Click it and Unblock the Notifications
CARE Predicts growth In Two Wheeler Sales
The sales in the long run is expected to be healthy, with the domestic sales projected to grow in double-digits over the next five years. CARE Research also expects Rs. 900 crore to Rs. 1000 crore investment in the sector over next 2-3 years for capacity expansion as well as product development to meet surging demand.
CARE Ratings, Managing Director and CEO D R Dogra believes that around 1.6 crore two-wheelers are aged above 10 years, as against the domestic sales of 93 lakh in FY10. Also around 50% of two-wheeler population is more than five years old. However this proportion varies in all the three segments. Hence, the demand for exchanging old two-wheelers is a huge growth potential for the industry in coming years.
CARE Research assesses that in scooter and moped segments, the proportion of vehicles aged over 10 years is higher, whereas it is much lesser in motorcycle segment. The consumer preference has shifted in the last 8-10 years from metal bodied geared scooters to motorcycles that score high on technology and styling. Thus the fleet of motorcycles below 10 years of age constitutes significant proportion in overall motorcycle population. According to CARE the newer models with improved technology better fuel economy and attractive styling would trigger the aspirations to replace older two-wheelers. Hence consumers will either exchange or buy new two wheelers in the coming days.
After surpassing the speed breakers in 2008 and 2009 financial years, the two-wheeler industry came back in the top gear in FY10 registering a strong domestic sales growth of 26.4%. The growth continued in FY11 with the first five months (Apr-Aug 2010) registering a growth of 27.2%. Improvement in consumer sentiments due to revival in the economy, rise in employment levels and increase in personal disposable incomes combined with improvement in systemic liquidity were some of the key factors that influenced this growth.
Hero Honda witnessed a healthy growth of 24% in its domestic sales, whereas Bajaj Auto observed a strong rise of around 39%. TVS Motor registered 20% growth and Honda Motorcycles and Scooters too registered healthy growth of 15% in their domestic sales volumes.
Continue with Google