TVS Motor Company expects smaller towns and rural areas to record higher growth in demand for scooters in the months to come.
Improving road conditions, urban-like traffic situations and growing mobility needs of women are driving demand in these geographies.
“A 30 per cent growth rate is what we are seeing in the lowest tier class, vs 22-30 per cent industry growth,” said Aniruddha Haldar, Vice-President – Marketing, TVS Motor Company.
The scooter market is expected to continue its double digit growth momentum as multiple factors drive its volumes.
Haldar also said the requirements of scooter buyers are widening and newer sub-segments will emerge due to the growing size of the market.
The growth in number of brands in the scooter market — from half a dozen seven years ago to more than two dozen now — is a reflection of the growing niche requirements of scooter buyers, he observed.
While he did not elaborate on the emerging new sub-segments, Haldar said it would be economically viable to come up with niche products catering to specific needs. TVS Motor is preparing to serve the new niches to grow the volumes and retain its number two position, he added. “We intend to remain a strong Number 2 in scooters.”
TVS Motor will introduce a new scooter model this year, which is expected to help increase its volumes as also protect its turf against competition. Its Jupiter is already among the top 10 two-wheelers sold in India.
In FY17, TVS Motor held a share of about 15 per cent in the 5.6 million unit scooter market. Honda remained the leader with a 57 per cent share.