New Delhi
Analysts at ICRA
have said that two-wheeler sales (motorcycles and scooters) will increase soon
because of a good monsoon forecast. It will boost demand in rural and
semi-urban markets. They also expect the monsoon to bring about customer
inclination towards personal mobility as an aftermath of the second wave of
COVID-19.
The prices of
entry-level two-wheelers are likely to be impacted due to the sustained
increase in commodity prices.
In the
two-wheeler segment, Hero MotoCorp Ltd and Bajaj Auto – India’s two largest
motorcycle manufacturers – have reported an increase in vehicle dispatches in
June compared to May 2021. Hero reportedly dispatched 438,541 units in June and
159,561 units in May. Bajaj Auto informed sending 155,640 units in June and
60,342 in May.
Most of the
players in the auto industry stopped sales and production from April when
Maharashtra, Delhi, Haryana, Karnataka, Tamil Nadu, etc., issued a lockdown.
While companies like Maruti Suzuki, Hero MotoCorp Ltd, Hyundai stopped
production, others like Bajaj Auto Ltd continued to operate with limited
capacity to meet export orders.
Most automakers
in North and South India resumed operations from the middle of May as
infections started to drop. Demand in export markets remained robust in June-2021,
higher by 25% as compared to June 2019.
Source – Mint
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