Two Wheeler Sales May Rise on Rising Petrol Prices

Petrol prices are sky-rocketing these days and a couple of days back petrol prices were further increased by Rs. 1.68 (excluding local taxes and VAT). This is the seventh hike in petrol prices since June this year and the overall increment is Rs. 12.97 (according to the prices in New Delhi) since the Starting of June.

The increased fuel prices is making difficult to afford a car for the middle class customers. A normal petrol car delivers a mileage of around 16-18kmpl while the fuel efficient commuters deliver 50-70kmpl. This is one of the major reasons of decreased sales in the Indian four-wheeler market, while the Indian two-wheeler market recorded a fine growth compared to the previous year. And if this remains the same, soon you can see the cars replaced by the fuel efficient commuter bikes, at least the entry level ones.

Let's take an example of a office going common man in Delhi whose office is at 16 kms from his home, a petrol car with a fuel economy of 16kmpl will cost him around Rs. 150 for per day running. If he uses a commuter bike with a fuel economy of 50kmpl, his daily run will cost him around Rs. 50. Even if someone chooses to pick a stylish bike which returns 35-40kmpl, the daily commuting cost will be around Rs 75 only, which is exactly half the money spent on an entry level car's fuel for a day.

This is not all, two-wheelers offer a lower maintenance cost, which is in fact a major deciding factor while switching to a four wheeler. And if the petrol prices continues to go higher or doesn't get stable, there could be time when a common man might use their cars for only family drive. All these factors predict that the two-wheeler sales of the largest two-wheeler market of the Globe is going to rise further. And the stylish fuel efficient bikes like Bajaj Pulsar 200NS, Honda CB Trigger, TVS Apache RTR 160 etc. will replace the car as an accommodation for one to two persons in a middle class family.