SUMMARY

The article from The Economic Times, published on June 8, 2025, titled "Popular urban bikes lose traction on slowdown hit," highlights a decline in the 150-200 cc motorcycle segment in India’s metropolitan areas during FY25.

Key points

1. Sales Decline: Sales of 150-200 cc motorcycles in urban areas dropped by 9% in FY25, with a sharp 31% decrease in April 2025, reaching 94,489 units, reflecting a broader slowdown in urban consumption similar to trends in the FMCG sector.
2. Contributing Factors: The downturn is attributed to macroeconomic uncertainties, inflationary pressures, volatile stock markets, and a lack of new model launches, which have dampened demand since December 2024, according to Yamaha India Group chairman Itaru Otani.
3. Industry-Wide Impact: The broader two-wheeler industry also faced challenges, with production falling 16.7% to 1.46 million units in April 2025, impacting overall volumes.
4. Contrast with Commuter Segment: Sales of commuter bikes (up to 150 cc) grew by 6.4% to 9.98 million units in FY25, driven by demand from rural areas and entry-level urban buyers, highlighting a rural-urban divide in market dynamics.
5. Outlook: Companies like Bajaj Auto, TVS, and Yamaha India remain optimistic, expecting a recovery in the coming months due to an improving macroeconomic environment and anticipated new model launches.

The article underscores the challenges faced by the urban motorcycle segment amid economic pressures, while rural demand and lower-capacity bikes show resilience.

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