Two-Wheeler Retail Sales To Witness 11-14% Growth In FY25: ICRA

Two-wheeler retail sales grew by a robust 14% during the festive season from October 3 to November 13, supported by festive cheer and stronger rural demand, according to a report released on Monday. Credit rating agency ICRA has revised its growth outlook for two-wheeler wholesale volumes to 11-14% in FY25, driven by steady replacement demand and improved rural incomes after healthy monsoon precipitation.

Retail passenger vehicle sales also grew by 6% year-on-year during the festive season, reaching 6.5 lakh units. This was fueled by attractive discounts and competitive financing options. However, high inventory levels limited wholesale growth for the passenger vehicle segment, despite the retail uptick.

Two-Wheeler Festive Season Sales Soar

In October 2024, total two-wheeler sales surged by 14.2% to 21.64 lakh units, up from 18.96 lakh units in October 2023. Dealers reported significant increases in footfalls, bookings, and conversions, particularly in semi-urban and rural areas. Inventory levels remained near normal.

Passenger vehicle sales, including cars and SUVs, hit a record monthly high of 3.93 lakh units in October, marking a modest 0.9% growth over October 2023’s high base of 3.9 lakh units, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Rural Demand Boosts Auto Sector

Market analysts attribute the surge in two-wheeler festive season sales to improved rural incomes. A normal monsoon boosted crop yields, leading to higher earnings in the agricultural sector.

The report noted that the festive season brought cheer to the automotive industry, with moderate-to-healthy retail growth across most segments, except for commercial vehicles. Strong demand during Navratri and Diwali further bolstered sales momentum.

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