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Increasing prevalence of two-wheelers drive tire sales across India: GfK

Motorcyle tire sales dominate with four-fifth total volume share;  demand for scooter tires highest in South region

Delhi, October 24, 2016 – India’s large and young population has been fueling the demand of two wheelers such as scooters and motorcycles, which continue to remain the most popular personal transportation mode in the country. According to GfK point of sales tracking, replacement tires for these two vehicles have been registering robust sales since the beginning of 2016; with latest third quarter combined sales volume reporting a substantial 16 percent when compared to the first quarter.

GfK tracks sales of two wheeler (2W) tire in the replacement market across 63 cities in India. Latest findings reported consecutive rises in sales volume in the first three quarters of the year, achieving a total of over 5.5 million in combined sales in January to September 2016. This growth was largely contributed by the heightened demand seen in the scooter tire segment, where sales spiked by almost 40 percent in third quarter over first quarter this year.

“Our country is a young one with over half represented by the 25 years and below population, which could be one of the major contributing factor to the growth of this sector,” highlighted Anant Jain, Senior Director, GfK India. “In addition, the increasing take up of two wheelers can also be attributed to other market conditions such as the positive local economy, active promotions by manufacturers, and the favorable monsoons the country has been experiencing this year.”

According to GfK reports, Delhi is the largest market for two wheeler tires, along with other metropolitan cities like Hyderabad, Bangalore, Chennai and Surat. The sales breakdown between motorcycle and scooter tires varies significantly due to the existing vehicle park which differs across these big cities, and also the replacement cycles of the two vehicles. For instance, scooter tires account for more than one-third of all two wheeler tire sales in cities like Chennai and Hyderabad, whereas it is less than a quarter in Delhi, Pune and Bangalore.

“Consumer behavior and buying pattern varies in every city which leads to diverse sales mix between the two types of vehicles, and thereby the tire types,” Jain explained. “Since scooters offer the advantage of unisex usage appeal, cities in South where there is a higher ratio of working female population shows the greatest demand and also steeper growth rate for this tire segment.”

There are close to 9,000 retailers selling two wheeler tires across the 63 cities GfK currently tracks. GfK’s study of two wheeler tire retailers revealed an 7 percent surge in such store numbers in third quarter over first quarter this year.  In particular, the increase is more prominent for retailers who have added scooter tires to their shop offering—a surge of 30 percent in such retailers were registered during this same period.

“The scooter and motorcycle tire market is expected to continue on its upswing into the near future, and the significant prospects of the two-wheel tire sector have been attracting new players into the market this year,” said Jain. “With India being one of the world’s largest and most promising automotive markets in the region, it is very important for industry players to have access to detailed and granular information in order to help them understand the market more thoroughly to maximize its potential,” Jain concluded.

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This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

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