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Big Indian market equals easy growth? Not really, bike makers are facing a tough ride. Here’s why

13 3 5

India’s motorcycle industry is struggling with an existential problem: Which is better, more for less or less for more?

That calculus has become a focal point for the country’s makers of motorbikes, mopeds and scooters, as volumes rise and margins shrink. It is far from simple for a market that churns out more than 2 million vehicles a month. Sales continued to climb in September compared with a year earlier, data from some of the largest manufacturers showed this week.

The size and structure of the industry make it difficult to navigate every twist and turn. Two-wheelers account for around 80% of India’s vehicle sales. Motorcycles make up more than 60% of the segment, with about 1.5 million units sold per month. Within motorcycles, there are several sub-categories such as commuter and sports bikes, with engines that vary in price, size and power.

Bajaj Auto Ltd., one of India’s largest bike makers, has taken the quantity approach, hoping volumes will tip the balance in its........

© The Financial Express