Rating agency ICRA in its latest report has said that the sustainability of domestic demand in two-wheeler would remain contingent upon the coronavirus disease (covid-19) scenario following the festive season. It pointed out that October marked the beginning of the auspicious festive season in India and the pace of inventory restocking by original equipment manufacturers (OEMs) reached its peak.
According to the report, even as dealers remain cautiously optimistic about retail sales going into the festive season, the listed OEMs reported a 24 percent year-on-year increase in their domestic sales volumes in October 2020. This indicates optimism regarding consumer sentiments, especially those in rural and semi-urban markets and continued preference for 2-wheelers as a personal mobility solution in urban areas.
On the export front, it said the listed OEMs reported a 32 percent year-on-year improvement in dispatches in the previous month and it indicates that the key export markets are also shaking-off the pandemic blues.