Mon Sep 16 15:51:27 UTC 2024: ## Premium Motorcycle Market Revs Up in India: Double-Digit Growth Expected

**New Delhi, India:** The premium motorcycle segment in India, encompassing bikes with engine capacities above 150cc, is experiencing a surge in popularity and is expected to continue its robust growth trajectory over the next few years. Driven by a combination of factors, including a growing young population, increased urbanization, and rising disposable incomes, the segment is outpacing the overall motorcycle market.

Data from the Society of Indian Automobile Manufacturers (SIAM) reveals that premium motorcycle sales reached 1.24 million units during the April-August 2024 period, compared to 1.07 million units in the same period last year. This growth comes despite some recovery in the entry-level bike segment, fueled by rising rural demand.

While the entry-level segment previously dominated the Indian motorcycle market, accounting for over 80% of sales a decade ago, its share has been declining. This shift is attributed to the significant increase in the cost of ownership for entry-level bikes due to new regulations and inflationary pressures.

The premium motorcycle segment, now accounting for 24% of total motorcycle sales, is attracting a significant number of buyers. “The premium segment’s absolute volumes hit an all-time high in FY2024 and are expected to maintain strong growth moving forward,” says Rohan Gupta, Vice-President and Sector Head at Icra.

Experts predict that the premium segment will continue to grow at a double-digit compound annual growth rate (CAGR) over the next 3-5 years, outpacing the overall motorcycle market’s projected CAGR of 7-8%. This growth is attributed to various factors, including a rising GDP per capita, a growing middle class, and a young and increasingly affluent population.

“Over 75% of new model launches by Original Equipment Manufacturers (OEMs) have been in the premium segment, offering a wider range of options for buyers,” Gupta added. Both home-grown brands like Royal Enfield, TVS Motor, Bajaj, and Hero, and global players like Yamaha and Honda are strategically investing in the premium bike market, particularly in the middle-weight category, to capture a younger consumer base.

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