It is a known fact that automobile industry is going through a low phase and somehow there has been no improvement in the situation since the past eight months. The rising fuel prices and falling value of rupee has only added to the woes of this industry and there are no signs of improvement. According to statistics, the two-wheeler segment was doing better in comparison to passenger cars. However, due to the soaring petrol prices, the demand for two-wheelers have started taking a toll as well.
Motorcycles and scooters are the only reasonable means of transport for the middle class families and people residing in the rural areas. But the demand for these vehicles has reduced due to the fuel prices becoming out of reach for the public. As per the oil ministry data, about 60 per cent of India's 16 million tonnes sales of gasoline is consumed by two wheelers and out of this, 30 per cent usage is contributed by the villagers. Petrol prices have risen steeply in the past few months as rates have been revised nine times, which is quite astonishing. Overall, so many changes have brought a 20 per cent increase in the petrol prices. Moreover, diesel rates have been rising by 50 paise every month since January, resulting in an overall rise of 25 per cent in the past one year.
Two wheelers like scooty and motorbikes are vehicles that are preferred by youngsters ranging from the age group of 16 to 30 years for commuting to college and office. But the fuel hike has compelled people to opt for public transportation now. The domestic market recorded a sales of 1.13 million two-wheelers till July, seeing a decline of 0.1 per cent. The highest fall has been registered for 100-125 cc motorbikes and 110 cc scooters because value for money is the primary concern for customers of these products sect. In such a situation, motor companies are trying to lure the buyers by launching vehicles offering higher mileage to increase sales. Whether such claims of cutting off high fuel costs are true or not is something only users will be able to say but almost every firm is being seen working on such vehicles. YS Guleria, Vice President for Marketing and Sales at Honda Motorcycle & Scooter India, said, “While petrol prices have gone up by 13 per cent since January this year, our revolutionary Honda Eco Technology introduced this year has enhanced mileage by 11 per cent to 74km/litre in our bikes. In the long term the consumer sentiment gets affected by rising petrol prices. We at Honda have tried to neutralise the fuel price hike by consistently increasing fuel efficiency.”
Sources close to this development believe that such a situation has risen because of the increase in the international crude oil rates. However, it is also believed that growth of two wheelers would get back to their original position as public transportation system in rural areas and some cities (Tier II and Tier III) is towards the weaker side. They also said that considering the present market situation, fuel prices might just rise more. N Srikumar, Executive Director at Indian Oil Corp, said, "The petrol price hike story is perhaps here to stay for some more time, given the poor public transportation system and the not-so-bad growth in two-wheeler market. And as for elections, past trend only indicates more growth for auto fuels, both petrol and diesel."
Society of India Automobile Manufactures (SIAM) has reported that the sales figure of motorbikes have declined by 2 per cent and only vehicle on which the whole industry has pinned hopes is scooters that has seen a growth by 15 per cent.
