Sales of two-wheelers in India expected to grow by 11 to 14 percent in FY25

New Delhi| During the festive season (3 October-13 November) there was a strong 14 per cent increase in retail sales of two-wheelers. This information was given in a report. The wholesale sales outlook for the two-wheeler industry released by credit rating agency ICRA said that the industry’s volume growth could be 11 to 14 percent in FY25. The reason for this is the strengthening of rural demand due to stable replacement demand and good monsoon.

The report further noted that retail sales of passenger vehicles had increased by 6 per cent year-on-year to 6.5 lakh units during the festive season. The reason for this is attractive discounts and good financing options.

However, despite good retail sales during the festive season, high inventory levels dampened the growth in wholesale volumes. Based on channel cheques, the report said that there has been a good increase, especially in semi-urban and rural bookings. With this the footfall has increased. Inventory levels have also come down to normal levels.

Total two-wheeler sales in the country increased by 14.2 percent to 21.64 lakh units in the month of October, compared to 18.96 lakh units in October 2023. Sales of passenger vehicles, including cars and SUVs, also rose to their highest monthly level of 3.93 lakh units in October, up 0.9 per cent from the October 2023 high base figure of 3.9 lakh units, according to the latest data from the Society of Indian Automobile Manufacturers (SIAM). Market experts say that higher sales of two-wheelers means increase in income in rural areas due to better harvest due to good monsoon.