New Delhi, March 14, 2018: Two-wheeler sales are pegged to reach 20 million units in 2017-18, according to industry body SIAM. The two-wheeler market has touched 18,451,023 units during the April-February period of this fiscal growing 14.47 percent against 16,118,102 units sold in the domestic market during the same 11 month period in FY17 according to auto.economictimes.indiatimes.com
Uplift in overall consumer sentiments due to economic recovery post enforcement of GST as well as growth in the manufacturing sector are driving two-wheeler sales in the domestic market, said said Sugato Sen, deputy director general of SIAM.
In addition, improvement in rural markets due to two consecutive years of good monsoons that has placed more disposable income in the hands of the rural populace, as well as increasing scooterisation even in the rural and semi-urban markets are also contributing to the sales.
Due to the rural pick up, motorcycles are beginning to show a robust growth with February 2018 sales up 26.48 percent growing to 1,053,230 units (832,695 units).
According to reports published in auto.economictimes.indiatimes.com Scooters also experienced a strong uptick at 560,653 units during the month against 452,295 units reported in February 2017 a rise of 23.96 percent.
“The two-wheeler segment is receiving demand growth from both the rural and urban markets. The relatively subdued volumes reported in the last financial year between December and March is also supporting the volume growth. The growth uptick from the rural market is seen in the entry level motorcycle segment – that supports the basic transportation needs in less connected rural and semi-urban markets,” said Subrata Ray, senior Group VP of ICRA.
“The growth in participation of women work force supports the boost in the scooter segment, which is recording a faster growth.”
According to reports published in auto.economictimes.indiatimes.com The improved farm sentiments, following two cycles of good crop, increased budgetary allocations towards rural development as well as irrigation, increase in minimum support prices, farm loan waivers by select states even as the agricultural output in current kharif season for major crops are estimated to contract would be the drivers of rural demand.
On the other hand, urban sentiments are expected to draw support from staggered pay revision for state government employees and pensioners. In addition to the growth in domestic demand, the recovery in oil prices has resulted in improved demand prospects from select international markets, coupled with new markets explored by OEMs, is expected to drive exports in the current fiscal.
According to reports published in auto.economictimes.indiatimes.com Other factors that have seen this upsurge in two-wheeler sales is a favourable interest rate through FY 18. Mopeds however have continued their downslide de-growing 6.65 percent at 71,931 units (77,053 units) during February.
During the April-February 2017-18 period, scooters outgrew motorcycles at 21.18 percent to 6,201,896 units (5,118,069 units), while motorcycles were up 12.66 percent at 11,468,020 units (10,179,288 units) with larger volumes.