A strong 14 per cent growth in two-wheeler retail sales was witnessed in the festivity-period from October 3-November 13, as festive cheer and an improvement in rural demand, a report showed on Monday.
Credit rating agency ICRA has revised the outlook for wholesale volume growth for the two-wheeler sector at 11-14 per cent in FY25, driven by sustained replacement demand and a picking up in rural demand with the onset of a healthy monsoon precipitation.
Retail sales of passenger vehicles during the festive season grew at a modest clip of 6 per cent (on-year) to 6.5 lakh units, supported by attractive discounts and competitive financing rates, the report added.
However, while good retail sales (YoY growth of 6 per cent in April-October FY25, partially on account of an early festive season), the continued high inventory level for the industry curtailed the pace of wholesale volume growth.
Dealers reported a large increase in footfalls and bookings and as per channel check, enquiries and sales conversions were strong, especially in the semi-urban and rural areas and inventory levels were at near normal levels.
The sentiments since the onset of the festive period (during Navratri) were strong and the demand was boosted further with a healthy pick-up during Diwali.
The recently-concluded festive season brought cheer to the automotive industry with robust retails across most segments (barring commercial vehicles), representing a moderate-to-healthy growth on a YoY basis," the report said.
Total two-wheeler sales in the country jumped by a robust 14.2 per cent to 21.64 lakh units in October compared with 18.96 lakh units in October 2023.
Passenger vehicle sales, comprising cars and SUVs, also went up to the all-time monthly high of 3.93 lakh units in October, which marks a 0.9 percent rise over a high base figure of 3.9 lakh units for October 2023, according to the latest data put out by the Society of Indian Automobile Manufacturers, or SIAM. Market analysts attribute the surge in two-wheeler sales to higher rural incomes as a normal monsoon this year led to better crop yields, which resulted in higher earnings in the agricultural sector.
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