Energy Efficient Motor Bike Sales May Zoom in India

Gov't plan to free energy prices likely to raise the cost of fuels.

Published: 10-Jun-2010

The government’s move to free energy prices, which may raise fuel rates in the country, is expected to push the demand for small-capacity, fuel-efficient bikes. Reason: The sequential rise in inflation will lead to a change in the buying pattern among bike consumers.

A 100-110cc bike gives an average mileage of 75-80 km a litre under a mix of city and highway riding conditions, compared to just 40-50 km a litre or less by a 150cc and above bike. Although the fuel-efficient range is targeted more towards the interior of the country than urban centres, companies like Honda Motorcycle and Scooter India (HMSI), India’s fourth-biggest seller of two-wheelers, feel that a constant increase in fuel prices will change the buying pattern even in the cities.

Naresh Rattan, vice-president (marketing and sales), HMSI, said: “The overall mindset of the Indian two-wheeler buyer is transfixed towards the fuel-efficiency of the bike. Any increase in fuel prices has a psychological effect on the buyer.”

City-based two-wheeler dealers of Bajaj Auto and Hero Honda said there had been an increase in the number of enquiries for economy bikes soon after reports stated the government may hike fuel rates.

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