In India, the automobile industry has been struggling for its survival. There was a decline of 13%-17% in wholesale dispatches. The question that arises here is whether manufacturers should provide more for less or less for more?
This has become an essential point for discussion around the automobile industry, especially when the volume of the production is on the rise and the margins shrinking alongside. It cannot be simple for an industry that produces over 2 million vehicles every month.
Due to the size and complexity of the automobile industry, it is difficult to keep track of all the twists and turns. As a matter of fact, two-wheeler comprises of around 80% of vehicle sales in India, wherein motorcycles constitute 60% of the section. This means about 1.5 million units are sold every month.
When it comes to a two-wheeler, there are several sub-categories like commuters and sport bikes that have engines varying in size, power, and price.
Ups And Downs Faced By Companies in the Market
Bajaj Auto Ltd. is one of India’s largest bike manufacturers. They have taken the quantity approach with the hope that it will work in their favor. The company’s primary focus as of now is to create its dominance on the lower-end market, further aiming to raise the market shares to 50% (currently at 35%). To sum it up, according to a spokesperson at Bajaj Auto Ltd., who said, “We will be taking an aggressive stand in price points.”
On the other hand, a smaller competitor like TVS Motor Co. plans to resist the price pressure. For this, they have started production in the lower-end commuter sector. However, the company still has a few high-end units like Radeon and Ntorq for younger riders, which indeed are a hit in the market. The company is also focusing on premium motorcycles and is planning to increase its export to other emerging markets. So if you own a bike made by this motorcycle company, do remember to purchase a TVS insurance to stay safe on the roads.
Although the results for Bajaj and TVS may look similar as of now, the main difference is that TVS is planning ahead of time while Bajaj is still readjusting to its past market experiences.
The Bottom Line
The chances are that the competition on the prices might go tougher. So, there will be a rise in the prices of motorcycles in India, whether you like it or not. Also, the insurance regulator has increased the mandatory personal accident cover for two-wheelers. The Supreme Court has passed a mandate that the new bike insurance buyers need to purchase third party insurance, which is for a period of five years.
However, in case you are looking for extensive coverage, you can get in touch with us at Finserv MARKETS. The comprehensive insurance available on Finserv MARKETS offers multiple benefits at affordable premiums. It provides 24×7 roadside assistance, zero depreciation bike insurance coverage, cashless services, quick claim settlements, and so much more.
Want more benefits? Apply for a bike insurance plan with us and stay protected on the road, always.
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