Scooters Surge Significantly Ahead of Bikes in Y-on-Y Growth for June

Two-wheeler sales in India for June 2024 witnessed a significant growth of 20.4% year-on-year according to data from the Society of Indian Automobile Manufacturers (SIAM). Notably, scooters led this growth with an even higher surge of 40.1%. Motorcycles saw a more modest increase of 13.4% year-on-year.

Data from SIAM further reinforces this trend. Looking at domestic sales figures, scooters saw a jump from 3,87,373 units in June 2023 to 5,42,851 units in June 2024, reflecting a growth of 40.1%. In contrast, motorcycle sales grew at a slower pace of 13.4%, going from 9,08,954 units in June 2023 to 10,30,906 units in June 2024.

Looking beyond just June, this trend of stronger scooter growth has been consistent for the past quarter. Year-on-year sales figures from April to June 2024 show an even more pronounced difference: scooters grew by an impressive 28% compared to the same period last year, while motorcycles saw a more moderate increase of 16%.

Vinod Aggarwal, SIAM President, commented on the positive trend, highlighting the "even higher growth" for scooters compared to motorcycles, which saw a more modest increase of 13.4% year-on-year.

The biggest contributing factor for this massive jump in sales can be attributed to the versatile nature of scooters. Unlike motorcycles, which are very male-dominated in our country, scooters are gender neutral, have more luggage space and are easier to ride given that there is no need to shift gears.. Additionally, the popularity of electric scooters, which are becoming increasingly affordable and range-competitive, could also be a contributing factor.

Electric vehicles (EVs) are playing a particularly important role in the scooter segment's growth.  The vast majority of electric two-wheelers on the market today are scooters. This makes sense for a couple of reasons. Electric technology is particularly well-suited to the scooter format. Electric motorcycles, on the other hand, present greater engineering challenges such as packaging difficulties given their architecture and range limitations. Additionally, traditional motorcycles are often seen as a choice for leisure riding and longer journeys, which is limited due to inadequate range. In contrast, scooters are primarily viewed as utilitarian commuter vehicles.  An electric scooter used for daily commutes can lead to significant cost savings on fuel compared to a gasoline scooter, making it an attractive proposition for budget-minded consumers, especially with rising fuel prices.

While both segments experienced growth, the significant difference between scooters and motorcycles suggests a potential shift in consumer preferences. It will be interesting to see if this trend continues in the coming months. It's important to note the recent launch of the Bajaj Freedom 125, the world's first CNG motorcycle, targeting the budget-conscious motorcycle segment.