ICRA expects 10-12% growth for two wheelers for the current fiscal with significant contribution of sales during festive season – Report

ICRA

Key Highlights

Stocking up trend in anticipation of upcoming festive season demand drives domestic two-wheeler sales volumes during August 2016

  • Stocking up of inventory by dealers remains a regular phenomenon one to two months prior to festive season, however, this year is witnessing dual impact of pay commission pay outs coinciding with festive season build up
  • Trend of stocking up of vehicles is exhibited by both motorcycle and scooter segments, though less pronounced in the latter
  • Festive season sales also expected to be buoyed by slew of new model/variant launches scheduled by OEMs during the period

Market participants like two-wheeler dealers, financiers and OEMs gear up for a strong festive season

  • Key two-wheeler OEMs as well as financiers remain optimistic about the upcoming festive season, though higher cash purchases also anticipated especially in entry segment two wheelers
  • Two-wheeler dealers confirm that stocking-up of inventory for the festive season has commenced and various promotional schemes targeted at specific customer segments have been launched by some OEMs

Conclusion

  • ICRA expects 10-12% growth for two wheelers for the current fiscal with significant contribution of sales during festive season
  • Besides pay revisions from implementation of recommendations of Seventh Pay Commission and One Rank One Pension, benefits from a favourable monsoon during the current year and expected healthy kharif output supporting rural cash flows are expected to be key factors leading the growth.

Click below link to view the entire report:

icra-report-on-indian-two-wheeler-industry-september-2016

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