The domestic sales of two-wheelers in August witnessed a one-year high at 15,66,594 units. According to the Society of Indian Automobile Manufacturers (SIAM) figures, the domestic sales of two-wheelers in August 2022 were 15,57,429 units. The sales of two-wheelers had witnessed a dip in July 2023 with 12,82,054 units after seeing a pickup in June with 13,30,826 units.
The production of two-wheelers by original equipment manufacturers (OEM) in August also saw an uptick with 19,16,789 units as compared to 18,60,777 units in August 2022.
However, the exports of two-wheelers saw a year-on-year dip with 2,90,855 units in August 2023 as compared to 3,03,692 units in August 2022.
The retail sales of two-wheelers in the country in August also saw a 6.3 per cent growth. Auto dealers are expecting further growth in September. “There has been overall growth in the sales of two-wheelers in August. A 2.14 per cent growth was seen. However, the sales are still not near pre-Covid levels and continue to remain 11 per cent lower. We are expecting a good September,” said Manish Raj Singhania, President of the Federation of Automobile Dealers Association (FADA).
Rural economy stress
While the overall sales of two-wheelers have been positive, the rural economy continues to be under pressure due to scarce rainfall. “The pressure continues to remain in the rural economy and in the entry-level two-wheeler segment. To reduce the pressure we are asking the government for a reduction in Goods and Service Tax (GST) from 28 per cent to 18 per cent on the entry-level two-wheelers. The rural economy will require at least two years of good crop seasons to completely recover,” added Manish Raj Singhania.