, I went to Honda showroom here in Trichy to get a quote for Unicorn to replace my Libero G5. I was told Rs.97000/- on road (for BS4). Now BS6 Shine 125cc costs same .

[₹itzylove]

Originally Posted by McLaren Rulez

The price hikes over the last six or seven years also have a lot to do with inflation, which is pretty high in India.

I understand your point, but when I do the correlation with the car prices this doesn't seem right to me.

Even I work in the manufacturing sector, to be precise in the Apparel industry. The fibre, other raw materials and labour wages etc.. have increased drastically in the past 10 years, but we still do a lot of optimization in the process, cut down profits to ensure the increase in End Product is kept to a minimum. Thats why I really wanted to understand whether the increase is only because of BS6 norms or if the 2 Wheeler manufacturers are trying to take advantage of the demand in the market in this situation.

[sovenkat]

Originally Posted by camitesh

Now jump three years ahead and the Aprilia SR160 costs a whopping ~60% more from my purchase price. Do note it's just 5cc increase by over boring the same engine block which gives hardly 1bhp increase in power, real world performance though is same or worse than old model. How is the price bump by 60% justified for ABS, FI, engine tweaks and a new panel?

I saw this price a couple of days back and was very curious why the price is so high. It shocked me too.

Il put my thoughts to rest if April could explain this.

[VigneshMC]

I got my Gixxer 150 SF in bangalore at 1 lakh on road in Dec 2018. There were some year end offers though .

Originally Posted by hridaygandhi

In 2020, a new Activa/Dio would cost 75-80k, an increase of 50% while a new Jazz would cost 8.5-10L OTR, an increase of 15-20% over the last 10 years.

I recently inquired for Honda Activa in coimbatore, its quoted 90K on-road, when I asked for cheaper alternative , its was Dio at 89K.

[Thatautoguy46]

Originally Posted by surjaonwheelz

How much is the RE350 on-road now? I bought the Classic 350 back in June 2014 for 1.3 lakhs on-road! Just imagine the price increase in 6 years.

Commuter bikes cost almost a lakh rupees nowadays. Sad but true!

.
In Vizag Classic 350 costs 2.15L onroad. Suzuki Access 125 costs 93K, Vespa top spec costs 1.4L. Just imagine how much has the price increased. R15 V3 costs 1.8L and Suzuki Gixxer SF250 costs 2.14L. I have been looking to buy a bike from almost two years, but the VFM factor is not letting me buy any.
The prices are increasing at a fast pace, only the pre-worshipped route seems sensible.

[camitesh]

Originally Posted by sovenkat

I saw this price a couple of days back and was very curious why the price is so high. It shocked me too.

Il put my thoughts to rest if April could explain this.

Right! Its such a good product but sadly I can't recommend it to many at this price especially considering many other fun to ride options at 70-80% of the price such as Suzuki Burgman/Access, TVS Jupiter/Ntorq.

On a flipside though, the used market prices for Aprilia SR150 are holding up good possibly due to this price increase. I can possibly expect 55-60 k for my 3 year old less run machine bought at 80 k. I'd recommend anyone to buy less used Aprilia at 60k than buying a new one at 120+ k