The transition to high power scooters is gaining momentum

While the scooter segment is experiencing a gradual recovery, the trend towards premiumization is accelerating sharply in the segment. Although the 110cc segment is a fairly large category in the scooter market, the 125cc scooter market has seen some action in recent months due to the growing customer shift towards more powerful scooters.

As customers in the segment crave more power and a better driving experience in scooters, two-wheeler manufacturers from time to time release new scooters and 125cc variants, which come with a range of features. This has only accelerated lately. It is estimated that just over a third of the scooter market volumes come from 125cc scooters, up from around 20% three years ago. With the evolution of the clientele of the 125cc segment, especially young buyers, this market should experience better growth in the city.

“As a natural progression, once there is general acceptance and demand for the category, it leads to sub-segmentation with ever-changing customer needs. Especially after the introduction of BS6 standards, new technology has allowed us to introduce advanced features at a new price proposition for customers. Advanced technology has brought transformation in the segment and at the same time the upgrade and premiumization is facilitated by the increasing penetration of retail financing for the growth of the 125cc scooter segment ”, Yadvinder Singh Guleria, Director of sales and marketing, Honda Motorcycle & Scooter India Pvt. Ltd said Activity area.

The great players

While Honda is the number one player in the scooter market as a whole, TVS Motor is the second major player. Recently, TVS Motor launched its 125cc Jupiter to further strengthen its position in the segment, while a few weeks earlier Yamaha rolled out its new sports scooter.

Honda and Suzuki dominated the 125cc segment, while Hero MotoCorp also strengthened its presence. Suzuki and Yamaha only sell in the 125cc scooter area. “With nearly all OEMs offering products in the 125cc class, Honda’s Activa 125 and Grazia, TVS’s NTorq and Suzuki’s Access and Burgman have been some of the most sought-after models in this class. Said Ritu Goswami, assistant vice president. , ICRA. Meanwhile, there is another view that the growing acceptance of electric scooters in cities may cause a dent in ICE-based 110cc scooters due to price parity and high fuel prices. Therefore, two-wheeler companies are looking to create buzz and excitement in the market with the launch of high-end products.

However, two-wheeler manufacturers believe it is too early to form an opinion on the impact of electric scooters.

Leading scooter maker Honda claims that while other segments will grow, the mass segment continues to generate significant volumes at this time. “Overall, 110cc scooters attract a diverse target audience ranging from students, office workers, traders and freelancers to the older generation with a wider acceptance and unisex appeal. The user’s profile reflects the unique diversity and equality in the different geographies of our great country. Today, with the arrival of electric vehicles in the two-wheeler landscape, there are certainly new avenues for growth. However, it is too early to comment on compromises, ”said Guleria. However, industry analysts point out that improving the electric two-wheeler ecosystem will drive sales of electric scooters north. “In the medium term, with cost savings increasingly favorable to electric scooters due to FAME and state subsidies for electric vehicles and rising gasoline prices, the scooter segment is expected to experience a faster penetration of electric vehicles, ”Goswami said.

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