Just In
- 29 min ago Marelli Develops Revolutionary Automotive Lighting Platform In China
- 1 hr ago Honda Motorcycle & Scooter India Reaches 6 Crore Sales Milestone
- 2 hrs ago Kia EV9 Crowned World Car Of The Year At 2024 Awards, Showcasing EV Dominance
- 3 hrs ago Suzuki V Storm 800 DE India Launch On March 29 – All Details Here Including Specs
Don't Miss!
- Finance EPF Account Online: Quick Steps To Update KYC Details Online
- Technology HONOR Pad 9 With Bluetooth Keyboard Up For Grabs At Rs 22,499 in India
- News Good Friday 2024: Date, History, Significance, And Everything You Need To Know
- Movies Is Parineeti Chopra Pregnant? Actress Reveals Truth Amid Constant Pregnancy Rumours
- Education RSMSSB Junior Instructor Recruitment 2024; Apply online for 2500 Posts, Check out for more details
- Sports IPL 2024: Steve Smith also slams Hardik Pandya's captaincy - 'Perplexed, I mean you can't have...'
- Lifestyle Aditi Rao Hydari Marries Siddharth, Exploring Heeramandi Star's Ethnic Style Statements, Bookmark Now!
- Travel Explore Tamil Nadu's Diverse Wedding Venues
Indian Two-Wheeler Sales Will Decline Drastically Due To The COVID-19 Pandemic
Due to the COVID-19 pandemic, businesses across the world have been affected badly. India is currently facing a 21-day lockdown and due to that, the automobile industry is also going through a daily loss of around a thousand crores. Also, there have been reports that several dealerships are on the verge of shutting down completely but the parent OEMs are preventing such a scenario.
According to The Economic Times, a recent study states that the two-wheeler sales in India might decline drastically in FY 2021. To be precise, there will be an estimated decline of 11-13% over FY20, according to the ICRA. Well, if you put that in numbers, the loss is estimated to be close to Rs 20 to 21 lakh this fiscal year, to about 1.8 crore units.
Seeing the current situation, Shamsher Dewan, vice president, ICRA said, "We expect two-wheeler OEMs to brace for another year of lower earnings and decline in operating margins. Besides lower sales, pressure on earnings will also arise due to costs involved in re-calling BS-IV inventory from dealers which is likely to remain unsold due to shutdowns."
The Indian two-wheeler sales for FY20 was not good either, the industry saw a fall of about 16 percent and because of the current COVID-19 situation everything has been put to a halt.
Dewan also stated, "While recovery remains elusive in the near-term, over the medium term, ICRA continues to maintain a volume CAGR estimate of 6-8% for the two-wheeler segment, backed by positive structural factors like favourable demographic profile, growing middle class, low two-wheeler penetration, improving financing availability, participation of women in workforce and rapid urbanization."
Thoughts On The Indian Two-WHeeler Sales Decline
Last year the sales of the two-wheeler industry were down by big numbers and due to the current Coronavirus outbreak it may have a double-digit decline for FY21.