26 December, 2007 : A study taken up by the Associated Chambers of Commerce and Industry of India (Assocham) on “Two-wheeler vs. Small Car” reveals a bright future for cars in India. India’s low-budget cars have been in the news for quite some time now and speculations have been ripe that they will outsell the two-wheelers as soon as they burst into the market. Tata’s one-lakh wonder car is already in the making and other popular auto makers such as Nissan, Mahindra, and Bajaj have been working on a similar theme. The much-awaited ‘Choti Cars’ (Small cars) are expected to hit the market soon and are likely to eat into 25 percent of the market share held by two-wheelers in urban and semi-urban India.

The findings are based on a random survey conducted by Assocham’s research team in which 3000 potential customers from metros and smaller cities participated. The survey has revealed that in a majority of cases, potential two-wheeler customers prefer to wait for the small cars to roll into the market.

Mileage has been the biggest selling quotient that two-wheeler manufacturers have used to mobilise the public. However, with a promise of 25-30 km/litre of mileage with a petrol engine, Tata’s one-lakh car is not far behind. Plus, a car promises better safety compared to a motorcycle or scooter any day. A car also carries more passengers and offers better comfort over long journeys.

There’s some relief, however, for two-wheeler manufacturers as current sales figures still display strong popularity with the public. The survey pointed out that in the past two and half years, a slew of scooters and motorcycles were launched. Though scooters have taken a beating, the response to motorcycles has been good. Strong selling points for the motorcycle such as efficiency and flexibility could be hard for any four-wheeler to match. People in urban areas with dense traffic could also continue to believe that a motorcycle is a better option to a car.

While there’s no doubt that the new small cars will attract prospective two-wheeler buyers, motorcycles and scooters will continue to plough our roads for a few years to come.