The Hindu Business Line : Two-wheelers taking different growth tracks

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Two-wheelers taking different growth tracks

Domestic sales and exports for the two-wheeler industry during the April-July period show a very divergent trend.

S. Muralidhar

The current slowdown in the automobile industry is hitting two-wheeler manufacturers too, though some categories are still registering growth.

The most happening category of two-wheelers — the motorcycles category — registered negative growth during the first four months of this fiscal.

The official cumulative sales numbers of the two-wheeler industry clearly indicate the trend.

According to Society of Indian Automobile Manufacturers (SIAM), the cumulative sales of motorcycles during April-July this year fell by over 15 per cent. Being the largest category, the fall in bike sales has dragged down not only the overall sales of the two-wheeler segment by over 9 per cent but has also led to the sales of the automobile industry as a whole falling by about 6 per cent.

The fastest growing sub-category of two-wheelers during the period was electric two-wheelers, albeit on a much smaller base of sales. SIAM had included electric two-wheelers as a separate category after Electrotherm (India) — manufacturers of Yo-bikes —joined the industry organisation.

After its launch, TVS Motor’s Scooty Teenz Electric will contribute to sustaining the high growth that this sub-segment has witnessed during the past few months. Domestic sales and exports during the four-month period show a very divergent trend. So, while the mopeds and scooter/scooterette sub-segments registered good growth in the domestic market, cumulative exports of these two-wheelers were down during the period.

On the contrary, while motorcycle sales in the domestic market were down, exports of bikes and step-thrus were up 31 per cent.

The high cost of credit has probably been the biggest reason for the slowdown in the domestic market for two-wheelers.

But manufacturers are upbeat on the prospects for the segment.

The belief is that customers have only postponed their purchase decision and that they will return once interest rates peak out and start back on a declining trend.