Two-wheeler sales dip for first time in 3 yrs

For the first time in over three years, sales of two-wheelers in India witnessed a decline in August, mirroring the slowdown that has gripped the coun
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For the first time in over three years, sales of two-wheelers in India witnessed a decline last month, mirroring the slowdown that has gripped the country's economy.

A little less than 1.2 million motorcycles and scooters were sold last month, which was 5.5% less than the 1.3 two-wheelers sold in August 2011.

Almost all major two-wheeler companies including Hero MotoCorp, Bajaj, TVS, Yamaha and Mahindra registered a decline.

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The only exceptions were Honda Motorcyles and Suzuki that bucked the trend largely due to the launch of their new 100cc mobikes two months ago.

Two-wheeler sales dip for first time in 3 yrs
Two-wheeler sales dip for first time in 3 yrs

Two-wheelers had defied all expectations and grown throughout even as other segments like passenger and commercial vehicles witnessed cyclical demand and slowdown.

"The decline in two-wheeler sales indicates that the problems in the economy are very real and fundamental," said Rakesh Batra, auto practice leader, Ernst & Young.

"This segment has grown at a constant pace over the years even as others have seen a cyclical demand mostly because of strong rural sales. However, I don't think growth this year will be more in other segments."

Like the car market, industry is now banking on a strong festival season for the growth story to be revived.

A flurry of launches is expected over the next one month and companies would look to lure customers into making purchases.

"Going forward, I am personally very hopeful and pretty sure that from the month of October, when the festive season begins, we will see a positive push in the retail sales," said Pawan Munjal, managing director and CEO, Hero MotoCorp. "For the months of July and August, the retail sales have been slow."

First Published Date: 05 Sep 2012, 23:06 PM IST
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