Two-wheeler production may increase by 13 to 14 percent, rating agency Crisil released the report
According to Crisil Ratings, two-wheeler OEMs may grow by 13 to 14 percent in this financial year. The growth was driven by rising yields for executive and premium motorcycles. In the last financial year, two-wheeler OEM sales grew by 19-20 percent.
Two-wheeler Original Equipment Manufacturers (OEMs) are likely to grow by 13 to 14 percent this fiscal, Crisil Ratings said in its report today. Crisil Ratings attributed the rise in OEMs driven by rising yields for executive and premium motorcycles.
The rating agency said sales of two-wheeler OEMs grew by 19-20 percent in the last financial year. Let us tell you that motorcycles above 110cc come in the executive and premium segments.
The two-wheeler sales volume is expected to grow by around 8 percent to around 20.6 million units this fiscal, driven by around 11 percent growth in domestic markets (81 percent of total volume in FY2023), the rating agency said. Is.
Crisil Ratings said two-wheeler exports will remain impacted for the second year in a row due to economic challenges and persistently high inflation in key markets of Africa, Latin America, Bangladesh, and Sri Lanka.
In the last financial year, motorcycles accounted for about 69 percent of two-wheeler sales, followed by scooters at 29 percent and mopeds at 2 percent. The agency said the demand for scooters, including high-speed electric ones, is expected to grow rapidly due to steady orders from urban markets.
Improving per capita income, especially in urban and semi-urban markets, and launching of more models is driving consumer preference towards executive and premium motorcycles, said Anuj Sethi, Senior Director, Crisil Ratings.
The share of such vehicles in total motorcycle volumes has increased to 52 percent in FY19 from 40 percent in the previous fiscal. Whereas the demand for entry-level motorcycles (up to 110cc engine capacity), a price-sensitive segment, has remained sluggish due to a steep increase in the cost of ownership between FY2019 and 2023.