Which market will be affected by the clash of the second-hand cars and high priced mobikes?
Clearly, Rs 50,000 will be the kind of limit I see for the large volume two-wheelers. You may get 150cc, 175cc bikes for Rs 60,000 or Rs 75,000 but clearly the volumes of those products are going to be limited compared to the CD 100s, AX 100s and Calibers which are available for Rs 45,000. I am sure the scenario will not be one replacing the other. Another interesting feature we see developing in my own company is a car-and-a-two-wheeler family. The husband uses the two- wheeler to commute to his office. He buys a Rs 60,000 second-hand car and uses it on weekends or the evenings when the family goes out. Rs 60,000 is not too much of a capital expenditure, it is something he can afford to keep as a luxury. But the maintenance of a used car is higher, so he uses it as a second vehicle. But the first vehicle will be his two-wheeler. Which vehicle will this person buy? It depends. If he is younger, he will buy a motorcycle. If he is older, it will be a scooter. What we see today is, scoote
