Rapid urbanization and a growing middle-class population have led to an increase in demand for two-wheelers in recent years. Due to the convenience associated with two-wheelers, they have become the first priority for daily commute in the urban areas. The growing per-capita income, higher minimum support price, and farm loan waiver have added to the expansion of the domestic two-wheeler industry.
Commenting in this context, the Investment Information and Credit Rating Agency of India (ICRA) said that the domestic two-wheeler industry volumes are expected to grow at 8-10%* during FY19. ICRA further elaborated that the increase in rural income would support motorcycle demand. On the other hand, scooters’ demand is expected to be led by rapid urbanization, increased affordability, and greater penetration through targeted product launches.
Talking about the medium term, ICRA said: “The two-wheeler industry is expected to report a volume compound annual growth rate (CAGR) of 7-8% due to factors like participation of women in the workforce, rapid urbanization, and favourable demographic profile.” As the current share of financed vehicles remains moderate, ICRA expects the increasing penetration of organized finance into tier 2-3 cities to support the domestic demand.
Certain categories within the motorcycle segment have recorded more year-on-year growth (YoY) rate as compared to others. For instance, the 110-125cc, 125-150cc and the 150-200cc sub-segments have posted YoY growth rates of 0.37 percent, 16.91 percent, and 16.98 percent, respectively*. Taking about scooters, ICRA mentioned that the volume growth rate moderated partially due to certain factors impacting demand in a few key markets such as Kerala and West Bengal. Additionally, the inventory corrections by a few OEMs also hampered the growth rate of scooters.
Since there’s substantial growth in the two-wheeler market, it has become equally important to learn about two wheeler insurance plans. A two wheeler insurance covers the losses and damages of the two-wheeler, thereby protecting the owner from the financial liabilities that occurs in such cases. There are numerous financial institutions in the market that provide bike insurance plans. However, in order to avoid any inconvenience in the later stages, before making a choice you must briefly research the policy as well as the insurance provider.
With leading Non-banking financial companies (NBFCs) like Finserv Markets, you can buy bike insurance online at the most competitive price. Additionally, you can also customize your policy to best suit your needs and requirements. What’s more? With Finserv Markets, you can purchase your two wheeler insurance online through a hassle-free and user-friendly process right from the comfort of your home.
So what are you waiting for? Purchase your two wheeler insurance with Finserv Markets now.
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