Although the scooter sector is undergoing a gradual recovery, the premium trend is gaining strong momentum in the sector. Although the 110cc class is a very big category in the scooter market, the 125cc scooter market has seen action in the past several months in light of an increasing customer shift toward higher-powered scooters.

As customers in this segment crave more power and a better riding experience in scooters, two-wheeled scooter makers have rolled out 125cc motorcycles and new variants, packed with a host of features, from time to time. This has only accelerated recently. It is estimated that just over a third of volumes in the scooter market come from 125 cc scooters, up from about 20 percent three years ago. With the development of customers in the 125cc segment, particularly young buyers, this market is expected to see better growth in cities.

“As a natural progression, once there is general acceptance and demand for the category, it leads to subdivision as customer needs evolve. Particularly after the introduction of BS6 standards, new technology has allowed us to offer advanced features at a new price to customers. The advanced technology has transformed the sector, Meanwhile, the upgrade and premium are supported by the increasing spread of retail financing for the 125 cc scooter segment growth,” Yadvinder Singh Guleria, Director of Sales and Marketing, Honda Motorcycle & Scooter India Pvt. said Ltd. business line.

big players

While Honda is the best player in the entire scooter market, TVS Motor is the second biggest. Recently, TVS Motor launched a 125cc Jupiter to cement its position in the segment, while a few weeks ago Yamaha introduced its new sport scooter.

Honda and Suzuki dominated the 125cc class, while Hero MotoCorp cemented their presence. Both Suzuki and Yamaha sell only in the 125cc scooter space. says Ritu Goswami, Assistant Vice President, ICRA. Meanwhile, another view is that the growing acceptance of electric scooters in cities may cause some decline in ICE-based 110cc scooters due to price parity and higher fuel prices. Hence, two-wheeled companies seek to create buzz and excitement in the market by launching premium products.

However, motorcycle makers say it is too early to form an opinion on the impact of electric scooters.

Scooter maker Honda says that while other segments will grow, the block segment continues to drive significant volumes at present. “Overall, 110cc scooters attract a diverse target audience ranging from college students, office goers, dealers and the self-employed to the older generation with broader gender acceptance and appeal. The user profile reflects the unique diversity and equality across the various geographies of our large country. Now with the entry of electric vehicles To the world of two-wheeled vehicles, there are certainly new growth avenues. However, it is too early to comment on any trade-offs,” said Guleria. However, industry analysts point out that improving the two-wheeled electric bike ecosystem will drive electric scooter sales north. “In the medium term, with cost economics turning increasingly favorable to electric scooters due to – FAME and State EV subsidies and higher gasoline prices, the scooter segment is expected to see faster penetration of electric vehicles,” Goswami said.

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