re: 2-wheeler segment reeling under high inflationary costs | Rural markets softening Unlike yesteryears when the middle and upper middle class were two wheeler customers, since the last few decades, a sizeable number of those who buy two wheelers are from the lower and lower middle class (also lower class). These include the low paid, self employed and daily wagers too who sustain themselves on their day to day income.
Apart from the BS VI norms, the Supreme Court judgment in a civil matter and its aftermath has directed compulsory insurance for five years for two wheelers at the time of purchase since 20.07.2018. For new four wheelers this period is three years. As we see, there is not much let up in demand for four wheelers. The two wheeler prices have gone up by at least Rs 6000 if we calculate the third party premium at a minimum of Rs 1200 p. a.
The contentions by the Road Safety Committee appointed by the Supreme Court justified levy of such compulsory insurance for five years, saying that numerous uninsured two wheeler riders do not receive compensation after injuries or death, as a sizeable majority of two wheelers are not insured. But then what about the two wheeler rider from the sixth year onwards if he or she decides to ignore insurance and drives the vehicle uninsured?
To add to the ex-showroom price tag, we also have regular increases levied by manufacturers.
These price rises are detrimental for those buyers who are simply unable to afford the higher price tags. Most would prefer to settle for used two wheelers. We have seen lesser footfalls in showrooms for commuter two wheelers, ever since the compulsory five year insurance levy was mandated.
Last edited by anjan_c2007 : 9th April 2023 at 19:41.
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