[landcruiser123]

Premium automobiles and bikes are not going to be affected much. It is about want and not need.
A man wanting to upgrade his 9 year old Honda City might think twice about a potential purchase now even if he has the money. A man who's been saving to upgrade from a Duke 200 to a Ninja 650 might not think twice.

The former values his purchase and is worried about registration validity, BS6 etc. The latter is probably not bothered about all those factors as he may upgrade to a bigger motorcycle 5-6 years later.

[bmw_lover]

Sharing an article from Times of India, 9.10.2019

Superbikes see 4-fold growth, beat slowdown


At a time when the automobile market is reeling from a sales slowdown, the 500cc-plus lifestyle motorcycle market has seen a fourfold growth in April-August pushed by the entry of new players and a slew of new models.


According to SIAM data, The 500cc and above segment has grown from 5,058 units to 23,577 units in April to August 2019 Y-o-Y. Part of this growth is because the segment is less affected as it is a niche play.

The entry of Royal Enfield 650 twins Continental GT and Interceptor have brought bigger volumes by tapping into upgrader demand.

“The 650 twins have been game-changers in the premium mid-sized motorcycle segment,” said a company spokesperson. “Over 3.5 million Royal Enfield-riding enthusiasts and owners have been waiting to upgrade to higher powered motorcycles, and the 650 twins have been the obvious choice for them,” she said.

As for other smaller volume players, the segment is vrooming with launches despite a higher price tag. “The higher-end superbike market is 15,000-20,000 units a year. Motoroyale has seen 10-15% growth this year,” said Ajinkya Firodia, MD of Motoroyale. Since the market is small, he added, marketers are bringing new products to keep the excitement alive.

Firodia launched a bike priced at nearly Rs 19 lakh in August and is gearing up to roll out one more bike next March. And Ducati has rolled out two superbikes in three months, priced between Rs 12 lakh and Rs 19.25 lakh.

“We have seen very consistent sales numbers all through and no slowdown in demand at all because these bikes are not a necessity. The only thing that has changed for us is the time taken to close a sale with the customer, which is due to the fact that banks are now more careful with retail loans,” added Vikas Jhabakh, managing director of Benelli India, which has launched three models in the 500cc and above range over January-August.

The 500cc segment has long been dominated by imported products that are in the Rs 10-lakh-plus price bracket. The entry of Royal Enfield has brought bigger sales to the segment and given the brand some big bike weightage.

[ranjitnair77]

Originally Posted by bmw_lover

According to SIAM data, The 500cc and above segment has grown from 5,058 units to 23,577 units in April to August 2019 Y-o-Y. The entry of Royal Enfield 650 twins Continental GT and Interceptor have brought bigger volumes by tapping into upgrader demand.

I think we need to scratch beneath the surface on this article.

Let's look at the sales numbers for two wheelers for August (August 2019: Two Wheeler Sales Figures & Analysis). The most recent one I could find.

The RE 650 twins have undoubtedly changed the game. At 2 lakhs they are extremely affordable. They are selling roughly 2000 of these a month. Set that aside and a very different picture emerges. Kawaski, Harley and Triumph have arguably the most complete portfolio of big bikes. They are selling between 200 and 250 for Kawasaki and Harley and under 50 for Triumph. I'm assuming that Ducati and BMW, minus the 310 range should be around the Triumph ballpark in terms of sales.

So this segment minus RE is a minuscule one. And growth seems to be flatlining or shrinking for non RE brands. Maybe Motoroyale sold 10 extra bikes this year which leads to the all the talk about growth

[bmw_lover]

Sparingly used superbikes within reach even on a modest budget

Superbike lovers could be in for a Diwali treat. Second-hand bikes are available, in mint condition, for nearly half the price of the new one. In fact, the second-hand superbike market is flooded with sparingly used machines from the stables of Harley-Davidson, Ducati, Benelli, Triumph and other top global brands.

When Jaideep Das, a resident of Chittaranjan Park, wanted to sell his 5,000km-run Triumph Speed Triple, he could only get Rs 6.5 lakh for the bike, for which he paid Rs 11 lakh a year ago. With the cash, he made a down payment for another new bike that cost him around Rs 20 lakh. “I was disappointed with the depreciation but I was so eager to upgrade to the new bike that I didn’t really care in the end,” he said.

Several superbike owners don’t keep their motorcycles for more than one-two years before upgrading, thanks to multiple brands setting up shop in the country, which has led to widespread availability of new models at attractive price points. Almost all major global brands now sell their international bestsellers in India.

“Most superbikes are being sold to riders who already ride superbikes and want to upgrade. A motorcycle brand just sold eight bikes that cost Rs 30 lakh each last month to people who already own multiple superbikes. It’s not that superbikes are not selling. They are just not being sold to new customers,” said superbike rider Piyush Wadhwa, who also runs one of India’s largest stores for big bike accessories.




In Chandigarh, Parikshit Singh, who owns three superbikes, including two which are pre-owned, is toying with the idea of selling a cruiser which just clocked 6,000km on the odo. “The original price of the bike was Rs 14 lakh. I am not even getting Rs 7 lakh for it because the company just discontinued it to bring in a facelift. The rate at which manufacturers are refreshing their models, how will the bikes retain their value?”

New motorcycles beat their pre-owned counterparts when it comes to assurances such as quality checks, original parts and warranty. Despite that, during April-August, companies sold only 403 motorcycles in the 800-1,000cc category compared with 468 units in the same period a year ago. The number of motorcycles sold in the 1,000-1,600cc category, too, shrank from 395 to 340 during the period, according to data from Society of Indian Automobile Manufacturers (SIAM).

The slowdown in the segment has prompted several superbike dealers to consolidate their businesses and shut down showrooms. As a result, the discounts being offered on new motorcycles are also quite steep, between Rs 1 lakh and Rs 2.5 lakh, which brings down the price of the bikes further when they hit the second-hand market.

Source: TOI, 21.10.19

[narula123]

A number of customers (percentage unknown) are salaried folks who finally are able to buy these machines thanks to healthier pay-packets and flexible loan options from banks. I am one such customer.

For these chaps, the annual salary increments this year are rumoured to be quite shaky due to the consumption down-trend that most industries are witnessing. When the incoming cash is under stress and other cost-of-living expenses are going to witness their predictable annual increase most people will sensibly think about postponing these 'indulgence' purchases.

The "daddy sponsored" ones will possibly remain unaffected with the economy squeeze.

My personal viewpoint is that barring the RE twins, the other entry level (sub 10 lac) players will probably feel the pinch.