A sales slowdown that the Indian automobile industry had been dealing with in 2019 had just started to fade until the coronavirus pandemic broke out early last year. This led to sales being in the doldrums to them being nil as manufacturers had to shut all operations. Moving into 2021 and things started to lift up before the second wave hit India and vehicle sales were bogged down again as many deferred their plans to buy a new vehicle to later. Some cut purchase budgets, while some also increased them.
Now, a YouGov study suggests more than half of the pent-up demand for two-wheelers is likely to come through by the festive season this year. The organisation surveyed 2,022 people in urban areas to collect data on vehicle purchase decisions post the second wave.
The data collected from the respondents shows that prior to the second wave (before March 2021) of Covid almost a fourth (23%) of the polled respondents said they were planning to purchase a two-wheeler. While a majority went ahead with their plan (56%), a sizeable proportion (44%) are yet to act on it.
A vast majority (84%) among those who intended to buy a two-wheeler and haven’t bought it yet said that the second wave of the pandemic impacted their purchase plan in some form. The most common impact (52%) was the postponement of the plan.
While over a third have reduced their budget (35%), there are some who have increased it (14%). Notably, this increase in budgets is mostly reported by the millennials and those who reside in the tier 1 cities, who might have saved up during the second lockdown and have now decided to spend more on their two-wheeler purchase.
Few others (close to 1 out of 5) intend to buy a car (new/second hand), while 15% would go for secondhand two-wheeler and a similar proportion have completely dropped their plan to buy a two-wheeler.
Preference for type of two-wheeler from before and after the second wave
The data also points to a change in preference for the type of two-wheelers from before and after the second wave. While entry-level 100-110cc motorcycles like CT100, HFDeluxe, Platina, Radeon, etc are now more popular among prospective customers, demand for 125cc motorcycles like Splendor, SP125, etc has slipped down.
While the budgets have increased (14%) or decreased (35%), from a vehicle type perspective the demand sees a surge (19% to 32%) for 100/110 cc motorcycles. Fall in intent to purchase 125cc motorcycle has been observed, while intention for other vehicle types remains stable.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.