“The domestic two-wheeler industry posted a year-on-year double-digit growth in 2022-23 after three consecutive years of decline. We also expect the ongoing festive season to drive great numbers for the industry,” Graffi told ET. “We believe the industry will regain pre-Covid volumes by 2025.”
Last fiscal, two-wheeler sales stood at 15.86 million units compared with the FY19 peak of around 21 million.
But while commuter motorcycles led growth had accounted for the bulk of sales in the segment earlier, it is the premium category that is expected to help expand volumes in the local market.
Graffi said Piaggio is seeing a distinct shift in consumer behaviour, with buyers looking to get more out of two-wheelers as opposed to considering them only for commuting.
“There is affinity and interest to upgrade to premium product offerings across motorcycles as well as scooters,” he said. “There are multiple factors that are changing in the two-wheeler space. For instance, rising disposable income, growing preference towards powerful motorcycles, improved road infrastructure, and an increase in the number of models being available in the market.”To tap this potential, Piaggio, which in India sells scooters under the Vespa and Aprilia brand names, recently introduced its first sports bike, Aprilia RS 457, in the local market. The mid-performance segment, said Graffi, is set to grow exponentially over this decade.Sales of motorcycles with engine capacities in the 250cc to 750cc range increased by 38% last fiscal to more than double of the overall two-wheeler category, shows data available with industry body Society of Indian Automobile Manufacturers (SIAM).
As many as 791,878 motorcycles with engine capacity above 250cc, but lower than or equal to 750cc, were sold in the local market last fiscal, compared with 574,675 units the previous fiscal. Royal Enfield dominates the mid-weight motorcycle market in the country with a share of more than 90%.
While the Aprilia RS 457 will target niche consumers, Graffi said there are several projects underway for more interventions in the midsize motorcycle segment.