05 Aug 2020
Posted in Automotive
Growing need for personal mobility and strong rural demand boosting 2-wheeler sales in India, says GlobalData
Following the news that year-on-year two-wheeler sales decline in India narrowed in July 2020 as compared to previous month;
Animesh Kumar, Director of Automotive Consulting at GlobalData, a leading research and consulting company, offers his view:
“Most of the major two-wheeler manufacturers in India witnessed healthy wholesale volumes in July 2020. The top five OEMs Hero MotoCorp, Honda Two-wheelers, TVS Motors, Bajaj Auto and Royal Enfield cumulatively accounted for a wholesale volume of 1.2 million units in July 2020. However, the sales volume is still 13% lower compared to July 2019.
“There are several drivers for the growth in sales. A positive trend has been noticed towards the preference for personal mobility and it is only going to grow at least in the short-term. COVID-19 is impacting consumer preferences. Concerns regarding the safety and hygiene are driving some customers away from public transportation. As a result, customers are opting for personal mobility and the sales of both new and used two-wheelers are growing. Affordability is a key factor among a large share of users of public transportation and the sales of two-wheelers are expected to witness faster growth in the coming months.
“Another factor that is a major growth driver for two-wheeler sales is the strong demand from the rural and semi-urban areas owing to good monsoons and harvest season. The disposable income has increased in rural areas and the inadequate public transport infrastructure is driving customers towards two-wheelers.
“Unlocking of economic activities, easing of restrictions on movement, uncertainties over availability of public transportation and pent-up demand from May and June also helped in improving sales volumes in July 2020. There have been reports that two-wheeler dealers are receiving high number of bookings, which indicates that the growth is not temporary and is likely to sustain.”