Commuter bike market in cruise mode; uncertainties may put brakes on growth

Hero MotoCorp is expecting "balanced" growth between the rural and urban sector this year due to better kharif season, rising penetration of retail finance options, and strong festive period sales

With most businesses slowly moving back to work-from-office mode, the commuter bike segment – motorcycles with engine sizes between 75 cc and 125 cc – should be ready to accelerate. Instead, the segment, which accounts for 80 per cent of the motorcycle market, is expected to see moderate growth at best.  

Uncertainties over the recovery of the rural market, which typically accounts for 70-75 per cent of total bike sales, and rising retail prices are expected to put the brakes on faster growth.

At the same time, the demand for premium motorcycles (with engines above 125 cc) is also cutting