Indian Two Wheeler Pricing Strategy

The Indian Two-Wheeler Pricing Strategy report provides key insight into the different pricing dynamics of the Indian Two-Wheeler Industry.

In FY 20205, 50% of motorcycles and scooters will be priced between INR 90K and INR 189K. This segment accounts for 31% of total two-wheeler sales.

Bajaj Auto and TVS Motor control 50% of sales in this price band because their most popular Models, like TVS Motor’s Pulsar and Raider 125, fall within this price band. Sales prices above INR 189K and below INR 90K are controlled by Hero and Honda, which account for 70% of sales.

Low prices mainly drive Indian Two-Wheeler sales because most buyers are first-time buyers, and most first-time buyers consider whether a scooter or motorcycle is affordable.

As per the Indian Two-Wheeler Pricing Strategy report, Half of the Two-Wheeler Models are priced below INR 130K, and the rest are priced 50% above INR 130 K.

Indian Two-Wheeler Pricing Strategy

TVS Motors, Hero MotoCorp, and Bajaj Auto focus on the low-price segment to gain significant market share. Yamaha is also following the same line to compete in this segment.

Honda has a mixed product portfolio with an extensive price range to cater to multiple customer segments.

Willingness to Pay:

After interacting with various buyer profiles, we have concluded that buyers are willing to pay higher prices for specific Models and variants because they are getting value for their money.

Honda’s Shine, Stylish Model is the Royal Enfield New Himalayan 450, Ola, TVS Apache,  Jupiter, and Yamaha Ray. The buyers are ready to pay more because they have experienced getting more against what they are paying.

Buyers are willing to pay more because it demonstrates appropriate product-market fit.

Value Segment is an attractive segment, based on Value (INR, Billions):

The scooter segment is moving towards ValuePlus because buyers are looking for value, not just low prices.

Indian Two-Wheeler Segment and Brand Market Share Assessment

The economy or the Affordable segment is shrinking, but ValuePlus and Stylish are growing. By 2030, the ValuePlus segment is expected to be the largest in value.

Royal Enfield is a highly profitable OEM because of its Product market fit in the Stylish, Value-plus, and Luxury segments.

Honda can penetrate the ValuePlus segment and increase its market share by 2030.

EV scooters like Ola and Ather are present in the ValuePlus and Stylish segments.

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