"Microeconomic volatility, one of the most crucial indicators for business, has hardly been studied in India (Garda & Ziemann, 2014). Reflected through fluctuations in the economic situation of households, microeconomic volatility has a direct bearing on economic welfare. Yet, it has remained an issue untouched by research aimed at understanding India consumer market. Macroeconomic situation can be linked to household income distribution. This article presents an analysis of two wheeler demand and its linkage in three states Maharashtra, Tamil Nadu (TN) and Uttar Pradesh (UP). The states were selected based on the premise that Maharashtra and TN are the two top economic performers in the country; UP and Maharashtra are both large in terms of population and size, as compared to TN; and, in UP and Maharashtra, rural-urban contrasts and regional inequalities are more prominent as compared to TN. Secondary data, gathered from the Society of Indian Automobile Manufactures (SIAM), National Accounts Statistics, employment data from Nielsen Market Skyline, a proprietary database of Nielsen prepared by its Micromarketing and Economics (MME) team database, has been used for this analysis, which aims to:
Understand the sales pattern of two wheelers and the changes t
The economic situation and policies of the states has a direct bearing on economic welfare, and hence has significant impact on consumption demand. Although hitherto neglected, it can easily explain the fluctuations in consumption pattern for consumer and other goods, and help in the planning of business strategy.
Author is Director, Economic Research, Nielsen India. Dripto.Mukhopadhyay@nielsen.com