New Delhi, July 10 (IANS) The market share of premium motorcycles (engine capacity greater than 150 cc) increased to 19 per cent during the financial year 2024-25 from 14 per cent in fiscal 2018-2019, with their volume rising to 2.3 million units from 1.9 million units, fuelled by rising demand and fast-increasing model options, according to a Crisil report released on Thursday.
The run-up was in sharp contrast to the downtrend in the overall volume of motorcycles, from 13.6 million units in fiscal 2019 to 12.3 million units in fiscal 2025, and in the overall two-wheeler volume, to 19.9 million units from 21.2 million units, the report said.
The sales of premium bikes surpassed the pre-Covid level by 22 per cent last fiscal, while the overall sales of two-wheelers stood at 94 per cent of the pre-pandemic level and motorcycles at 90 per cent.
The market share of premium motorcycles is expected to climb to about 22 per cent by fiscal 2030. The improvement will ride on favourable macroeconomic trends, increasing disposable incomes, rising global exposure of consumers and a youthful demographic, the report further stated.
Crisil Intelligence director Pushan Sharma said, “The demand-side spurs for premium motorcycles include a growing preference for these products from buyers with healthy incomes who maintained their purchasing power even during the pandemic. On the supply side, it is the expanded range of options available to consumers. For the record, the number of motorcycle models available in the premium segment increased to 35 last fiscal from 23 in fiscal 2019. We anticipate these trends to persist through the next five years.”
The market share of economy motorcycles, on the other hand, declined to 46 per cent last fiscal from 62 per cent in fiscal 2019, with volume shrinking to 5.6 million units from 8.4 million units, largely due to weak rural demand and an increase in prices.
Crisil Intelligence director Mohit Adnani said, “Weak rural demand poses a major hurdle for entry-level motorcycles. Rural incomes have not increased in lockstep with the steep 65-70 per cent hike in prices of economy models to pass on the increase in costs due to the transition from Bharat Stage (BS) IV to BS VI standards, implementation of safety norms, and the commodity super cycle. Thus, sales of these motorcycles recovered to only 67 per cent of the pre-pandemic level last fiscal.”
–IANS
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