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Two Wheeler Sales Slide For The First Time
The sales dip is an indication of the impact of increased fuel prices, bank lending rates and the decrease in demand from the rural markets. Demand for two wheelers has dipped only in October even though petrol prices have increased considerably since the past two years. But it appears the currentl increase has finally had an impact on consumers buying two wheelers.
Another important reason for the dip in two wheeler sales this October according the analysts is the drop in demand for the rurral markets. Motorcycles such as the Here Honda Splendour, Bajaj Boxer and the TVS moped are some of the most preferred two wheelers in rural India. But sales of mopeds have dropped considerably in October. Moped sales are an indication of the health of two wheeler sales in rural markets.
The high inflation and fuel prices have had a sizable impact on sales in the urban markets. While increased interest rates on auto loans ca n also be considered as a reason, not many buyers take auto loans while buying two wheelers, according to a senior executive from TVS.
The slide in two wheeler sales is not unexpected for several companies. TVS saw its sales slow down in September it self and its October sales fell considerably. The dip in two wheeler sales will become more evident once sales of November and December are also assessed.
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