In India, premium scooters accounted for 8-10 percent in the six months ended on September 2017 but now the share has increased to 19 percent
Indian scooter segment was dominated by 100 cc scooters for the past decade as customers prefer them over powerful models thanks to the lower cost and fuel efficiency but this trend is changing as we have already seen in bikes as premium models above 150 cc is registering excellent growth compared to entry level models and this trend is coming to scooters.
Premium scooter segment in India is registering tremendous growth even though overall scooter sales came down after 16 months of straight growth. The YoY growth of premium scooters is impressive as this segment registered 76.3 percent YoY in last month compared to just 2.6 percent by mass market scooters.
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In India, premium scooter accounted for 8-10 percent in the six months ended in September 2017 but now the share has increased to 19 percent. The reason for increasing sales is thanks to the launch of new models as youth prefer these models, which has sports styling and good performance like the same trend we are seeing in entry level performance bikes.
Usually scooters were preferred mode of choice for older generation as styling was plain and performance was not important but new models like TVS Ntorq, Honda Grazia and Aprilia SR 125 has helped the premium scooters to grow at a good pace. The Grazia is the first scooter to get LED headlamp while Ntorq come with lots of new connected technologies.
Along with new model, old players are also performing good as Suzuki Access 125 is getting good traction in the market. We are expecting the momentum to continue in future as Hero is planning to launch Duet and Maestro 125 in Indian market soon along with other models in pipe line as new products keep the market excited to drive growth.
To capitalize on current market rush, Two wheeler manufacturer are going to spent lots of money in marketing and advertising to create brand awareness but history suggest that it is very tough to establish a new brand in India and success rate is very low as only 1 out of 31 launches seen between FY 2014-18. Even though stats are not positive, two wheelers manufacturers are confident to push forward.