Scooter sales in India decline after 44 months

Just when scooter sales were receiving a pat on the back for buffering the declining motorcycle market after the industry slowdown in 2012-13, the two-wheeler market has been handed a bouncer.

In November 2016, scooter sales have shown a dip of 1.85 percent at 388,692 units, pulling down the overall two-wheeler sector’s numbers by 5.85 percent. Motorcycle sales, which were beginning to recover due to a bountiful monsoon and a pickup in the rural market following a better agricultural season, are down by 10.21 percent during the month. This is because the bulk of motorcycle sales comprising commuter bikes come from rural and semi-urban markets.

The last time scooters were on a downslide was in March 2013, when this segment saw sales drop by 3.18 percent at 249,753 units. After the decline, the scooter market grew mostly in double digits driven by urban growth with more disposable incomes in the hands of consumers as well as demand from the women rider segment. A lonely single-digit growth was reported in July 2013 when scooter sales grew by 9.8 percent.

Sugato Sen, deputy director general of SIAM, told Autocar Professional that the segment has been impacted by the demonetisation announcement of the Centre on November 8.  About 30-40 percent of the two-wheeler sales are through cash that is currently scarce and hence the temporary impact. However, he is bullish of sales picking up after December 30 when the negative effect of demonetisation  starts wearing off as indicated by the government.

Recommended:

- Indian scooter market grows 24% in Apr-Oct 2016

- Domestic sales down 5.48% in November as demonetisation dampens buying sentiment

- India Sales Analysis - November 2016