End of entry-level bike segment?

Top bike manufacturers in the country are sweating it out to establish the battleground of the future. The fight is over a mere 25cc. At present 65% of the Rs 33,000-crore Indian two-wheeler market is dominated by the sale of 100cc, four-stroke motorcycles. With market No 2 Bajaj, threatening to storm this bread and butter 100cc segment in the next two years with a different technology platform, the industry is anticipating a seismic shift.

e4m by exchange4media Staff
Published: Nov 18, 2006 8:24 AM  | 5 min read
End of entry-level bike segment?

As Hero Honda and Bajaj lock horns over the entry-level segment, John Sarkar speaks to the rest of the bike pack to get their verdict on the fate of the 100cc four-stroke bike

Top bike manufacturers in the country are sweating it out to establish the battleground of the future. The fight is over a mere 25cc. At present 65% of the Rs 33,000-crore Indian two-wheeler market is dominated by the sale of 100cc, four-stroke motorcycles. With market No 2 Bajaj, threatening to storm this bread and butter 100cc segment in the next two years with a different technology platform, the industry is anticipating a seismic shift.

The Bajaj portfolio will begin at a higher capacity, expected to be 125cc, for which it is developing a low-cost platform from scratch. Market leader Hero Honda, with 50% share in this segment, is courageously staying put adding new models and variants to the stable. But what have the other two-wheeler manufacturers got to say about the Great Indian Bike Battle over the 100 cc/four stroke?

Some are calling it strategy. Some are calling it mindplay. Whatever it is, the fight is interesting. Take a look at this. According to industry estimates the overall size of the 100cc segment decreased by almost 3.5% in the course of one year. In the 125-250cc segment, things are very different. The segment has expanded by 36%.

The only catch is the decrease in growth in the 100cc segment has been on a large base while the 36% increase in 125-250cc segment has taken place on a much smaller base in terms of volumes. But this development is significant nonetheless. So will the 125cc segment drive the volumes in the near future?

Sanjay Tripathi, GM-R&D of Yamaha agrees with Bajaj. He says, “The 125cc-150cc segment is the future of Indian motorcycling in terms of volumes. Today's youngsters don't want to be caught on a 100 cc bike because of peer pressure. A 125cc bike offers more style, more torque and meet stringent emission norms. And importantly the mileage is equivalent to a 100cc. The extra torque also helps in city riding.”

It is a natural phenomenon that people want to upgrade and with a buoyant economy helping things along, up gradation is imminent. So from now on will Yamaha concentrate only on the 125-150cc segment? “Not exactly, though we would try to incorporate technology into our entry-level bikes like the Crux to increase the performance factor, which is our forte,” replies Tripathy.

Kat Sumi Takata, joint MD, Suzuki Motors echoes the same views. “Our strategy is to make the 125 cc segment as the entry level segment for users so that the first time buyers should directly upgrade to 125 cc. Our research has shown that customers require more power, than what is available in the 100cc motorcycles for their daily riding condition. We feel that 125 cc motorcycles deliver better pick up and better torque without sacrificing on the mileage front,” he says. Suzuki does not have a presence in the 100cc segment as of now. Their 125cc model Zeus has done moderately well, clocking 9000 units the previous month.

TVS Motor's marketing head, Prasad Narsimhan, is more neutral in his opinion. “I feel there will be a bit of both. Some will move into the 125cc segment while others will stick to the 100cc because of its inherent strength, which is mileage. There are more brands in the market today. People want variety. They don't only look at individual features like mileage or performance. They look at a bike as a package.”

TVS has two 100cc motorcycle in its arsenal, the Centra and Star, while the 125cc is headed by three variants of its very popular Victor. Interestingly, compared to the Victor, the Star is doing extremely well.

Last month the Star has managed to clock over 100,000 units in retail sales while the Victor is doing around 14,000-15,000 units a month. And TVS is all set to invest and concentrate more on this segment at the moment.

Ajinkya Ferodia, VP-marketing, Kinetic Motors says, “In the next 10 years I don't see the 100cc segment vanishing. In India consumers are not in a hurry to reach anywhere. They don't require that much of speed. Also most customers of the 100cc motorcycles are usually based in rural India. They would require mileage. A 10 km difference in mileage matters a lot to them.” Kinetic has two 100cc bikes in its portfolio. The newly launched Stryker and the Shakti, which it has launched in select markets.

Honda Motorcycle & Scooter India (HMSI) is also an important player in the bike market. Interestingly HMSI had entered the market first with its 150cc Unicorn and then its 125cc Shine. Till date it has no signs of breaking into the 100cc segment.

Clearly the industry is divided in its verdict. But with the influx of technology into R&D, manufacturers are planning to turn the tables on one another. Whether it is offering 125cc motorcycles at the price of 100cc, or offering the advantages of a 125cc engine in a 100cc motorcycle, the consumer is all set to benefit. Pricing and technology will be the key determinants for companies to garner marketshare. But most importantly it would boil down to nerves. The one with the steadiest would finally decide the future of the Indian two-wheeler market.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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