One does not need superior intellect to come to the conclusion that the current large base of two-wheeler owners are potential car buyers. But, unfortunately, there is very little information to back this observation and there is still a lot of different statistics that can affect that broad category of people.

The truth about the potential of two-wheeler owners upgrading to cars depends on the likes, dislikes and experiences of the two-wheeler owners themselves. The trends that the ownership experience in the two-wheeler segment throws up would naturally be of immense interest to companies such as Tata Motors that are planning low-cost cars. TNS Automotive has been conducting customer satisfaction studies for motorcycles, and the latest 2007 study has come up with some interesting observations.

Representing the responses of more than 7,000 new-motorcycle buyers on the performance of more than 50 models in key areas of sales satisfaction, product quality, motorcycle performance and design, after-sales service, brand image and cost-of-ownership, the 2007 Motorcycle Total Customer Satisfaction (MTCS) study conducted by TNS Automotive is the largest syndicated motorcycle study in India.

The MTCS index score provides a measure of satisfaction and loyalty that a given model or brand enjoys among its customers. As regards specific models, according to the findings of the 2007 MTCS study, the newly launched Hero Honda Splendor NXG, Hero Honda CBZ Extreme, and Bajaj Discover 135, rank highest in their respective segments, while Hero Honda CD Deluxe continues to lead the ‘standard’ bikes. Bullet 350 continues its supremacy in the niche ‘cruiser’ bike segment.

A trend that has been continuing for the past couple of years is the strong performance of new models. They tend to get high ratings on performance and design — an indicator of the growing design capability of the Indian two-wheeler industry. This year Hero Honda’s Splendor NXG, Bajaj Discover 135 and Hero Honda CBZ Xtreme have received high ratings on all satisfaction parameters in their respective segments. Their strong performance is driven by quality and design as all the top ranking models also have high scores on ‘Product Performance & Design’ and ‘Product Quality’.

Some of the key trends in the industry as examined by the 2007 MTCS study are:

Expectation of the buyer of standard motorcycles (entry-level bikes) has gone up. Now he expects similar attention and commitment as the buyer of higher value bikes. He demands test drives, wants a stylish product as manufacturers have raised the bar in the past by offering quality products such as TVS Star City, Hero Honda CD Deluxe and Bajaj Platina.

The styling of the bikes in the executive segment is gaining importance in overall customer satisfaction. In transacting with the service dealer, competitive pricing and explanation have gained importance. They also have a high impact on retention.

For the upper executive segment, latest technology and style have gained importance.

Premium segment buyers are the focus of all of the manufacturers, with the latter helping the customer make comparisons of the options available and therefore make a conscious decision. Now he expects manufacturers to give him the best technology, he questions salespersons, looks for the best financing options and demands quick service. The results of the MTCS study also indicate that in all four regions of the country preference will be for motorcycles with high engine capacity (150cc and above) — almost 70 per cent in the South and closely followed by the West.

Across the country, close to 24 per cent of current motorcycle owners intend to upgrade to a four-wheeler as their next vehicle.

The propensity to upgrade to a car is higher in the North than in other parts of the country. The large base of motorcycle owners will surely have a bearing on the growth in the entry and premium compact segments of the four-wheeler market. The MTCS study was conducted from June through August 2007 across 27 cities.

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