If one is to assume: The cost of ownership of scooters is the primary reason why scooter sales is dipping. The fuel price has increased in the past financial year. To that, the high unemployment rate, too, could have played a significant role in this market’s slowdown.

scooters-sale-is-dipping-letsdiskuss (Courtesy: Economic Times)

Per reports, the scooter market’s annual sales is in negative for the first time a decade. The sales of this two-wheeler in the past FY has decreased – albeit very marginally. From HMSI to Hero, many top companies are experiencing a downward trend in their sales.

So, clearly, it’s not good news for the manufacturers and suppliers.

The high fuel price has put off many from purchasing scooters, forcing them to explore other cost-effective options.

To that, India is facing its 45-year high unemployment rate. So, with millions of youths unemployed in rural and urban areas, it makes sense that purchasing scooters wouldn’t be at the top of their priority list.

(Courtesy: News Nation)

Also, the rising insurance costs could be another big reason why scooter sales is dipping.

Now, of course, it would be wrong to assume that this would be a sustainable trend. Fuel price is coming back on track. The employment rate has already hit its bottom – and we would only go high from here.

From a macro perspective, even with small hiccups, the Indian economy is expected to continue flourishing in the coming years. This will definitely have a positive impact on the scooters market.

(Courtesy: Overdrive)

In short, yes, scooter sales is dipping. But the trend won’t sustain for long. It will eventually pick up in the coming months. It only makes sense for a developing country like India that’s experiencing urbanization. People would prefer scooters over four-wheelers.