Wednesday, May 30, 2012
By Shilpa Chopra
Two wheelers benefit from hike in petrol and car prices
The significant raise in petrol prices in India is proving to be beneficial for the two wheelers. High petrol prices and hike in car prices have now resulted in substantial skewing from four wheelers to motorcycles and scooters. Two wheelers cost less and return excellent mileage too which make it a frugal option for the buyers. Therefore demand for two wheelers is likely to surge considerably.
Commenting on the current scenario of the Indian auto market, one of the officials from Hero MotoCorp stated that with inflation soaring high and petrol prices touching new heights, common man is looking at ways to cut down its expenses to sustain. Therefore two wheelers is a cheap way to transport. Petrol prices in Delhi are around 73.18 per litre while in Mumbai it is 78.57 per litre.
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Motorcycles are a common way of transportation in India and are preferred by a lot of people. In a scenario where fuel prices and vehicle prices both are shooting up, motorcycles and scooters definitely have an upper hand over the four wheelers. India’s cheapest bike, the 100cc Hero Splendor comes with a price tag of Rs 42,950 on the other hand the cheapest car in India, Tata Nano is priced at Rs 1.43 lakh (price mentioned has been taken from the official website of the respective companies). Also, Hero Pleasure Scooter is offered at Rs 41,700 in Delhi and Maruti’s cheapest car Maruti 800 is available at Rs 2.04 lakh (ex-showroom Delhi).
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Here we can see a huge difference in the price of motorcycles and scooters in comparison to cars, where two wheelers are way too affordable than four wheelers. Auto cos in India have been posting low sales since last year, SIAM too has predicted the growth of car industry in India this year to be a meagre 10-12%.
Sky high interest rates, rising petrol prices and fluctuating car prices have slumped car sales in India massively. In the month of April, the accrued sales growth stood at 3.4 %, however the two wheeler segment witnessed growth of 11% in the same time period.