Crisil Ratings has said that two-wheeler sales volume is likely to dip by 8-10 per cent this fiscal year due to factors like sluggish rural demand, low festive-season sales, higher prices, and deferred purchases as consumers eye electric vehicles. The decline in sales volume in the current financial year is expected on an already-low base after two consecutive years of decline -- at 13 per cent in fiscal 2021 and 18 per cent in fiscal 2020.
It highlighted that this is the first time in over a decade, when two-wheeler sales are declining for three successive fiscal years. It also said segment-wise, motorcycle volume, which accounts for two-thirds of the overall two-wheeler volumes, will see a drop of about 8-9 per cent this fiscal year.
It said ‘the second, third covid waves and delayed harvest impacted rural demand for two-wheelers this fiscal. Besides, higher vehicle and fuel prices also affected rural demand this fiscal, unlike last fiscal, when rural India was less impacted by the first covid wave’.
