Around 65% of survey respondents cited the daily commute to work as the main reason for buying a 2W, transitioning this purchase from the discretionary to the essential category. Convenience and cost effectiveness vis-à-vis public transport are also key factors driving 2W demand, according to Religare report.
''Notably, 57% of respondents feel buyer preferences are changing in favour of scooters. Further, 55% of potential scooter buyers are first-time shoppers (vs. 26% for bikes), implying strong growth prospects for the segment-already, scooter market share has risen from 15% in FY09 to 28% in FY15TD. Women are a key market, with 62% preferring 2Ws for their daily commute and 65% of these favouring scooters. In terms of brands, Honda reigns supreme with a thumbs-up from consumers across income strata; Bajaj Auto is a clear loser with no presence in the segment.''
''Despite losing the Honda tag, Hero remains one of the most preferred motorcycle brands amongst consumers (esp. lower income buyers), topping the charts on mileage, after-sales service and resale value. We also note increasing aspirations for Honda and Royal Enfield (RE) motorcycles and higher powered bikes in general. RE, Shine and Pulsar are preferred by potential buyers in that order.''
''In the car segment, Maruti, Hyundai are the most desired brands among potential buyers and are ranked neck-to-neck across key performance metrics (technology, mileage, aesthetics, resale value, dealer location). Price points and after-sale service (besides mileage) are the key determinants of buyer preference. As many as 70% of potential car buyers would opt for new-launch models (50% of these prefer the petrol segment),'' the broking firm said.
''Over 70% of respondents are more confident on the overall economy than before the general elections. A comparison of current-owner budgets with those of potential buyers reveals a willingness to upgrade to premium bikes, with ~57% of new buyers looking to spend Rs 55k+ (of these only 45% would need financing). Similarly in cars, ~40% of potential car buyers are looking to spend Rs 700k+. Mileage is the primary purchase consideration and this is true irrespective of income levels, while ~50% of respondents consider a fuel hike of over Rs 3/ltr to be significant,'' it added.
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