The two-wheeler industry is likely to record double-digit growth this fiscal thanks to a good monsoon, benefits of the Seventh Pay Commission and new launches.
The first two quarters have proved to be good for the industry with a 14 per cent increase in sales in the first quarter and 21 per cent growth in the second. The industry expects a good third quarter with the festival season contributing to robust sales.
YS Guleria, Senior Vice-President – Sales and Marketing, Honda Motorcycle & Scooters India (HMSI), pointed out that the Seventh Pay Commission, One Rank, One Pension (OROP) disbursements and favourable monsoon had led a robust return of demand in the two-wheeler sector.
“Overall, led by festival buying, Honda is confident of a bumper October sales,” he added.
To take advantage of the revival of momentum, half a dozen motorcycle launches have been planned during September-December, in addition to introduction of various colour and special edition variants of the existing models.
Motor cycles “For motorcycles, there are two key periods when purchases from companies typically spike – September and October corresponding to the pre-festival period, and January purchases with the new model year,” says Subrata Ray, Group Vice-President-Corporate Ratings, Icra.
Scooter segment The scooter segment too is expected to maintain robust growth due to new model launches, increasing shift from motorcycles in semi-urban and rural areas, and expansion of dealership network and touch points in these markets.
“The two-wheeler segment is expected to close FY17 with a 10-12 per cent growth, driven by strong festival season with a revival in the rural economy and improved penetration of organised financing in tier 2 and tier 3 cities,” stated Rakesh Batra, Partner and sector leader, Automotive, EY India.