The two-wheeler industry in India has seen a decline in sales due to rising prices and the pandemic s economic impact. Sales of motorcycles, scooters, and mopeds fell nearly half to 13.58 million units in FY22. However, rural markets are showing signs of a turnaround, with moderating inflation and improved disposable incomes. Motorcycles continue to dominate two-wheeler sales in India, accounting for about 65% of the market. The growth in rural sales is driven by pen-up demand, moderating inflation, and a stable job market.
The two-wheeler industry in India has seen a decline in sales due to rising prices and the pandemic s economic impact. Sales of motorcycles, scooters, and mopeds fell nearly half to 13.58 million units in FY22. However, rural markets are showing signs of a turnaround, with moderating inflation and improved disposable incomes. Motorcycles continue to dominate two-wheeler sales in India, accounting for about 65% of the market. The growth in rural sales is driven by pen-up demand, moderating inflation, and a stable job market.
Wedding Season: This is driven by the fact that daily household inflation is yet to sober down completely impacting consumption amongst masses or people with low-to-mid income levels. Overall consumption in small towns and rural areas is impacted for 6-8 quarters now due to inflation though the rich in these markets are buying, that too premium products. Cash is replacing jewellery and electronic products as wedding gift.
Hero MotoCorp, India s largest two-wheeler maker, witnessed a 26% growth in its secondary network, primarily based in tier II and III cities and rural areas, during the 42-day festive period ending on November 15. The company reported an overall 20% YoY increase in sales, reaching a record 1.4 million units during the festive season.
This is driven by the fact that daily household inflation is yet to sober down completely impacting consumption amongst masses or people with low-to-mid income levels. Overall consumption in small towns and rural areas is impacted for 6-8 quarters now due to inflation though the rich in these markets are buying, that too premium products. Cash is replacing jewellery and electronic products as wedding gift.