Nilesh Kamat is a delivery boy at a leading food tech start-up in Mumbai and earns over ₹15,000 per month, plus additional perks. Not long ago, he was unemployed in a small town in Maharashtra but today is capable of supporting his family, back home. He credits this turn of fortune to his ability to be mobile in a city. Yes, one of the key enablers for him to land a job was his two-wheeler!
The humble two-wheeler, which is perceived as a symbol of mobility, is now emerging as an effective contributor to the economic development, while continuing to serve its original purpose.
There are ample industry studies that establish a clear connection between improved household incomes and growth of two-wheeler sales. In fact, if the estimates are anything to go by, income of two-wheeler owning households has increased more than three times between FY14 and FY16. Regardless of the source of income, two-wheeler owning households earn an average annual income of ₹84,579 as compared to non-vehicle owning households that earn around ₹21,745. The automobile industry, particularly the two-wheeler segment, which is a huge beneficiary of the growth in rural consumption, is therefore poised to further consolidate India’s position as the second-largest two wheeler market in the world. With increased mobility of a household, there has been a simultaneous uptake in the levels of economic activities, which ultimately contribute to the overall well-being of the individuals and their families. The future is robust, considering the low two wheeler penetration in India, and increasing demand will continue to emerge from rural and semi-urban areas. Also with the enhanced infrastructure focus and urbanisation, wherein public transport is yet to scale in a commensurate fashion, two-wheelers are the mode of commute for millions, offering them greater access to economic activities and opportunities.
How India goes to Work
THE BIG LEAP
This story is from the June 2017 edition of Auto Tech Review.
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This story is from the June 2017 edition of Auto Tech Review.
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