Tata’s Rs 1-lakh car Nano will probably fulfill the dream of millions of two wheel owners aspiring to upgrade to a car. But will this be bad news for the two-wheeler manufacturing industry? Yes, Nano can spell mega trouble for the bike makers.
According to industry estimates only 10 per cent of the seven million strong two-wheeler buyers would prefer an entry-level mini car when it hits the road later 2008.
TVS Motors Senior VP H S Goindi says, “There is no threat, as cost involved in maintaining a two wheelers is very different than maintain a car, and I don’t there will be a lot of attrition.”
Rs 1-lakh Nano may have given a lot of low income group Indian a chance to own a car, but more than fixed price, it's the variable price of maintenance, fuel and upkeep, where the two wheel segment has an edge.
While Nano has a mileage of 20 kmpl, an average bike would give between 50 to 120 kmpl.
In addition, the Rs 600 that you spend every month for car maintenance can last you three months in case of a bike. Bike manufacturers believe the Nano may just compliment the two-wheeler already available with the family.
And even though, a car is much more convenient, safer and a comfortable option than a two wheeler, in a price conscious country like India, there will always be a place for a two wheeler.
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