Two-wheeler production in the country dipped for the third month in a row in February.
According to data from the Society of Indian Automobile Manufacturers (SIAM), production in February 2023 at 13,48,669 units was 81,859 units lesser than that in February 2022 at 14,30,428 units.
In January 2023, 14,54,476 units were produced, as opposed to 14,96,064 units in January 2022, while in December 2022 companies manufactured 12,10,590 units as opposed to 13,07,784 units.
Companies have been reducing production owing to a sustained decline in exports, as global markets are impacted.
“There has been a 30 per cent decline in export demand. Emerging markets depend on imports, while demand is coming down. Nigeria is an important market for us and there is a demonstration there. We expect normalcy by the middle of March,” said Rakesh Sharma, Executive Director, Bajaj Auto Ltd, during the company’s December quarter results.
However, exports of two-wheelers witnessed a marginal increase in February at 2,35,087 units, 14,984 units more than 2,20,103 units in January.
businessline had earlier reported that 10-year data from the Society of Indian Automobile Manufacturers (SIAM) shows that two-wheeler sales in FY22 stood at 1,34,66,412 units, compared with 1,48,06,778 units in FY14. Additionally, the number of vehicles sold between April 2022 and January 2023 was at 1,34,41,873.
“The entry-level segment is impacted more, while rural demand is still muted and under severe distress. It still has to recover from the impact of coronavirus,” said Manish Raj Singhania, president, of the Federation of Automobile Dealers’ Association (FADA).