Two-wheeler sales volume grew consecutively for the second quarter demonstrating a shift in customer perception in rural regions where demand has been struggling the past few years due to a substantial rise in vehicle prices.
According to the data gathered by the Federation of Automobile Dealers Association (FADA) from the Vahan portal of the Ministry of Road, Transport, and Highways, registrations of motorcycles, scooters, and mopeds—a proxy for retail sales—increased by 12.3% to 3,978,169 units in the most recent quarter and by 16.6% to 4,704,713 units in the three months prior to December 31, 2022. (MoRTH). Since the beginning of the pandemic, it has only been twice that these sales increased for two straight quarters, but the first time was more a function of base effect because Covid-related disruptions had a negative impact on sales in the year prior.
Around 16 million two-wheelers were sold in retail during the previous fiscal year.
While interacting with the Economic Times, Niranjan Gupta, Chief Financial Officer said, “The general consumer sentiment is improving.” He further added, “The constructive policies of the government and the social sector reforms have given a further boost to the demand scenario.”
The two-wheeler industry is anticipating that these elements will encourage the sector’s growth to return to pre-pandemic levels. Hero MotoCorp, which reported an 8% sales to increase at 5.3 million units in the previous fiscal year, has over a dozen models scheduled for release.
Rival Honda Motorcycle & Scooter India (HMSI) intends to introduce six models, including two electric vehicles, during the current fiscal year. Several models from Pune-based Bajaj Auto are also in the works. It’s anticipated that these new models will draw customers.
Meanwhile, Rakesh Sharma mentioned to the portal that we have begun witnessing signs of turnaround post many quarters. He also added that the consumers’ confidence is returning as a result of improvement in economic situation.
