The two-wheeler industry is expected to sustain a steady volume growth this fiscal driven by improved domestic sales and good traction in executive and premium segment motorcycles, a report said on Monday.
According to CareEdge Ratings, post-Covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well.
“CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles,” said Hardik Shah, Director at CareEdge Ratings.
The growth in the two-wheeler segment in FY25 is also expected to be aided by the likely interest rate cuts in the second half of FY25, strong demand for new model launches coupled with recovery in exports from its low base and favourable monsoon which is likely to improve rural consumer sentiment and income levels, said Arti Roy, Associate Director at CareEdge Ratings.
In FY23, the Indian two-wheeler industry recorded sales of 19.51 million units, an 8 per cent growth compared to the previous fiscal year’s 18.01 million units.
In FY24, the industry continued its upward trajectory, achieving 9.8 per cent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19, when annual sales volume had reached 24.46 million units, it said.
During FY24, the domestic two-wheeler industry witnessed total sales volume of 17.97 million units, reflecting a growth rate of 13 per cent, while the exports volume experienced a decline of 5 per cent.
