Soaring fuel costs: How Rising Prices Impact Two-wheeler Purchases

Globally, crude oil prices have indeed been high in 2023-2024. This is due to various factors, but the ongoing geopolitical situation is a major contributor. In turn, this has led to a drastic shift in automobile purchases. 

Welcome to Humann, where we will uncover how the masses are reacting to these hiking prices and changing their vehicle preference to save money in the long run.  Today’s blog is heavily reliant on the generic opinions of the consumers. Let’s go! 

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7 Poll Insights: Impact of Rising Fuel Prices | PollPe

To analyze this consumer shift, PollPe conducted a series of opinion polls on its Android application. These polls were majorly filled by Indian youngsters. Here are the findings that have been dug up from the poll analysis: 

 

1. Most individuals (65%) perceived rising fuel prices as a major concern. 

2. 20% of participants expressed moderate concern, while a smaller percentage (15%) indicated a lack of concern regarding rising fuel prices.

3. Notable changes included a shift to carpooling or ride-sharing services and utilization of public transportation.  

4. 55% of respondents tried to explore alternative transportation modes as a means of mitigating the impact of rising fuel prices.

5. A sizable proportion of individuals (30%) remained undecided, highlighting the complexity of decision-making in the face of evolving economic conditions.

6. Fuel efficiency emerged as the predominant factor influencing decisions on two-wheeler purchases, with 50% of participants prioritizing this aspect.

7. Other influential factors included budget considerations, personal preferences, and environmental concerns in the context of two-wheeler purchases.

 

This helps us to conclude that rising fuel costs have been a major issue for consumers and they are willing to shift to alternate transportation options such as car-pooling, ride-sharing and public transportation. 

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‘Fuel efficiency’ remains a dominant factor in new vehicle purchases, and ‘Budget Considerations’ remain second to that. 

 

 

How do Fuel Prices Impact Automobile Purchases? 

Fuel prices are playing a mixed-bag role in two-wheeler purchases in India during 2023-2024:

 

Negative Impacts:

Higher Ownership Cost: The already elevated fuel prices, coupled with rising vehicle prices due to factors like BS-VI emission norms, significantly increase the total cost of ownership for two-wheelers [3]. This discourages potential buyers, especially in the crucial entry-level segment which forms 75% of sales.

Dealer Inventory Pile-Up: High fuel prices have dampened demand for two-wheelers, leading to a build-up of unsold inventory at dealerships (reaching 60-90 days compared to the usual 25-30 days) [1]. This puts pressure on manufacturers and dealers.

 

Potential Positive Impact:

Lower Fuel Prices as a Trigger: Industry experts believe a potential decrease in fuel prices could be a major driver for two-wheeler sales, especially in the first half of 2024 [2]. This could be triggered by factors like government intervention or a decline in global crude oil prices.

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Overall, the current high fuel prices are a hurdle for two-wheeler sales in India. However, a potential drop in fuel costs shortly could act as a catalyst for the market.

 

How to cope with hiking fuel costs? 

We have compiled 5 tips to help you combat hiking fuel costs. Let’s have a quick look at them: 

 

1. Explore Alternative Transportation: Consider carpooling, using ride-sharing services, or utilizing public transportation to reduce fuel expenses.

2. Embrace Fuel-Efficient Vehicles: Opt for vehicles with better fuel efficiency to minimize fuel consumption and costs.

3. Plan Efficient Routes: Plan your travel routes to minimize distance and fuel consumption whenever possible.

4. Regular Vehicle Maintenance: Ensure your vehicle is well-maintained, as proper maintenance can improve fuel efficiency.

5. Promote Eco-Friendly Practices: Adopt eco-friendly driving habits such as car-pooling, cycling and ride-sharing, which can improve fuel efficiency.

 

Yes, there can be several other measures to consider. We welcome you to drop your suggestions in the comment box! 

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Conclusion

Fuel prices will be a global concern in 2024. Consumers are highly concerned about the surge in fuel prices and are considering alternate transportation options. While most people have options for carpooling and public transportation, a decline in automobile purchases has been witnessed lately. To adapt to this change, you can practice smart strategies and save heavily on fuel costs and also consider electronic vehicles that are money-efficient in the long run. 

 

That’s a wrap for this blog! Let us know your thoughts on the mad fuel prices in 2024. Also, you can subscribe to our newsletter and get regular industry updates in your feed! 

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