Two-wheeler sales will continue to be driven by scooters and their share in the industry will jump to around 40 per cent by 2019-20, according to a report.
The report by the Swiss brokerage Credit Suisse further says that market leader MotoCorp will have the lowest volume growth while TVS will have maximum earnings disappointment due it its stretched valuations. “In more developed states, scooter share has already crossed 40 per cent and is still increasing and we expect the share of scooters to reach around 40 per cent by FY20, which should be the most positive for Honda, which completely dominates the space,” the report said. It added that scooters are growing at the expense of lower executive bikes. It notes that over the past five years, the share of scooters has risen from around 20 to over 30 per cent while the share of lower executive bikes (under Rs 50,000, same as scooters) has shrunk from 35 per cent to 25 per cent now.