The two-wheeler industry, which has been witnessing a declining trend in sales for the past two years, is expecting a very good second half of this year. The main reason behind this is the economic recovery, normal monsoon rains, increase in agricultural income, educational institutions and offices opening at full capacity, besides the upcoming season of weddings and festivals.
Growth in two-wheeler sales on a yearly basis The sales of
two-wheelers reached the peak in 2019, but after that due to the outbreak of Kovid-19 in the last two years, the total sales of two-wheelers as well as two-wheelers increased due to the outbreak of Kovid-19. Sales were also greatly affected. Since April this year, two-wheeler sales have been showing growth on a year-on-year basis. In the Federation of Automobile Dealers Association (FADA) survey, more than half 50.3% of dealers have expressed an expectation of an increase in sales. In the last two years, 66-67 lakh two-wheelers were sold in the second half (July-December). In this sense, in the second half of this year, the sales figure can go up to 70 to 75 lakhs.
Two-wheeler sales are increasing due to these five reasons
Income expected to increase in rural areas due to good monsoon. Most of the two-wheeler sales take place here.
The income of farmers has increased after increasing the Minimum Support Price (MSP) of major crops.
The tradition of buying a new wheeler in festivals, and the continuous launch of new models also has an effect. Excitement is being seen in the market regarding new models.
Comparative fall in petrol prices after excise duty was reduced, has not increased for a long time.
Schools, colleges, offices have opened with full capacity, these are also increasing the demand for two-wheelers.
The number of new launches will increase in festivals,
compared to the last two years, automobile companies will launch more new this year. According to FADA President Vinkesh Gulati, the festive season was the worst so far but the coming 4-5 months of this year are expected to be very good in terms of wheelers sales.
Economic recovery will have an impact on sales
In 2019, the highest number of 2.12 crore two-wheelers were sold in the country. After that there was a steady decline. Last quarter sales grew by 54.3%. Two-wheeler sales are expected to remain good during the festive season due to factors such as economic recovery, good monsoon, increase in farm income.- Tushar Shah, Co-CEO, Care Edge Advisory & Research
