Scooter sales growth surpasses that of bikes

Shally Mohile Shally Mohile | 09-16 16:30

Scooters are seeing a resurgence in India, surpassing motorcycles in growth.
Mumbai: Scooters are experiencing a renaissance in the Indian market, even outpacing the traditional reign of motorcycles.

Expansion of electric mobility, urban congestion and rising female participation in the workforce are among factors which lifted the share of scooters in the local two-wheeler market to a seven-year high in the first five months of this fiscal. Companies also attributed factors such as an underdeveloped urban transport infrastructure and gaps in last mile connectivity across cities.

Scooter sales grew 24% from a year earlier during April-August 2024, compared to a 13% rise in motorcycle sales in the same period. Consequently, the share of scooters comprising mostly petrol models, and some electric brands, inched up to 34.7% from 32.5%, showed data compiled by industry body, Society of Indian Automobile Manufacturers (Siam).

Even in fiscal 2017-18, when scooter sales scaled a peak of more than 6.71 million units, their share in total two-wheeler sales was 33.3%. The latest sales data doesn't include that of two-wheeler electric market leader Ola Electric as the company doesn't share it with Siam.

"With the market rebounding in both rural as well as urban areas, scooters are growing faster than motorcycles. The growth in urban centres, greater participation of women in the workforce has helped. Also, increasing urban congestion, which is making it difficult to move around in a car, is also fueling demand for scooters," said Yogesh Mathur, director, sales and marketing at Honda Motorcycle and Scooter India (HMSI).

Hemal Thakkar, director at ratings agency Crisil attributed the fast-paced sales growth in scooters and their increased share in the overall two-wheeler market to several factors including a low base due to reduced dispatches "by a large manufacturer" in the same period last year, strong replacement demand in urban markets, and positive consumer sentiment in the rural market following good monsoons this year. "The macro-economic scenario is expected to get better over the quarters as we lead into the end of FY25, thereby helping maintain momentum," said Thakkar.

HMSI, which leads the market for petrol scooters with the Activa brand, has been a beneficiary of the demand shift. Honda's scooter sales rose 27% year-on-year to 1.286 million units during April-August 2024.

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