Domestic two-wheeler market sees growth in premium motorbikes segment


Sales of premium bikes in the country have been gradually picking up in recent years. The performance offered by such bikes is one of the main reasons for the rise in popularity among customers, said domestic two-wheeler dealers.

According to them, the market for premium bikes (150 cc) has been growing by seven percent annually. It now commands 45 percent of the total bike market in Nepal, up from 38.3 percent in the fiscal year 2017-18.

On the other hand, the market for premium plus bikes (above 150 cc) has fallen slightly to 24.1 percent in the first four months of the current fiscal year, down from 27.1 percent in 2017-18. Dealers attribute the fall in sales to higher excise duties on such bikes which resulted in prices spiking considerably.

However, two-wheeler dealers expect the premium plus segment to reach 28.5 percent by the end of the current fiscal year.

Meanwhile, the economic deluxe (100 cc) bike segment which was four percent last year, has also lost sales, commanding only 3.2 percent market share in the first four months of the current fiscal year.

Dealers say that the 150cc segment bikes holds the lion’s share of the market with 50 percent, while 100 cc-125 cc segment bikes cover about 30 percent, with the remaining held by big bikes.

Customers look for upgraded bike technology and an attractive design when purchasing a bike. The rising income levels in the country along with changing leisure pursuits has also boosted sales of premium bikes.

Amit Raj Chalise, marketing manager at KTM Motorcycle Nepal said that people are preferring 200 cc bikes in the premium segment as these bikes offer ample performance without breaking the bank. He also highlighted the negative impact from the rise in excise duty on bikes which caused bike prices to rise considerably.

KTM offers multiple bikes (200 cc, 250 cc and 390 cc) in the premium segment with prices ranging from Rs 464,900 to Rs 819,900.

According to Ramesh Danekhu, assistant manager of corporate communications and marketing at MAW Enterprises, the market for adventure bikes has been expanding in recent years. Adventure bike riders have been creating bike clubs and going on road trips during the weekends and holidays.

He said that the sales of 150 cc bikes have been rising as it is perfect for city rides. However, the market has been gradually shifting to 250 cc bikes in recent years.

According to import data of the Trade and Export Promotion Centre (TEPC), the country imported bikes worth Rs 21.74 billion in the fiscal year 2017-18 against imports worth Rs20 billion in the previous fiscal year.

Likewise, the country imported motorcycle spare parts of worth Rs2.6 billion in fiscal year 2017-18 compared to Rs 2.1 billion in previous fiscal year, the data showed.

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