High-end 100 cc bikes fare well in Gujarat

Experts feel people opting for more fuel efficient bikes with hike in fuel price

While overall two-wheeler sales continues to remain muted, in comparison, the 100 cc (or A segment) seems to be doing better.

In Gujarat, the segment currently accounts for nearly 68 per cent of the market, and is growing at 6-8 per cent. Of this the A3 (or sporty commuter bikes) segment is the fastest growing and at present has over 20 per cent share of the overall A segment bikes.

Vimal Sumbly, general manager, sales Bajaj Auto claimed that compared to other states in the western region like Maharashtra, Madhya Pradesh, Chhattisgarh, in Gujarat the 100 cc segment, especially the expensive 100 cc (A3 segment) is doing very well.

"The A3 segment constitutes 22 per cent of the overall 100 cc segment in Gujarat, which is higher than the national average, and with the growth in the state's infrastructure and eye for the premium segment, the A3 segment is expected to do well," he claimed.

Bajaj launched the Discover 100 Tourer in February, and has already garnered a 19 per cent market share in the A3 segment in the state from zero. It is selling around 2000 bikes in the segment per month.

In comparison, the A1 segment (or the entry level 100 cc bikes) has a 14 per cent market share in Gujarat and the A2 segment (the mid range 100cc bikes) have 41 per cent.

Traditionally, the A2 segment would sell the most and it still comprises the bulk of the market, however, the balance is clearly shifting towards the A3 segment, said market sources.

Off late, in the last six to eight months the A3 segment has been clocking a 6-8 per cent growth, while the A2 segment sales have remained flat, claimed a city-based dealer.

The 125 cc segment currently has a 15 per cent market share of the overall two-wheeler market in the state, while the sports segment (150 cc and above) enjoys 11 per cent share.

The A3 segment has the more expensive 100 cc bikes including the Bajaj Discover 100 Ttourer, the Hero Passion X-Pro and the Honda Dream Yuga which are all priced above Rs 45,000.

Sumbly feels the reasons behind the popularity of this segment is while the owner gets the fuel efficiency of the 100 cc segment, he also has access to style.

A senior Honda Motorcycle and Scooters India (HMSI) official too echoed the similar tone saying that the demand for the 100 cc stylish bikes is definitely on the rise. HMSI has already sold over 300,000 units of its Dream Yuga 100 cc bike in the last one year.

Jainee P Gordhandas, promoter of BigGaddi.com, too pointed out that the higher end of the market or 150 cc and above is facing the heat of slowdown in Gujarat, people are opting for more fuel efficient bikes with the recent fuel price hikes, but at the same time they do not want to compromise on style. "The result is that the higher end 100cc bikes are doing well," she said.

The overall two-wheeler market in the country, however, has not clocked good numbers during the current fiscal, selling 3490677 units during April to June 2013 (down 0.82 per cent), while during June, two wheeler sales were down 4.5 per cent to 1116424 units.