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| 2W inventory CY23 | 2W inventory CY24 | |||
|---|---|---|---|---|
| January | 25-28 days | January | 10-15 days | |
| February | 20-25 days | February | 10-15 days | |
| March | 15-20 days | |||
| April | 12-15 days | |||
| May | 15-20 days |
| June | 20-25 days | |||
|---|---|---|---|---|
| July | 20-22 days | |||
| August | 23-25 days | |||
| September | 33-35 days | |||
| October | 40-45 days | |||
| November | 32-37 days |
| December | 15-20 days |
|---|
Data as per FADA
Aided by faster sales, wedding season and entry-level pick-up, the two-wheeler inventory levels have seen a dip in CY24.
Also read:Rural resilience to power two-wheeler market surge in March: FADA
The two-wheeler inventories for two consecutive (January and February) months are between 10 and 15 days according to Federation of Automobile Dealers Associations (FADA).
The two-wheeler inventory pile-up saw a record high of 40-45 days in last October.
“Post Covid, the two-wheeler industry had completely crashed. We started seeing an uptick in demand since September in 2023 and since then the sales have increased. The retail market is doing good across the country including the hinterland. There will be a ramp-up in production with the demand spike,” said Manish Raj Singhania, President of the Federation of Automobile Dealers Association.
FADA is also expecting positive growth in March with two-wheeler inventories staying between 10 and 15 days. Meanwhile, the passenger vehicle inventory in February was between 50 and 55 days.
Further, the two-wheeler segment volumes are estimated to grow by 8-11 per cent in FY2024, according to credit rating agency ICRA. The volumes are expected to grow with 7-10 per cent growth in FY2025 aided by rising per capita income, urbanisation and financing availability.
“Our channel check with dealerships indicates that the demand has remained relatively stable even after the festive season, which is also reflected by stable inventory levels at two-wheeler dealerships,” mentions the ICRA report.
Entry- level pick up
Dealers are also witnessing an increase in demand for entry-level two-wheelers.
Also read: Wardwizard Innovations dispatches 2,018 units of electric two-wheelers in February
“The entry-level segment is also picking up. The crop season was good towards the end of last year. This is also owing to an increase in the MSP of crops. The dealer feedback that we are getting is also positive. It is the only time that the entry-level two-wheeler segment will also start getting profitable,” added FADA’s Singhania.
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