Money
Poor public transportation drives two-wheeler sales
Sales of two-wheelers have seen a continuous growth in countries with poor public transportation as convenience and mobility are basic needs of the people.Suman Bashyal
Sales of two-wheelers have seen a continuous growth in countries with poor public transportation as convenience and mobility are basic needs of the people. Although motorcycle sales dropped in 2013-14 due to a disruption in the issuance of driving licences from various parts of the country, the registration of two-wheelers jumped 34.88 percent in the last fiscal year.
A total of 196,383 motorcycles and scooters were registered in the country in the fiscal year 2014-15 against 145,590 during the previous fiscal year, according to the Department of Transport Management (DoTM). Two-wheelers accounted for a significant share, 81.96 percent, of automobile sales in 2014-15, making them the most sought after vehicles in the domestic market. Overall vehicle registrations reached 239,583 units in the last fiscal year.
While sales of motorcycles are significant in rural areas, scooter sales are driving the market in urban areas, according to traders. Massive traffic jams in the Kathmandu Valley have also encouraged people to buy two-wheelers. A total of 15 brands are competing in the two-wheeler segment. Some companies that have been importing two-wheelers are planning to set up assembly plants in the country with the rise in their consumer base. Various new brands are entering the domestic market with their range of motorcycles and scooters, while other brands have been adding new models. Aprilia, Benneli, MV Augusta and Vespa are some of the brands that entered the domestic market this year.
“Sales of two-wheelers have been encouraging so far, but there is more potential to grow as per the population,” said Shekhar Golchha, president of the Nepal Automobile Dealers’ Association (Nada). “Motorcycles have been playing a significant role in terms of providing convenience and mobility to the people.”
Golchha, who is also the executive director of Hansaraj Hulaschand and Company, the authorised distributor of Bajaj bikes in Nepal, added that easy availability of finance has played an important role in the increment in two-wheeler sales as a means of transportation for the general people. The company recently launched three new motorcycles, the Pulsar RS 200, the AS 150 and the AS 200 in the domestic market. During the launch, Golchha also announced that the company would start assembling motorcycles from this year.
Likewise, Jagdamba Motors, which recently bagged the distributorship of the Indian auto brand TVS, is planning to enter the market aggressively. The company recently launched three new two-wheelers, the Phoenix and Star City Plus motorcycles and the Scooty Zest scooter. “We are aiming to sell 15,000 units of motorcycles and scooters in this fiscal year,” said Dipak Agrawal, vice-president of the company.
Dinesh Ratna Bajracharya, head of the Hero division at Nepal General Marketing, said that the two-wheeler business outside the valley had been witnessing a huge growth due to reasons like remittance, rising rural income and road expansion across the country. “As demand from various city and rural areas outside Kathmandu has been rising significantly, we have expanded our dealership network to almost all the districts,” he said. According to him, Hero maintains a network of 70 dealers across the country.
Talking about the Hero brand, Bajracharya said, “Although motorcycle and scooter sales have been swelling, we are lagging behind our competitors due to lack of new models for many years after the separation of Hero from Honda, but we are optimistic about growth this year as the company has lined up a slew of new motorcycles and scooters for launch.” The company, which presently offers only one scooter model, the Pleasure, is planning to roll out the Dash scooter with a 110 cc engine.
Traders said that gearless scooters had become popular in recent years among customers looking for a simple riding machine. Almost all the two-wheeler brands have at least one scooter in their line-up. Bajaj, which has been offering only motorcycles so far, is planning to roll out a new scooter.
Meanwhile, Yamaha’s authorised distributor in Nepal, Morang Auto Works, has launched the Fascino scooter this year. In recent years, Yamaha has been focusing on scooters as their sales have been growing at a faster rate in the Nepali market because they are proving to be popular among both male and female riders due to their ease of riding.
“Scooters are no more a female’s machine. They have become a unisex two-wheeler, so we are also focusing on scooters besides commuter and premium bikes,” said Deepak Rauniyar, sales manager at the company. According to him, scooters hold a 30 percent share of the two-wheeler segment and sales have been growing at the rate of 20 percent annually.
Likewise, Rajan Raj Puri, head of the Honda division at Syakar Trading Company, the authorised distributor of Honda in Nepal, said that the reasons behind the rise in scooter sales were mileage, maximum utility and affordable prices. These factors have led to scooters securing a sizeable market share in Nepal, he added. Honda scooters account for over 30 percent of the two-wheeler market. The Honda Dio scooter is one of the largest selling scooters in the country.
With the rise in demand for sports bikes, various popular brands have been rolling out new sporty premium bikes. Suzuki’s authorised distributor VG Automobiles has launched the Suzuki Gixxer SF version with an eye on young customers who want a more powerful sporty bike. “The Gixxer was one of the largest selling motorcycles from Suzuki in the domestic market. With the success of this model, we have launched the fully faired version of the Gixxer,” said Bibek Bijukchhe, chief executive officer of the company.