62 THE WEEK • JULY 14, 2019
BUSINESS
TWO-WHEELERScompared with just 1.2 per cent just six years back. Lately,
we have observed the rise in demand from not just metros
but also from Tier 1 and Tier 2 cities, like Indore, Bhopal
and Thiruvananthapuram. As an emerging trend, motor
enthusiasts are now looking for a ride to complement their
lifestyle. Driven by increasing personal disposable income
and growing aspirations, the premium segment is opening
up. Weekend rides, biking expeditions and riding groups are
not only creating engagements around the brands but also
creating communities.This is happening when there is an overall sales decline
in the auto sector. What do you think has changed?
The buyers of premium two-wheelers are driven more by
aspirations and riding passion than needs. Higher disposable
income, improved infrastructure and availability of desired
models with proper aftersales backup are some of the
attributes fuelling this demand.What are the main challenges for two-wheeler sales in
India right now?
Overall, the auto industry is facing challenging volume
growth. For the last six months, the industry remained
stressed with continued slowdown and negative growth
compared with last year. The first two months of the new
financial year remained low on sentiments as well. The next
challenge for the industry is the transition from BS IV to BS
VI. The transition will lead to further slowdown due to impact
on price points. Honda has already begun preparation for
introduction of BS VI models.n INTERVIEWMinoru Kato
president & CEO, Honda
Motorcycle & Scooter IndiaBY K. SUNIL THOMAS
Honda has been improving its market share in the
premium segment. What is the medium-to-long
term outlook for this category?
The premium segment above 250cc has noted a rise
to more than 6 per cent of total motorcycle sales,Buyers are driven
more by aspirations
than needs
working on more powerful variants
of its Pulsar, Dominar and Avenger.
This spike in the popularity of pre-
mium bikes even as the mainstream
commuter bikes sales get sluggish
points to an evolving market and
social trends. “The demand for high-
end bikes is increasing on the back of
higher purchasing power, aspiration
for luxury brands and evolving life-
styles,” said Rajeev Singh of Deloitte.
“Besides, biking is emerging as a
hobby among millennials. This trend
is attracting new players to start
local manufacturing, while custom-
ers buying these products remain
unaffected with macro-economic
conditions.”
And these buyers are not swayed
by the cost of the bike or rising fuelprices. “When your purchase is more
dictated by passion, your thirst for a
particular kind of lifestyle, then that
surmounts all economic consid-
erations,” said Sugato Sen, deputy
director general of SIAM, pointing to
the many bike clubs that have sprung
up around premium bike brands like
Harley-Davidson and Royal Enfield,
and the brisk sale in accessories.
While mainstream brands are
pushing their way into premium
segments, the traditional power
performers are not overtly perturbed.
Instead, they are widening their hori-
zon. Enfield’s sales shot through the
roof last year when it launched two
650cc bikes. The iconic Czech brand
Jawa re-entered the Indian market
after some five decades in Octoberlast year, and was swarmed with
inquiries and bookings.
The international brands, too, are
gung-ho. Triumph and Ducati plan
to scale up by adding a pre-owned
channel by August, and Benelli, MV
Augusta and UM Motorcycles are
keen on local manufacturing.
Harley-Davidson India managing
director Sajeev Rajasekaran sounded
supremely confident recently when
he spoke in an interview about how
the presence of more models and
improving roads would “trigger fur-
ther growth in the market”. So much
so that Harley-Davidson is said to
have second thoughts about its plan
to create smaller bikes for the Indian
market. The force is certainly with the
big boys on the road right now.