The Hindu Business Line : Replacement customers drive bike segment growth

According to a study, although the largest segment of the market continues to be the `first new motorcycle buyer', the proportion of additional/replacement customers has grown to 36 per cent in 2006 from 26 per cent in 2003. This is coupled with a reduction in replacement cycle, from nearly five years to just about four-and-a-half years.

The 2006 Motorcycle Total Customer Satisfaction (MTCS) study conducted by TNS Automotive also pointed out that this segment of additional/replacement buyers have higher expectations based on their prior experience and, hence, manufacturers will have to meet and manage the rising expectations.

Further, the study found that bike owners who are intending to upgrade to a car do not only go in for used cars or lesser-priced models alone.

"The growth in the entry and premium compact segment of the four-wheeler market composition will be clearly impacted by the large base of current motorcycle owners, as in contrast to the popular perception, the intention to buy a used car at the time of upgrading from a two-wheeler is less than 10 per cent," said Mr Pradeep Saxena, Senior Vice-President, TNS Automotive. And among customers intending to shift to a four-wheeler, the budget as stated by them indicates that they may not stop at just a Maruti 800, but may go up to a premium compact car such as Santro, Indica or Wagon R, the study added.

Close to 13 per cent of current motorcycle owners intend to upgrade to a four-wheeler as their next vehicle with the propensity to upgrade to a car being higher in the North.